Page 14 - MEOG Week 24 2021

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The current energy landscape worldwide is technologies and replacing machines to the deep-water field, this additional well “was
ever-challenging requiring mutual and intense reduce its greenhouse gas emissions. Our role originally planned to be drilled in subsequent
efforts to be taken by energy companies and in protecting and restoring natural ecosystems years, but the operator recommended it be
adopting the most efficient practices to remain could play an important role in limiting global drilled in 2022”.
reliable and agile suppliers to customers. warming. These changes ultimately ensure the Israeli company said initial outlay for
The agreement inked represents a long- efficiency and sustainability of our plant and drilling-related equipment would be about
time history and relations between Oman machinery.” $14 million.
LNG and Shell. Shell is a leading supplier Al Naamany continues, “Using high- “In light of production volumes from
of carbon-neutral LNG after delivering the quality nature-based offsets for Oman Leviathan and demand in the first quarter of
world’s first cargoes in 2019 and many more LNG’s first carbon-neutral LNG cargo 2021, and in order to improve redundancy
subsequently. This collaboration allows Oman offering is a testimony of our commitment in the production system,” Delek Group
LNG to tap into the knowledge and expertise to the environment, and our focus on said Chevron “recommended” the partners
of Shell while it translates Oman LNG’s bold decarbonisation. We continue to be amongst advance the drilling of another production
commitment towards knowledge sharing the top quartile of the premium LNG market, well. A Chevron spokesperson said it is not
as well as exploring suitable mechanisms to and aim to remain in this position post-2025.” the company’s policy “to comment on future
reduce emissions. Walid Hadi, VP Oman and Shell Country production or commercial matters.”
Natural gas is the cleanest-burning Chair added, “Shell is proud to partner Output from Leviathan this year was
hydrocarbon, producing half the greenhouse with Oman LNG on its journey in support forecast to total about 360 billion cubic feet,
gas emissions and less than one-tenth of the of the energy transition. As a shareholder but Delek Group said the current production
air pollutants of coal when used to generate and technical service provider, we have levels point to volumes grossing up to about
electricity. Using nature-based offsets in been supporting OLNG to reduce its GHG 380 Bcf by the end of 2021, an increase of
conjunction with LNG provides a unique emissions from operations, and today’s almost 6%. The field’s current capacity is about
clean energy solution. announcements for the first carbon-neutral 1.2 billion cubic feet per day.
Environmental performance tops Oman LNG cargo from Oman further strengthen the The extra well is not related to ongoing
LNG’s priorities since its inception. Lately, the deep partnership between OLNG and Shell.” plans to ramp up Leviathan’s production
company has initiated a number of projects Oman LNG provides cleaner and efficient capacity in the coming years.
to eliminate its carbon footprint such as the LNG to customers from which tangible value In order to meet future Israeli demand,
ongoing Power Project Plant at the site. The is reached for the Sultanate of Oman and what comprises phase one could see two
move to introduce the gas engine power its people through a wide swath of social more wells drilled at the field and extra subsea
plant is to conserve natural gas and reduce investment programmes that address many hardware in order to drive capacity up to 1.6
emissions. Gas savings accumulated through economic and social needs, including avenues Bcfd. According to Delek Group subsidiary
this project are aimed at producing power to generate In-Country Value and Small Delek Drilling, this scheme would cost about
for Oman LNG’s facility with less natural gas Medium Enterprises (SMEs) development. $875 million. A second phase, based on rising
by optimising gas resources and therefore The LNG industry in Oman has now grown to regional demand – gas is currently exported
yielding less environmental emissions. be the largest income earner for the Sultanate, to Egypt and Jordan – would involve capacity
These efforts by the company complement after oil. being increased to as much as 2.4 Bcfd.
the Sultanate’s Vision Oman 2040 which TIMES OF OMAN This phase would involve four new
focuses on four main axes; one of which is production wells and subsea infrastructure,
themed “environment whose resources are Chevron steps up Israeli a fourth pipeline from the field to Leviathan’s
sustainable”. This axis covers aspects of the fixed platform – which is located on Israel’s
environmental performance and natural gas field drilling to match continental shelf – as well as extra processing
resources, which puts significant emphasis equipment on the platform.
on the environmental perspective to be increased demand Delek Drilling said this second phase
considered during the creation of policies, would cost an estimated $1.5 billion to $2
decisions making in industrial planning and US supermajor Chevron, operator of the 22.7 billion. The company added that if this latter
implementation. trillion cubic foot Leviathan gas field offshore plan is pursued, then it would also create the
Speaking on the agreement, Hamed Al Israel, has decided to accelerate the drilling of capacity to supply gas to onshore liquefied
Naamany, CEO of Oman LNG commented an extra production well at the field to meet natural gas facilities and to a floating LNG
“Oman LNG has taken major steps over greater than forecast demand. plant.
the past few years such as introducing new According to Delek Group, a key partner in UPSTREAM

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