Oxy Oman’s CO₂ EOR Pilot: Paving the Way for Low-Carbon Oil Production and Sustainable Investment Opportunities in Oman
MUSCAT, NOV 8 — Oxy Oman, a wholly owned subsidiary of the US independent energy company Occidental, has launched a pioneering pilot project focused on using carbon dioxide (CO₂) for enhanced oil recovery (EOR) within its Block 9 concession. The company plans to potentially replicate this initiative across other upstream assets in Oman.
Steven Lauver, President and General Manager of Oxy Oman, outlined the dual objective of the project: to boost oil recovery from mature fields while advancing Oman’s decarbonisation and net-zero goals.
“We are leading the way with the first CO₂ EOR pilot in Oman, initiated in Block 9, which could pave the way for wide-scale deployment of this technology across other fields,” Lauver said. “This project demonstrates how we can integrate carbon capture and storage (CCS) with existing operations to deliver carbon-neutral oil, reducing emissions while enhancing recovery.”
The pilot, launched in 2023, tests CO₂ injection in the Safah Field—a site that has previously undergone conventional waterflooding—to evaluate its ability to unlock additional oil reserves. By re-injecting captured CO₂ into depleted formations, Oxy aims to combine resource efficiency with long-term carbon management, effectively linking enhanced oil recovery with carbon utilisation and storage.
If successful, Oxy plans to expand the CO₂-EOR programme throughout Block 9 and potentially implement it in other mature fields in its northern Oman operations. This initiative marks a significant advance in Oman’s transition to low-carbon oil production, blending enhanced recovery techniques with climate mitigation efforts and positioning Oxy Oman as a frontrunner in the country’s emerging carbon capture, utilisation, and storage (CCUS) sector.
In an interview with The Energy Year, a UK-based global energy platform, Lauver emphasized the company’s commitment to leveraging its extensive experience in large-scale CO₂ management to support Omani decarbonisation objectives. Last year, Oxy signed a memorandum of understanding with OQ Gas Networks (OQGN), Oman’s sole gas transportation system operator, to explore the development of an integrated national carbon management platform.
“The MoU represents a crucial step in advancing Oman’s decarbonisation goals while fostering opportunities for technological innovation and economic diversification,” Lauver noted. “We are also exploring renewable energy integration, including a solar project with OQ Alternative Energy in Blocks 9 and 27.”
Highlighting Oxy’s 2024 performance, Lauver reported a record liquid production of 134,000 barrels of oil equivalent per day (boepd) from its northern assets, a dramatic increase from approximately 1,000 boepd when operations began in Oman in 1984.
In Block 62, Oxy announced a “substantial discovery” near existing infrastructure, including a gas plant with available capacity. “The discovery of this previously unseen play has significantly transformed the development potential of Block 62,” Lauver said.
Regarding Oxy’s “Leave No Barrel Behind” strategy, Lauver explained the initiative’s goal to maximise reservoir recovery while continuing exploration to identify new opportunities.
“In Block 53, we are ramping up activities to increase production and reaffirm our long-term commitment to Oman. In Block 62, we continue assessing our recent discovery’s potential to boost output. We will maintain the Block 9 CO₂ pilot to further evaluate EOR feasibility in northern Oman. Across our operations, planned exploration wells and ongoing seismic data analysis aim to identify and de-risk future prospects,” he added.
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Oxy Oman’s pioneering CO₂-enhanced oil recovery (EOR) pilot in Block 9 signals a transformative opportunity for Oman’s mature oil fields to increase production while advancing decarbonisation goals. For businesses, this creates a strategic opening to invest in low-carbon oil technologies and integrated carbon management platforms, positioning Oman as a leader in sustainable energy innovation. Smart investors and entrepreneurs should now focus on emerging CCUS technologies and renewable energy integration projects, as these will be critical drivers of economic diversification and long-term sector resilience.
