MUSCAT, MAY 5
Petroleum Development Oman (PDO)— the country’s the biggest producer of hydrocarbons — has commenced a major step in its decarbonisation strategy with the launch of a flare gas recovery project at the Zulaiyah Station in Hazar South. Implemented in partnership with Enerhash, the initiative seeks to convert flare gas into a sustainable energy resource using digital mining technology.
The agreement formalising this collaboration was signed by Dr Aflah bin Said al Hadhrami, Managing Director of PDO, and Tamas Seregi, Chairman of the Board of Enerhash. The project is expected to avoid approximately 25,000 tonnes of CO₂-equivalent emissions annually, supporting PDO’s broader commitment to reduce routine flaring and promote low-carbon solutions across its operations.
Using Enerhash’s modular digital infrastructure, the project applies a decentralised approach by powering containerised data centres directly with flare gas. This setup enables rapid deployment with minimal capital investment, making it well-suited for remote locations like Zulaiyah and other southern oil fields.
The new initiative aligns with PDO’s long-term goals for energy transition and sustainability. It introduces a scalable model that could be adapted for wider application, particularly in areas where traditional flare gas recovery is challenged by dispersed infrastructure and small-scale gas flows.
This project complements PDO’s earlier efforts to attract vendors for flare gas recovery under its ‘South AP Flare Recovery Project’. That initiative targets flare gas from atmospheric dehydration tanks in clusters such as Bahja, Rima, Amal, Marmul, and Nimr. These sites present complex recovery conditions, with gas volumes ranging from 3 to 80 kilo standard cubic metres per day (ksm3/d) and hydrogen sulphide content reaching up to 14,000 PPM.
Under the flare gas purchase model applied in both efforts, vendors assume responsibility for the recovered gas, including its commercialisation and environmental liabilities. PDO provides the gas but retains no obligations for operational or environmental outcomes. This structure allows for reduced emissions without additional investment or risk exposure for PDO.
Enerhash’s involvement brings a digital innovation layer to the equation. By leveraging flare gas to power high-performance computing infrastructure, the project transforms what was once a waste stream into an asset — offering both environmental and economic benefits.
The Zulaiyah station project may serve as a practical reference for future deployments within PDO’s network and beyond, especially in similar geological and operational environments. It highlights how energy producers can integrate emerging technologies into existing infrastructure to support climate goals and value creation.
As implementation progresses, the outcomes from this pilot project will provide key insights into the feasibility of scaling such technologies across Oman’s oil and gas sector. The initiative reflects PDO’s commitment to sustainable innovation and its evolving role in supporting the Sultanate of Oman’s Vision 2040 objectives for cleaner and more efficient energy development.
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