Interview: Mazin Al Lamki
What role do you envision for renewables in the future energy mix, and what more can be done to boost private investment in this space?
MAZIN AL LAMKI: The substantial expansion of renewable power sources presents numerous advantageous opportunities for Oman’s energy sector. With the potential to exceed 200 GW of solar and wind generation capacity, the country’s renewable potential far surpasses its current domestic demand, opening doors for export of renewable energy to neighbouring countries. Several studies have been conducted on opportunities for harnessing renewables on a macro-scale.
Additionally, Oman’s strategic geographic location – situated on major shipping routes with access to the ocean connecting east and west – presents significant advantages for the supply chain. Furthermore, the sultanate’s political stability makes it well-placed to become a key player in the global energy market. With over 12 GW of installed power generation capacity, Oman has the potential to make considerable strides in the renewable energy segment, creating new business opportunities and contributing to economic growth.
How viable is green hydrogen as a long-term energy solution, and what are the implications of its development for infrastructure investment?
AL LAMKI: In line with the energy transition, Oman has identified the expansion of hydrogen production as a strategic objective. Energy security, revenue diversification and energy transition constitute the key pillars under which EDO prioritises its projects and investment. In 2022 Hydrogen Oman (Hydrom) was established as an independent entity, fully owned by EDO. Its primary objective is to spearhead Oman’s transition towards green hydrogen by delineating government-owned land, structuring large-scale green hydrogen projects, managing the allocation process to developers, overseeing their execution and fostering the development of shared infrastructure and interconnected ecosystem industries. While the potential of green hydrogen is well known, market and financial uncertainties remain. A phased approach has been adopted to mitigate these risks and support growth in the segment.
Where do you see investment opportunities in the oil and gas industry, and what strategies are being deployed to promote investment?
AL LAMKI: The oil and gas industry will continue to play a significant role in the economy, despite the recent strategic shifts towards economic diversification. The energy transition is opening up a wealth of opportunities in several areas, including renewable energy, green hydrogen production and emissions reduction to meet Oman’s commitment to net zero by 2050.
As Oman continues to focus on exploring the country’s gas potential, various possibilities are emerging to boost both production and exports. In addition to improving the efficiency of oil and gas production, there are several prospects within the sector that can be easily realised. Centralising some upstream oil and gas elements, and creating synergy between existing blocks present attractive investment options for EDO, while supporting the Ministry of Energy and Minerals’ efforts to progress the national energy agenda from power generation to supply chain and leveraging on past successes in small fields. EDO recognises opportunities to move resources to reserves at a lower development and production cost.
We are exploring project financing options that would enable more efficient funding and reduce the cost of deploying capital to further invest in Oman’s foundational requirements in the future. Moreover, the government is actively working to establish an administrative infrastructure and conducive environment to foster partnerships with local and international companies. As part of this endeavour, in March 2023 the government signed six term-sheet agreements with various developers to invest in green hydrogen projects.
