Oman Eyes Headline Projects To Move Up Oil & Gas Value Chain

Muscat is turning to high-profile, foreign-led upstream deals to squeeze the most out of its oil and gas reserves. A $19bn integrated upstream-downstream gas megaproject could close by the end of the year. And that’s just the start.

Oman’s Ministry of Oil and Gas (MOG) is optimistic that ongoing talks to develop the 4.5+tcf Mabrouk NE gas field as part of a $19bn deal with Shell and Total will result in a ‘master agreement’ by the end of the year, MOG Undersecretary Salim al-Aufi told the audience at Oman’s annual media briefing this week in Muscat.

The deal, which initially comprised two separate MoUs signed last May ( MEES, 18 May 2018 ), would see Shell operate the upstream portion of the project alongside Total (75:25). Initial volumes of 500mn cfd are planned, potentially rising to 1bn cfd, which would then be divided between a Total-operated 1mn t/y LNG bunkering plant at Sohar and a Shell-led 45,000 b/d gas-to-liquids (GTL) plant at Duqm (see map). Giving a tentative timeline, Mr Aufi says the projects would be completed by 2024 and 2026 respectively. “We are definitely working to bring these dates forward,” he adds. (CONTINUED - 1484 WORDS)

DATA INSIDE THIS ARTICLE

chart Oil Products And LNG Are Increasingly Central To Oman Export Revenues ($Bn)
chart Increased Gas Output* Sees 34% Jump In Y-O-Y LNG Production (Gas Consumption, BCM/Y)