Underscoring its ambitions to become a pivotal player in Oman’s promising renewable energy sector, Petroleum Development Oman (PDO) aims to develop 100 MW of new solar photovoltaic capacity at key oilfields installations across its Block 6 concession.
The announcement comes on the heels of the recent launch of Phase 1 of its Miraah project — a mammoth 1 gigawatt solar steam plant billed as the biggest of its kind in the world — which is being developed by US-based technology firm GlassPoint at PDO’s Amal heavy oilfield. The majority government-owned oil and gas producer is also close to completing the installation of around 19,500 solar panels on car park sheds at its Mina Al Fahal headquarters — an initiative that can feed up to 1,000 homes.
“By the end of the year, we will be tendering 100 MW of (solar renewables) in our installations,” said Managing Director Raoul Restucci. “ We are also engaging with (state-owned power procurer) Oman Power and Water Procurement Company (OPWP) to see how we can assist them in their 500 MW (utility scale) solar project,” he added in an ‘Industry Feature Interview’ organised as part of Gulf Intelligence’s Oman Energy Forum 2017 held at the Grand Hyatt Muscat yesterday.
The interview, conducted by Sean Evers, Managing Partner — Gulf Intelligence, is focused on PDO’s newly unveiled vision. This is to reposition itself from an essentially fossil fuels-based producer to a “fully fledged energy company”. The strategy, Evers noted, envisions PDO’s diversification into, among other areas, solar based renewables, energy management, Oil & Gas consultancy services, and water management. The transformation will see PDO’s oil and gas activities accounting for only about 80 per cent of its overall business in around 10 years, with the balance 20 per cent representing growth into new areas and value streams falling beyond its current mandate.
The solar business represents potentially huge opportunities both for PDO and the nation, said Restucci. He cited in this regard the GlassPoint project that harnesses the sun’s energy to generate steam — as a sustainable alternative to natural gas as a fuel resource — to produce heavy oil from the Amal reservoir. Phase 1 of the project is now on stream, with Phase 2 ongoing. A pilot plant, whose success helped make the case for the Miraah project, is being demolished to make way for new technology envisioned for installation in Phase 3 of the project, he said.
But far more than just the commercial and environmental benefits expected to flow from these projects, the adoption of renewables will also help create new value streams for the company, as indeed for the Omani economy, the Managing Director said. PDO, he explained, has just completed a detailed study of opportunities across the renewables supply chain and the role that the company can play in unlocking value from this emerging new industry.
“The renewables business in the region is projected to create in excess of 200,000 jobs over the next five years, and we want a piece of it. Also, in excess of $200 billion will be invested in renewables, and we want a share of it,” he noted.
Also as part of its transformation into what he characterised as ‘Energy Development Oman (EDO)’, the company plans to leverage its world-class human capital, technical knowhow, smart oilfield management tools, and industry best practices to offer a portfolio of professional services as a contractor, subcontractor, project management consultancy services provider, and so on. The goal is to monetise PDO’s competitive advantages and thereby grow its business beyond its current remit and boundaries, he added.
Conrad Prabhu
Oman Observer is now on the WhatsApp channel. Click here
