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Oman has signed a concession agreement with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell plc, and its partners to develop and produce natural gas from block 10 of the Saih Rawl gas field.
The parties also signed a separate gas sales agreement for gas produced from the block. The two agreements follow an interim upstream agreement signed in February 2019, Shell said in a statement on Tuesday.
Shell's partners are OQ and Marsa Liquefied Natural Gas LLC, a joint venture between TotalEnergies and OQ.
The block is expected to reach production of 0.5 billion cubic feet of gas per day (bscf/d), Oman’s energy ministry said on Twitter. Production is expected to begin within the next two years.
The concession agreement has Shell as the operator of block 10, holding a 53.45 percent working interest, with OQ and Marsa Liquefied Natural Gas LLC holding 13.36 percent and 33.19 percent respectively.
For the initial phase, Petroleum Development Oman (PDO) is building the infrastructure for the project, including the main pipeline to the Saih Rawl gas processing facility, on behalf of the Block 10 venture partners. The venture will drill and hook up wells to maintain the production beyond the initial phase.
In addition, Shell and Energy Development Oman (EDO) signed an agreement to process the natural gas from Block 10 in EDO’s Saih Rawl facility.
(Writing by Brinda Darasha; editing by Seban Scaria)
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