TotalEnergies announces start of gas production from Oman’s onshore Block 10

In line with its growth strategy in gas and LNG, a fuel contributing to the energy transition,

TotalEnergies announced the start of gas production from onshore Block 10 in the Sultanate of Oman as well as an agreement with Oman LNG for a long-term LNG purchase contract.

The gas production commenced from the Mabrouk North-East field in the onshore Block 10. TotalEnergies holds a 26.55 per cent interest in Block 10, with OQ holding 20 per cent and operator Shell retaining the residual 53.45 per cent.

Oman LNG has announced the signing of Term Sheet Agreements with PTT Global LNG Company Limited and TotalEnergies to supply a total of 1.6 million metric tonnes per annum (mtpa) of LNG. pic.twitter.com/qCjkva2Cem

— Oman LNG (@OmanLNG) January 18, 2023

Gas production is expected to reach 500 million standard cubic feet per day by mid-2024, TotalEnergies said in a statement. The produced gas will supply the Omani gas network, feeding both local industry and LNG export facilities.

In 2021, the company signed a concession agreement to develop natural gas resources on onshore Block 10 as well as inked an exploration and production sharing agreement last year to appraise Block 11 (22.5 per cent).

LNG contract
TotalEnergies also inked an agreement with Oman LNG for the purchase of 0.8m metric tons of LNG per year over a period of ten years, starting from 2025.

Oman LNG has announced the signing of Term Sheet Agreements with PTT Global LNG Company Limited and TotalEnergies to supply a total of 1.6 million metric tonnes per annum (mtpa) of LNG. pic.twitter.com/qCjkva2Cem

— Oman LNG (@OmanLNG) January 18, 2023

The contract will contribute to TotalEnergies’ LNG integrated portfolio and will enable the company to address both European and Asian markets. The LNG will also contribute to emissions reduction since it will allow the electric utilities who purchase this gas to substitute it for coal.

“These announcements are 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”, said Patrick Pouyanné, chairman and CEO of TotalEnergies.

“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.”

TotalEnergies, which is the world’s third largest LNG player, also contributes to the development of renewables in the sultanate. It signed 30MW worth of solar projects in Oman last year, including a joint venture with Veolia to supply Sharqiyah Desalination Company (17 MW).

Read: Veolia, TotalEnergies to build largest solar PV system for desalination plant in Oman

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