TotalEnergies SE signed an exploration and production sharing agreement with the Oman energy ministry on Sept. 16 for an area called onshore Block 11, which is believed to contain undeveloped gas discoveries and exploration potential.
“Today’s entry into the Block 11 gives us the opportunity to unlock additional potential to meet domestic and export gas demand,” commented Laurent Vivier, senior vice president Middle East and North Africa, exploration and production, at TotalEnergies.
TotalEnergies will hold a 22.5% interest in Block 11. OQ and Shell, the operator, also hold 10% and 67.5%, respectively. The first stage of activities in the block will include seismic acquisition in late 2022, with a first exploration well planned to be drilled in 2023.
Commenting on the agreement, H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals in Oman said: “There is a continuous focus in MEM 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 December 2021, TotalEnergies signed a concession agreement to develop natural gas resources on the onshore Block 10 (26,55%), with first gas is expected in 2023.
TotalEnergies produces oil in Block 6 (4%), as well as LNG through its participation in the Oman LNG (5.54%)/Qalhat LNG (2.04% via Oman LNG) liquefaction complex with an overall capacity of 10.5 Mt/y. The company also operates exploration Block 12 (80%).
In addition to oil and gas, TotalEnergies also contributes to the development of renewables in the country. In July, the company partnered with Veolia to build the largest solar system for a destination plant in Oman.
“Our recent activities in Oman are a demonstration of TotalEnergies’ strategy of transformation into a multi-energy company. ... [Today’s agreement] strengthens our strategic relationship with the Sultanate of Oman, as illustrated last December by our entry into the neighboring Block 10 gas concession, and the start of construction last July of 17-megawatt-peak solar photovoltaic systems providing power to a desalination plant,” Vivier added in the release on Sept. 16.
TotalEnergies said its oil and gas production in Oman was 39,000 boe/d in 2021.
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