Page 11 - MEOG Week 09 2022
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MEOG PROJECTS & COMPANIES MEOG
Oman in talks with Euro
majors on deal expansion
OMAN OMAN’S Ministry of Energy and Mineral including a pipeline connecting the block with
Resources (MoEM) is holding talks with Shell gas processing facilities at Saih Rawl near the
and TotalEnergies regarding a potential deal to giant gas field of the same name.
develop gas from the Sultanate’s Block 11 conces- In December, Shell said that the partners
sion, expanding a December agreement. would drill and tie-back wells to enable sus-
The pair signed deals in December for the tainable production “beyond the initial phase”.
development of Block 10 and for gas sales from Output is anticipated to reach 500mn cubic
the licence alongside Oman’s state-owned OQ feet (14.2mn cubic metres) per day of gas, with
and Marsa LNG, which is an affiliate of TotalEn- start-up envisaged within 24 months.
ergies and the Omani firm. The key area of development will be the
Speaking during an event held by the Society Mabrouk North East field, which was discovered
of Petroleum Engineers (SPE), MoEM undersec- by PDO in 2017. A year later, the company said
retary Salim al-Aufi said: “Discussions are ongo- that Mabrouk was estimated to contain recover-
ing now to finalise the commercial agreement able reserves of 113bn cubic metres of gas and
between the government and the same [Block 112mn barrels of condensate. The area is also
10] partners for Block 11,” home to Mabrouk West.
The deal for the adjacent Block 10 conces- Meanwhile, Shell and Energy Development
sion was signed with the Sultanate’s Ministry of Oman (EDO), to which PDO’s 100% ownership
Energy and Minerals and awarded Shell oper- of the gas in Block 6 and 60% of the oil was trans-
atorship with a stake of 53.45%, while state oil ferred last year, signed an agreement to process
firm OQ holds 13.36% and the Marsa Liquefied the natural gas from Block 10 at EDO’s Saih Rawl
Natural Gas joint venture between TotalEnergies gas processing facilities.
and OQ has taken 33.19%. Block 10 lies within Meanwhile, Al-Aufi noted that Oman antici-
the Greater Barik area in central Oman and was pates the award of three blocks later this year. He
previously part of the giant Block 6 concession. said: “We have three blocks in the market. We are
State-backed Petroleum Development Oman just waiting for the final bids to arrive. I think the
(PDO), in which Shell and TotalEnergies hold last day is March 31 of this year, then we will start
respective shares of 34% and 4%, is develop- looking into evaluating the bids and hopefully
ing infrastructure for the project’s first phase, allocating some of these blocks.”
Week 09 02•March•2022 www. NEWSBASE .com P11
