The Ministry of Energy and Minerals (on behalf of the government of the Sultanate of Oman) has signed an Exploration and Production Sharing Agreement (EPSA) with Shell Integrated Gas Oman BV, a subsidiary of Shell plc, along with its partners, OQ and TotalEnergies to explore, appraise and develop natural gas resources and condensate in Block 11.
This EPSA establishes Shell as the operator of Block 11, holding a 67.5-per cent working interest, with OQ and TotalEnergies holding 10 per cent and 22.5 per cent respectively. The EPSA exploration activities will see seismic acquisition of 1,400 Km2 in late 2022, with few planned exploration wells to follow.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, said, “There is a continuous focus in MEM on enhancing the natural gas reserves of the Sultanate of Oman through exploration and appraisal activities undertaken by several companies in the country. This agreement strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain.”
Walid Hadi, Shell’s Senior Vice-President, and Country Chair in Oman, said, “Block 11 is located in the western side of the Sultanate of Oman. Shell’s entry into this block signifies a further commitment to Oman, while enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated gas business and generate value for Oman and our shareholders.”