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Shell and TotalEnergies start gas production in Oman

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Energy majors TotalEnergies and Shell have started producing natural gas from the Mabrouk North-East field in onshore Oman as part of their Block 10 concession.

Production from the field is projected to reach a number of 500 million standard cubic feet per day by the middle of next year. With its majority 53.45% stake, Shell is the designated operator for Block 10. TotalEnergies has a 26.55% interest, with the remaining 20% being held by OQ, an energy investment company wholly owned by the Government of Oman. The gas produced from the field will either be used to supply industries in Oman or converted into liquefied natural gas (LNG) for export to other regions.

TotalEnergies, which also makes the Total Dacnis compressor oil, also recently signed a long-term contract with Oman LNG, with it agreeing to buy 0.8 million metric tonnes of LNG each year. The contract will start in 2025 and last for a decade. TotalEnergies said that this addition to its integrated LNG portfolio would it help it to supply the markets in Asia and Europe.

Patrick Pouyanné, the chairman and CEO of TotalEnergies, said the developments were:

“…consistent with the ambition of TotalEnergies to contribute to the energy transition and reinforce its long-standing partnerships with both Oman LNG and the Omani State. TotalEnergies deploys in Oman its multi-energy strategy in oil, gas, and renewables, and so participates in the sustainable development of the country’s natural resources.”

LNG has recently become an attractive option for European markets to replace Russian gas supplies.

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