Shell, Oman Sign Upstream Agreement
Shell and the government of Oman have signed an initial agreement pertaining to development of gas resources in Oman.
Shell CEO Ben van Beurden and Mohammed bin Hamad Al Rumhy, Oman’s minister of oil and gas, have 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 of Oman’s growing need for energy,” Shell said February 20.
Petroleum Development Oman (PDO), Oman Oil Company (OOC) and Total also signed the agreement as partners.
The agreement covers gas acreage in the northern part of Block 6 located to the west of the Saih Rawl gas field that is operated by PDO. The project covers investments in gas exploration and production, in partnership with Total and OOC, Shell said.
“The aim is to integrate the Shell and OOC share of the upstream project with the development of a gas-to-liquids plant (GTL) currently under discussion, to be developed and operated by Shell in partnership with OOC,” Shell added.
Shell said the partners "will work closely and diligently to finalise definitive agreements which will underpin the long-term success of the energy projects which were first outlined in the memorandum of understanding signed in May 2018."