Oman's Ministry of Energy and Minerals on Wednesday announced that the gas production from Mabrouk North East field in Block 10 in the sultanate has started.
The daily gas production from Block 10 is expected to reach 0.5bn standard cubic feet by mid-2024, the ministry said in a tweet.
Shell Integrated Gas Oman, the operator of Block 10 and a subsidiary of global energy giant Shell, announced the start of gas production from the Mabrouk North East field.
H E Eng Salim al Aufi, Minister of Energy and Minerals, said, 'This start of gas production from Mabrouk field is an important milestone that will strengthen Oman's rich natural gas reserves, whilst bringing value to support Oman's economic growth in the energy sector.
'It will also play a key role in powering local industries and LNG export facilities. Production from Block 10 is expected to reach 0.5bn standard cubic feet of gas per day by mid-2024.'
As per the ministry's announcement, the produced gas from Mabourk field will be supplied to liquefied natural gas (LNG) export facilities of Oman LNG and Oman Gas Network for feeding local industries.
In December 2021, the Ministry of Energy and Minerals signed the concession agreement with Shell Integrated Gas Oman and its partners, OQ and Marsa Liquefied Natural Gas LLC (a joint venture between TotalEnergies and OQ), to develop and produce natural gas from Block 10.
The parties that time also signed a separate gas sales agreement for gas produced from Block 10. The two agreements follow an interim upstream agreement signed in February 2019.
The concession agreement established Shell as the operator of Block 10, holding a 53.45 per cent working interest, with OQ and Marsa Liquefied Natural Gas LLC holding 13.36 per cent and 33.19 per cent, respectively.
In addition, Shell and Energy Development Oman (EDO) also signed an agreement to process the natural gas from Block 10 in EDO's Saih Rawl facility.
Block 10 - which covers an area of approximately 1200 sqkm - is located in Saih Rawl in the Al Wusta Governate of Oman, around 400km from Muscat.