Renewable Energy in

Petroleum Development Oman

Mohamed Lutfi Al-Busaidi

Renewable Energy Lead

1
Outline
 Petroleum Development Oman LLC (PDO)
 PDO Energy Transition
 Energy Management Strategy
 PDO Power System
 Efficient and Renewable Power System
 Ongoing and Accomplished Projects:
• Domestic Solar Installation
• MAF Solar Car Park Phase I
• MAF Solar Car Park Phase II
• MOG Car Park Project
• Amin Solar 100MW PV Independent Power Producer (IPP)
 Sustainable Future
Petroleum Development Oman LLC
Petroleum Development Oman LLC (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.

PDO operates in a concession area of about 90,000 km2 (one third of

Oman’s geographical area), has around 178 producing oil fields, 14
producing gas fields, around 10,000 active wells, a diverse workforce of more
than 8,500 employees and more than 70,000 contractors.

60% 34% 4% 2%
The
Government Shell Group Total Partex 3
of Oman
PDO: Positioned for
S u c c e s s i n t h e E n e r g y Tr a n s i t i o n

4
 PDO Vision N e w Te c h n o l o g y :
A Ke y E n a b l e r

To be Renowned and
Respected for the
Excellence of our People
and Value we Create for Technologies tested
Oman and all our 90% success rate in the last 3 years.
Stakeholders.

5
Energy Management Strategy

Corporate
Energy Management
Strategy
REDUCE REPLACE RENEW
(Energy Conservation) (Energy Efficiency) (Renewable Energy)

Power Power Renewable

Flaring Fuel Gas
Generation Consumption Energy

• Define base line and target overtime • Strengthen national & international partnership
• Internal alignment on role and • New technology R&D
responsibilities • Building internal expertise
• Stakeholder engagement • Promote ICV

6
 Behind the Miraah Solar
Project

2015 Construction Start

6,000 tons 3km2 36
Daily Steam Project Area Glasshouses
2017 First Steam

7
Nimr Reed Beds: a green
approach to water treatment

300k 140 115k m3/d

produced water
Tonnes of CO2 Species of
reduction per annum birds/animals
recorded

8
PDO Power System Summar y
Element Present
Power Stations / 29
Locations
Installed Capacity 1,586
(MW)
132kV OHL (KM) 3,948

132kV SS 39
66kV SS 2
33kV SS (AIS) 18
33kV SS (GIS) 25
PDO remains committed to seeking
new and green technologies for
energy generation to reduce its
dependence on fuel gas to
generate electrical power for
business needs.
Efficient and Renewable Power System
• Mass scale of PDO Co-gen power plants
2009

• Assignment of PDO function specialist in renewable energy

2012

• Feasibility of CCGT power plants in PDO

2013

• Study the solar power potential in PDO with focus on solar PV

2014

• Initiate the 1st CCGT project in PDO

2015

• Sign an MoU with Nama Group for further collaboration and power systems integration
2016

• Commissioning of MAF Solar Car Park phase 1

2017

• Award of PDO 1st Solar IPP project

2018 • Study the potential of wind energy and solar CSP in PDO
• Establishing a New Renewable Energy department

• Commissioning of MAF Solar Car Park phase 2

2019
• Commissioning of MOG parking lot
• Commissioning of the first CCGT power station in PDO
• Study the feasibility of introducing mass power storage to PDO renewable projects

2020
•Award of PDO 1st wind project
Solar potential in PDO
concession area

• All regions of
Oman enjoy enough
and suitable solar
resource (GHI) for 2,028

the development of 2,052

PV plants with an
annual average
above 2,000
kWh/m²
• South of Oman
enjoys excellent 2,216

solar resources with 2,313

annual values above

2,200 kWh/m²
Ras Al Hamra domestic solar
installation
•The project was awarded to 2 Small and
Medium Enterprises (SMEs)
• The scope covers the roofs of 10 town
houses of approximate capacity of 10 kW
for each town house
• The design and installation of mounting
structures has been completed
• The electric cabling work has been
completed
• The procurement of solar panels and
inverters has been done and the
installation will take place by mid-October,
aligning with the civil construction
readiness

12
MAF Solar Car Park Phase I
Number of parking
~ 2000
slots
Total capacity 6.1 MWp
Total solar panels
19,500+
installed
No. of solar panels
~9
per car park
9,500,000 kWh which is equivalent to
Annual generated
the electricity needs of 984 houses per
electricity
year.
Expected
June 2018
completion
Technology Photovoltaic
Green House Gas 6,662 Metric tons per year equivalent to
Emissions taking more than 1,400 cars off the
(Carbon) by App road or planting almost 173,000 trees
 MAF Solar Project-Power Generation
Dashboard

* Expected to start production in Aug’18 ** Total Electricity Charge includes BSC+TC+DC+SC

MAF Solar Car Park Phase II
•The project will cover 3 new
areas
o PDO Learning and PDO
Development Centre and Learning
Wells Learning Centre Center
o BSM building
surroundings and
computer building
o Area 17 near the
workshop
• The expected generation from
phase 2 is around 3 MWp that BSM &
will be connected to PDO’s grid Computer
Buildings
• Engineering is in progress
• The procurement is initiated
for solar panels, inverters and
structures
• Some of the procurement will Area-17 (near the
be done through existing PDO workshop)
frame agreements like
transformers and cables

15
MOG Car Park Project
•The project is aimed at
enhancing ICV in all
elements taking the
experience from MAF Solar
Car Park Phase I Excavation for the
foundation installation
• The engineering and design
by Omani-approved
consultants are in progress
•Structure fabrication by an
Omani manufacturer is in
progress
• The electrical construction
scope is to be issued for
tendering (with restriction to
be awarded to Omani SMEs)
• Procurement of solar PV
panels and inverters is in Relocation for some
palm trees to extend
progress the parking

•The project is managed by

PDO and sponsored by both
PDO and OLNG 16
Amin100 MW Solar PV IPP
K E Y P RO J E C T F E AT U R E S
Utility-scale solar power project (100 MW)
Description located near Amin which is a desert area of
Oman
Off-take counterparty Petroleum Development Oman LLC
Design, construction, financing, operation and
Concessionaire
maintenance of the solar plant for the duration
responsibility
of the PPA term
Construction period 18 months
PPA term 23 years
Tariff-based payment based on kWh contributed
Payment structure
to the grid
Technology Photovoltaic
Financial assessment based on proposed tariff
and full underwritten finance for project.
Bid Criteria
Legal assessment based on terms and conditions
of bid
•The project has been awarded to the Marubeni Consortium, comprising the Marubeni Corporation
(Japan) as the lead founder, Oman Gas Company S.A.O.C, Bahwan Renewable Energy Company LLC
and Modern Channels Services LLC. The consortium won the bidding process which attracted
competitive tenders from highly reputed global developers in the renewable energy industry.
•The plant will provide power for PDO’s Interior operations and be the first awarded project of its type
in Oman. It will also be the world’s first utility-scale solar project to have an oil and gas company as the
sole wholesale buyer of electricity.
•The awarding ceremony will take place on 7 November at PDO’s Muscat headquarters when more
information will be released.
Sustainable Future
PDO Future Energy Mix

2020 2030
5%
5%
23% Cogeneration
Cogeneration 11%
CCGT
CCGT
1% Micro turbines
2% Micro turbines
1% 54% Solar PV
Solar PV 15%
63% Solar CSP
Open Cycle
20%
Wind energy

18
 Sustainable development in &
beyond Block 6

Staying The Course More Sustainable Oil Positioning For The

And Gas Future

 Deliver optimum  Drive efficient  Creating more

value in the face of energy use in all sustainable value
low oil prices and aspects beyond oil and gas
production
restrictions

19
Thank you

20