UK supermajor BP has formed a strategic partnership with the government of Oman to progress a potential multi-gigawatt renewable energy and green hydrogen development by 2030.
BP revealed Monday it had signed a strategic framework agreement with Oman’s Ministry of Energy and Minerals, along with a Renewables Data Collection Agreement.
The agreements will see the UK energy giant and Oman look at 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.
Under the agreements, BP will also capture and evaluate solar and wind data from an 8000 square kilometre area to help support the Oman government in evaluating and approving the development of future renewable energy hubs.
These hubs could also potentially be used for the development of green hydrogen, both for domestic use and for export.
“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,” said BP chief executive Bernard Looney.
“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.”
Oman’s Minister of Energy & Minerals, Mohammed al-Rumhy, said the agreements with BP were a significant step towards Oman delivering on its 2040 Vision, which includes renewable energy consumption in the Sultanate reaching 20% by 2030 and up to 39% by 2040.
“In partnership with BP, we will progress the development of new, 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,” he added.
“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.“
Just last year, Oman unveiled plans for a 25GW solar and wind development to produce 1.8 millions of tons per annum of green hydrogen and up to 10 million tpa of green ammonia.
The proposed Oman Green Energy Hub is being developed by a consortium consisting of Omani state-run energy player OQ, Kuwait government-backed clean energy investor and developer EnerTech and green hydrogen developer InterContinental Energy.
UK-Oman Sovereign Investment Partnership
The agreements between BP and Oman follow on from the announcement last week of a sovereign investment partnership between the UK and Oman as part of a bid to strengthen economic ties between the two countries by identifying and supporting commercial investments.
While the countries will focus on several sectors, the partnership will have a strong emphasis on clean energy and technology.
“Following the signing last week of the UK-Oman 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 UK’s Minister for Investment, Gerry Grimstone, said on Monday.
“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.”
British foreign direct investment accounted for nearly 50% of all international flows to Oman in recent years, according to the Omani National Centre for Statistics and Information, while 2021 data from the UK’s Department of International Trade currently values the trading relationship between Oman and the UK at £1 billion-a-year ($1.37 billion).
