Shell (RDS.A) Inks Gas Deal With Oman for Block 10, Saih Rawl
Zacks Investment Research | Dec 24, 2021 12:50AM ET
Royal Dutch Shell (LON:RDSa) plc’s (RDS.A) subsidiary Shell Integrated Gas Oman BV and its partners have agreed to develop and produce natural gas from block 10 of the Saih Rawl gas field under a concession agreement with Oman. A separate gas sales agreement for gas generated from the block was also signed by the parties.
RDS.A's partners include OQ and Marsa Liquefied Natural Gas (OTC:LNGLF) LLC, a joint venture between TotalEnergies and OQ.
According to Oman's energy ministry, the block is estimated to produce 0.5 billion cubic feet of gas per day (bscf/d). Production is likely to commence within a couple of years.
Per the concession agreement, Shell operates block 10 with 53.45% working interest, while OQ and Marsa Liquefied Natural Gas LLC have 13.36% and 33.19% stakes, respectively.
On behalf of the Block 10 venture partners, Petroleum Development Oman (PDO) is constructing the project's infrastructure, including the main pipeline to the Saih Rawl gas processing plant. After the initial phase, the business will drill and connect wells to maintain production.
Additionally, Shell and Energy Development Oman (EDO) agreed to process natural gas from Block 10 at EDO's Saih Rawl plant.
Moreover, RDS.A and the Oman government agreed to explore ideas for a separate downstream gas project wherein Shell might manufacture and sell low-carbon goods and also support growth of hydrogen in the Middle Eastern nation.
Over the last many decades, Shell remained a partner in Oman's growth and success. The firm is active in the oil and gas industry within the country, with joint venture and independent activities ranging from research and development, exploration and production to trade, retail and alternative energy.
h3 Zacks Rank & Key Picks/h3Shell currently has a Zack Rank #3 (Hold). Investors interested in the SUN is a master limited partnership engaged in distributing motor fuel to roughly 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. In the United States, Sunoco is among the largest motor fuel distributors in the wholesale market by volume. In 2020, the partnership sold 7.1 billion gallons of motor fuel.
SUN's earnings for 2021 are expected to surge 743.4% from the prior-year reported number. Sunoco currently has a Zacks Style Score of A for both Value and Growth. For 2021, SUN expects fuel volumes of 7.25-7.75 billion gallons, indicating a rise from the 2020 reported level of 7.09 billion gallons.
Get The News You Want
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.