State-controlled Petroleum Development Oman (PDO) and European supermajor Shell have teamed up to jointly study carbon capture, utilisation and storage (CCUS) opportunities in Oman. - UpstreamOnline

The two companies recently signed a memorandum of understanding (MoU) for research focusing on reinjecting and storing carbon dioxide in the sultanate.

The study’s scope will cover technical matters, project time frame and cost, and consider support for a regulatory and fiscal framework for CCUS, local media reports claimed.

The companies said the agreement aims 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 the country.

PDO managing director Steve Phimister said the agreement is in line with the company’s commitments to Oman’s Vision 2040 programme and lays the foundation for the player to reduce emissions from its operations.

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.

PDO managing director Steve Phimister

Shell operates Oman’s onshore Block 10 and holds a 34% stake in PDO.