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Shell starts exploring for new gas resources in Oman

Shell has started gas exploration activity in central Oman. The company, together with Total, signed a multi-billion dollar agreement in early 2019 with the government of Oman to finance an integrated gas development, including upstream gas exploration and development, a Gas-to-Liquids (GTL) plant in Duqm, and an LNG bunkering terminal within Sohar Port. No precise amount has been released. Participants include Petroleum Development Oman (PDO) and Oman Oil Company Exploration & Production (OOCEP), an affiliate of OQ (ex-Oman Oil & Orpic Group).

The objective of the government is to monetise gas resources in the Greater Barik area (encompassing Blocks 10, 11 and 12). In 2018, Total and Shell signed a memorandum of understanding with the government, in respective proportions of 25% and 75%, to develop natural gas resources located in the onshore Block 6, with an initial production target of 0.5 bcf/d (141 mcm/d), that could expand to 1 bcf/d (over 280 mcm/d).