$1 Billion Oil and Gas Projects Launched in 2024: What It Means for Investors and Businesses in Oman

• By CONRAD PRABHU
• July 30, 2025July 31, 2025
• 2024 investments oil and gas projects Petroleum Development Oman
• With 0 comments

MUSCAT, JULY 30 — Petroleum Development Oman (PDO), the Sultanate’s largest hydrocarbon producer, has commenced execution of oil and gas projects valued at approximately $1 billion in 2024. This initiative highlights the majority state-owned company’s steadfast commitment to bolstering the national economy.

These new investments are among the central achievements detailed in PDO’s recently released 2024 Sustainability Report.

Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals and Chairman of PDO’s Board of Directors, summarized the company’s performance: “In 2024, we launched new projects totaling $1 billion, demonstrating strong accountability, coordination, and resilience. PDO achieved an average oil production of 679,922 barrels per day — the highest in twenty years — exceeding our target by 7,000 barrels per day. Total hydrocarbon output, including condensates and non-associated gas, averaged 1.1 million barrels of oil equivalent per day, generating revenues exceeding $22.5 billion.”

He further emphasized PDO’s focus on sustainable growth, stating, “Through continuous cost optimization and operational efficiency, our staff and contractors maintained a low unit operating cost of just $7.4 per barrel, reinforcing our commitment to financial resilience and sustainable development.”

Significant new oil and gas discoveries across various geological formations have strengthened PDO’s reserves. In 2024, the company recorded 135.4 million barrels of oil and 0.73 trillion cubic feet (Tcf) of non-associated gas as Discovered Contingent Resources (dCR). The aggregate Unit Finding Cost (UFC) for oil and gas stood at approximately $1.3 per barrel of oil equivalent (boe). Additionally, PDO added 0.7 Tcf of risked ultimate recovery prospective volumes, maintaining a portfolio replenishment ratio of 1, and identified an additional 5 Tcf of undefined, high-risk prospective volumes.

“These additions, ranging from shallow to deep plays, provide enhanced options for future gas maturation plans,” the report noted.

During 2024, $1 billion worth of oil and gas recovery projects were underway. In the North portfolio, the Greater Al Huwaisah Project (GAHP) was commissioned two months ahead of schedule. The Saih Rawl Northwest and MAF Export Meter Upgrade projects were also brought online as planned.

In the South portfolio, the Marmul Gas Compression Project (MGCP) is currently in the commissioning stage. This project aims to improve gas efficiency by increasing production, minimizing flaring, and reducing emissions, aligning with PDO’s South Development Strategy.

These developments underscore PDO’s pivotal role in driving Oman’s hydrocarbon sector forward while ensuring sustainable and efficient resource management.

Special Analysis by Omanet | Navigate Oman’s Market

PDO’s ambitious $1 billion oil and gas project rollout in 2024 highlights Oman’s strategic focus on resilient growth and fiscal discipline, with record production and significant resource discoveries strengthening long-term energy security. For businesses, this signals robust opportunities in supply chain expansion, energy services, and infrastructure development, while investors should watch for growth in cost-optimized upstream operations and emerging gas maturation projects as key value drivers amidst evolving market dynamics.