Muscat – The Ministry of Energy and Minerals is advancing a series of strategic initiatives aimed at increasing oil and gas production while reducing carbon emissions, as part of the Sultanate of Oman’s transition towards a low-carbon economy.

The ministry is overseeing energy transition projects, developing policies and regulations to attract investment in sustainable energy, and supporting the objectives of Oman Vision 2040 and the country’s goal of achieving net-zero emissions by 2050.

In a statement to Oman News Agency, Dr Saleh bin Ali Al Anbouri, Director General of Oil and Gas Exploration and Production at the Ministry of Energy and Minerals, said the ministry is promoting the adoption of advanced technologies to improve hydrocarbon recovery while reducing the environmental footprint of oil and gas operations.

One example is a pilot project launched by Petroleum Development Oman (PDO) at the Dhulaima field, where carbon dioxide is being used in enhanced oil recovery (EOR) operations. The project aims to increase extraction of oil trapped in reservoir rock formations while supporting carbon capture, utilisation and storage (CCUS) efforts.

Renewable energy for oilfield operations

Dr Al Anbouri added that the ministry continues to encourage investment in renewable energy projects by providing investment opportunities and a supportive regulatory framework.

Among the key projects under development are the Wind 1 and Wind 2 projects in Block 6, with a combined generation capacity of 200MW. The projects, among the first large-scale renewable energy developments serving oil and gas operations globally, are around 42% complete and are expected to begin operations in the fourth quarter of this year. Once operational, they are projected to reduce carbon dioxide emissions by approximately 740,000 tonnes annually.

A 100MW solar photovoltaic project is also being developed in Block 6. It is 51% complete and is expected to enter service in the second quarter of 2026, reducing emissions by more than 220,000 tonnes a year.

Furthermore, the Amin Solar Photovoltaic Power Plant, which began operations in 2020 with a capacity of 100MW, has reduced emissions by more than 1.1mn tonnes to date. Meanwhile, the Miraah solar steam generation project continues to support EOR operations using renewable energy.

The ministry is also encouraging oil and gas operators to increase the share of renewable energy in their operations. PDO has raised its target to source 30% of its operational energy requirements from renewable sources by the end of 2026.

Dr Al Anbouri said the ministry is also promoting sustainable management of water resources associated with hydrocarbon production through innovative environmental solutions.

A notable example is the Nimr Wetland Project, which uses reed-bed technology to naturally treat produced water. The facility has a treatment capacity of 175,000 cubic metres per day and is estimated to reduce emissions by 113,000 tonnes annually. It has also developed into a natural habitat supporting more than 140 species of birds and animals.

Similarly, the Rima Water Treatment Plant, which began operations in 2022, uses advanced biological treatment processes to handle around 40,000 cubic metres of water daily. The facility delivers energy savings of up to 10MW and reduces carbon emissions by approximately 48,000 tonnes each year.

Net-zero targets and flaring reduction

Under Oman’s Net Zero Emissions Strategy 2050, the country aims to reduce greenhouse gas emissions by 33% by 2035 compared with the baseline scenario. Of this target, 7% represents unconditional commitments, while 26% depends on the availability of financing, technology transfer and international support.

The oil and gas sector is expected to play a central role in achieving these goals, targeting a reduction of up to 48% in sectoral emissions by 2035. This includes a 10% unconditional reduction target and a further 38% subject to external support and enabling conditions.

Oman is also working towards eliminating routine gas flaring by adopting integrated solutions to recover and utilise associated gas that would otherwise be flared. The initiative forms a key part of the sector’s emissions reduction strategy and supports more efficient use of energy resources.

According to the ministry, operating companies have already achieved a 50% reduction in routine flaring rates at several production sites through investments in gas recovery infrastructure and the use of recovered gas for power generation and operations. These efforts support Oman’s commitment to global initiatives aimed at ending routine flaring by 2030.

In addition, Oman has introduced a regulatory framework for carbon markets governing the issuance, trading and exchange of carbon credits. The framework is expected to facilitate the development of emissions-reduction projects, enhance market transparency and credibility, attract investment, and enable companies to benefit from opportunities in international carbon markets.