MUSCAT: Petroleum Development Oman (PDO), the Sultanate of Oman’s largest producer of oil and gas, is on track to exceed its 2024 output levels once again this year, reaffirming its longstanding role as the “backbone” of the national economy, according to Managing Director Dr Aflah al Hadhrami.

Dr Al Hadhrami, who in May last year became the first Omani to lead the majority state-owned energy company, underscored the enduring importance of hydrocarbons in driving Oman’s economic growth despite national diversification goals and a growing pivot towards low-carbon energy. “In my first year and four months as MD, PDO achieved its highest-ever production, surpassing even our stretch targets for 2025 by nearly 10 per cent”, he said. “2024 was one of our strongest years, with production outpacing previous records. And 2025 is shaping up to be even stronger”, he said.

The prestigious business magazine recently named Dr Al Hadhrami among the Top 5 Executive Leaders in the Middle East’s oil and gas sector, part of its 2025 Sustainability Leaders list featuring 126 executives across industries.

In a statement, PDO said the recognition reflects Dr Al Hadhrami’s visionary leadership and the company’s rising performance under his stewardship — highlighting his focus on empowering employees, building an enabling environment and driving sustainability within Oman’s energy sector.

According to the Ministry of Energy and Minerals, PDO recorded its highest oil production in two decades in 2024, averaging 679,922 barrels per day, up from 657,599 bpd in 2023. Total hydrocarbon output, including condensates and non-associated gas, averaged 1.1 million barrels of oil equivalent per day, generating over $22.5 billion in revenues. Dr Al Hadhrami noted that raising output remains vital to supporting GDP growth. “We have no option but to increase production. The government targets a 5% GDP increase every year and much of that depends on oil and gas”, he explained.

Forbes’ feature, titled Shifting Energy, also explored PDO’s “decarbonisation dilemma” — balancing emission reductions with growing energy demand. PDO’s road map commits to halving emissions by 2030 and achieving carbon neutrality by 2050. Key to this transition are three renewable energy projects: the Riyah-1 and Riyah-2 wind farms (200 MW), expected in 2026 and projected to cut 740,000 tonnes of CO₂ annually and the North Solar IPP (100 MW), also due in 2026 and forecast to save 220,000 tonnes of CO₂ per year. “We have set clear interim targets — we’re not waiting until 2050. By 2030, there is no doubt we will meet the commitments we’ve made”, Dr Al Hadhrami stressed. 

To further boost efficiency and sustainability, PDO is also investing in technology and innovation. In 2024, it rolled out 18 new initiatives, validated 15 others and launched five major technology projects — successfully concluding four of them — focused on greenhouse gas reduction, flaring, energy efficiency, renewable power generation and energy intensity. “Our responsibility goes beyond meeting international climate targets. It is also a moral duty to the next generation”, Dr Al Hadhrami concluded.

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