PDO's contribution climbs to $22.5 billion in 2024
Petroleum Development Oman (PDO), the largest producer of oil and gas in the Sultanate of Oman, generated approximately $22.5 billion in revenue for the government in 2024, up from around $22 billion a year earlier.
Fuelling this uptick was a significant increase in crude oil production, the Ministry of Energy and Minerals noted in its newly published 2024 Annual Report.
'In 2024, PDO recorded its highest oil production in 20 years, exceeding its target and reinforcing its role as a key contributor to the nation's energy supply,' the Ministry stated in the report. 'Gas output remained stable, in line with customer demand, while the company continued to serve as the country's swing producer for gas—requiring it to operate in a highly dynamic mode. The combined daily production of oil, condensate, and non-associated gas remained strong throughout the year.'
It further added: 'In a fast-changing energy landscape, the company stayed the course by significantly boosting its contribution to the nation's revenue—amounting to approximately $22.5 billion.'
While corresponding production figures for 2024 were not immediately disclosed, PDO's crude oil production averaged 657,599 barrels per day (bpd) in 2023. Condensate output averaged 97,426 bpd, while gas production stood at 58.26 million m³/day, reflecting lower customer demand.
According to the report, PDO is focused on sustaining the momentum of its 2024 production performance. 'The Exploration Directorate also delivered another strong year, with several important oil and gas discoveries made across various geological formations in both the northern and southern parts of the concession,' it stated.
Enhancing cost competitiveness has been identified as a strategic priority, with a strong commitment to optimising Unit Operating Cost (UOC), PDO noted. To this end, a range of initiatives has been implemented across the company to reduce operating expenditure (Opex) while maintaining a sharp focus on safety and value creation.
'In 2024, PDO's UOC was $7.4/bbl, reflecting ongoing efforts in cost control, enhanced collaboration, an improved operating model, and streamlined processes. Additionally, the company has prioritised deferment reduction and improving facility availability, aiming to reduce total deferments to below 5% by 2030. Total capital and operating expenditure amounted to US$7.264 billion,' the report added.
On the technology front, PDO achieved a number of significant milestones in 2024, launching 18 transformative initiatives aimed at unlocking new growth opportunities and addressing critical operational challenges. These initiatives targeted areas such as produced water and energy management, artificial lifting, enhanced oil recovery (EOR), well construction, and production measurement.
Of these, 13 technologies were successfully deployed, providing practical solutions in water and energy management, artificial lifting, and well construction. In addition, 15 technology trials were completed, demonstrating strong value potential and paving the way for broader deployment and operational efficiency gains.
Further advancing innovation, five joint academia-industry research projects were awarded to Omani universities, targeting priority areas aligned with PDO's long-term goals and Oman's economic diversification agenda. These projects focus on energy efficiency, water management, EOR, bioenergy, materials and corrosion science, and renewable energy.
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