The government of Oman has announced an agreement between Oman National Oil Company (OQ) and TotalEnergies to create a new liquefied natural gas export company using natural gas from the sultanate’s Saih Rawl gas field.

Marsa LNG will be a joint venture with France’s TotalEnergies holding an 80% stake and OQ holding the remaining 20%.

The venture will produce natural gas from the Saih Rawl field located on Block 10, where production is expected to reach 230,000 barrels of oil equivalent per day in 2023.

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As part of the agreement with the government of Oman, Marsa LNG will sell gas from Block 10 to the government for 18 years or until the start-up of a planned Marsa LNG plant.

“We are pleased to sign these agreements with the Sultanate of Oman and further develop our activities in the country while contributing to develop its energy sector in a more sustainable manner”, said Laurent Vivier, TotalEnergies’ senior vice president for the Middle East and North Africa exploration and production.

The sultanate also reached an agreement with Shell for the company to produce natural gas from Block 10.

Shell said it would do so in conjunction with OQ and Marsa LNG, but it also had signed a separate sales agreement for gas produced from the block.

Shell will serve as the primary operator in Block 10, with a 53.45% working interest. OQ will hold 13.36% and Marsa LNG will hold 33.19%.

Petroleum Development Oman has been tasked with building the infrastructure for the project, including the major pipeline from Block 10 to the Saih Rawl gas processing facility.

Shell said the block is expected to reach production levels as high as 500 million cubic feet per day, with start-up “within the next two years”.

Oman’s Energy & Minerals Minister Mohammed al-Rumhi said: “We share a long and strategic collaboration with Shell and our other partners.

“This project will further maximise the potential of Oman’s energy industry, in line with the Sultanate’s strategy to create growth opportunities across all energy streams and in line with Oman’s Vision 2040 priorities.”