Exploration and production sharing agreement for block 11 inked

Muscat: The Ministry of Energy and Mineral (on behalf of the government of the Sultanate of Oman) on thursday signed an Exploration and Production Sharing Agreement (EPSA) with Shell Integrated Gas Oman BV, a subsidiary of Shell plc, along with its partners, OQ and TotalEnergies to explore, appraise and develop natural gas resources and condensate in Block 11.

This EPSA establishes Shell as the operator of Block 11, holding a 67.5% working interest, with OQ and TotalEnergies holding 10% and 22.5% respectively. The EPSA exploration activities will see seismic acquisition of 1,400 Km2 in late 2022, with few planned exploration wells to follow.

Eng Salim Nasser al Aufi, Minister of Energy and Minerals in Oman, said, “There is a continuous focus in the ministry on enhancing the natural gas reserves of the Sultanate of Oman through exploration and appraisal activities undertaken by several companies in the country. This agreement strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain.”

In his turn, Walid Hadi, Shell’s Senior Vice President, and Country Chair in Oman said, “Block 11 is located in the western side of the Sultanate of Oman within and nearby the Um Asamim Sabkha. Shell’s entry into this block signifies a further commitment to Oman, while enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated gas business and generate value for Oman and our shareholders.”