BP and the Ministry of Energy and Minerals in Oman on January 17 signed a Strategic Framework Agreement (SFA) and a Renewables Data Collection Agreement which will support the potential development of a multiple gigawatt, world-class renewable energy and green hydrogen development in Oman, by 2030.
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 developments 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.
This partnership represents a significant evolution of bp’s business in Oman and is aligned with bp’s strategy, which includes rapidly growing renewable generating capacity and to take early positions in hydrogen.
Under the SFA, BP and Oman 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.
Oman has a strong track record in the oil and gas industry, which it has grown over recent years. The announcement, which is subject to 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. And it would further support the Oman government’s goals of diversifying the economy and bolstering investment.
BP is committed to growing its business and building on its 15-year history in Oman, where it operates Block 61, which produces a third of the country’s gas demand. In 2020, BP’s Oman business spent US$610 million with Omani-registered companies – 90% of its total spend.
And in 2021, BP joined Oman’s national hydrogen alliance, Hy-Fly, to promote the hydrogen industry in Oman, and established a net zero taskforce to help develop a ‘roadmap’.
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