Muscat:− Shell Development Oman LLC (Oman Shell) and Petroleum Development Oman LLC (PDO) have agreed to collaborate and jointly study Carbon Capture Utilisation and Storage (CCUS) opportunities in Oman. As part of this agreement, Oman Shell and PDO signed a Memorandum of Understanding (MOU) for a joint study, which will broadly assess all aspects related to reinjecting and storing CO2 in Oman. The study’s scope will cover technical matters, project time frame and cost, as well as consider support for a regulatory and fiscal framework for CCUS in Oman.

Through this collaboration, Petroleum Development Oman and Oman Shell seek to leverage joint capabilities and economies of scale to initiate the CCUS industry in Oman, and to facilitate the inception of a Low Carbon Hydrogen value chain in Oman.

PDO is the operator of Block 6 and in line with Oman Vision 2040 has clear commitments towards achieving Net Zero Emissions by 2050.  PDO is therefore progressing opportunities to grow its core hydrocarbon business whilst also reducing GHG emissions from its operations, including the use of CCUS for enhanced oil recovery and long-term CO2 storage.

Oman Shell is the operator of Block 10 and is maturing options for an associated downstream project based on Low Carbon Hydrogen value chains with CCUS.

Commenting on this agreement, Walid Hadi, Oman Shell’s VP and Country Chairman, said, “This collaboration allows Oman Shell and PDO to positively contribute to Oman Vision 2040, creating opportunities to reduce the carbon intensity of PDO’s existing operations and creating a new Low Carbon Hydrogen value chain in Oman. The intent of this collaboration is to progress CCUS opportunities in Oman, making the best use of PDO’s knowledge of the subsurface/surface and its long-standing experience of operating assets in Oman, together with Shell’s global knowledge and experience in Carbon Capture Utilisation and Storage. The initial study may well result in further collaboration involving additional projects in the future.”

Steve Phimister, Managing Director of PDO stated: “In line with PDO’s commitments to Oman Vision 2040 and our role in the energy transition, this collaboration lays the foundation for PDO to reduce emissions from our operations as well as helping to progress Oman’s national energy agenda, via large scale CCUS. PDO and Shell, are uniquely positioned based on capacity, geography, and expertise to execute this project together and build sustainable energy solutions for Oman’s future.”

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  • Oman Shell: Shell has been a partner in Oman’s development and progress over the last several decades. We have been providing pioneering technologies and expertise in the energy industry and creating value for the community.

Shell is active in Oman across the oil and gas industry and is involved in joint venture and independent activities ranging from research and development, exploration and production to trading, retail and new energies. Shell also implements an extensive social investment programme that contributes to the sustainable development of the country.

Oman Shell is the operator of Block 10 following a concession agreement that was signed in December 2021 and approved by Royal Decree 12/2022. Shell is also exploring Blocks 42 and 55.

Shell holds interests in Petroleum Development Oman (34%), Oman LNG (30%) and Shell Oman Marketing Company (49%). Together they represent a substantial part of Oman’s economic growth.

  • CCUS: Carbon Capture, Utilisation and Storage is a combination of technologies that capture, use and store carbon dioxide deep underground, preventing its release into the atmosphere. Shell considers CCUS as one of the enablers to actually achieve the climate objectives.
  • PDO: Petroleum Development Oman (PDO) is the leading exploration and production company in the Sultanate of Oman. We deliver the majority of the country’s crude oil production and natural gas supply, but above all we focus on delivering excellence, growth and sustainable value creation within and well beyond our industry.

The Company is owned by the Government of Oman (which has a 60% interest), the Shell Group (which has a 34% interest), Total (which has a 4% interest) and PTTEP (which has a 2% interest). Gas fields and processing plants are operated by PDO exclusively on behalf of the Government.

Enquiries
Salima Al Masrouri
External Comms Lead – Oman Shell
Media Relations Advisor – MENA
s.al-masroori@shell.com

Media Middle East and North Africa
DUB-CNF-MENA-Media-Relations@shell.com  

Samah Al Rawahi
External Communications and Brand Lead – PDO
samah.sr.rawahi@pdo.co.om

Cautionary note

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Forward-Looking Statements

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Shell’s net carbon footprint

Also, in this announcement we may refer to Shell’s “Net Carbon Footprint” or “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” or “Net Carbon Intensity” are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year.  They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Footprint (NCF) targets over the next ten years.  However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.