Shell (RDS.A) Inks Gas Deal With Oman for Block 10, Saih Rawl
Shell (RDS.A) and Energy Development Oman (EDO) agree to process natural gas from Block 10 at EDO's Saih Rawl plant.
Royal Dutch Shell plc’s (RDS.A) subsidiary Shell Integrated Gas Oman BV and its partners have agreed to develop and produce natural gas from block 10 of the Saih Rawl gas field under a concession agreement with Oman. A separate gas sales agreement for gas generated from the block was also signed by the parties.
RDS.A's partners include OQ and Marsa Liquefied Natural Gas LLC, a joint venture between TotalEnergies and OQ.
According to Oman's energy ministry, the block is estimated to produce 0.5 billion cubic feet of gas per day (bscf/d). Production is likely to commence within a couple of years.
Per the concession agreement, Shell operates block 10 with 53.45% working interest, while OQ and Marsa Liquefied Natural Gas LLC have 13.36% and 33.19% stakes, respectively.
On behalf of the Block 10 venture partners, Petroleum Development Oman (PDO) is constructing the project's infrastructure, including the main pipeline to the Saih Rawl gas processing plant. After the initial phase, the business will drill and connect wells to maintain production.
Additionally, Shell and Energy Development Oman (EDO) agreed to process natural gas from Block 10 at EDO's Saih Rawl plant.
Moreover, RDS.A and the Oman government agreed to explore ideas for a separate downstream gas project wherein Shell might manufacture and sell low-carbon goods and also support growth of hydrogen in the Middle Eastern nation.
Over the last many decades, Shell remained a partner in Oman's growth and success. The firm is active in the oil and gas industry within the country, with joint venture and independent activities ranging from research and development, exploration and production to trade, retail and alternative energy.
Zacks Rank & Key Picks
Shell currently has a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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