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    Shell and Total sign up for Oman gas projects

    European oil majors Shell and Total on Sunday signed memoranda of understanding with the Omani government for the development of upstream and downstream projects in the Middle Eastern country, Kallanish Energy reports.
    Operator Shell (75%) and Total (25%) will develop several natural gas discoveries located in the Greater Barik area, onshore Block 6. The firms aim to initially produce 500 million cubic feet per day (MMcf/d) of gas, with the potential to double production at a later time.
    Shell and Total sign up for Oman gas projects
    The deal also foresees the participation of the state-run Oman Oil Co. (OOC) as a partner, although its shareholding stake wasn’t disclosed. Shell and Total will commercialize the gas from Greater Barik separately.
    Shell plans to operate a gas-to-liquids plant at the Duqm port, on the east coast of Oman, in partnership with OOC. The MoU also serves as a platform for further negotiations on the proposed developments, including liquefied natural gas (LNG) and renewable energies, Shell said, in a statement.
    Total will use its equity gas entitlement as feedstock to develop a regional hub for a LNG bunkering service, supplying the liquefied natural gas as fuel to marine vessels in Oman.
    The firm will build a small-scale modular liquefaction plant at the Sohar port, with capacity to produce around 1 million tons per annum (MTPA). The facility will offer flexibility for expansion as required by demand.
    The integrated gas development “will help to offset longer-term decline from petroleum development of Oman’s existing production in the area,” said Liam Yates, Middle East analyst at consulting firm Wood Mackenzie.
    “The separate MOUs signed 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,” added Yates.

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