Oman has signed an exploration and production sharing agreement with Shell Integrated Gas Oman, TotalEnergies and Omani integrated energy company OQ to develop natural gas resources and condensate.
The exploration and production sharing agreement (EPSA) in the onshore Block 11 aims to “explore, appraise and develop natural gas resources and condensate in Block 11”, Oman’s Ministry of Energy and Minerals said in a statement on Friday.
Block 11 is located in the western side of the country near the Um Asamim Sabkha.
The agreement establishes Shell as the operator of the Block 11, holding a 67.5 per cent working interest, with OQ and TotalEnergies holding 10 per cent and 22.5 per cent interest, respectively.
“This agreement strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain,” Salim Al Aufi, Oman’s Minister of Energy and Minerals, said.
The first stage of activities under the agreement will involve seismic acquisition in late 2022, with a first exploration well planned to be drilled in 2023.
“Shell’s entry into this block signifies a further commitment to Oman, while enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated gas business and generate value for Oman and our shareholders,” Walid Hadi, Shell’s senior vice president, and country chair in Oman, said.
Block 11 contains undeveloped discoveries and exploration potential, TotalEnergies said.
“Entry into the Block 11 gives us the opportunity to unlock additional potential to meet domestic and export gas demand,” said Laurent Vivier, senior vice president for Middle East and North Africa, exploration and production, TotalEnergies.
In December, Oman signed a concession agreement with Shell Integrated Gas Oman BV, OQ and Marsa Liquefied Natural Gas, to develop and produce natural gas from Block 10 of the country's Saih Rawl gasfield.
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