Oman’s OQ has set out a number of stratagems for the energy transition, but for 2021 emissions increased.
The company has published its annual sustainability report, its third, covering last year.
“Environmentally, we have reaffirmed our commitment towards addressing climate change and reducing our carbon footprint”, said group CEO Talal Hamid Al Awfi.
The executive noted the company’s four green hydrogen projects, with a total capacity of 30 GW of solar and wind energy.
“We are also excited to announce that OQ’s decarbonisation policy has been approved and prioritised by OQ’s board. Based on that we conducted a GHG emission assessment, the findings of which will inform OQ’s future emission reduction plan,” Al Awfi said.
The four hydrogen projects are Hyport Duqm, Green Energy Oman, H2Oman and SalalahH2.
The first is the most developed, with plans for solar and wind generation of 1,300 MW with a 500 MW electrolyser and ammonia plant. Uniper has signed up as an offtaker to the Hyport Duqm project. The operator aims to make technology choices in the third quarter, with front-end engineering and design (FEED) starting in the first quarter of 2023.
Emissions
OQ produced 109,000 barrels per day of oil in 2021 and 435 million cubic feet per day of gas. Scope 1 and 2 emissions for the year reached 10.43 million tonnes of CO2 equivalent, up from 6.31mn tonnes in 2020.
The company attributed the rise to increased up- and downstream activity amid the COVID-19 recovery. It also noted the commissioning of new projects, such as a plastics complex and a natural gas liquids complex.
While emissions were up, so was production. As such, upstream emissions intensity fell to 28 kg of CO2e per boe, from 36 kg in 2021. Downstream emissions worsened, though, to 392 kg of CO2e per tonne of production, versus 370 kg in 2020.
OQ is taking steps to reduce emissions and improve its environmental track record, particularly at Block 60. The company carried out a feasibility study on the block to find an optimal power source and backed a connection to the national grid plus a solar photovoltaic (PV) plant.
Alternative energy unit OQ AE will develop the solar PV plant, it said, via a lease deal with OQ US. The company intends to award project development consultancy works this year.
OQ Upstream is also working on recycling drilling mud at Block 60. The company contracted a liquid mud pump system to store mud between rigs. As a result, it has managed to recycle 2,838 cubic metres of high-performance water-based muds (HPWBM). Otherwise, it would have been wasted.