Latest news with #Block6
Zawya
10-06-2025
- Business
- Zawya
OQAE begins operational phase of clean energy project pipeline in Oman
MUSCAT: More than five years after its establishment as the clean energy investment arm of OQ Group, OQ Alternative Energy (OQAE) is set to formally commence the operational phase of its pivotal mandate. That phase will begin next year, when three mid-scale renewable energy projects—dubbed Riyah-1, Riyah-2 (both wind-based Independent Power Projects, or IPPs), and the North Oman Solar IPP—come online over the course of the year. Their launch marks OQAE's official entry into the operational phase of a portfolio that aims to deliver upwards of 7 GW of new renewable energy capacity through to 2030. The significance of this milestone in OQAE's evolution as the National Champion for Renewable Energy in Oman was emphasized in an exclusive interview highlighting how the Riyah-1, Riyah-2, and North Oman Solar projects align with OQAE's overarching mandate. That mandate rests on two main pillars: The first is the development of renewable energy and green hydrogen projects; the second is ensuring holistic development across the entire value chain and ecosystem, which includes project execution, competency development, supply chain investment, and strategic planning through to implementation. Integral to these objectives is the aim of attracting foreign direct investment (FDI) and advanced technology know-how into Oman. As announced last month, a joint venture comprising OQAE (51%) and TotalEnergies (49%) will develop the three projects at designated sites within the Block 6 concession of Petroleum Development Oman (PDO). The renewable electricity generated will be supplied to PDO under long-term Power Purchase Agreements (PPAs) at agreed tariffs. The OQAE–TotalEnergies JV will continue to own and operate the projects for the duration of the PPAs. According to the officials, partnering with a renowned integrated energy company like TotalEnergies aligns with OQ Group's strategy of leveraging the extensive experience and capabilities of global industry leaders. 'Unlike our well-established peers such as OQ Exploration & Production and OQ Refineries & Petroleum Industries, OQAE is just commencing its operational journey,' one executive noted. 'As a first step, our partnership spans not only Riyah-1, Riyah-2, and North Oman Solar, but also the 300 MW solar PV project that will contribute to the decarbonisation of the Marsa LNG bunkering project under construction at Sohar Port.' Meanwhile, Huadong Engineering Corporation—a subsidiary of Chinese contracting giant PowerChina—has already begun work on the three PDO-linked renewable energy projects. An initial batch of eight wind turbines is expected to arrive at the Port of Duqm for Riyah-1 in October. The supplier, Goldwind, a leading Chinese manufacturer, was awarded the contract to supply 36 turbines (18 for each site), each with a capacity of 117 MW, for the two wind farms. Solar PV panels for the North Oman Solar project will be supplied by Longi, a global leader in solar technology. More than 200,000 bifacial N-type panels, with a generation capacity of 128 MW DC, will be installed across a 3.5 km² site at Saih Nihayda in central Oman. The commercial operation dates are targeted for Q2 2026 for North Oman Solar and Q4 2026 for the wind farms. In addition to being the first clean energy projects to progress from concept to implementation, Riyah-1, Riyah-2, and North Oman Solar are also set to create a number of firsts for OQAE. They are the first to achieve Final Investment Decision (FID) and financial closure; the first wind projects to be financed locally by Omani banks—Bank Muscat and Ahli Bank; the first Wind IPPs in the world to exclusively power oil and gas projects; the first clean energy projects in which both the developers and end customers are from the oil and gas sector; and the first collaboration between oil and gas companies to advance the energy transition. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
22-05-2025
- Business
- Observer
PDO offers high-potential oil acreage for investment
MUSCAT, MAY 22 In a significant development, Petroleum Development Oman (PDO) – the largest producer of oil and gas in the Sultanate of Oman – has invited Expressions of Interest (EoIs) from local and international operators in the development of a potentially hydrocarbon-rich field within its sprawling Block 6 license. The majority state-owned national oil company announced in a post on Thursday, May 22, 2025, that a 130 km2 parcel of land, dubbed Area A, is being offered for investment and development in the Qarn Alam Cluster, within the prolific Ghaba Basin in northern Oman. 'This represents a strategic opportunity to access a discovered resource with more than 1 billion barrels of STOIIP (stock tank oil initially in place), located within Area-A, which spans over 130 km2. The area offers proximity to existing infrastructure and holds significant development potential,' PDO stated in its post. Operators interested in the exploration, appraisal and development of Area-A have been invited to submit a letter confirming their willingness to participate in a competitive process, along with supporting documents to demonstrate their relevant experience. The deadline for submission of EoIs is June 5, 2025. According to industry experts, the move is in line with PDO's broader strategy of engaging specialized operators to manage specific assets within its portfolio. Illustrative of this trend is the company's decision in 2006 to partner with Indonesia's MedcoEnergi to operate the KSF cluster—a group of 18 small and mature oil fields located in southern Oman. This arrangement was designed to allow PDO to focus on its larger, core assets while leveraging MedcoEnergi's expertise to optimize production from these smaller fields. Under the contract, MedcoEnergi assumed full operational responsibility, including exploration, drilling, and production activities, while PDO retained ownership of the hydrocarbons. The initial 10-year contract was extended in 2015 for an additional 25 years, running through 2040. Another example is the Rima Cluster contract overseen by Daleel Petroleum and focusing on a group of mature oil fields located in south-central Oman. Like the Karim Small Fields, they require cost-efficient, focused, and flexible field development strategies. While the above-mentioned examples are based essentially on 'service contracts', an eventual deal over the Area-A resource is anticipated to be on the lines of a broader partnership that also rewards the new player for its use of proprietary technology, if any, and other financial, tech, and performance inputs. The Ghaba Basin, while contributing the mainstay of PDO's oil and gas production, is characterized by complex structural traps and diverse reservoir types that require significant financial and technological wherewithal to unlock their hydrocarbon potential. International operators typically bring to the table cutting-edge technologies, proprietary tools, and specialized expertise in enhanced oil recovery (EOR), deep reservoir exploration, tight or complex geological structures, and digital oilfield integration and automation. By partnering with these players, PDO can accelerate the deployment of these technologies, thus reducing risk and improving recovery factors, experts add.
Zawya
20-05-2025
- Business
- Zawya
Oman: ‘Climate-adapted' turbines for PDO wind farms
MUSCAT: Chinese multinational wind turbine manufacturer Goldwind is set to make its debut in Oman's sizable wind energy space with a contract to supply wind turbines for a pair of wind farms with a combined capacity of 234 MW. The partnership of Omani state-owned OQ Alternative Energy (OQAE) [with a 51 per cent shareholding] and French integrated multi-energy group TotalEnergies (49 per cent) is developing the two wind farms in the southern part of the Block 6 concession of Petroleum Development Oman (PDO), currently the largest producer of hydrocarbons in Oman. Output from the two wind farms, dubbed Riyah-1 and Riyah-2, will be supplied to PDO under long-term power purchase agreements. Agreements green-lighting the start of work on these wind farms, among other initiatives, were signed last week. PowerChina Huadong Engineering (PowerChina) was named the Engineering, Procurement and Construction (EPC) contractor. For Beijing-headquartered Goldwind, which was ranked the largest supplier of wind turbines to the global market in 2024, the Oman contracts represent a further expansion into the lucrative Middle East market. 'We are honoured to announce that Goldwind, as the wind turbine supplier for the 234 MW Riyah 1&2 wind projects, is partnering with OQ Alternative Energy (OQAE) and TotalEnergies to deliver Oman's largest wind power initiative—marking a historic step in the nation's decarbonization journey. It also represents Goldwind's entry into its global market, reinforcing our commitment to worldwide sustainable energy solutions,' the Chinese firm stated in a post. According to Goldwind, the two wind farms will be equipped with the company's 'climate-adapted turbines' designed to displace 740,000 tonnes of CO₂ annually, which is equivalent to removing 160,000 cars from roads. 'These projects will supply green electricity to the Petroleum Development Oman (PDO) electricity transmission network through long- term power purchase agreements. This represents a pioneering model of integrating renewable energy into the traditional fossil fuel sector, demonstrating Oman's strong commitment to decarbonizing its oil and gas sector,' it noted. Ranked among the Top 5 wind turbine manufacturers in China, Goldwind is credited with delivering more than 53,000 wind turbines worldwide as of the end of Q3 2024, boasting a global cumulative installed capacity exceeding 128GW. According to the Global Wind Energy Council's (GWEC) annual Supply Side Data report, Goldwind remained the world's leading turbine supplier, installing more than 20 GW in 2024 – a new record. As of the end of Q1 2025, the company's total order backlog was 51.09GW, which includes 48.6 GW of external orders. Oman, with a requirement of hundreds of wind turbines to meet its target of securing at least 30 per cent of its energy needs from renewables, represents a key market for manufacturers like Goldwind. Additionally, an estimated 2,000 wind turbines will also be required to support Oman's green hydrogen productions targets by 2030.
Observer
19-05-2025
- Business
- Observer
‘Climate-adapted' turbines for PDO wind farms
MUSCAT, MAY 19 Chinese multinational wind turbine manufacturer Goldwind is set to make its debut in Oman's sizable wind energy space with a contract to supply wind turbines for a pair of wind farms with a combined capacity of 234 MW. The partnership of Omani state-owned OQ Alternative Energy (OQAE) [with a 51 per cent shareholding] and French integrated multi-energy group TotalEnergies (49 per cent) is developing the two wind farms in the southern part of the Block 6 concession of Petroleum Development Oman (PDO), currently the largest producer of hydrocarbons in Oman. Output from the two wind farms, dubbed Riyah-1 and Riyah-2, will be supplied to PDO under long-term power purchase agreements. Agreements green-lighting the start of work on these wind farms, among other initiatives, were signed last week. PowerChina Huadong Engineering (PowerChina) was named the Engineering, Procurement and Construction (EPC) contractor. For Beijing-headquartered Goldwind, which was ranked the largest supplier of wind turbines to the global market in 2024, the Oman contracts represent a further expansion into the lucrative Middle East market. 'We are honoured to announce that Goldwind, as the wind turbine supplier for the 234 MW Riyah 1&2 wind projects, is partnering with OQ Alternative Energy (OQAE) and TotalEnergies to deliver Oman's largest wind power initiative—marking a historic step in the nation's decarbonization journey. It also represents Goldwind's entry into its global market, reinforcing our commitment to worldwide sustainable energy solutions,' the Chinese firm stated in a post. According to Goldwind, the two wind farms will be equipped with the company's 'climate-adapted turbines' designed to displace 740,000 tonnes of CO₂ annually, which is equivalent to removing 160,000 cars from roads. 'These projects will supply green electricity to the Petroleum Development Oman (PDO) electricity transmission network through long- term power purchase agreements. This represents a pioneering model of integrating renewable energy into the traditional fossil fuel sector, demonstrating Oman's strong commitment to decarbonizing its oil and gas sector,' it noted. Ranked among the Top 5 wind turbine manufacturers in China, Goldwind is credited with delivering more than 53,000 wind turbines worldwide as of the end of Q3 2024, boasting a global cumulative installed capacity exceeding 128GW. According to the Global Wind Energy Council's (GWEC) annual Supply Side Data report, Goldwind remained the world's leading turbine supplier, installing more than 20 GW in 2024 – a new record. As of the end of Q1 2025, the company's total order backlog was 51.09GW, which includes 48.6 GW of external orders. Oman, with a requirement of hundreds of wind turbines to meet its target of securing at least 30 per cent of its energy needs from renewables, represents a key market for manufacturers like Goldwind. Additionally, an estimated 2,000 wind turbines will also be required to support Oman's green hydrogen productions targets by 2030.
Observer
11-05-2025
- Business
- Observer
Oman refutes reports of the sale of shares in natural gas fields
The Ministry of Energy and Minerals said it continues to implement its long-term strategy based on developing national assets and maximizing their returns to serve the country's economic and development goals. Dr. Saleh bin Ali al Anbouri, director general of Oil and Gas Exploration and Production at the Ministry of Energy and Minerals, said that the Ministry continues to monitor the implementation of major development projects in gas fields in line with global best practices in terms of sustainability and financing. This is based on a solid financial base and well-thought-out investment plans that keep pace with the aspirations of the next phase, without the need to divest from natural gas-producing assets. The Director General also noted the inaccuracy of rumors circulating about the sale of shares in natural gas fields. He noted that the Ministry is keen to enhance operational efficiency and attract global technical and investment expertise through well-thought-out partnerships that focus on knowledge transfer and enhancing added value within the Sultanate of Oman, without compromising ownership or sovereignty of strategic national assets. The Ministry affirms its full commitment to the principles of transparency and accountability, and continues to coordinate with all local and international partners to serve the interests of the Sultanate of Oman and enhance its position as a trusted regional hub in the energy sector. background Oman is looking to sell a stake in natural gas assets valued at about $8 billion, according to Bloomberg. The firm Energy Development Oman is seeking partners for a minority stake in the fields contained in Block 6, the reports said,.
