Two leading Middle East energy companies are collaborating to study the potential for carbon capture, utilisation, and storage (CCUS) in Oman.

Announced yesterday, 25th May, Shell Development Oman LLC (Oman Shell) and Petroleum Development Oman LLC (PDO) signed an agreement to study all aspects related to reinjecting and storing carbon dioxide (CO2) in Oman. 

By exploring key factors such as technical matters, project time frame and cost, and support for a regulatory and fiscal framework for CCUS in the country, the partners aim to scale up Oman’s CCUS industry. 

In addition to carbon capture, the study will work towards Oman’s push towards net zero emissions. 

As the operator of the Block 6 contract area – Oman’s most significant oil and gas operation – PDO aims to work in line with Oman Vision 2040 to reduce greenhouse gas (GHG) emissions while growing its core hydrocarbon business. 

Revealing that the agreement will also help create a new low carbon hydrogen value chain in Oman, Walid Hadi, VP, Country Chairman, Oman Shell, said, “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 CCUS.” 

As operator of the Block 10 gas field, Oman Shell has stated that it is maturing options for an associated downstream project based on low carbon hydrogen value chains associated with CCUS.