TotalEnergies has signed a series of agreements with the Ministry of Energy and Minerals of the Sultanate of Oman for the sustainable development of the country’s natural gas resources.
The agreements include the establishment of a new LNG company, a concession agreement and a gas sales agreement.
The establishment of Marsa LNG
Marsa LNG is an integrated company between TotalEnergies (80%) and Oman National Oil Company, OQ (20%). As per the signed agreement, Marsa LNG will produce natural gas from Block 10, with a view to subsequently develop a low-carbon LNG plant in Sohar, powered by solar electricity, for the production of LNG for bunker fuel.
Block 10 concession agreement
Along with the agreement to establish Marsa LNG, TotalEnergies also signed a concession agreement for Block 10, to develop and produce natural gas from this block. Marsa LNG will hold a 33.19% interest in Block 10, together with its partners OQ and Shell Integrated Gas Oman B.V. (operator). TotalEnergies’ production from Block 10 is expected to reach approximately 24,000 barrels of oil equivalent per day in 2023.
Natural gas sales agreement
Under the gas sales agreement signed by TotalEnergies, Marsa LNG will sell natural gas from Block 10 to the Government of Sultanate of Oman, for a duration of 18 years or until the start-up of the Marsa LNG plant.
“We are pleased to sign these agreements with the Sultanate of Oman and further develop our activities in the country while contributing to develop its energy sector in a more sustainable manner,” said Laurent Vivier, Senior Vice President Middle East and North Africa for Exploration and Production at TotalEnergies.
Source: esi-africa
