09 February 2016
Muscat - Petroleum Development Oman (PDO), the nation's dominant oil and gas producer, says it is weathering the oil price slump relatively well despite an estimated $1.6 billion shortfall in its 2016 spending plan.
According to Raoul Restucci, Managing Director, the majority Omani government owned company continues to deliver on its core objectives notwithstanding the belt-tightening prompted by the downturn.
"We're doing pretty well," Restucci said. "(Recently), we produced our highest production in excess of 600,000 barrels per day. Our performance is very strong, exploration is very exciting, and although the environment is challenging, PDO is delivering," the Managing Director added in exclusive comments to the Observer.
PDO has acknowledged that a $1.6 billion deficit in its investment plan for the current year could potentially cause a degree of economic pain not only to the company, but to the wider contractor community as well. But it has urged contractors to make the most of the crisis to economise, improve efficiency, curb waste, and so on, in order to stay competitive.
For its part, PDO is doing what's necessary to mitigate the impacts of the oil price slump, said Restucci. "We are adopting more efficient ways of doing our work," the Managing Director said. "The commodities are cheaper, materials are cheaper, and services are in a more collaborative style of working together. We are removing inefficiencies and waste, and addressing every part of our business. We are delivering more for less," he remarked.
PDO says its strategy is to try to stay the course despite the low oil price environment, while focusing on delivering maximum value for the Sultanate and driving greater efficiency and cost control.
Muscat - Petroleum Development Oman (PDO), the nation's dominant oil and gas producer, says it is weathering the oil price slump relatively well despite an estimated $1.6 billion shortfall in its 2016 spending plan.
According to Raoul Restucci, Managing Director, the majority Omani government owned company continues to deliver on its core objectives notwithstanding the belt-tightening prompted by the downturn.
"We're doing pretty well," Restucci said. "(Recently), we produced our highest production in excess of 600,000 barrels per day. Our performance is very strong, exploration is very exciting, and although the environment is challenging, PDO is delivering," the Managing Director added in exclusive comments to the Observer.
PDO has acknowledged that a $1.6 billion deficit in its investment plan for the current year could potentially cause a degree of economic pain not only to the company, but to the wider contractor community as well. But it has urged contractors to make the most of the crisis to economise, improve efficiency, curb waste, and so on, in order to stay competitive.
For its part, PDO is doing what's necessary to mitigate the impacts of the oil price slump, said Restucci. "We are adopting more efficient ways of doing our work," the Managing Director said. "The commodities are cheaper, materials are cheaper, and services are in a more collaborative style of working together. We are removing inefficiencies and waste, and addressing every part of our business. We are delivering more for less," he remarked.
PDO says its strategy is to try to stay the course despite the low oil price environment, while focusing on delivering maximum value for the Sultanate and driving greater efficiency and cost control.
© Oman Daily Observer 2016
