TotalEnergies signs Oman deals for low carbon natural gas projects

TotalEnergies has signed a series of agreements with Oman’s Ministry of Energy and Minerals for the sustainable development of the country’s natural gas resources.

Among the key highlights of the agreements is the establishment of Marsa LNG. This is an integrated company between TotalEnergies (80 percent) and Oman National Oil Company, OQ (20 percent). Marsa LNG will produce natural gas from Block 10. The company aims to subsequently develop a low-carbon LNG plant in Sohar. Solar electricity will power the plant for the production of LNG for bunker fuel.

In Oman, TotalEnergies produces LNG through its participation in the Oman LNG/Qalhat LNG liquefaction complex. It has an overall capacity of 10.5 metric tonnes per year. The company also produces oil in Block 6.

Other key aspects of the deal with Oman include a concession agreement for Block 10, to develop and produce natural gas from this block. Marsa LNG will hold a 33.19 percent interest in Block 10, together with its partners OQ and Shell Integrated Gas Oman B.V. (operator). TotalEnergies’ production from Block 10 is expected to reach approximately 24,000 boe/d in 2023.

TotalEnergies and the Ministry of Energy and Minerals also signed a Gas Sales Agreement, under which Marsa LNG will sell natural gas from Block 10 to the Government of Sultanate of Oman, for a duration of 18 years or until the start-up of Marsa LNG plant.

“We are pleased to sign these agreements with the Sultanate of Oman and further develop our activities in the country while contributing to develop its energy sector in a more sustainable manner”, said Laurent Vivier, Senior Vice President Middle East and North Africa, Exploration and Production, at TotalEnergies.