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OQEP is also working to connect Block 60 with the national electricity network
OQ Exploration and Production (OQEP), which recently announced its intent to divest 25 per cent of its equity via an Initial Public Offering (IPO) on the Muscat Stock Exchange (MSX), plans to tap solar energy to support the decarbonisation of its upstream operations.
OQEP – the upstream arm of state-owned global integrated energy group OQ – says it is currently collaborating with its green energy investment peer OQ Alternative Energy (OQAE) on the development of a 35 MW capacity solar power project to help reduce greenhouse gas emissions from its operations.
While OQEP has a sizable portfolio of operating and non-operating assets in Oman, its primary target for decarbonisation is Block 60, which currently produces around 60,000 barrels of oil equivalent per day (boe/day). To maintain sustainable growth from the concession, OQEP plans to implement a robust exploration strategy aimed at unearthing other potential reservoirs as well.
In addition to plans for solar energy, OQEP is also working to connect Block 60 with the national electricity network. Slated for completion by mid-2025, this linkage will support Block 60’s transition away from gas and diesel-powered electricity supply.
At a media briefing earlier this week to announce the company’s divestment plan, officials outlined OQEP’s broader strategy to reduce greenhouse gas emissions (Scope 1 and 2) to Net Zero by 2050. This target will apply to the company’s operated assets Block 60 and Block 8, the Musandam Gas Plant, and company operated processing facility and export terminal. In addition, routine flaring is proposed to be eliminated by 2027.
According to officials, the switch from diesel to gas for power generation, coupled with the use of modern technology, has enabled the company to slash its GHG intensity to below 15kg CO2/boe in its operated assets, well below the target set under the Oil & Gas Climate Initiative (OGCI). At the same time, the deployment of a smart Fugitive Methane Leak Detection tool has helped reduce GHG emissions by detecting and repairing leaks.
“OQEP has identified various GHG reduction opportunities over the next 10 years, including flare reduction projects, energy efficiency projects, process optimisation and renewable energy projects. The Company also intends to implement additional emission reduction initiatives in the future that are expected to deliver a reduction of up to 40 per cent of Scope 1 and 2 GHG emissions from a 2021 baseline,” the company added. |
