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Total has signed a memorandum of understanding with the Government of Oman to develop natural gas resources in the country, including the provision of LNG to ships.

Total and Shell, as operator, are to develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25 and 75 percent, as per a prior agreement between both firms.

The objective is to achieve an initial gas production of around 500 million cubic feet per day (MMcfd), reaching 1 billion cubic feet per day (bcf/d) at a later stage.

Total intends to use its equity gas entitlement as feedstock to develop in Oman a regional hub for LNG bunkering, using a new small-scale modular liquefaction plant to be built in Sohar port.

The plant will comprise a train of around 1 million tonnes per year, offering the flexibility for expansion as required by the development of the LNG bunkering market.

"We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project," remarked Arnaud Breuillac, President Exploration & Production at Total.

"We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman," he added.

Total produces LNG through its participation in the Oman LNG / Qalhat LNG liquefaction complex, which has an overall capacity of 10.5 million tonnes per year.