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BP Oman’s green hydrogen project in concept development stage

Energy major BP says it is currently focused on assessing the solar and wind resources of a land block awarded by the Omani government last year for the development of green hydrogen.

Last June, BP Oman signed a project development and land use agreement with Hydrom – the orchestrator of Oman’s green hydrogen sector – for a potential 150,000 tonnes a year green hydrogen project near Duqm in Oman’s Al Wusta Governorate.

“The project is currently in the concept development stage, and we continue to progress our data collection campaign using LiDARs (light detection and ranging devices), solar stations and met masts,” BP Oman stated in its newly published 2023 Socioeconomic Review 2023 of its Oman operations.

As part of its ambitions to develop its presence in Oman’s green hydrogen sector, BP Oman also signed an MoU with the Public Authority for Special Economic Zones and Free Zones (OPAZ) for the potential allocation of land to develop green hydrogen derivatives within the Duqm SEZ.

Separately, it signed an MoU with Asyad Group – the state-owned integrated shipping and logistics services provider – to jointly explore the development of the hydrogen sector in Oman. Another MoU inked with local think-tank Oman Hydrogen Centre (OHC) focuses on green hydrogen and renewable energy education, upskilling, local capability development, and R&D.

“We aim to be a leader in hydrogen and rapidly scale up our presence worldwide. We plan to work with partners and governments to develop a hydrogen infrastructure network and support demand creation through market and supply chain development from BP’s global operations,” it further noted in its report.

In a foreword, Mohsin al Hadhrami, Under-Secretary, Ministry of Energy and Minerals, welcomed BP’s role in renewable hydrogen development in Oman. “BP’s commitment to explore the potential for green hydrogen development in Duqm supports our hydrogen strategy to achieve a lower-carbon energy future. It has achieved this while prioritizing the up-skilling of our local workforce and helping drive a competitive market through its in-country value efforts,” he stated.

Al Hadhrami cited in particular BP’s contribution to Oman’s energy requirements, notably through the operation of Block 61 in central Oman. “Block 61’s operations have been a major source of energy in Oman. BP and its partners continue to embed emission-reducing technologies as it extracts gas from the complex tight-gas reservoir,” he added.

Production from Block 61, BP’s flagship investment in Oman, averaged 1.5 billion cubic feet/day of natural gas in 2023, representing around 35% of the country’s total gas requirement. Condensate output averaged 55,650 barrels per day.

Also in central Oman, BP has been working jointly with Italian energy firm ENI in unlocking the hydrocarbon potential of Block 77. BP and ENI each hold a 50% interest in the 2,700 sq km concession, with ENI acting as the operator.

Another highlight of 2023 was the signing of a Sales and Purchase Agreement (SPA) by BP Trading and Shipping (T&S) with Oman LNG for the supply of 1 million metric tonnes per annum of LNG starting from 2026. In 2018, BP T&S purchased LNG from Oman LNG under a seven-year deal.