Oman: TotalEnergies Starts Gas Production in Onshore Block

France-based global multi-energy company TotalEnergies has announced the start of gas production from onshore Block 10 in Oman as well as an agreement with Oman LNG for a long-term LNG purchase contract. TotalEnergies has announced the start of gas production from the Mabrouk North-East field in the onshore Block 10. TotalEnergies holds a 26.55% interest in Block 10, with OQ holding 20% and Shell, operator, holding 53.45%. Gas production is expected to reach 500 million standard cu ft per day by mid-2024. The produced gas will supply the Omani gas network, feeding both local industry and LNG export facilities. This production start-up follows the signing of the concession agreement in December 2021.

Long-term LNG purchase contract

TotalEnergies has also signed an agreement with Oman LNG for the purchase of 0.8 million metric tons of LNG per year over a period of ten years starting from 2025. This new contract will contribute to TotalEnergies' LNG integrated portfolio and reinforce its flexibility, by allowing to address both the European and Asian markets. This LNG will contribute to the reduction of emissions into the atmosphere since it will allow the electric utilities who purchase this gas to substitute it for coal, thus avoiding CO2 emissions (a natural gas power plant releases about half as much CO2 as a coal power plant). “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 has recently signed 30 MW of Solar projects in Oman including a project to supply Sharqiyah Desalination Company (17 MW), in joint-venture with Veolia.