Shell signs Block 42 agreement in Oman

Royal Dutch Shell has signed a heads of agreement to collaborate on Block 42 with Oman Oil Company Exploration & Production (OOCEP).

Under the deal an initial aerial study will be carried out, before potentially undertaking further and more focused activities in the block, according to a statement issued by OOCEP on April 26.

Block 42 comprises an area of 25,600 square km, which could hold hydrocarbon potential in several geological plays in the northeast coastal Omani mountains and the basin immediately to their south.

The presence of hydrocarbons has already been proven by exploration wells, which report shows in several reservoir intervals.

The co-operation between OOCEP and Shell is the first such project between the companies in Oman, but OOCEP’s parent firm Oman Oil Co. partners the super-major in the Pearls joint venture in Kazakhstan.

“I see the signing of the heads of agreement as creating an important platform with a world-renowned international upstream company like Shell,” said Isam al Zadjali, CEO of OOCEP.

Shell is active across Oman’s oil and gas industry, via involvement in both joint venture and independent activities ranging from research and development, exploration and production to trading and retail. The Anglo-Dutch firm holds a 30% stake in Oman LNG, and was involved in the design and construction of the plant in Sur, as well as development of gas wells, a gas processing plant, and pipelines.

It also holds 49% in Shell Oman Marketing, which sells fuels and lubricants and manages Shell-branded filling stations. Shell further owns a 34% stake in Petroleum Development Oman (PDO), which pumps over 70% of the country’s crude oil and nearly 100% of its natural gas.