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Petroleum Development Oman (PDO) has set off on a transformation journey with several targets that include higher crude output and lower costs.
PDO’s managing director Aflah bin Said Al-Hadrami said the company has executed massive projects over the past few years and plans more projects to sustain its oil production rate of at least 700,000 barrels per day (bpd).
He told the Arabic language “Oman” daily that the massive capital projects it has carried out in recent years were a key factor in maintaining production levels.
In addition, the company is working on deploying new well technologies to enhance oil recovery from existing fields and reduce associated costs, he said.
“The company aims to achieve a strategic transformation that enhances its operational flexibility, accelerates innovation, and establishes a sustainable growth path. As part of plans to reshape its corporate culture and develop a more ambitious vision that supports the objectives of Vision 2040, the company has adopted a comprehensive strategy entitled ‘Corporate Transformation Journey,” he said.
“This strategy is based on four key goals: increasing production, enhancing cost management, strengthening safety and reinforcing professional ethics and governance.”
Al-Hadrami said the strategy involves the execution of large projects covering various fields with the aim of consolidating PDO’s position in the energy sector.
“Therefore, we chose a slogan for this journey that makes employees feel proud and aware of the great responsibility placed upon them towards the nation, which is "For Oman’… This journey has begun to bear fruit on various levels. For example, this year the company recorded its highest production level in the past two decades, exceeding the targets set for 2025,” he said.
Besides PDO, other local and foreign oil companies operate in Oman, including OQ, Occidental Oman, BP Oman, Shell Development Oman and TotalEnergies.
Oman has produced nearly one million bpd of crude oil over the past years and is also a major liquefied natural gas exporter.
The Sultanate pumped 4.645 billion Omani rials ($12 billion) into the hydrocarbon sector in 2024 as it pushed ahead with plans to expand production capacity and boost reserves.
A large part of the investments were channelled by foreign oil companies that have maintained a strong presence in the Sultanate over the past decades.
Energy and Minerals Ministry figures showed that by the end of 2024, cumulative investments in its hydrocarbon industry totalled around OMR23.945 billion ($62.25 billion), up from nearly OMR19.300 billion ($50.25 billion) at the end of 2023.
(Writing by N Saeed; Editing by Anoop Menon)
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