PDO Holds 17th Graduation Ceremony

April 11, 2005

On April 11th Petroleum Development Oman (PDO) held its 17th annual graduation ceremony at the auditorium of the Ministry of Oil and Gas. Certificates were presented to 64 new Omani graduates by the guest of honour, H.E. Dr Rawiya Bint Saud Al-Busaidy, the Minister of Higher Education.

PDO has for many years been actively supporting the university education of Omanis, investing nearly R.O. 3 million every year to this end. Working in PDO today are more than one thousand Omanis who have graduated from overseas degree programmes thanks to the company's support.

This year's graduates included eight gaining PhDs, 15 receiving their MSc, 34 gaining their first degree, and a further seven being awarded an MBA.

In a speech delivered at the start of the ceremony, PDO's Managing Director, John Malcolm, said "PDO is not just in the business of finding and producing oil and gas, it is also in the business of finding and producing talented people. And we see before us today the fruits of our 'exploration and development' work. PDO can be proud of the part it has played in these young people's lives.

"These PDO graduates are the future of the Company and consequently have a huge part to play in the future of Oman. These people have challenged themselves to maximise their potential by gaining good educational qualifications. And in doing so, they will help us and the country meet the challenges that we face."

In conclusion, Mr Malcolm said to the new graduates: "The need for new thinking and new ways of working is crucial to our success. And so it is that we look to our young colleagues here today to help us in our task to move forward, to be unafraid of change, to be willing to take risks and question the old way of doings things. In PDO we will give them this opportunity to use their newfound knowledge, to put it into practice."

Libya National Oil Corporation and Shell agree on major integrated gas deal

May 03, 2005

The National Oil Corporation of the Great Socialist People's Libyan Arab Jamahiriya (NOC) and Shell Exploration and Production Libya GmbH ("Shell") have reached a long-term agreement for a major gas exploration and development deal. The agreement covers the rejuvenation and upgrade of the existing LNG Plant at Marsa Al-Brega on the Libyan coast, together with exploration and development of five areas located in the heart of Libya's major oil and gas producing Sirte Basin. The contract follows the Heads of Agreement signed in March 2004 between NOC and Shell, in which both parties agreed to establish a long-term strategic partnership in the Libyan gas sector.

Under the agreement, Shell will rejuvenate and upgrade the Marsa Al-Brega LNG plant at a minimum cost of $105 million, rising possibly to $450 million, which will eventually increase the plant output from 0.7 to some 3.2 million tons per annum. Subject to gas availability, Shell will also undertake jointly with NOC the development of a new LNG facility.

The agreement also grants Shell gas exploration rights in five blocks, covering some 20,000 square kilometres at a minimum commitment cost of $187 million. The exploration programme will commence immediately in the allocated blocks with the acquisition of 2D and 3D seismic data in 2005/6 followed by exploration and appraisal drilling.

The Marsa Al-Brega LNG plant is operated by the Sirte Oil and Gas Production and Manufacturing Company (SOC), an NOC affiliate, with gas supplied from the Sirte basin. NOC, SOC and Shell will cooperate to detail the scope of work required for the LNG rejuvenation and upgrade project, which will be carried out in phases to suit gas availability.

The General People's Committee of the Great Socialist People's Libyan Arab Jamahiriya has approved this agreement.

Shell's Executive Director for Exploration and Production, Mr Malcolm Brinded, said: "We are delighted to be back in Libya and honoured to work together with NOC to develop a modern LNG industry, and explore for and develop gas in the prolific Sirte Basin. This is another major opportunity to apply Shell's LNG skills and leadership. I am excited about concluding this major agreement. Libya's integrated gas industry has enormous potential, based on its large gas resources and favourable geographic location. I look forward to our cooperation and believe that this is the beginning of a new lasting and fruitful partnership with Libya."