By Cristina Roca 
 

TotalEnergies SE said Tuesday that it has signed agreements with the government of Oman to develop and produce natural gas in the country.

The French energy company will set up a company called Marsa LNG, in which it will hold 80%. Oman National Oil Company, or OQ, will hold the remaining 20%.

Marsa LNG will produce natural gas from Block 10. The plan is to then develop a low-carbon liquefied natural gas plant in Sohar. The plant will be powered by solar electricity and produce LNG for bunker fuel.

Marsa LNG will hold a 33.19% interest in Block 10. OQ and Shell Integrated Gas Oman BV hold the remaining interests in the block.

TotalEnergies's production from Block 10 is expected to be about 24,000 barrels of oil equivalent a day in 2023.

TotalEnergies also signed with the Ministry of Energy and Minerals of the Sultanate of Oman a sales agreement, under which Marsa LNG will sell natural gas from Block 10 to Oman for 18 years or until the start-up of the LNG plant.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

December 21, 2021 08:06 ET (13:06 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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