Oman: EDO seeks partners to support energy transition, ICV
MUSCAT: An Omani delegation comprising officials from Energy Development Oman (EDO), the wholly government-owned energy sector holding company, and the General Secretariat of the Tender Board, has embarked on a visit to Japan to meet with executives of two major conglomerates – Sumitomo Corporation and Nippon Steel.
EDO said in a post on Sunday that the visit is part of efforts to efforts to 'develop strategic partnerships and enhance the localization of manufacturing in the energy sector'.
Affiliated to the Ministry of Finance, EDO owns 60 per cent of the Block 6 concession operated by Petroleum Development Oman (PDO), 100 per cent of Block 6's non-associated gas concession, and 100 per cent of Hydrogen Oman (Hydrom), the master-planner of the Sultanate's green hydrogen industry.
Significantly, discussions with the Japanese corporations encompass a wide range of objectives relevant to, among other areas, the energy transition, local manufacturing, and national capacity building.
'The visit's agenda includes several sessions addressing advanced industries supporting the energy sector, carbon capture, utilization, and storage (CCUS) technologies, as well as the development of integrated industrial parks. This visit reflects (EDO's) direction toward building a comprehensive industrial base, founded on knowledge transfer, role integration, and long-term collaboration that contributes to empowering national capabilities and enhancing the sector's readiness,' said EDO.
'During the visit, the company presented the Local Content Framework and Oman's readiness to host high-quality industrial investments, strengthening its position as a competitive hub in global energy value chains,' it further added.
Both Sumitomo Corporation and Nippon Steel are longstanding suppliers of Oil Country Tubular Goods (OCTG) - pipes and casings used in oil and gas drilling and production operations – for Oman's hydrocarbon sector. EDO, by virtue of its majority shareholding in PDO, is one of the largest customers for OCTG hardware.
The supply arrangement with PDO dates back to around 2003 when Sumitomo Corporation, together with Nippon Steel & Sumitomo Metal Corporation (NSSMC), signed deals to provide high quality OCTG goods to Oman's national oil company. A specialized storage area for OCTGs was also established in Port of Duqm's logistics zone as part of a 'Mill to Well' model designed to optimize supply chain efficiencies linked to the supply of these pipes to PDO.
Earlier this year, EDO signed a Memorandum of Understanding (MoU) with Sumitomo Corporation Middle East to explore the localisation of OCTG manufacturing in Oman. The MoU also aimed to strengthen local manufacturing capabilities and reduce reliance on imports.
Another large consumer of OCTG is BP, which operates the tight-gas fields of Block 61. In July 2018, Nippon Steel & Sumitomo Metal Corporation (NSSMC) forged a strategic partnership for the supply of OCTG to BP Exploration (Epsilon) Limited of Oman (BP Oman).
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
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