Shell starts gas production at Block 10 in Oman

Shell has begun gas production at the Mabrouk North East field located in Block 10 in Oman, the British energy giant announced on Monday.

Production is expected to rise to 14.2 mcm (500 mcf) per day by mid-2024.

The gas will be supplied to local industries and export facilities via state-owned energy company OQ’s gas network.

Shell subsidiary Shell Integrated Gas Oman has a 53.45% stake in Block 10. The company was chosen as operator of the concession in December 2021.

The company is joined with partners OQ with a 13.36% stake and Marsa Liquified Natural Gas with the remaining 33.19% stake. The latter is a joint venture between TotalEnergies and OQ.

The onshore block is located in the Al Wusta governorate, around 400 kilometres southwest of Muscat. It covers an area of around 1,200 square kilometres.

“It is a great honour for Oman Shell to achieve this important milestone ahead of schedule,” said Walid Hadi, senior vice-president and country chair of Oman Shell.

“Having contributed to Oman for over 80 years through our non-operated positions in Petroleum Development Oman (PDO) and Oman LNG, we can now celebrate our first operated gas production in the country.”

Shell holds 34% shares in PDO, 30% shares in Oman LNG and 49% shares in Sell Oman Marketing Company.

Shell also announced it is currently working with the government to build a separate downstream gas facility and develop a blue hydrogen project in Oman.