GlassPoint, Oxy Oman sign MoU to facilitate oil production in Oman

Muscat - 

GlassPoint Solar and Occidental Oman (Oxy Oman) announced on Tuesday that they have signed a memorandum of understanding (MoU) that could lead to a large solar thermal energy plant, exceeding 2GW, at the Mukhaizna oilfield in Oman.

As the lead developer of the proposed project, GlassPoint would deploy its proven solar technology to produce up to 100,000 barrels of solar steam per day. The solar steam would be purchased by Oxy Oman and used to facilitate production of heavy oil. With preliminary studies complete, engineering work has now commenced to define the project scope and field integration plans, a press release said.

H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas said, “As we continue to diversify Oman’s economy and develop the renewable energy sector, we are also identifying ways to save our natural gas resources. Oman’s vast heavy oilfields present one of the largest opportunities to deploy solar energy and conserve gas, which can instead be used to fuel industries and generate power. We’re pleased to see this progress between Oxy Oman and GlassPoint, which can deliver substantial economic and environmental benefits to the sultanate.”

Operating in Oman for more than 30 years, Oxy Oman is the largest independent oil producer in the country. At the Mukhaizna field, the company has implemented one of the world’s largest steam flood projects for enhanced oil recovery (EOR).

GlassPoint’s solar steam generators use large mirrors to concentrate sunlight and boil oilfield water into steam. Oxy Oman would purchase the steam under a long-term off-take agreement, providing a cost effective, zero-emissions alternative to steam generated using natural gas. The proposed solar project could save more than 800,000 tons of CO2 emissions each year.

This low emissions energy utilisation project and approach is one aspect being explored and commercialised by Occidental’s Low Carbon Ventures business unit in partnership with asset teams across their global operations. This project will enable technical learning and commercialisation success to promote similar projects in other areas to help reduce Occidental’s global carbon footprint.  

Steve Kelly, president and general manager of Oxy Oman said, “We are excited about working with GlassPoint to enhance our environmental stewardship in Oman and strengthen Occidental’s position in the lower-carbon economy. This is a strategic opportunity for us to tap into solar as a sustainable source of energy in order to minimize the carbon footprint of our operations.”

Steven Moss, CEO of GlassPoint Solar said, “We’re looking forward to building on our success with another major solar project in Oman. Oxy Oman’s interest shows the scale of opportunity renewables can play in reducing the energy use and environmental impact of oil production. We’re pleased to work with Oxy Oman to grow Oman’s solar industry and the global market for solar powered oil production.” 

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