Total and Shell to develop new gas resources in Oman

Total has signed a memorandum of understanding (MoU) with the Government of Oman to develop natural gas resources in Oman, the company announced on Monday.

The French oil giant said the MoU covered both upstream and downstream businesses.

Total, and Shell as operator, would develop several natural gas discoveries located in the Greater Barik area on onshore Block 6, with respective shares of 25% and 75%, as per the agreement between both companies and before possible state back-in, the firm explained.

It said there was an objective of an initial gas production of around 500 MMcfd and a potential to reach 1 bcf/d at a later stage.

Total would use its equity gas entitlement as feedstock to develop in Oman a regional hub for liquefied natural gas bunkering service to supply LNG as a fuel to marine vessels.

That would be achieved through a new small-scale modular liquefaction plant to be built at Sohar port.

The plant would comprise a train of around 1 Mt per year, and would offer the flexibility for expansion as required by the development of the LNG bunkering market, Total explained.

“We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” said Total’s president of exploration and production Arnaud Breuillac.

“We will bring our expertise in LNG and will introduce access to a new gas market for the sultanate.

“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.”