Investments are anticipated in projects linked to the development of natural gas reserves in Block 10 in central Oman, according to Dr. Saleh al Anbouri, director-general of exploration and production in the Ministry of Energy and Minerals.
The ministry has signed a concession agreement with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell, and its partners, OQ, and Marsa Liquefied Natural Gas.
Anbouri said: "The concession agreement will attract $2 billion in investment over the 18-year tenure of the pact."
"It involves the drilling of wells and connecting these with production lines to achieve an output expected to reach 500mn m3 per day within the next two years.”
The concession agreement is a major step for strategic and long-term cooperation to harness the energy resources required by Oman to support the fuel and feedstock needs of industry, he added.
"This project will increase the capabilities of the energy industry in the Sultanate and bridge the gap between gas supply and its consumption needs in the future, in line with the Sultanate’s strategy to provide growth opportunities in all energy fields according to the priorities of Oman Vision 2040," Anbouri said.
The Ministry of Energy and Minerals is exerting efforts to encourage the local and foreign private sector to jointly invest in the various energy project, he added.
The minister further said that these investments will help sustain crude oil and natural gas output, noting that gas production from the Mabrouk North field in Block 10 will increase by 15 million cubic meters per day.