Total announced that it has signed a Memorandum of Understanding (MoU) with the Government of Oman to develop natural gas resources in Oman. The MoU covers both upstream and downstream businesses.
Paris/France — The agreement plans for Total and Shell as operator to develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25 % and 75 %, as per the agreement between both companies and before possible State back-in, with the objective of an initial gas production of around 500 million cubic feet per day and a potential to reach one billion cubic feed per day at a later stage.
The French company will use its equity gas entitlement as feedstock to develop in Oman a regional hub for Liquefied Natural Gas (LNG) bunkering service to supply LNG as a fuel to marine vessels. This will be achieved thanks to a new small-scale modular liquefaction plant to be built in Sohar port. The plant will comprise a train of around one million tons per year and will offer the flexibility for expansion as required by the development of the LNG bunkering market.
According to Arnaud Breuillac, President Exploration & Production at Total, the MoU would give the company access to new gas resources and the opportunity to develop an integrated gas project. The company would bring their expertise in LNG and would introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service would generate in-country value and job opportunities, and support industry diversification through fostering the shipping activity in Oman.
In Oman, the Group’s production was 37 kilo barrels of oil equivalent per day in 2017. Total produces oil in Block 6 (4 %) and in Block 53 (2 %), as well as LNG through its participation in the Oman LNG (5.54 %)/ Qalhat LNG (2.04 %) liquefaction complex with an overall capacity of 10.5 million tons per year.