The Ministry of Energy and Minerals in the Sultanate of Oman has signed a Memorandum of Cooperation (MoC) with key industry players to propel Carbon Capture, Utilisation, and Storage (CCUS) and blue hydrogen development.
This strategic collaboration involves Petroleum Development Oman (PDO), Oman Shell, OQGN, and Oxy, aiming to establish an expertise house that contributes to regulatory and strategic framework development in these critical fields.
Aligned with Oman’s energy transition strategy and the commitment to achieve net zero by 2050, the MoC signifies a pivotal step towards leveraging CCUS technology and blue hydrogen production. These technologies present promising solutions to reduce carbon emissions, particularly in the oil and gas production sectors, industries, and fossil fuel-based power plants.
The Sultanate of Oman’s National Strategy for Net Zero indicates that CCUS will play a crucial role, contributing to a substantial reduction (approximately 15%) in domestic emissions. This collaboration emphasizes the government’s dedication to finding practical solutions for carbon emissions reduction and fostering pioneering initiatives in CCUS and blue hydrogen production.
The MoC outlines the formation of a specialized House of Expertise, bringing together public and private sectors, academic institutions, and experienced investment and research entities. The goal is to conduct a comprehensive techno-economic assessment in Oman and contribute to the development of the regulatory framework and strategies essential for the advancement of the CCUS and blue hydrogen sector.
Mohsin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, emphasizes the importance of accelerating efforts in employing functional solutions, collaborating with partners, and achieving targeted results systematically and sustainably within the designated timeframe.
Simultaneously, Occidental Oman and OQ Gas Networks (OQGN) have signed a Memorandum of Understanding (MoU) to jointly study potential CCUS projects in Oman. This collaboration focuses on the development and deployment of CCUS alongside enhanced oil recovery (EOR) projects at Oxy’s production assets in Oman.
Under the terms of the MoU, Oxy Oman and OQGN will exchange knowledge and technical expertise, aiming to develop strategies enabling the deployment of CCUS projects in Oman. The collaboration underscores both companies’ commitment to innovation, advancing CCUS and future EOR projects, and supporting Oman’s long-term Net Zero strategy and global climate objectives.