PDO Targets Record-Breaking Oil and Gas Output in 2025: What It Means for Investors and Business Growth in Oman
MUSCAT: Petroleum Development Oman (PDO), the Sultanate’s largest oil and gas producer, is set to surpass its 2024 production levels once again this year, reaffirming its critical role as the “backbone” of Oman’s economy, according to Managing Director Dr. Aflah al Hadhrami.
Dr. Al Hadhrami, who became the first Omani to lead the majority state-owned energy company in May last year, emphasized the continued importance of hydrocarbons in fueling Oman’s economic growth, despite the country’s diversification efforts and increasing focus on low-carbon energy. “In my first year and four months as MD, PDO achieved its highest-ever production, exceeding even our ambitious 2025 targets by nearly 10%,” he stated. “2024 was one of our strongest production years, surpassing previous records. And 2025 is on course to be even stronger.”
Recently, a leading business magazine ranked Dr. Al Hadhrami among the Top 5 Executive Leaders in the Middle East’s oil and gas sector, featuring him in its 2025 Sustainability Leaders list of 126 top executives across various industries.
PDO cited this accolade as recognition of Dr. Al Hadhrami’s visionary leadership and the company’s robust performance under his guidance, highlighting his commitment to empowering employees, fostering a supportive work environment, and advancing sustainability within Oman’s energy sector.
The Ministry of Energy and Minerals reported that PDO achieved its highest oil production levels in two decades in 2024, averaging 679,922 barrels per day (bpd), up from 657,599 bpd in 2023. Total hydrocarbon output, including condensates and non-associated gas, reached an average of 1.1 million barrels of oil equivalent per day, generating revenues exceeding $22.5 billion. Dr. Al Hadhrami stressed that increasing production is essential for sustaining GDP growth. “We have no option but to increase production. The government targets a 5% annual GDP growth, much of which relies on oil and gas,” he explained.
A Forbes feature, titled “Shifting Energy,” discussed PDO’s “decarbonisation dilemma”—balancing emission reductions with rising energy demand. PDO’s strategy includes halving emissions by 2030 and achieving carbon neutrality by 2050. Central to this plan are three renewable energy projects: the Riyah-1 and Riyah-2 wind farms (200 MW combined), expected by 2026 and projected to reduce CO₂ emissions by 740,000 tonnes annually, and the North Solar IPP (100 MW), also due in 2026, anticipated to cut 220,000 tonnes of CO₂ per year. “We have set clear interim targets—we’re not waiting until 2050. By 2030, we will surely meet our commitments,” Dr. Al Hadhrami affirmed.
To enhance efficiency and sustainability, PDO is investing in technology and innovation. In 2024, the company implemented 18 new initiatives, validated 15 others, and launched five major technology projects—successfully completing four—focused on reducing greenhouse gases, minimizing flaring, improving energy efficiency, expanding renewable power generation, and lowering energy intensity. “Our responsibility goes beyond meeting international climate targets; it is a moral obligation to future generations,” Dr. Al Hadhrami concluded.
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PDO’s record-breaking oil production in 2024, coupled with ambitious decarbonization goals, signals a dual opportunity for businesses in Oman: leveraging the continued hydrocarbon-driven economic growth while investing in sustainable energy technologies. Smart investors should consider ventures that align with PDO’s green transition roadmap, including renewable energy projects and advanced technologies aimed at emission reduction and efficiency. This balance between boosting production and sustainability marks a strategic pivot that could define Oman’s energy sector resilience and attractiveness to future-focused capital.
