Shell pens concession deal for block 10 in Oman
Shell, along with partners, OQ and Marsa Liquefied Natural Gas, has signed a concession agreement with the government of Oman to develop and produce natural gas from Block 10 of the Saih Rawl gas field, Shell said on December 21.
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.
The concession agreement establishes Shell as the operator of Block 10, holding a 53.45% interest, with OQ and Marsa Liquefied Natural Gas, which is a joint venture between TotalEnergies and OQ, holding 13.36% and 33.19% respectively.
For the initial phase, Petroleum Development Oman is building the infrastructure for the project, including the main pipeline to the Saih Rawl gas processing facility, on behalf of the partners. The block is expected to reach production of 0.5bn ft3/day of gas with the start-up is expected within the next two years.
In addition, Shell and Energy Development Oman signed an agreement to process the natural gas from block 10 in the latter’s Saih Rawl facility.
Shell and the government have agreed that, in parallel to the development of block 10, Shell will develop options for a separate downstream gas project in which it could produce and sell low-carbon products and support the development of hydrogen in Oman.