Ministry of Energy and Minerals and Shell sign an exploration and production sharing agreement for Block 11


Muscat: The Ministry of Energy and Minerals (on behalf of the government of the Sultanate of Oman) had signed an Exploration and Production Sharing Agreement (EPSA) with Shell Integrated Gas Oman BV, a subsidiary of Shell plc, along with its partners, OQ and TotalEnergies to explore, appraise and develop natural gas resources and condensate in Block 11. 

This EPSA establishes Shell as the operator of Block 11, holding a 67.5% working interest, with OQ and TotalEnergies holding 10% and 22.5% respectively. The EPSA exploration activities will see seismic acquisition of 1400 Km2 in late 2022, with few planned exploration wells to follow. 

H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals in Oman, said, “There is a continuous focus in MEM on enhancing the natural gas reserves of the Sultanate of Oman through exploration and appraisal activities undertaken by several companies in the country. This agreement strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain.”

Walid Hadi, Shell’s Senior Vice President, and Country Chair in Oman said, “Block 11 is located in the western side of the Sultanate of Oman, in and around the Umm as Samim Sabkha. Shell’s entry into this block signifies a further commitment to Oman, while enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated gas business and generate value for Oman and our shareholders.”

About Block 11

  • Block 11 is located in Al Wusta of Oman, adjacent to Block 10, around 400 kilometres from the capital, Muscat. Block 11 covers an area of around 2,900 km2.

About Oman Shell

  • Shell has been a partner in Oman’s development and progress over the last several decades. We have been providing pioneering technologies and expertise in the energy industry and creating value for the community. 
  • Shell is active in Oman across the oil and gas industry and is involved in joint venture and independent activities ranging from research and development, exploration and production to trading, retail and new energies. Shell also implements an extensive social investment programme that contributes to the sustainable development of the country. 
  • Shell holds interests in Petroleum Development Oman (34%), Oman LNG (30%) and Shell Oman Marketing Company (49%). Together they represent a substantial part of Oman’s economic growth.
  • Oman Shell is the operator of Block 10 following a concession agreement that was signed in December 2021 and approved by Royal Decree 12/2022. Shell is also exploring Blocks 42 and 55.