This MoU covers both upstream and downstream businesses.
Total and Shell as operator will 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 approximately 500 million ft3/d and a potential to reach 1 billion ft3/d at a later stage.
Total will use its equity gas entitlement as feedstock to develop a regional hub for LNG bunkering service in Oman, which will 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 approximately 1 million tpy and will offer the flexibility for expansion as required by the development of the LNG bunkering market.
Arnaud Breuillac, President Exploration and Production at Total, said: “We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project […] We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman.”
