Monday 14, May 2018 by Jessica Combes

Total Shell to develop gas projects in Oman

 

Total has signed a Memorandum of Understanding (MoU) with the Government of Oman to develop natural gas resources in the Sultanate.

This MoU includes both upstream and downstream businesses.

Total, and Shell as the operator, will develop several natural gas discoveries located in the Greater Barik area onshore Block 6 with respective shares of 25 per cent and 75 per cent. As per the agreement between both companies and before possible state back-in, with the objective of an initial gas production of around 500 million cubic feet of gas per day, with a potential to reach 1 bcf/d at a later stage, reported the Times of Oman.

Arnaud Breuillac, President Exploration & Production at Total said the company will bring its expertise in liquefied natural gas (LNG) and will introduce access to a new gas market for the Sultanate, adding that developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman.

The Times of Oman added that Total will use its equity gas entitlement as feedstock to develop a regional hub in Oman for LNG bunkering service which will supply LNG as a fuel to marine vessels, thanks to a new small-scale modular liquefaction plant to be built in Sohar port. The plant will comprise a 1 Mt per year train offering the flexibility for expansion as required by the development of the LNG bunkering market.

The group’s production in the Sultante was 37 kilobarrels of oil equivalent per day in 2017. Total produces four per cent of oil in Block 6, two per cent in Block 53, as well as 5.54 per cent LNG through its participation in the Oman LNG and 2.04 per cent at the Qalhat LNG liquefaction complex with an overall capacity of 10.5 million tonnes per year.  

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