OCTOBER 23, 2023

Oman LNG signs major shareholder agreements

MUSCAT : Oman LNG signed multiple shareholder agreements yesterday in Muscat in the presence of Minister of Energy and Minerals, Eng Salim bin Nasser al Aufi.

In his keynote address, Al Aufi shared the following, “It's been quite a journey over the last probably 18 or 20-plus months since we started approaching the market to look into the options available to us to remarketing the volumes that will be available from ‘24, ‘25 and ‘26 onwards for Oman LNG and Qalhat LNG

“The volume that was received in terms of demand took us by surprise - a positive surprise because we were not expecting so much interest.

“I’'m very proud to say that we were able to market 10.4 million tonnes from both Oman LNG as well as Qalhat LNG on 5 – 10-year contracts, and we were able to maintain the majority of our shareholders to be with us, not only as shareholders, but as lifters or off-takers of the LNG, which is, a little bit different than the construct that we had before. So this is another proud moment for all of us to have our shareholders also contributing to the value generated to the company.”

According to Al Aufi, Oman LNG will produce a volume of 7 million metric tonnes per annum (mtpa) of LNG, while Qalhat LNG will produce 3.8 million mtpa of LNG. An amount of 0.4 million mtpa was intentionally left out for the spot market - a natural gas market in which the gas is bought and sold immediately or very near-term delivery.

According to the agreements, Oman LNG’s shareholder structure will continue with Oman Investment Authority (OIA), Shell Gas BV, TotalEnergies, Korea LNG, Mitsui & Co, Mitsubishi Corporation, PTT Exploration and Production, and ITOCHU Corporation. Qalhat LNG’s shareholder structure will continue with Oman Investment Authority, Oman LNG LLC, ITOCHU Corporation and Mitsubishi Corporation.

Chief Executive Officer of Oman LNG, Hamed al Naamany, shared the following in a press statement, “The signing of these key shareholding and gas supply agreements testifies to our robust strategic partnerships, unlocking new market opportunities and capabilities to continue adding value in Oman and beyond. It sustains our position as the largest gas contributor to the Sultanate of Oman’s GDP. Our staff, their commitment, and expertise are the driving force behind turning these agreements into realities, propelling us to new heights in the global market that is transforming and we intend to stay ahead of the curve. We thank our shareholders and the market for renewing their commitments to LNG from Oman.”

Speaking to the Observer, Sergio Giorgi, Managing Director and Oman Country Chair of TotalEnergies, said: “I would like to begin by acknowledging that today is a momentous occasion, not only for the Sultanate of Oman and Oman LNG but also for TotalEnergies as significant shareholders of Oman LNG. We are truly delighted on this special day. I take great pride in acknowledging the tremendous efforts of our dedicated teams and the unwavering support we have received from the government, the Ministry of Energy, and the Oman Investment Authority (OIA).”

Giorgi added: “Allow me to express our deep satisfaction in being present here in Oman. TotalEnergies has had a substantial presence in this country for four decades, and our commitment remains resolute to continue this journey for many more years. Our focus is on pursuing a forward-looking agenda that centers on growth, diversification, and decarbonisation. This strategy harmoniously aligns with the Sultanate of Oman's Vision 2040 and its commitment to achieving net zero emissions.”

Speaking on this signing, Abdulsalam al Murshidi, President – Oman Investment Authority, said: “The signing of the agreements for Oman LNG and Qalhat LNG does not only boost economic diversification efforts and maximise returns from OIA investments, but also cement Oman's position as an attractive destination for foreign investment. By fostering strategic partnerships with major energy international firms, we are contributing to economic development and positioning Oman as a global player in the energy sector. These agreements are a testament to our commitment to sustainable growth and the optimal utilisation of our natural resources.”

He added: “Partnerships and collaborations are at the heart of Oman LNG's business model. By fostering relationships with major international firms, Oman LNG is actively contributing to global energy stability and sustainability, and driving innovation in the industry.”

Source: https://www.omanobserver.om/article/1144651/business/energy/oman-lng-signs-major-shareholder-agreements