Total has signed a memorandum of understanding with the government of Oman to develop natural gas resources in Oman, the company said in a news release.

The agreement covers upstream and downstream businesses.

As part of the agreement, Total and Shell as operator will develop several gas discoveries in the onshore Greater Barik area on Block 6 with respective shares of 25% and 75%. The state has a possible state back-in, according to the release. The companies aim to produce about 500 MMcf/d initially, but that could increase to 1 Bcf/d at a later stage.

Total said the company will use its equity gas entitlement as feedstock to develop in Oman a regional hub for LNG bunkering service to supply LNG as a fuel to marine vessels. A new small-scale modular liquefaction plant to be built in Sohar port will make this possible. The plant will comprise a train of about 1 Mt per year and will offer the flexibility for expansion as required by the development of the LNG bunkering market, the release said.