Oman’s OQ accelerates its sustainable transition with ambitious decarbonisation, multi-billion dollar green energy investments, and robust social governance, setting a new benchmark for responsible industrial growth in the region

OQ is rapidly cementing its position as a leader in sustainable energy transition, demonstrating a strong commitment to environmental stewardship, social responsibility, and robust governance.

Through ambitious decarbonisation targets, strategic investments in renewable energy, and extensive community engagement programmes, OQ is not only aligning with Oman Vision 2040 and the nation’s net-zero ambitions but also setting a precedent for responsible industrial growth in the region and beyond.

Its 2024 Sustainability Report, alongside recent multi-billion-dollar agreements, paints a clear picture of how OQ is transforming its operations and contributing significantly to a greener, more resilient future.

DECARBONISATION & RENEWABLE ENERGY INITIATIVES

OQ has made good progress toward decarbonisation, recording a 16.1 per cent reduction in combined Scope 1 and Scope 2 emissions from assets under operational control in 2024 compared to the previous year.

Looking ahead, OQ has set an ambitious target to reduce emissions by 25 per cent by 2030 against a 2021 baseline, with the ultimate goal of achieving net-zero emissions by 2050, in line with Oman’s national objectives.

A cornerstone of this transition is OQ Alternative Energy (OQAE), which has expanded its renewable energy pipeline to 7 GW and secured crucial long-term Power Purchase Agreements (PPAs).

These agreements, valued at over $2 billion, were signed during Oman Sustainability Week 2025 and underscore OQ’s leadership in transforming the energy sector.

The key projects include high-capacity solar and wind installations in strategic locations such as Sohar and Duqm, featuring the Riyah-1, Riyah-2, and North Oman Solar Project plants.

These plants will collectively generate 1.4 terawatt-hours of electricity annually, supplying power to Petroleum Development Oman (PDO) under long-term agreements. This is projected to reduce carbon dioxide emissions by nearly 1 million tonnes per year (Mtpa) , while also conserving significant volumes of natural gas.

Beyond direct emissions reductions and renewable energy generation, OQ is exploring advanced decarbonisation technologies.

A strategic collaboration with Mitsubishi Heavy Industries involves pre-feasibility studies for integrating carbon capture technologies across OQ’s assets in Oman. This partnership will assess the full CO₂ value chain, from capture and transport to utilisation and storage, to build commercially viable business cases, further reinforcing OQ’s commitment to innovation and emissions reduction.

The company has also made significant strides in energy efficiency within its refining and petrochemical operations, with OQ RPI exceeding its Energy Intensity Index (EII) reduction target, achieving a score of 94.20 and generating $28.57 million in savings.

The achievement of ISO 50001 certification in 2024 for energy management further validates its systematic approach to energy performance.

OQ’s commitment extends to its subsidiaries, with OQ Gas Networks (OQGN) actively pursuing clean energy and electrification initiatives, including the installation of solar PV systems at its block valve stations to reduce reliance on fossil-fuel linked electricity.

SOCIAL PROGRESS & ETHICAL GOVERNANCE

OQ’s sustainability framework extends well beyond environmental metrics, deeply embedding social responsibility and robust governance into its core operations. The company places a strong emphasis on the well-being and development of its workforce and the communities it serves.

Noteworthy improvements in health and safety include a 43 per cent decrease in Lost Time Injuries (LTI) and a drop in the Total Recordable Injury Frequency (TRIF) to 0.54, reflecting stringent safety protocols and a pervasive safety culture.

Employee engagement has also seen a significant rise, driven by comprehensive cultural transformation programmes, health and well-being initiatives, and flexible work policies.

The report underscores OQ’s commitment to fostering women in leadership through its Women@OQ platform, with women accounting for 34 per cent of newly hired employees in 2024, a 22 per cent increase year-on-year.

Additionally, the company is dedicated to continuous professional development, providing employees with an average of 119.6 training hours per person, nearly five times more than the previous year.

Community engagement and local value creation remain central to OQ’s social mandate.

The company actively uses Social Return on Investment (SROI) metrics to track and maximise the positive impact of its community investment projects.

A significant aspect of their strategy is the bolstering of the local economy through increased local spend and expanded contracts with small and medium enterprises (SMEs).

In 2024, 78 per cent of OQ’s total expenditure on goods and services was directed to local suppliers, up from 77 per cent in 2023, resulting in an In-Country Value (ICV) index of 32.4 per cent.

OQ’s commitment to protecting the environment also manifests in tangible community projects, such as its ‘Green Initiative’, which involves planting a quarter of a million trees as part of a national effort to plant 10 million trees in Oman, and support for Al Saleel Natural Park.

Underpinning these initiatives is a strong governance framework that integrates ESG performance into strategic decision-making.

In 2024, OQ introduced an enhanced Corporate Scorecard, formally linking ESG performance to executive remuneration, a move that reinforces the belief that sustainability must be central to all business decisions.

The board’s Strategy and Investment Committee (SIC) ensures that capital allocation and risk oversight reflect responsible growth priorities, including decarbonisation, energy efficiency, biodiversity, and community investment.

Furthermore, OQ has reinforced its commitment to ethical conduct through comprehensive awareness and training initiatives, with no corruption-related cases reported across operations in the past year.

The company also achieved ISO 27001 certification for Information Security Management Systems (ISMS), enhancing its cybersecurity maturity and data privacy protocols.

By integrating ESG principles into its financial decisions, OQ is not only managing risk more effectively but also unlocking new financing opportunities, solidifying its role as a responsible international partner contributing to a sustainable future for the energy sector and national economy.

By Abdulaziz Khattak