The client on behalf of the government of the Sultanate of Oman has signed a concession agreement with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell plc, and its partners, OQ and Marsa Liquefied Natural Gas (a joint venture between Total Energies and OQ), to develop and produce natural gas from block 10 of the Saih Rawl gas field. The concession agreement establishes Shell as the operator of block 10, holding a 53.45 per cent working interest, with OQ and Marsa Liquefied Natural Gas holding 13.36 per cent and 33.19 per cent respectively. The venture will drill and hook up wells to maintain the production beyond the initial phase. The startup is expected within the next two years. In addition, Shell and Energy Development Oman (EDO) signed an agreement to process the natural gas from Block 10 in EDO’s Saih Rawl facility. Shell and the government have agreed that, in parallel to the development of Block 10, Shell will develop options for a separate downstream gas project in which Shell could produce and sell low-carbon products and support the development of hydrogen in Oman. 

Petrofac has been selected by Shell to undertake new Engineering and Procurement Services (EPS) scopes in Oman. The first is a five-year EPS contract for Shell’s Block-10 Mabrouk Phase-2 Project, located in the Al Wusta Governate of Oman – around 400km from the capital, Muscat. The contract was awarded following a competitive tender and the scope includes well-pads for multiple wells, remote manifold stations and connecting pipeline, including water infrastructure for well development and a Field Operations Base. Two further contracts, to provide residual engineering and procurement services to complete Phase-1B of the Block-10 development, were secured under Petrofac’s global Enterprise Framework Agreement with Shell.

Shell Integrated Gas Oman, a subsidiary of Shell, has announced the start of gas production from the Mabrouk North East field in Block 10 in Oman. Production from Block 10 is expected to reach 0.5 billion standard cubic feet of gas per day (bscf/d) by mid-2024, with the produced gas supplied to the OQ Gas Network that feeds local industries and export facilities alike. This milestone was achieved following the concession agreement signing in December 2021 and Royal Decree (12/2022), appointing Shell as the operator of Block 10.