Petroleum Development Oman (PDO), the largest hydrocarbon producer in the country, has launched a significant flare gas recovery project at the Zulaiyah Station in Hazar South. This initiative marks a critical step in PDO’s decarbonisation strategy and is being implemented in collaboration with Enerhash, aiming to convert flare gas into a sustainable energy resource through digital mining technology.

The partnership was formalized through a signed agreement between Dr. Aflah bin Said al Hadhrami, Managing Director of PDO, and Tamas Seregi, Chairman of the Board of Enerhash. The project is expected to prevent around 25 000 tonnes of CO₂-equivalent emissions each year, reinforcing PDO’s commitment to reducing routine flaring and enhancing low-carbon solutions in its operations.

Utilizing Enerhash’s modular digital infrastructure, the project adopts a decentralized approach by powering containerized data centers directly with flare gas. This method allows for rapid deployment with minimal capital investment, making it particularly suitable for remote areas like Zulaiyah and other southern oil fields.

Aligned with PDO’s long-term energy transition and sustainability goals, the initiative introduces a scalable model that could be replicated, especially in regions where traditional flare gas recovery faces challenges due to dispersed infrastructure and small-scale gas flows.

This new project complements PDO’s previous efforts to engage vendors for flare gas recovery under its ‘South AP Flare Recovery Project.’ This earlier initiative focused on flare gas from atmospheric dehydration tanks in various clusters, including Bahja, Rima, Amal, Marmul, and Nimr, where complex recovery conditions exist. The gas volumes in these areas range from 3 to 80 kilo standard cubic metres per day (ksm3/d), with hydrogen sulphide content reaching as much as 14 000 PPM.

Under the flare gas purchase model used for both projects, vendors are responsible for the recovered gas, including its commercialization and any environmental liabilities. PDO provides the gas but does not retain obligations for operational or environmental outcomes, which allows for reduced emissions without adding investment or risk for the company.

Enerhash’s participation introduces a layer of digital innovation, transforming flare gas into a valuable asset by powering high-performance computing infrastructure. This approach offers both environmental benefits and economic opportunities.

The Zulaiyah station project could serve as a practical reference for future implementations within PDO’s network and similar geological environments. It demonstrates how energy producers can integrate emerging technologies into existing infrastructure to achieve climate goals and create value.

As the project unfolds, insights gained from this pilot initiative will be crucial in assessing the potential for scaling such technologies across Oman’s oil and gas sector. This effort reflects PDO’s dedication to sustainable innovation and aligns with Oman’s Vision 2040 objectives for cleaner and more efficient energy development.