Thursday 18 / April / 2024
Muscat: The Ministry of Energy and Minerals and BP has signed today a Strategic Framework Agreement (SFA) and a Renewables Data Collection Agreement, which will support the potential development of world-class renewable energy and green hydrogen development in Oman, by 2030.
The agreement was signed by Dr Mohammed bin Hamad Al Rumhy, Minister of Energy and Minerals and Stephen Willis, BP Senior Vice President in the Middle East.
Dr Al Rumhy said, “This is a proud moment for Oman and a significant step towards delivering our 2040 Vision. In partnership with BP, we will progress the development of world-class solar and wind resources – generating renewable power for the grid and powering the manufacture of green hydrogen to supply domestic demand and to export to global customers. Over the past 50 years, we’ve advanced our hydrocarbon production. Today’s agreement signals the next step in our energy journey – unlocking the potential for Oman as a low-carbon energy hub."
Under the SFA, Oman and BP will also consider ways to collaborate in a number of areas, including a renewables strategy, regulation, the establishment of a renewable energy hub and the development and reskilling of the local workforce.
As part of the agreement, BP will capture and evaluate solar and wind data from 8,000 km2 of land – an area more than five times the size of Greater London. The evaluation will then support the Government of Oman in approving the future development of renewable energy hubs at suitable locations within this area to take advantage of these resources. The renewable energy resources could also supply renewable power for the development of green hydrogen, targeting both domestic and global export markets.
BP chief executive Bernard Looney said, “Today’s agreement represents what BP is able to offer as an integrated energy company. These projects will build on our gas business, and bring wind, solar and green hydrogen together in a distinctive and integrated way supporting Oman’s low carbon energy goals. And we’re not just investing in energy. We are investing in Oman to create and develop infrastructure, support local supply chains and cultivate the skills and talent needed to usher in this next generation of energy leaders. We look forward to working closely with the Omani government to take this forward.”
The UK’s Minister for Investment Lord Gerry Grimstone added, “Following the signing last week of the Oman-UK Sovereign Investment Partnership, this investment by BP into Oman’s renewable energy sector is a shining example of our countries’ joint ambition to facilitate strategic and commercial bilateral investment. The project demonstrates our shared vision for future prosperity through clean growth, further strengthening the partnership between the United Kingdom and the Sultanate of Oman.”
Oman has a strong track record in the oil and gas industry, which has grown over recent years. Today’s announcement, which is subject to the final agreement of commercial terms, is an important step towards the country’s 2040 Vision and an opportunity to become a leading low-carbon energy hub. It would further support the Oman government’s goals of diversifying the economy and bolstering investment.
