Muscat – Shell Development Oman (Oman Shell) and Petroleum Development Oman (PDO) have agreed to collaborate and jointly study Carbon Capture Utilisation and Storage (CCUS) opportunities in Oman.

CCUS is a combination of technologies that capture, use and store carbon dioxide deep underground, preventing its release into the atmosphere. Shell considers CCUS as one of the enablers to actually achieve the climate objectives.

As part of this agreement, Oman Shell and PDO signed a memorandum of understanding (MOU) for a joint study, which will broadly assess all aspects related to reinjecting and storing CO2 in Oman. The study’s scope will cover technical matters, project time-frame and cost, as well as consider support for a regulatory and fiscal framework for CCUS in Oman, according to a press statement.

Through this collaboration, PDO and Oman Shell seek to leverage joint capabilities and economies of scale to initiate the CCUS industry in Oman, and to facilitate the inception of a low carbon hydrogen value chain in Oman.

PDO is the operator of Block 6 and in line with Oman’s Vision 2040 has clear commitments towards achieving net zero emissions by 2050. PDO is, therefore, progressing opportunities to grow its core hydrocarbon business whilst also reducing greenhouse gases (GHG) emissions from its operations, including the use of CCUS for enhanced oil recovery (EOR) and long-term CO2 storage.

Oman Shell is the operator of Block 10 and is maturing options for an associated downstream project based on low carbon hydrogen value chains with CCUS.

Commenting on this agreement, Walid Hadi, Oman Shell country chair, said, “This collaboration allows Oman Shell and PDO to positively contribute to Oman’s Vision 2040, creating opportunities to reduce the carbon intensity of PDO’s existing operations and creating a new low carbon hydrogen value chain in Oman. The intent of this collaboration is to progress CCUS opportunities in Oman, making the best use of PDO’s knowledge of the subsurface/surface and its long-standing experience of operating assets in Oman, together with Shell’s global knowledge and experience in Carbon Capture Utilization and Storage. The initial study may well result in further collaboration involving additional projects in the future.”

Steve Phimister, managing director of PDO, said, “In line with PDO’s commitments to Oman’s Vision 2040 and our role in the energy transition, this collaboration lays the foundation for PDO to reduce emissions from our operations as well as helping to progress Oman’s national energy agenda, via large scale CCUS. PDO and Shell, are uniquely positioned based on capacity, geography, and expertise to execute this project together and build sustainable energy solutions for Oman’s future.”