Renewable Energy in Petroleum Development Oman

Mohamed Lutfi Al-Busaidi

Renewable Energy Lead

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O u t l i n e

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

3

P e t r o l e u m D e v e l o p m e n t O m a n L L C

The

Government

of Oman

60%

Shell Group

34%

Total

4%

Partex

2%

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.

P D O : P o s i t i o n e d f o r 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

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To be Renowned and Respected for the

Excellence of our People and Value we Create for

Oman and all our Stakeholders.

P D O V i s i o n

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Technologies tested 90% success rate in the last 3 years.

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

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E n e r g y M a n a g e m e n t S t r a t e g y

Corporate Energy Management

Strategy

REDUCE (Energy Conservation)

REPLACE (Energy Efficiency)

RENEW (Renewable Energy)

Flaring Power

Generation Power

Consumption Fuel Gas Renewable

Energy

• Define base line and target overtime • Internal alignment on role and responsibilities • Stakeholder engagement

• Strengthen national & international partnership • New technology R&D • Building internal expertise • Promote ICV

B e h i n d t h e Miraah So lar Pro jec t

Construction Start

First Steam

2015

2017

36 Glasshouses

3km2 Project Area

6,000 tons Daily Steam

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N i m r R e e d B e d s : a g r e e n a p p r o a c h t o w a t e r t r e a t m e n t

140 Species of

birds/animals recorded

300k Tonnes of CO2

reduction per annum

115k m3/d produced water

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P D O P o w e r S y s t e m S u m m a r y

Element Present

Power Stations /

Locations

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Installed Capacity

(MW)

1,586

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.

E f f i c i e n t a n d R e n e w a b l e P o w e r S y s t e m

2009 • Mass scale of PDO Co-gen power plants

2012 • Assignment of PDO function specialist in renewable energy

2013 • Feasibility of CCGT power plants in PDO

2014 • Study the solar power potential in PDO with focus on solar PV

2015 • Initiate the 1st CCGT project in PDO

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

2017 • Commissioning of MAF Solar Car Park phase 1

2018 • Award of PDO 1st Solar IPP project

• Study the potential of wind energy and solar CSP in PDO

• Establishing a New Renewable Energy department

2019 • Commissioning of MAF Solar Car Park phase 2

• 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

S o l a r p o t e n t i a l i n P D O c o n c e s s i o n a r e a

• All regions of Oman enjoy enough and suitable solar resource (GHI) for the development of PV plants with an annual average above 2,000 kWh/m²

• South of Oman enjoys excellent solar resources with annual values above 2,200 kWh/m²

2,028

2,052

2,313

2,216

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R a s A l H a m r a d o m e s t i c s o l a r i n s t a l l a t i o n

•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

M A F S o l a r C a r P a r k P h a s e I Number of parking

slots ~ 2000

Total capacity 6.1 MWp

Total solar panels

installed 19,500+

No. of solar panels

per car park ~ 9

Annual generated

electricity

9,500,000 kWh which is equivalent to

the electricity needs of 984 houses per

year.

Expected

completion June 2018

Technology Photovoltaic

Green House Gas

Emissions

(Carbon) by App

6,662 Metric tons per year equivalent to

taking more than 1,400 cars off the

road or planting almost 173,000 trees

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

M A F S o l a r P r o j e c t - P o w e r G e n e r a t i o n D a s h b o a r d

•The project will cover 3 new areas

o PDO Learning and Development Centre and Wells Learning Centre

o BSM building surroundings and computer building

o Area 17 near the workshop

• The expected generation from phase 2 is around 3 MWp that will be connected to PDO’s grid

• Engineering is in progress

• The procurement is initiated for solar panels, inverters and structures

• Some of the procurement will be done through existing PDO frame agreements like transformers and cables

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M A F S o l a r C a r P a r k P h a s e I I

PDO Learning Center

BSM & Computer Buildings

Area-17 (near the workshop)

•The project is aimed at enhancing ICV in all elements taking the experience from MAF Solar Car Park Phase I

• 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 progress

•The project is managed by PDO and sponsored by both PDO and OLNG 16

M O G C a r P a r k P r o j e c t

Excavation for the foundation installation

Relocation for some palm trees to extend

the parking

A m i n 1 0 0 M W S o l a r P V I P P K E Y P R O J E C T F E A T U R E S

•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.

Description

Utility-scale solar power project (100 MW)

located near Amin which is a desert area of

Oman

Off-take counterparty Petroleum Development Oman LLC

Concessionaire

responsibility

Design, construction, financing, operation and

maintenance of the solar plant for the duration

of the PPA term

Construction period 18 months

PPA term 23 years

Payment structure Tariff-based payment based on kWh contributed

to the grid

Technology Photovoltaic

Bid Criteria

Financial assessment based on proposed tariff

and full underwritten finance for project.

Legal assessment based on terms and conditions

of bid

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Su s t a i n ab l e Fu t u re

63% 15%

1%

11%

5% 5%

Cogeneration

CCGT

Micro turbines

Solar PV

Solar CSP

Wind energy

54%

20%

1% 2%

23% Cogeneration

CCGT

Micro turbines

Solar PV

Open Cycle

2020 2030

P D O F u t u r e E n e r g y M i x

S u s t a i n a b l e d e v e l o p m e n t i n & b e y o n d B l o c k 6

Deliver optimum

value in the face of

low oil prices and

production

restrictions

Staying The Course

Drive efficient

energy use in all

aspects

More Sustainable Oil

And Gas

Creating more

sustainable value

beyond oil and gas

Positioning For The

Future

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Thank you