OQ signs $2 billion worth strategic deals
MUSCAT: Oman’s state energy company OQ announced the full notice to proceed (NTP) on the engineering, procurement, and construction (EPC) contract for three renewable energy projects with a combined capacity of 300 megawatts (MW).
The go-ahead forms part of 13 agreements worth more than $2 billion announced by OQ at Oman Sustainability Week 2025 in Muscat.
The notice to proceed was issued to a consortium comprising France’s TotalEnergies and OQ Alternative Energy (OQAE), with Power China as the EPC contractor. The projects include the 100 MW North Solar plant in Saih Nihaydah in northern Oman, and two 100 MW wind farms—Riyah-1 and Riyah-2—located in the Amin and West Nimr fields in the south.
In December 2024, Total Energies had announced that it has entered into a 49:51 partnership deal with OQAE for the three projects. The electricity generated – estimated at 1.4 terawatt-hours annually – will be delivered to Petroleum Development Oman (PDO) through long-term Power Purchase Agreements (PPA). The French energy giant had said construction would begin in early 2025, with operations starting in late 2026
Other agreements related to the three projects included:
- Transformer procurement agreement for the three projects by TotalEnergies, OQAE, Power China with Oman-based Voltamp. The agreement will deliver In-Country Value (ICV).
- Wind turbine procurement agreement with China’s Goldwind by TotalEnergies, OQAE, Power China for Riyah 1 and 2 wind projects
- Financing agreements for Riyah 1 and 2 with Bank Muscat and Al Ahli Bank by TotalEnergies and OQAE
- PV panels procurement pact with China’s Longi by TotalEnergies, OQAE and Power China
- Financing agreement for North Solar with Bank Muscat by TotalEnergies and OQAE.
OQAE also signed initial agreements for new renewable energy projects:
- Joint Development Agreement (JDA) between OQAE and United Solar for a 700 MW renewable energy project to power Sohar Polysilicon Plant
- JDA between OQAE and Jindal Renewables for a 500MW project to provide renewable energy for Jindal plants in Suhar and Duqm
- Heads of Agreement between OQAE and Oxy Zero In for a 140MW renewable energy project in Block 09
- Heads of Agreement between OQAE and Vale for a 105MW renewable energy project for Vale’s facilities in Oman
- Strategic collaboration agreement between OQ and Mistubishi Heavy Industries for Energy Innovation.
OQ said these strategic partnerships will accelerate Oman’s energy transition and net-zero ambitions, unlocking sustainable growth while strengthening economic diversification and cementing its leadership in green energy.
Date: 12 May 2025
Source: OQ
