MOG, Shell, Total Achieve New Step in in Developing Integrated Gas Projects in Sultanate

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


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


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


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