UK major Shell signs amended shareholder agreement to extend partnership for Oman LNG joint venture
UK major Shell said its subsidiary Shell Gas BV has signed an amended joint venture shareholder agreement in the Sultanate of Oman in the Arabian Peninsula for Oman LNG to extend the business beyond 2024.
Turkey’s BOTAS becomes seventh customer of Oman LNG revived by new concession for 10 more years
Turkey’s state-owned Petroleum Pipeline Corp. (BOTAS) has become the seventh company to sign a long-term supply agreement with Oman LNG in the Arabian Peninsula.
BP and Eni sign production-sharing deal in Oman to help advance domestic gas and LNG
BP of the UK and Italian energy company Eni have signed an exploration and production sharing agreement with the Sultanate of Oman for a block in the centre of the country amid a revived domestic natural gas sector, rising liquefied natural gas exports and plans for a small-scale LNG plant for maritime fuel.
Oman will see gas output overtake oil because of growing LNG demand and domestic needs
Oman is planning to increase its natural gas production for domestic use and LNG exports to such an extent that the sultanate in the Arabian peninsula will see gas output levels overtaking oil by around 2025.
UK major BP and Eni sign Oman exploration accord after earlier discovery boosted LNG
BP of the UK and Italian energy company Eni signed a heads of agreement with the Ministry of Oil and Gas of the Sultanate of Oman to work jointly towards a significant new exploration opportunity in the Arabian Peninsula nation where BP’s onshore Khazzan natural gas discovery revitalized LNG production.
BP said that under the accord, the two companies would work with Oman towards the award of a new exploration and production sharing agreement (EPSA) for Block 77 in central Oman.
BP and Eni will now enter discussions with the Ministry to finalise details.
“This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction,” said Bernard Looney, BP chief executive of the upstream division in reference to additional output achieved by Oman LNG from having sufficient domestic gas supplies.
“We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman,” he added.
The country’s three existing liquefaction Trains at the facilities near the town of Sur have been at full capacity since 2017 after previously suffering from a lack of feed-gas as supplies were diverted to fill domestic gas shortages.
The Omani government allocates Oman LNG supplies from various gas fields and the Khazzan field production has ended all feed-gas concerns for the near future.
The three Omani LNG processing Trains currently produce around 10.4 million tonnes per annum and supply nations such as Japan, South Korea, India and Kuwait.
Block 77, with a total area of almost 3,100 square kilometre, is located in central Oman, 30km east of the BP-operated Block 61, which contains the already-producing Khazzan gas project as well as the Ghazeer project currently under development.
The Khazzan natural gas field began production in 2017, under budget and ahead of schedule. Khazzan now produces around 1 billion cubic feet of gas a day.
The Ghazeer field is expected to add a further 0.5 bcf/d of production and is expected to come on stream in 2021.
BP has had an upstream presence in Oman since 2007 when it signed an exploration and production sharing agreement for Block 61.
Gas sales agreements and approval for the development of the Khazzan project on Block 61 were signed in 2013. In 2016, the EPSA for Block 61 was amended, adding a further 1,000 square kilometres and allowing a second phase of development.
