PDO’s Contribution Surges to $22.5 Billion in 2024: Key Insights for Investors and Business Owners in Oman
MUSCAT, JULY 14 – Petroleum Development Oman (PDO), the Sultanate’s largest oil and gas producer, generated approximately $22.5 billion in revenue for the government in 2024, a notable increase from around $22 billion the previous year. This growth was largely attributable to a significant rise in crude oil production, as highlighted in the Ministry of Energy and Minerals’ newly released 2024 Annual Report.
The report revealed that PDO achieved its highest oil production level in two decades, surpassing its targets and solidifying its position as a crucial player in the nation’s energy supply. It stated, “Gas output remained stable, meeting customer demand, while the company continued to function as the nation’s swing producer for gas, adapting to a highly dynamic environment. The combined daily production of oil, condensate, and non-associated gas remained robust throughout the year.”
In a rapidly evolving energy landscape, PDO significantly increased its contribution to the national revenue, amounting to approximately $22.5 billion. While specific production figures for 2024 were not provided, PDO’s daily crude oil production averaged 657,599 barrels in 2023, with condensate output at 97,426 bpd and gas production at 58.26 million m³/day, reflecting decreased customer demand.
The report emphasized PDO’s commitment to sustaining its 2024 production achievements. The Exploration Directorate reported a productive year, with several key oil and gas discoveries across various geological formations in both northern and southern regions of its concession area.
To enhance cost competitiveness, PDO has prioritized optimizing its Unit Operating Cost (UOC). The company is implementing a range of initiatives designed to reduce operating expenditures while maintaining a strong focus on safety and value creation. In 2024, PDO’s UOC was noted at $7.4 per barrel, attributed to ongoing cost control measures, improved collaboration, and streamlined processes. The report also stated that the company aims to reduce total deferments to below 5% by 2030, with total capital and operating expenditures reported at $7.264 billion.
On the technology front, PDO marked achievements in 2024 by launching 18 transformative initiatives aimed at fostering growth and addressing operational challenges. These initiatives focused on produced water and energy management, artificial lifting, enhanced oil recovery, well construction, and production measurement. Thirteen new technologies were successfully deployed, providing efficient solutions in water and energy management, artificial lifting, and well construction, alongside 15 technology trials that demonstrated significant potential for broader implementation and operational efficiency.
Advancing the innovation agenda, PDO also awarded five joint academia-industry research projects to Omani universities. These projects align with PDO’s long-term objectives and Oman’s economic diversification strategy, addressing critical areas including energy efficiency, water management, enhanced oil recovery, bioenergy, materials science, and renewable energy.
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The recent surge in oil production by PDO, yielding $22.5 billion in revenue for 2024, underscores a pivotal moment for businesses in Oman, suggesting robust growth potential in the energy sector. With strategic focus on cost optimization and technology adoption, companies can capitalize on increased production capabilities while managing operational efficiencies. Investors and entrepreneurs should consider this a prime opportunity to align with PDO’s innovative initiatives, especially in areas like renewable energy and water management, to support Oman’s economic diversification goals.
