Petroleum Development Oman awards contract for 100 MW PV plant

State owned oil company Petroleum Development Oman (PDO) has awarded an independent power producer contract for a 100 MW solar project to a consortium led by Japanese conglomerate Marubeni. Once constructed, the plant will power PDO’s operations in Oman under a 23-year PPA.

PDO's Miraah Solar Plant harnesses the sun's energy to heat water into steam for oil production. Now, PDO also plans to power its oil and gas operations with a 100 MW PV plant.

Image: Petroleum Development Oman

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A consortium led by Marubeni has signed a contract for a 100 MW PV project to be constructed in Oman. The contract was awarded to the consortium after a tender held in January by state owned oil producer Petroleum Development Oman.

Alongside Japan’s Marubeni, the consortium consists of three Omani companies: Oman Gas Company S.A.O.C, Bahwan Renewable Energy Company LLC and Modern Channels Services LLC.

The contract signed includes full development of the 100 MW project – EPC, financing and commissioning, as well the operations and maintenance of the plant. Power generated will be sold to PDO under the terms of a 23-year power purchase agreement.

PDO states that the project will be first of its type to be built in Oman, and the first utility-scale PV project worldwide to have an oil and gas company as its sole offtaker.

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The plant is to be located approximately 210 km northwest of the town of Thumrait in southern Oman, in PDO’s concession area where the company develops and operates oil and natural gas fields. “We look forward to working with the Marubeni Corporation and consortium partners to build our first IPP renewable energy project and as another building block in support of Oman's outstanding potential in renewable energy,” said PDO Managing Director Raoul Restucci.

The Omani oil company also notes that it is also in the process of installing PV to power its headquarters in Mina Al Fahl, close to the Omani capital Muscat, and has also harnessed the sun’s energy to generate steam for its oil production operations in Amal.

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