SHELL ANNOUNCES THE START OF GAS PRODUCTION FROM BLOCK 10 IN OMAN

SHELL ANNOUNCES THE START OF GAS PRODUCTION FROM BLOCK 10 IN OMAN

Wednesday, January 18, 2023

  • 0.5 bscf/d of gas production is expected from Block 10 by mid-2024
  • Produced gas will be supplied to the Oman Gas Network, feeding local industries and export facilities.

Shell Integrated Gas Oman BV, a subsidiary of Shell plc announced the start of gas production from the Mabrouk North East field in Block 10 in Oman.

Production from Block 10 is expected to reach 0.5 billion standard cubic feet of gas per day (bscf/d) by mid-2024, with the produced gas supplied to the Oman gas network that feeds local industries and export facilities alike. This milestone was achieved following the concession agreement signing in December 2021 and Royal Decree (12/2022), appointing Shell as the operator of Block 10.

Shell holds a 53.45% working interest in Block 10, with OQ and Marsa Liquefied Natural Gas LLC (a joint venture between TotalEnergies and OQ) holding 13.36% and 33.19% respectively.

Commenting on this milestone, H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals in Oman said, “This accomplishment strengthens Oman’s rich natural gas reserves, whilst bringing value to support Oman’s energy transition and Net Zero ambitions by 2050. Attracting foreign investment to Oman is a key enabler for achieving economic growth and realizing Oman Vision 2040.”

Walid Hadi, Oman Shell’s Senior Vice President and Country Chair, said, “It is a great honor for Oman Shell to achieve this important milestone ahead of schedule. Having contributed to Oman for over 80 years through our non-operated positions in Petroleum Development Oman (PDO) and Oman LNG, we can now celebrate our first operated gas production in the country. I would like to thank our partners, the Ministry of Energy, PDO, OQ and TotalEnergies for their support in helping us achieve this milestone safely and successfully.”

In parallel, Shell and the Government of Oman are developing options for a separate downstream gas project in which Shell could produce and sell low-carbon products and support the development of blue hydrogen in Oman. The proposed blue hydrogen project is subject to further agreements and future investment decisions.

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