Petroleum Development Oman (PDO) has entered into a five-year Power Purchase Agreement (PPA) with Nama Power and Water Procurement Company (PWP) to supply up to 200 megawatts (MW) of electricity to Oman’s national grid. The deal, announced on July 25, leverages PDO’s captive power generation network to help meet growing electricity demand and enhance grid reliability, particularly during peak usage periods.
PDO operates one of Oman’s largest private power systems, originally developed to support its upstream oil and gas activities in Block 6. The network consists of 17 gas-fired power plants with a combined capacity of approximately 1,708 MW, transmitted via a 132-kilovolt (kV) network that spans about 4,300 kilometers across its concession area. Designed with reserve margins to guarantee uninterrupted power supply for critical operations such as oil production, enhanced oil recovery, and water treatment, the system now has surplus generation capacity available for external use.
The new agreement enables Nama PWP to access this dispatchable power from PDO’s facilities, helping to reduce the need for additional peaking power plants and optimise the use of existing assets. PDO described the arrangement as a reflection of its commitment to maximising the value of its power infrastructure in line with Oman’s growing energy needs and objectives for long-term energy security.
A key element facilitating the power exchange under the PPA is the 400-kV North-South Interconnector, which links PDO’s transmission system with Oman’s Main Interconnected System (MIS). The interconnector includes three injection points—Nahadah, Barik, and Suwaihat—each capable of importing or exporting up to 500 MW. Nahadah began operations in 2022, while Barik and Suwaihat became fully operational in late 2023. Oman Electricity Transmission Company (OETC), which manages the interconnector, stated that this infrastructure enhances supply security by enabling capacity sharing, energy trading, and lowering spinning reserve requirements.
Additionally, there is a 132-kV interconnection between PDO’s Harweel substation and OETC’s Dhofar I Wind Farm, allowing limited emergency power transfers between the two systems.
Looking ahead, PDO’s generation capacity is set to increase significantly with the integration of renewable energy projects scheduled for commissioning by the end of 2026. These include three utility-scale plants developed by OQ Alternative Energy and TotalEnergies: the 100-MW North Oman Solar project at Saih Nahaydah, and two wind farms, Riyah-1 and Riyah-2, each with 100 MW capacity, located at Amin and West Nimr respectively. Combined, these projects will add more than 330 MW of renewable capacity to PDO’s network, supporting the company’s goal of sourcing around 30 percent of its electricity from renewable sources and reducing reliance on gas-fired power generation.