Key mandate: Energy sector’s executive arms takes the lead in maximizing financial returns and attracting global partnerships.
MUSCAT: Energy Development Oman (EDO) is spearheading efforts to enhance the efficiency of Oman’s energy sector and promote sustainable energy production at the lowest possible cost. Established by Royal Decree (2020/128), EDO acts as the executive arm of the country’s energy sector, representing the government in all commercial, technical, and financial matters.
In an exclusive interview to the Observer, EDO Chief Executive Officer Eng Mazin al Lamki (pictured) said the wholly state-owned company’s primary goal is to maximize the financial returns of Oman’s energy sector by pursuing new growth opportunities and forming sustainable global partnerships in line with Oman Vision 2040.
“As a key player in the sector, EDO is responsible for undertaking various projects, operations, and activities related to renewable energy,” said Al Lamki. “EDO plays a vital role in reviewing corporate governance, evaluating commercial oil and gas contracts, and implementing necessary strategies to rationalize operation costs in the energy sector. By fostering partnerships that provide mutual benefits at local and global levels, EDO aims to enhance the capabilities of national talent and maximize in-country value.”
With a significant stake in the Block 6 Oil Concession and full ownership of Block 6 Non-associated Gas Concession, EDO is actively seeking additional investment opportunities to boost the financial returns of Oman’s energy sector. The company works closely with public and private entities to create an attractive and supportive environment for foreign investment and small and medium enterprises (SMEs), the CEO stated.
Earlier, Al Lamki emphasized the company’s efforts in developing the institutional structure, strategies, policies, and legislation that regulate the energy sector, including oil, gas, and green hydrogen. These measures aim to strengthen governance and improve the performance efficiency of EDO’s subsidiaries, he said.
Commenting on EDO’s financing approach, he said it involves direct financing and the allocation of financial revenues to cover its share of oil and gas production and exploration costs in Block 6.
“The company actively explores competitive financing sources from local and foreign markets to minimize costs and promote energy sector investments. These endeavors contribute to achieving financial independence and reducing the burden on the government,” the CEO explained.
Importantly, EDO is set to play a pivotal role in Oman’s new Green Hydrogen sector. In support of Oman’s renewable energy goals, EDO launched Hydrom in 2022 under the directives of His Majesty Sultan Haitham bin Tarik.
“Hydrom, wholly owned by EDO and regulated by the Ministry of Energy and Minerals (MEM), plays a crucial role in developing the green hydrogen sector. It focuses on creating a master plan, facilitating large-scale green hydrogen projects, and managing infrastructure development through collaboration with the Oman Investment Authority,” Al Lamki said.
The recent signing of three agreements by Hydrom marks a significant milestone in Oman’s journey towards becoming a global hub for green hydrogen production, said the official.
These projects, worth over $20 billion, will leverage renewable energy capacity and cover a vast area in the Al Wusta governorate. The agreements demonstrate Oman’s competitiveness in the sector and its commitment to renewable energy development, he stated.
A key part of its mission is to also support the energy transition underway in the Sultanate of Oman, according to the CEO. By embracing its abundant natural resources, including solar, wind, and green hydrogen, Oman attracts foreign investors and aims to reduce its dependency on traditional energy sources. EDO’s efforts in sustainable energy production and the development of the green hydrogen sector reinforce Oman’s leading position in the renewable energy landscape, locally, regionally, and globally, he noted.
In concluding, Al Lamki acknowledged the challenges faced by oil-producing countries in navigating oil price volatility, rising energy demands, and environmental pressures to reduce carbon emissions.
“EDO’s flexible asset structure and commitment to sustainable development enable it to proactively respond to market fluctuations. The company strives to produce energy at the lowest possible cost while upholding high levels of economic and environmental sustainability,” he added.
Source: Oman Daily Observer
Date: 18 June 2023
