Shell, Total sign up to gas exploration on Omani block

Shell, OQ and TotalEnergies have signed a brand new contract with Oman on Block 11.

Oman’s Ministry of Vitality and Minerals signed the exploration and production-sharing settlement (EPSA), establishing Shell Built-in Fuel Oman because the operator. The Shell unit will maintain a 67.5% stake.

OQ has 10% and Whole 22.5% within the block.

The businesses have dedicated to capturing 1,400 sq. km of seismic later this yr, with exploration drilling beginning in 2023.

Minister of Vitality and Minerals Salim bin Nasser Al Aufi mentioned the ministry was targeted on “enhancing the pure gasoline reserves of the Sultanate of Oman via exploration and appraisal actions undertaken by a number of corporations within the nation”.

© Equipped by TotalEnergies

The deal “strengthens the strategic relations with companions within the sector reminiscent of Shell, TotalEnergies, OQ and others to make sure Oman’s vitality safety and appeal to extra international funding, including the very best worth to the native provide chain”.

Shell nation chair in Oman Walid Hadi mentioned the block was in Oman’s west, inside and close by the Um Asamim Sabkha.

“Shell’s entry into this block signifies an additional dedication to Oman, whereas enhancing and diversifying its gasoline provide. For Shell, this partnership will strengthen our built-in gasoline enterprise and generate worth for Oman and our shareholders,” he mentioned.

Whole didn’t instantly touch upon the announcement.

Nonetheless, in December 2021, the corporate introduced a take care of Oman on a wide-ranging gasoline plan, round Block 11. Whole agreed to kind Marsa LNG, with the intention of offering gas for bunkering.

On the identical time, Oman appointed Shell to function Block 10.