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Shell and TotalEnergies sign gas concession agreement for Block 10 in Oman

The Ministry of Energy and Minerals of  Oman has signed a series of agreements with Total Energies, Oman National Oil Company (OQ) and Shell for the development of gas projects in the sultanate. TotalEnergies and OQ have set up an 80:20 integrated company, Marsa LNG, which will produce gas from the Block 10 and could liquefy it in a new solar-powered LNG plant in Sohar. In addition, the Ministry has signed a concession agreement for the development of the Block 10: Shell will be the operator with a 53.45% working interest, in partnership with Marsa LNG (33.19%) and OQ (13.36%). Petroleum Development Oman (PDO) will build the infrastructure for the project, including a pipeline to the Saih Rawl gas processing facility. Block 10 is expected to start up in 2023 and to reach a production level of 0.5 bcf/d (5.15 bcm/year). Finally, Marsa LNG will sell gas from Block 10 to the government under an 18-year gas sales agreement.