Oxy in Deal to Study Carbon Capture Projects in Oman

Occidental of Oman (Oxy) and OQ Gas Networks (OQGN) on Wednesday signed a memorandum of understanding (MoU) to jointly study potential Carbon Capture, Utilization, and Storage (CCUS) projects in Oman. The MoU outlines the companies’ mutual collaboration to study the development and deployment of CCUS in conjunction with enhanced oil recovery (EOR) projects at Oxy’s production assets in Oman, according to a press statement by the Ministry of Energy and Minerals.

As per the agreement, Oxy Oman and OQGN intend to exchange knowledge and technical expertise to develop strategies enabling the deployment of CCUS projects in Oman in line with the national strategic direction, including carbon capture, the transport of carbon dioxide to Oxy’s production assets for EOR, and supporting the development of relevant policies and procedures.

The strategic collaboration between Oxy Oman and OQGN demonstrates the two companies’ commitment to innovation and the advancement of CCUS and future EOR projects in the sultanate. The MoU also underpins both companies’ dedication to enabling Oman’s long-term Net Zero strategy and global climate objectives.

The MoU was signed by Mansoor al Abdali, managing director of OQGN, and Steven Lauver, president and general manager of Oxy Oman, on behalf of their respective organizations. The signing ceremony was held along with the signing ceremony of the CCUS and Blue Hydrogen Policy & Regulatory Framework Terms of Reference (CCUS ToR).

The CCUS ToR aims to facilitate effective collaboration between key stakeholders across the government and the oil and gas industry and supports the effective implementation of CCUS projects in Oman.

“This strategic collaboration with OQGN will enable our companies to generate opportunities to advance CCUS projects in the sultanate. We are leveraging Oxy’s global 50-year expertise in carbon management and EOR, 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,” Oxy’s Steven Lauver said.

“We are also excited to be part of the CCUS ToR where CO2 extraction technologies such as Direct Air Capture (DAC) can be studied in conjunction with initiatives of other stakeholders,” he added.

OQGN’s Mansoor al Abdali said, “We look forward to working closely with Oxy to jointly develop CCUS and EOR projects, and being a key enabler for the country’s decarbonization initiatives. 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 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,” he added.