Anglo-Dutch major Shell’s ongoing gas negotiations with Oman’s Ministry of Oil & Gas (MOG) are aimed at developing the Gulf’s third gas-to-liquids (GTL) project, a surprising prospect given that the cost of Shell’s Pearl GTL plant in Qatar trebled from $6bn to $18.5bn between 2006 go-ahead and 2011 completion.
Shell and Total are holding talks with MOG for a proposed $19bn integrated upstream-downstream development deal that would see the two majors develop Oman’s ‘Greater Barik’ region (including at least 4.5tcf of gas reserves at the Mabrouk NE field) along with further exploration. On the downstream side, projects include a Total-operated 1mn t/y LNG bunkering project at Sohar and a Shell-led 45,000 b/d GTL plant at Duqm. Oman’s MOG undersecretary Salim al-Aufi says Total and Shell’s projects could come online in 2024 and 2026 respectively (MEES, 22 March). (CONTINUED - 915 WORDS)