Page 11 - MEOG Week 01 2021

MEOG PROJECTS & COMPANIES MEOG

Shell, TotalEnergies

agree Oman Block 10 deal

OMAN SUBSIDIARIES of Shell and TotalEnergies by PDO in 2017.
agreed deals in late December with Omani A year later, the company said that Mabrouk
authorities for the development of Block 10 and was estimated to contain recoverable reserves of
for gas sales. 113bn cubic metres of gas and 112mn barrels of
The Block 10 concession was signed with condensate. The area is also home to Mabrouk
the Sultanate’s Ministry of Energy and Minerals West.
and awards Shell operatorship with a stake of Meanwhile, Shell and Energy Development
53.45%, while state oil firm OQ will hold 13.36% Oman (EDO), to which PDO’s 100% ownership
and the Marsa Liquefied Natural Gas LLC joint of the gas in Block 6 and 60% of the oil was trans-
venture between TotalEnergies and OQ will take ferred last year, signed an agreement to process
33.19%. Block 10 lies within the Greater Barik the natural gas from Block 10 at EDO’s Saih Rawl
area in central Oman and was previously part of gas processing facilities.
the giant Block 6 concession. Shell noted that it had agreed with Muscat to
State-backed Petroleum Development Oman also develop “options for a separate downstream
(PDO), in which Shell and TotalEnergies hold gas project in which Shell could produce and sell
respective shares of 34% and 4%, is developing low-carbon products and support the develop-
infrastructure for the project’s first phase, includ- ment of hydrogen in Oman”. It added that any
ing a pipeline connecting the block with gas pro- such project would be subject to further agree-
cessing facilities at Saih Rawl near the giant gas ments and future investment decisions.
field of the same name. Similarly, TotalEnergies’ Marsa LNG JV
Shell said that the partners will drill and intends to develop a low-carbon liquefaction
tie-back wells to enable sustainable production plant at the Omani downstream hub of Sohar,
“beyond the initial phase”. Output is expected to which will leverage solar power to run a facility
reach 500mn cubic feet (14.2mn cubic metres) to produce LNG for bunkering.
per day of gas, with start-up envisaged within 24 The JV will sell gas from Block 10 to the
months. Omani state under a contract set to run for 18
The key area of development will be the years or when the company’s LNG plant com-
Mabrouk North East field, which was discovered mences operations, whichever occurs first.™

Week 01 05•January•2022 www. NEWSBASE .com P11