Oxy Oman and OQ Gas Networks sign MOU for carbon management

By Occidental | November 14, 2023

Oxy Oman, the leading independent oil & gas producer in Oman, and OQ Gas Networks SAOC (OQGN), the sole transporter of natural gas in Oman, announced the signing of a Memorandum of Understanding (MoU) to jointly study potential carbon capture, utilization, and sequestration (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.

Under the terms of the MoU, 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, transport of carbon dioxide to Oxy Oman’s production assets for EOR, and supporting the development of relevant policies and procedures with the appropriate government bodies.

The strategic collaboration between Oxy Oman and OQGN demonstrates the two companies’ commitment to innovation and advancement of CCUS and future EOR projects in Oman. The MoU also underpins both companies’ dedication to enabling Oman’s long-term Net Zero strategy and global climate objectives. OQGN is committed to ensuring the timely and cost-effective delivery of Oman’s CCUS and hydrogen infrastructure. Oxy Oman is committed to progressing its vision as an innovative and sustainable energy leader with initiatives that enable a low-carbon future.

The MoU was signed by Steven Lauver, President & General Manager at Oxy Oman, and Mansoor Al Abdali, Managing Director of OQGN, on behalf of their respective organizations. The signing event was held under the auspices of H.E. Mohsin Al Hadhrami, Undersecretary of the Ministry of Energy and Mineral, alongside the signing ceremony for 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 & Gas industry and supports effective implementation of CCUS 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 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,” Lauver said. “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.”

Mansoor Al Abdali, Managing Director of OQGN, said: “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. 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.”