Page 12 - GLNG Week 01 2021

GLNG MIDDLE EAST GLNG

Shell, TotalEnergies agree

Oman Block 10 deal

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

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