ARA Petroleum, a wholly Omani owned upstream energy firm, says its partnership with a Japanese conglomerate in the development of a unique hybrid project will contribute to the production of, among other commodities, ‘blue hydrogen’ to power a fleet of fuel cell electric vehicles in its concession areas.

Muscat-based ARA Petroleum, 100 per cent owned by Zubair Corporation LLC, has sizable investments in the upstream Exploration & Production (E&P) segment of Oman’s hydrocarbon industry.

The company has a 100 per cent interest in Block 44 in northwest Oman, a 1,162 sq km concession that holds the Shams and Munhamir fields. A year later, the company signed an Exploration and Production Sharing Agreement (EPSA) for Block 31, a 1,528 sq km concession located immediately adjacent to Block 44.

Earlier, ARA Petroleum began its debut in the E&P sector with the signing of a contract with Petroleum Development Oman (PDO) to operate the Qarat Al-Milh Small Fields (QSF) contract area in 2016.

Last month, ARA Petroleum announced a partnership with Japanese multinational Sumitomo Corporation to study the feasibility of developing a hybrid project to provide “an integrated clean energy infrastructure solution” for the former’s operations in the Sultanate.

Billed as a one-of-a-kind project, it has three key objectives: harnessing solar energy to generate electricity, producing ‘blue hydrogen’ from flare gas and capturing carbon dioxide (CO2) from the second process to be sold as feedstock to Omani industries. A 20 megawatt (MW) solar power scheme is envisioned for development as part of the hybrid project.

In a statement, ARA Petroleum said the hybrid project will help the company achieve its goal of becoming a CO2 neutral hydrocarbon producer.

“This project is a key transitional element in pursuing its strategy towards reducing flaring and capturing CO2. The joint project between the two companies will provide a unique clean solution to hydrocarbon production and is the first of its kind in the Sultanate of Oman. It will be a showcase for utilisation of new green technologies.”

Sultan al Ghaithi, ARA Petroleum CEO, remarked: “One of the most robust design elements of this hybrid project is the ease to replicate the concept in other ARA Petroleum fields and any E&P operation in Oman where associated gas is currently being flared.”
He added that the project will help develop Omani competencies in the field of hydrogen.

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