MUSCAT: Shell has revealed that it plans to relinquish hydrocarbon blocks 42 and 55 – exits that will maintain the energy supermajor’s leading presence in the Sultanate of Oman.

The energy giant made the announcement in its 2024 Annual Report published on Tuesday, March 25, 2025.

“We have a 50 per cent interest in Block 42 under an exploration and production-sharing agreement (EPSA) where Shell is the operator,” said Shell. “We also operate in Block 55 under an EPSA (Shell interest 100 per cent). We are in the process of relinquishing our interests in Block 42 and Block 55 to the government,” it added.

Shell added Block 42 to its upstream portfolio in April 2017 when the company signed a Heads of Agreement (HoA) with Oman Oil Company Exploration & Production (OOCEP) – since rebranded as OQEP – to collaborate on the development of the 25,600 km2 concession in northeast Oman.

An EPSA for Block 55 in the southeast of the country was signed in October 2019, committing a 100 per cent working interest and operatorship of the concession to Shell.

Despite the planned exits, Shell still enjoys a substantial presence in Oman’s upstream energy sector. The company has a 34 per cent interest in Petroleum Development Oman (PDO), which operates the Block 6 oil concession – the largest in Oman, and accounting for the lion’s share of the country’s production of oil, natural gas and condensates.

“Shell is entitled to 34 per cent of oil produced from Block 6 through its interest in Private Oil Holdings Oman Ltd. The government of Oman has a 60 per cent interest in PDO and the Block 6 oil concession through its wholly owned company, Energy Development Oman (EDO). PDO operates a concession area of about 90,000 square kilometres and has more than 200 producing oil fields,” it noted.

Furthermore, Shell has a concession agreement for the development and production of natural gas and condensate in the Shell-operated Block 10 (Shell interest 53.45 per cent). “We have a separate gas sales agreement and oil supply agreement for production from the block. We also have an exploration and production-sharing agreement for the exploration and appraisal of natural gas and condensate in the Shell-operated Block 11 (Shell interest 67.5 per cent),” the company further stated in its Annual Report.

In the LNG business, Shell has a 30 per cent stake in Oman LNG, as well as an indirect 11 per cent interest in Qalhat LNG.

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