Tuesday, November 28
06:23 PM

‘$2bn investments in Block 10 gas development’


Muscat – Investments worth close to US$2bn are anticipated in projects linked to the development of natural gas reserves in Block 10 in central Oman, agreements for which were signed here recently, according to Dr Saleh al Anbouri, director general of exploration and production in the Ministry of Energy and Minerals.

The ministry has signed a concession agreement with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell, and its partners, OQ and Marsa Liquefied Natural Gas – a joint venture between TotalEnergies and OQ.

In a statement to Oman News Agency, Anbouri said, “The concession agreement will attract US$2bn investment over the 18-year tenure of the pact. It involves the drilling of wells and connecting these with production lines to achieve an output expected to reach 500mn m3 per day within the next two years.”

The concession agreement is a major step for strategic and long-term cooperation to harness the energy resources required by the sultanate to support the fuel and feedstock needs of industry and meet other economic demands as per objectives set out by the government, he added.

“This project will increase the capabilities of the energy industry in the sultanate and bridge the gap between gas supply and its consumption needs in the future, in line with the sultanate’s strategy to provide growth opportunities in all energy fields according to the priorities of Oman Vision 2040,” Anbouri said.

In conjunction with the development of Block 10, the partners will also study prospects for the utilisation of gas in low carbon projects, the output of which will include green hydrogen – an important resource for further value creation.

The concession agreement establishes Shell as the operator of Block 10, holding a 53.45 per cent working interest, with OQ and Marsa Liquefied Natural Gas holding 13.36 per cent and 33.19 per cent, respectively.

In the initial phase, Petroleum Development Oman is building the infrastructure for the project.

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