Oman LNG inks shareholding deals with international firms

State-owned producer Oman LNG has signed shareholding deals with international companies, including Shell and TotalEnergies.

Besides Oman LNG and Qalhat LNG shareholding agreements, Oman LNG, in which the government of Oman holds 51 percent, said it had also signed a gas supply agreement with state-owned Integrated Gas Company (IGC) to extend the gas supplies beyond 2024.

“The agreement encapsulates extending the gas supply period for additional 10 years until 2023 at a total volume of 10.4 million metric tonnes per annum, reflecting the company’s drive towards its beyond 2024 aspirations,” it said.

These deals renew Oman LNG’s strategic partnerships with international firms and will contribute to boosting Oman’s revenue from natural gas.

Based on these agreements, Oman LNG’s shareholding structure will continue with Oman Investment Authority, Shell, TotalEnergies, Korea LNG, Mitsui & Co., Mitsubishi, PTTEP, and Itochu.

Qalhat LNG’s shareholding will include Oman Investment Authority, Oman LNG, Itochu, and Mitsubishi, the LNG producer said.

“Such agreements underscore our ever-growing efforts to maximize returns and optimize revenues while sustaining our position in the LNG market,” it said.

Oman LNG did not provide further information regarding the deals.

Oman Investment Authority said in a separate social media post that the deals entail “full ownership transfer of both companies to Oman Investment Authority after the signed shareholders agreements end in 2029 and 2034, respectfully.”

Shell largest buyer

According to Oman LNG’s website, Shell holds a 30 percent stake in the LNG producer, TotalEnergies 5.54 percent, Korea LNG 5 percent, Mitsubishi 2.77 percent, Mitsui 2.77 percent, PTTEP 2 percent, and Itochu holds 0.92 percent.

Shell Gas, a unit of Shell, confirmed the signing of the amended shareholders’ agreement in a separate statement as well.

The firm said it will remain the largest private shareholder in Oman LNG, with a 30 percent shareholding, and continues its role as technical adviser.

These agreements follow Oman LNG’s large marketing campaign aimed at renewing all of its contracts post 2024.

In August, Oman LNG signed deals to supply LNG to OQ Trading and Shell, completing the campaign with a total volumes of 10.4 mtpa.

Following the signing of the deals, Shell will become Oman LNG’s largest off-taker post 2024 and will purchase up to 1.6 mtpa from Oman LNG from 2025 to 2034.

Besides these contracts, Oman LNG signed a deal with German gas importer Securing Energy for Europe (SEFE) and a deal earlier this year with China’s Unipec, a unit of state-owned energy giant Sinopec.

Oman LNG also signed term sheets with Turkey’s Botas and its shareholders TotalEnergies and PTT.

In addition, Oman LNG signed key term sheets in December to supply LNG to Japan’s Jera, Mitsui, and Itochu.

The firm operates three LNG trains in Qalhat with a nameplate capacity of 10.4 mtpa sourcing gas from the central Oman gas field complex.

Due to debottlenecking, the company’s complex now has a production capacity of around 11.4 mtpa.

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