Shell and Total inked an upstream agreement with Oman; under which the companies will invest in gas exploration and production in partnership with Petroleum Development Oman (PDO) and Oman Oil Company (OOC), Pipeline Oil and Gas Magazine reported.

“Today’s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman’s economy,” Chris Breeze, Shell’s country chairman in Oman, said.

The agreement aims to develop integrated gas projects to meet increasing domestic demand.

The integrated project will affect the downstream development as Total and OOC will supply, build, and operate a million tons per year LNG plant.

In addition, Shell and OOC’s share of the upstream project will be integrated with developing a gas-to-liquids plant (GTL), which is still under discussion, to be developed and operated by Shell in partnership with OOC.

The agreement covers gas acreage in the northern part of Block 6, Greater Barik area, located to the west of the existing Saih Rawl gas field operated by PDO.