Shell and the Oman Ministry of Oil & Gas Agree on Next Steps for an Integrated Energy Development Agreement

Press release
Published February 20th, 2019 - 10:06 GMT
During the event
During the event

Shell CEO Ben van Beurden and His Excellency Dr. Mohammed bin Hamad Al Rumhy, Minister of Oil & Gas (MOG), have signed an Interim Upstream agreement that details funding and a work programme for 2019 for the development of gas resources destined for integrated projects to help meet the Sultanate of Oman’s growing need for energy. The other signatories were Petroleum Development Oman (PDO), Oman Oil Company (OOC) and Total.

Today’s upstream agreement covers gas acreage in the northern part of Block 6 located to the west of the existing Saih Rawl gas field that is operated by PDO. The project covers investments in gas exploration and production, in partnership with Total and OOC. The aim is to integrate the Shell and OOC share of the upstream project with the development of a gas-to-liquids plant (GTL) currently under discussion, to be developed and operated by Shell in partnership with OOC.

Chris Breeze, Shell’s Country Chairman in Oman, said: “Today’s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman’s economy. This agreement marks a new chapter in Shell’s close partnership with the government of Oman.”

MOG, Shell and partners (OOC and Total) continue to work closely and diligently to finalise definitive agreements which will underpin the long-term success of the energy projects which were first outlined in the Memorandum of Understanding (MoU) signed in May 2018.

Further announcements will be made as and when appropriate.

Background Information

Shell Oman

Shell began its downstream marketing operations in Oman in 1958 when the Shell Company of South Eastern Arabia - the forerunner of Shell Markets (Middle East) Limited – obtained trading rights from the Late Sultan Said bin Taimur. The fuel was initially imported on trading dhows, the drums were tied with a rope and floated ashore and then hand-rolled inland. All trading was carried out through a local agent. 

When in 1958 Shell obtained a contract from PDO to supply fuel it was decided to build a depot at Saih al Mailah Bay (now known as Mina al Fahal). The department had two bulk tanks for motor gasoline and Gasol, a two paint bulk filling gantry, a go-down for lubricants, a drum filling gantry, a small depot office and a house.

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