Shell, Total to develop new natural gas discoveries

Total signed a Memorandum of Understanding (MoU) with the Government of Oman to develop natural gas resources in Oman. This MoU includes both upstream and downstream businesses.

Total and Shell as 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.

“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,” stated Arnaud Breuillac, President Exploration & Production at Total.

“We will bring our expertise in liquefied natural gas (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,” he added.

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. This will be achieved 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.

In Oman, the group’s production was 37 kilobarrel of oil equivalent per day in 2017. Total produces oil in Block 6 (4 four per cent) and in Block 53 (2 per cent), as well as LNG through its participation in the Oman LNG (5.54 per cent) and Qalhat LNG (2.04 per cent) liquefaction complex with an overall capacity of 10.5 million tonnes per year.