Following the news that Shell and Total have signed memoranda of understanding (MoU) with the government of Oman to develop natural gas resources in the country, Liam Yates, Research Analyst, Middle East & North Africa upstream, Wood Mackenzie, released the following statement:
“The separate MoUs signed today between the government of Oman, Shell and Total will help secure Oman's longer-term gas supply through development of recent discoveries in the Greater Barik area of central Oman, close to BP's Khazzan tight gas development brought onstream last year.
“The proposed upstream development between Shell (75%) and Total (25%) is expected to produce 500 million ft3/d initially, potentially rising to 1 billion ft3/d later. This new development will help to offset longer-term decline from Petroleum Development Oman's existing production in the area. Oman's state-owned oil company is also expected to participate in the venture.
“Shell and Total will commercialise the gas from Greater Barik separately, with Shell and partner Oman Oil Company constructing a gas-to-liquids plant in the port of Duqm on Oman's east coast.
“Total will construct a small-scale liquefaction terminal at the port of Sohar, with the intention of establishing a regional LNG bunkering business. This follows the French major’s announcement in December that it would supply the shipping company CMA CGM with 0.3 million tpy of LNG over 10 years.
“The new agreement demonstrates Shell and Total's long-term commitment to Oman through establishing an integrated gas business in the country and will help to support the government's in-country value and job creation targets."
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14052018/reaction-total-signs-mou-with-oman/