PDO, Shell to explore CCUS opportunities in Oman

Oman's state-controlled Petroleum Development Oman (PDO) and Shell have agreed to jointly study carbon capture, utilisation and storage (CCUS) opportunities in the country.

The two have signed a preliminary agreement for a study to assess all aspects of reinjecting and storing CO2, to include technical matters, project timeframe and cost, and possible support for a regulatory and fiscal framework for CCUS in Oman.

Shell and PDO want to facilitate a low-carbon hydrogen value chain in Oman, and Shell's vice president Walid Hadi said the study "may well result in further collaboration involving additional projects [between PDO and Shell] in the future."

PDO managing director Steve Phimistersaid the collaboration "lays the foundation for PDO to reduce emissions from our operations." The firm operates Oman's giant block 6 and is the country's biggest hydrocarbons producer. It accounted for 74.5pc of Oman's oil and condensate output in 2020, up from 73pc in 2019. The use of CCUS for enhanced oil recovery (EOR) and long-term CO2 storage would be a step forward in PDO's commitment to achieve net zero emissions by 2050.

Shell operates Oman's block 10 and holds a 34pc interest in PDO. The UK-based company said it is looking closely at options for an associated downstream project based on low-carbon hydrogen value chains with CCUS.

Most CCUS facilities globally are tied to natural gas processing plants and are made economically viable through EOR.

By Ieva Paldaviciute