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Occidental Petroleum Corp subsidiary Oxy Oman and the natural gas transport company OQ Gas Networks SAOC (OQGN) have signed a memorandum of understanding (MoU) to jointly study potential carbon capture, utilization, and sequestration (CCUS) projects in Oman.
The MoU outlines the mutual collaboration of the two companies to study the development and deployment of CCUS as well as enhanced oil recovery (EOR) projects at Oxy’s production assets in Oman, according to a news release from Occidental. The release notes that the two companies will exchange knowledge and technical expertise on projects such as carbon capture and the transport of carbon dioxide to Oxy Oman’s production assets for EOR, as well as support the development of relevant policies and procedures with the appropriate government bodies. The MoU also underpins both companies’ dedication to enabling Oman’s long-term Net Zero strategy and global climate objectives.
Along with the MoU, Oxy Oman and OQGN also signed the CCUS and Blue Hydrogen Policy & Regulatory Framework Terms of Reference (CCUS TOR) with the Omani government, represented by Undersecretary of the Ministry of Energy and Minerals Mohsin Al Hadhrami. The CCUS TOR aims to facilitate effective collaboration between key stakeholders across the government and the oil and gas industry and supports effective implementation of CCUS in Oman, according to the release.
“This strategic collaboration with OQGN will enable our companies to generate opportunities to advance CCUS projects in the Sultanate”, Oxy Oman President and General Manager Steven Lauver said. “We are leveraging Oxy’s global 50-year expertise in carbon management and enhanced oil recovery, and combining it with our decades of partnership and operational success in Oman to develop carbon management solutions in line with the long-term objectives of the Omani government. We believe CCUS has the potential to unlock further development of the hydrocarbon industry while reducing greenhouse gas emissions”.
“We are also excited to be part of the CCUS and Blue Hydrogen Policy & Regulatory Framework Terms of Reference where CO2 extraction technologies, such as Direct Air Capture, can be studied in conjunction with initiatives of other stakeholders”, Lauver added.
“We look forward to working closely with Oxy Oman to jointly develop CCUS and EOR projects, and being a key enabler for the country’s decarbonization initiatives”, OQGN Managing Director Mansoor Al Abdali said. “This agreement emphasizes our commitment as the national gas infrastructure company in leading the development and deployment of CCUS and hydrogen infrastructure to support Oman’s energy transition goals and aspirations. We leverage on our expertise in natural gas transportation to provide the link between emitters of carbon dioxide and various sinks to realize the national agenda in a cost-effective manner”.
Occidental has been producing in Oman for over 30 years, where it has steadily increased production and reserves. According to the release, Oxy is the largest independent oil producer operating in the country, covering more than 6 million gross acres.
Meanwhile, OQGN holds a natural monopoly over critical gas transportation infrastructure in Oman as the exclusive owner and operator of the country’s Natural Gas Transmission Network (NGTN). The company said it has delivered 99.99 percent gas availability over the last 10 years and recorded no gas supply interruptions in 2022.
Occidental’s agreement with OQGN is the latest in a series of low carbon initiatives for the company. Earlier in the month, its subsidiary 1PointFive and Blackrock Inc. formed a joint venture that will own Stratos, a DAC facility in Ector County, Texas. The facility is designed to capture up to 500,000 metric tons of carbon dioxide per year. In October, 1PointFive, and ADNOC signed an agreement to start a jointly funded preliminary engineering study for a similar DAC facility in the United Arab Emirates, with a capacity of one million tons per year.
To contact the author, email rocky.teodoro@rigzone.com
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