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Oman, Shell sign interim upstream gas deal

Dubai — Oman and supermajor Shell have signed an interim deal to develop gas acreage in block 6 in 2019, according to an emailed statement from Shell.

The agreement covers investments in oil and gas and resources are to be used for domestic Omani projects. Petroleum Development Oman, Oman Oil Company and Total also signed the deal as partners.

The deal will integrate Shell and Oman Oil’s upstream project with a planned gas-to-liquids plant that Shell and Oman Oil will also co-develop.

Shell last year signed a memorandum of understanding with the Omani government to develop a GTL plant in Duqm.

“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,” Chris Breeze, chairman of Shell in Oman said.

Oman’s gas resources are rapidly depleting and new resources will need to be exploited to meet rising domestic electricity demand. Oman in January signed new exploration and production deals with BP and Eni to shore up fresh reserves.

At the moment, Oman is a gas exporter and sells domestic resources through its Oman LNG export arm. But it has also mulled plans to import the fuel.

— Miriam Malek, [email protected]

— Edited by Jonathan Fox, [email protected]

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