bp and Oman’s Ministry of Energy and Minerals signed a Strategic Framework Agreement (SFA) and a Renewables Data Collection Agreement to support the potential development of a multi-gigatonne, world-class renewable energy and green hydrogen development in Oman by 2030.
As part of the agreement, bp will collect and analyze data from 8,000km2 of land, which is more than five times the size of Greater London. The evaluation will then assist the Government of Oman in approving future developments of renewable energy hubs in appropriate locations within this area to capitalize on these resources. Renewable energy resources could also provide renewable power for the development of green hydrogen, which would target both domestic and global export markets.
bp chief executive Bernard Looney said: “Today’s agreement represents what bp is able to offer as an integrated energy company. These projects will build on our gas business, and bring wind, solar and green hydrogen together in a distinctive and integrated way supporting Oman’s low carbon energy goals.
“And we’re not just investing in energy. We are investing in Oman to create and develop infrastructure, support local supply chains and cultivate the skills and talent needed to usher in this next generation of energy leaders. We look forward to working closely with the Omani government to take this forward.”
His Excellency Dr Mohammed Al Rumhy, Minister of Energy & Minerals of the Sultanate of Oman, said: “This is a proud moment for Oman and a significant step towards delivering our 2040 Vision. In partnership with bp, we will progress the development of new, world-class solar and wind resources – generating renewable power for the grid and powering the manufacture of green hydrogen to supply domestic demand and to export to global customers. Over the past 50 years, we’ve advanced our hydrocarbon production. Today’s agreement signals the next step in our energy journey – unlocking the potential for Oman as a low-carbon energy hub.“
The UK’s Minister for Investment Lord Gerry Grimstone added: “Following the signing last week of the UK-Oman Sovereign Investment Partnership, this investment by bp into Oman’s renewable energy sector is a shining example of our countries’ joint ambition to facilitate strategic and commercial bilateral investment. The project demonstrates our shared vision for future prosperity through clean growth, further strengthening the partnership between the United Kingdom and the Sultanate of Oman”.
Under the SFA, BP and Oman will also consider ways to collaborate in a variety of areas, such as renewables strategy, regulation, the establishment of a renewable energy hub, and the development and reskilling of the local workforce.
Oman has a long history in the oil and gas industry, which it has expanded in recent years. The announcement made today, which is subject to final commercial terms, is an important step toward the country’s 2040 Vision and an opportunity to become a leading low-carbon energy hub. It would also contribute to the Oman government’s goals of diversifying the economy and increasing investment.
bp is committed to expanding its operations and building on its 15-year history in Oman, where it operates Block 61, which supplies one-third of the country’s gas demand. bp’s Oman business spent $610 million with Omani-registered companies in 2020, accounting for 90% of total spend. In addition, in 2021, BP joined Oman’s national hydrogen alliance, Hy-Fly, to promote the hydrogen industry in Oman, and established a net zero taskforce to assist in the development of a ‘roadmap’ for BP in Oman.
