Detailed engineering studies could be undertaken before the end of next year.

By Joseph Murphy

Shell is considering exploiting gas reserves at the Mabrouk field to produce blue hydrogen for the local market, an official at the company's Omani division told local news portal WAF Oman.

The UK major is expected to reach an agreement with Oman's government next year to develop gas reserves at the block 10 and 11 concessions. The project could move from the evaluation stage to detailed engineering studies by the end of next year, but a final investment decision will only be taken if the plan is deemed feasible, the official said.

Shell signed a deal to develop block 10 in December last year, giving it a 54% stake in the project. OQ Group has 13.4% and TotalEnergies 33.2%. Gas production is on track to start early in 2023.