Muscat, Dr. Mohammed bin Hamad al-Rumhy,
Minister of Oil and Gas (MOG), Ben van Beurden, CEO of Shell and
Arnaud Breuillac, Total President Exploration and Production signed an
interim upstream agreement that details funding and a work
programme for 2019 for the development of gas resources destined for
integrated projects to help meet the Sultanate growing need for
energy. The interim upstream agreement was signed, in cooperation
with Petroleum Development Oman (PDO) and Oman Oil Company
(OOC).
Today’s upstream agreement covers gas acreage in the northern
part of Block 6 located to the west of the existing Saih Rawl gas field,
which is operated by the PDO. The project covers investments in gas
exploration and production, in a partnership involving Shell, Total and
OOC, aiming at integrating the upstream project with the development
of two different downstream projects consisting of a gas-to-liquids plant
(GTL) developed by Shell, in partnership with OOC, and a LNG
Bunkering project developed by Total in partnership with OOC.
Chris Breeze, Shell’s Country Chairman in Oman, said: “Today’s
agreement indicates a significant progress in the proposed
developments, this will play an important role in expanding the
Sultanate gas industries, job creation and increase the contribution of
local industries in the Sultanate’s GDP. This agreement marks a new
chapter in Shell’s close partnership with the government of the
Sultanate”.
For Total, Arnaud Breuillac commented “Total is pleased by this
new step towards the creation of an LNG plant and an LNG bunkering
activity in Sohar and is grateful to the Sultanate’s Government for this
continued support. We are confident that the project will help diversify
the gas sector in the Sultanate and support the economic development
of the Port of Sohar and its region. As a leading integrated gas player.
Total is committed to bringing the best of its expertise to develop and
operate this one of a kind integrated gas project”.
Eng. Isam al-Zedjali, Oman Oil’s CEO said “These gas projects
are part of our group of companies’ strategy towards the integration of
oil and gas industry across the value chain to achieve further synergy
in partnership with global industry leaders. The GTL and LNG
bunkering integrated projects will unleash new opportunities for local
market development, as well as employment. We support the
Government’s vision of diversifying the national economy, and always
keen to unlock cooperation potentials both locally and globally”.
“PDO has made very good progress in recent years in the exploration
and appraisal of significant gas finds in the Greater Barik area. As set
out in today’s interim agreement, we will be continuing with our plans
to appraise and develop the fields until final terms are confirmed in the
final Master Agreement. We look forward to supporting the MOG and
partners Shell, Total and OOC, as we gradually transition from operator
to service provider to deliver this important project that will benefit the
Sultanate and its people,” said Raoul Restucci, PDO Managing
Director.
MOG, Shell, Total and OOC will continue to work diligently to
finalize the definitive agreements which will guarantee the success of
those integrated developments.
Source: Oman News Agency