Latest news with #OxyOman
Zawya
13 hours ago
- Business
- Zawya
Oman: OQGN eyes Ibri for carbon capture opportunities
MUSCAT - Pressing ahead with its carbon capture and CCUS ambitions, OQ Gas Networks (OQGN) – the majority state-owned operator of Oman's gas transportation infrastructure – has identified the Ibri Power Project in Al Dhahirah Governorate as a promising candidate for carbon capture in partnership with Occidental (Oxy) Oman. Carbon capture, utilisation, and storage (CCUS), along with green hydrogen transportation, form key pillars of the publicly traded company's strategy to position itself as a leading player in advancing Oman's Net Zero goals. 'The company's strategic stance towards energy transition continues to be a focus, specifically in hydrogen and CCUS,' OQGN stated in its Q2 2025 financial performance report. 'As part of this work, OQGN has signed a cooperation agreement with (Belgian energy infrastructure player) Fluxys to jointly develop hydrogen transportation infrastructure in Oman. On the carbon capture front, the Ibri Power Plant has been identified as a key priority, and OQGN has coordinated with Oxy on the way forward to jointly assess capture opportunities.' The 1,509 MW combined-cycle gas turbine (CCGT) power plant in Ibri is one of Oman's largest gas-fired projects and began operations in Q2 2019. It was developed by Ad-Dhahirah Generating Company, backed by a consortium that includes ACWA Power, Mitsui, and DIDIC as its major shareholders. Oxy Oman is among several local and international entities collaborating with OQGN to advance the Sultanate of Oman's energy transition and decarbonisation goals. In November 2023, the upstream energy company signed an MoU with OQGN to jointly study and develop CCUS projects in Oman, particularly for enhanced oil recovery (EOR) and broader carbon management strategies. Belgian energy infrastructure leader Fluxys is both a strategic partner and an investor, holding a 4.9% equity stake in OQGN. The two companies signed an MoU in October 2023 to collaborate on developing hydrogen and CO₂ infrastructure in Oman. In May 2025, they advanced this partnership by signing a term sheet agreement under which Fluxys will serve as a minority shareholder and co-operator in developing Oman's hydrogen transportation network. In addition, OQGN has joined a Memorandum of Cooperation with Oman's Ministry of Energy and Minerals and other major energy players to form a 'House of Expertise' tasked with developing the regulatory and strategic framework for CCUS technologies and blue hydrogen in support of Oman's Net Zero 2050 targets. Likewise, in collaboration with Hydrom – the architect of Oman's green hydrogen sector – OQGN is conducting technical feasibility studies on open-access pipeline networks for both green hydrogen and CO₂ transport, leveraging its existing natural gas infrastructure to support decarbonisation. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
North Oman Gas & Condensate Discovery under test production: Oxy
MUSCAT: A major hydrocarbon discovery announced recently by US energy major Occidental (Oxy) in one of its concessions in north Oman is undergoing production testing, alongside an evaluation of its appraisal and development plans. The announcement came in published material issued during the Q2 2025 Conference Call hosted by senior Oxy executives over the weekend. Oxy Oman, a wholly owned subsidiary of Occidental Petroleum Corporation, is one of the largest independent investors in the Sultanate's upstream sector, with interests in eight blocks: 9, 27, 62, 30, 65, 51, 72, and 53. Dubbed the 'North Oman Gas & Condensate Discovery,' the resource is estimated to hold around 250 million barrels of oil equivalent (boe). The reservoir is under test production, while appraisal and development plans are being evaluated, said Oxy. Its proximity to existing infrastructure, including a gas plant with available capacity, is considered a key advantage. However, dominating the Oman segment of the conference call were developments related to Oxy Oman's flagship asset – the heavy-oil-producing Mukhaizna field in Block 53. An extension agreement signed recently by Oman's Ministry of Energy and Minerals with Oxy and other Block 53 shareholders is 'expected to deliver significant value while supporting Oman's key national objectives,' the US energy firm said. Furthermore, there is potential to grow resources by over 800 million gross barrels from the field, with competitive project returns, it noted. Under the extension of the Block 53 Exploration and Production Sharing Agreement (EPSA), signed in May, Occidental Mukhaizna and its partners have committed to investing an estimated RO 11.5 billion (approximately USD 30 billion) through to 2050. These investments will cover capital and operational expenditures aimed at enhancing production efficiency and deploying advanced extraction technologies to optimize resource recovery within the block. To date, Oxy Oman has produced over 640 million barrels from Block 53 through the operation of 3,500 wells. In remarks during the conference call, Vicki Hollub, President and Chief Executive Officer of Oxy, commented: 'That was an incredible agreement that we made with Oman because it benefits both Oxy and Oman, and it allows us the flexibility and possibility to invest there because now the economics will be comparable.' Kenneth Dillion, Senior Vice President and President, International Oil and Gas Operations, also highlighted the presence of multiple stacked pays—distinct hydrocarbon-bearing layers (pay zones) stacked vertically within the same geological structure—in the block. 'With all the work we've done there, what we see is multiple stacked pays across a very large block. And in the North, we've been producing the layup wells for some time now, which are totally different and don't need any steam. So we see the extension as a win-win for Oxy and the government, and sustainable.' Net hydrocarbon production from Oxy Oman's portfolio climbed to an average of 76,000 barrels of oil equivalent per day (boepd) during the second quarter of 2025, up from 64,000 boepd in the corresponding period of 2024. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
3 days ago
- Business
- Observer
North Oman Gas & Condensate Discovery under test production: Oxy
MUSCAT: A major hydrocarbon discovery announced recently by US energy major Occidental (Oxy) in one of its concessions in north Oman is undergoing production testing, alongside an evaluation of its appraisal and development plans. The announcement came in published material issued during the Q2 2025 Conference Call hosted by senior Oxy executives over the weekend. Oxy Oman, a wholly owned subsidiary of Occidental Petroleum Corporation, is one of the largest independent investors in the Sultanate's upstream sector, with interests in eight blocks: 9, 27, 62, 30, 65, 51, 72, and 53. Dubbed the 'North Oman Gas & Condensate Discovery,' the resource is estimated to hold around 250 million barrels of oil equivalent (boe). The reservoir is under test production, while appraisal and development plans are being evaluated, said Oxy. Its proximity to existing infrastructure, including a gas plant with available capacity, is considered a key advantage. However, dominating the Oman segment of the conference call were developments related to Oxy Oman's flagship asset – the heavy-oil-producing Mukhaizna field in Block 53. An extension agreement signed recently by Oman's Ministry of Energy and Minerals with Oxy and other Block 53 shareholders is 'expected to deliver significant value while supporting Oman's key national objectives,' the US energy firm said. Furthermore, there is potential to grow resources by over 800 million gross barrels from the field, with competitive project returns, it noted. Under the extension of the Block 53 Exploration and Production Sharing Agreement (EPSA), signed in May, Occidental Mukhaizna and its partners have committed to investing an estimated RO 11.5 billion (approximately USD 30 billion) through to 2050. These investments will cover capital and operational expenditures aimed at enhancing production efficiency and deploying advanced extraction technologies to optimize resource recovery within the block. To date, Oxy Oman has produced over 640 million barrels from Block 53 through the operation of 3,500 wells. In remarks during the conference call, Vicki Hollub, President and Chief Executive Officer of Oxy, commented: 'That was an incredible agreement that we made with Oman because it benefits both Oxy and Oman, and it allows us the flexibility and possibility to invest there because now the economics will be comparable.' Kenneth Dillion, Senior Vice President and President, International Oil and Gas Operations, also highlighted the presence of multiple stacked pays—distinct hydrocarbon-bearing layers (pay zones) stacked vertically within the same geological structure—in the block. 'With all the work we've done there, what we see is multiple stacked pays across a very large block. And in the North, we've been producing the layup wells for some time now, which are totally different and don't need any steam. So we see the extension as a win-win for Oxy and the government, and sustainable.' Net hydrocarbon production from Oxy Oman's portfolio climbed to an average of 76,000 barrels of oil equivalent per day (boepd) during the second quarter of 2025, up from 64,000 boepd in the corresponding period of 2024.
Zawya
10-07-2025
- Business
- Zawya
Oxy Oman reveals 10 new hydrocarbon finds in 2024
MUSCAT: Oxy Oman, a wholly owned subsidiary of the US-based independent oil and gas firm Occidental, announced a haul of 10 new oil and gas discoveries across its expansive portfolio of eight upstream hydrocarbon concessions in the Sultanate of Oman in 2024. Notable among them was a first-ever oil discovery, along with a significant gas find, in Block 62 in central Oman. The Maradi Huraymah East and Baqiyah discoveries are expected to 'open up other oil potential in the block,' the Ministry of Energy and Minerals noted in its 2024 Annual Report on the country's energy landscape. Oxy has equity interests in Blocks 9, 27, 30, 65, 62, and 51 in north Oman, and Blocks 53 and 72 in central Oman. Commenting on the US company's sizable presence in the Sultanate, the Ministry stated: 'Oxy Oman has been operating in the Sultanate for more than 40 years, where it has steadily increased production and reserves and is honored to partner with the Government of Oman. Today, Oxy Oman is the largest independent oil producer operating in the country, covering more than 6 million gross acres. Oxy Oman's major operations are located in northern Oman, primarily in the Safah and Wadi Latham fields in Block 9, Khamilah Field in Block 27, Maradi Huraymah gas field in Block 62, and in south-central Oman in Block 53 at Mukhaizna Field.' In addition to the 10 discoveries made in 2024, Oxy completed processing of 2,107 km² of 3D seismic in Block 51 and began a reprocessing programme for 8,155 km² of 3D seismic in Blocks 9, 27, and 53. The company also reported record gross production, supported by a new Initial Production (IP) programme, in Blocks 9, 27, and 65. Leveraging its decades-long global expertise in enhanced oil recovery (EOR) using carbon dioxide (CO₂), the company launched its first CO₂ injection trial in the Safah Field in northern Oman. The pilot project aims to determine the feasibility of CO₂ flooding as an EOR technique following water flooding. Another significant highlight of 2024 was Oxy's success in leveraging its carbon management expertise to advance low-carbon initiatives designed to sustainably enhance its business and achieve net-zero targets. A year earlier, in 2023, the company had launched a pilot project using CO₂ for EOR in Block 9. This initiative followed a thorough evaluation of mature waterflooding assets, identifying favorable conditions for CO₂-based EOR, the report stated. Importantly, Oxy Oman has been utilizing its global expertise in EOR and Direct Air Capture technology to lead the carbon capture and EOR scope of the Oman Carbon Capture, Usage and Storage (CCUS) Steering Committee, spearheaded by the Ministry of Energy and Minerals. Additionally, the company is exploring technologies to decarbonise heavy oil development, including CO₂ point source capture and renewable energy plants. Furthermore, as part of its long-term strategy to reduce methane and CO₂ emissions, Oxy is implementing projects that measure and quantify methane leaks, including LDAR and stack testing at all sites. The company stated it is committed to eliminating routine flaring by 2027, having already achieved an 80% reduction from the baseline. Moreover, in a bid to decarbonise its oilfield operations, Oxy Oman has signed an agreement with OQ Alternative Energy (OQAE) to explore the development of a solar project to supply emissions-free energy for its operations in Blocks 9 and 27, with a potential expansion to Block 65. 'Oxy Oman is committed to Oman's net-zero targets and aims to facilitate effective collaboration between key stakeholders across the government and the energy industry, and supports the effective implementation of CCUS in Oman,' the Ministry's report added.
Observer
09-07-2025
- Business
- Observer
Oxy Oman reveals 10 new hydrocarbon finds in 2024
MUSCAT: Oxy Oman, a wholly owned subsidiary of the US-based independent oil and gas firm Occidental, announced a haul of 10 new oil and gas discoveries across its expansive portfolio of eight upstream hydrocarbon concessions in the Sultanate of Oman in 2024. Notable among them was a first-ever oil discovery, along with a significant gas find, in Block 62 in central Oman. The Maradi Huraymah East and Baqiyah discoveries are expected to 'open up other oil potential in the block,' the Ministry of Energy and Minerals noted in its 2024 Annual Report on the country's energy landscape. Oxy has equity interests in Blocks 9, 27, 30, 65, 62, and 51 in north Oman, and Blocks 53 and 72 in central Oman. Commenting on the US company's sizable presence in the Sultanate, the Ministry stated: 'Oxy Oman has been operating in the Sultanate for more than 40 years, where it has steadily increased production and reserves and is honored to partner with the Government of Oman. Today, Oxy Oman is the largest independent oil producer operating in the country, covering more than 6 million gross acres. Oxy Oman's major operations are located in northern Oman, primarily in the Safah and Wadi Latham fields in Block 9, Khamilah Field in Block 27, Maradi Huraymah gas field in Block 62, and in south-central Oman in Block 53 at Mukhaizna Field.' In addition to the 10 discoveries made in 2024, Oxy completed processing of 2,107 km² of 3D seismic in Block 51 and began a reprocessing programme for 8,155 km² of 3D seismic in Blocks 9, 27, and 53. The company also reported record gross production, supported by a new Initial Production (IP) programme, in Blocks 9, 27, and 65. Leveraging its decades-long global expertise in enhanced oil recovery (EOR) using carbon dioxide (CO₂), the company launched its first CO₂ injection trial in the Safah Field in northern Oman. The pilot project aims to determine the feasibility of CO₂ flooding as an EOR technique following water flooding. Another significant highlight of 2024 was Oxy's success in leveraging its carbon management expertise to advance low-carbon initiatives designed to sustainably enhance its business and achieve net-zero targets. A year earlier, in 2023, the company had launched a pilot project using CO₂ for EOR in Block 9. This initiative followed a thorough evaluation of mature waterflooding assets, identifying favorable conditions for CO₂-based EOR, the report stated. Importantly, Oxy Oman has been utilizing its global expertise in EOR and Direct Air Capture technology to lead the carbon capture and EOR scope of the Oman Carbon Capture, Usage and Storage (CCUS) Steering Committee, spearheaded by the Ministry of Energy and Minerals. Additionally, the company is exploring technologies to decarbonise heavy oil development, including CO₂ point source capture and renewable energy plants. Furthermore, as part of its long-term strategy to reduce methane and CO₂ emissions, Oxy is implementing projects that measure and quantify methane leaks, including LDAR and stack testing at all sites. The company stated it is committed to eliminating routine flaring by 2027, having already achieved an 80% reduction from the baseline. Moreover, in a bid to decarbonise its oilfield operations, Oxy Oman has signed an agreement with OQ Alternative Energy (OQAE) to explore the development of a solar project to supply emissions-free energy for its operations in Blocks 9 and 27, with a potential expansion to Block 65. 'Oxy Oman is committed to Oman's net-zero targets and aims to facilitate effective collaboration between key stakeholders across the government and the energy industry, and supports the effective implementation of CCUS in Oman,' the Ministry's report added.
