Latest news with #PetroleumDevelopmentOman
Observer
2 days ago
- Business
- Observer
ADNOC Drilling enters Oman market in $112m deal
Muscat : In a strategic move set to reshape Oman's upstream oilfield services landscape, ADNOC Drilling has acquired a 70% stake in SLB's land drilling rigs business in the Sultanate, marking the UAE-based firm's first operational entry into the Omani market. The deal involves the transfer of six fully operational land rigs in Oman, all under contract with national operators, including Petroleum Development Oman (PDO). The acquisition is part of a wider $112 million agreement between ADNOC Drilling and SLB (formerly Schlumberger), and is expected to close in the first quarter of 2026, pending regulatory approvals. 'This acquisition provides ADNOC Drilling with an immediate footprint in Oman's high-growth drilling market, supported by long-term contracts and a stable operating environment,' the company said in a statement. The rigs are currently deployed in core oilfields that form part of Oman's energy backbone. ADNOC Drilling aims to scale up operations, introduce digital drilling optimisation tools, and enhance rig performance through AI-enabled platforms. The deal aligns with Oman's Vision 2040 goals to attract regional investment, boost in-country value (ICV), and enhance efficiency in hydrocarbon production. It also comes as the Ministry of Energy and Minerals accelerates upstream development, particularly in mature oil blocks requiring enhanced recovery and cost-effective drilling. Industry analysts say ADNOC Drilling's entry is a significant vote of confidence in Oman's upstream sector. With a majority of the assets located in Oman, the acquisition reaffirms the Sultanate's importance as a strategic energy partner in the Gulf. 'Beyond rig deployment, ADNOC Drilling's model includes integrated drilling services, digital workflows, and regional supply chain development—bringing advanced capabilities to Oman's oilfields,' said an energy analyst based in Muscat. The investment is expected to support Omani SMEs and contractors through subcontracting and local procurement. It could also generate new employment opportunities for Omani nationals in rig operations, logistics, and technical services.
Zawya
23-05-2025
- Business
- Zawya
Oman: PDO offers high-potential oil acreage for investment
MUSCAT: In a significant development, Petroleum Development Oman (PDO) – the largest producer of oil and gas in the Sultanate of Oman – has invited Expressions of Interest (EoIs) from local and international operators in the development of a potentially hydrocarbon-rich field within its sprawling Block 6 license. The majority state-owned national oil company announced in a post on Thursday, May 22, 2025, that a 130 km2 parcel of land, dubbed Area A, is being offered for investment and development in the Qarn Alam Cluster, within the prolific Ghaba Basin in northern Oman. 'This represents a strategic opportunity to access a discovered resource with more than 1 billion barrels of STOIIP (stock tank oil initially in place), located within Area-A, which spans over 130 km2. The area offers proximity to existing infrastructure and holds significant development potential,' PDO stated in its post. Operators interested in the exploration, appraisal and development of Area-A have been invited to submit a letter confirming their willingness to participate in a competitive process, along with supporting documents to demonstrate their relevant experience. The deadline for submission of EoIs is June 5, 2025. According to industry experts, the move is in line with PDO's broader strategy of engaging specialized operators to manage specific assets within its portfolio. Illustrative of this trend is the company's decision in 2006 to partner with Indonesia's MedcoEnergi to operate the KSF cluster—a group of 18 small and mature oil fields located in southern Oman. This arrangement was designed to allow PDO to focus on its larger, core assets while leveraging MedcoEnergi's expertise to optimize production from these smaller fields. Under the contract, MedcoEnergi assumed full operational responsibility, including exploration, drilling, and production activities, while PDO retained ownership of the hydrocarbons. The initial 10-year contract was extended in 2015 for an additional 25 years, running through 2040. Another example is the Rima Cluster contract overseen by Daleel Petroleum and focusing on a group of mature oil fields located in south-central Oman. Like the Karim Small Fields, they require cost-efficient, focused, and flexible field development strategies. While the above-mentioned examples are based essentially on 'service contracts', an eventual deal over the Area-A resource is anticipated to be on the lines of a broader partnership that also rewards the new player for its use of proprietary technology, if any, and other financial, tech, and performance inputs. The Ghaba Basin, while contributing the mainstay of PDO's oil and gas production, is characterized by complex structural traps and diverse reservoir types that require significant financial and technological wherewithal to unlock their hydrocarbon potential. International operators typically bring to the table cutting-edge technologies, proprietary tools, and specialized expertise in enhanced oil recovery (EOR), deep reservoir exploration, tight or complex geological structures, and digital oilfield integration and automation. By partnering with these players, PDO can accelerate the deployment of these technologies, thus reducing risk and improving recovery factors, experts add. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
22-05-2025
- Business
- Observer
PDO offers high-potential oil acreage for investment
MUSCAT, MAY 22 In a significant development, Petroleum Development Oman (PDO) – the largest producer of oil and gas in the Sultanate of Oman – has invited Expressions of Interest (EoIs) from local and international operators in the development of a potentially hydrocarbon-rich field within its sprawling Block 6 license. The majority state-owned national oil company announced in a post on Thursday, May 22, 2025, that a 130 km2 parcel of land, dubbed Area A, is being offered for investment and development in the Qarn Alam Cluster, within the prolific Ghaba Basin in northern Oman. 'This represents a strategic opportunity to access a discovered resource with more than 1 billion barrels of STOIIP (stock tank oil initially in place), located within Area-A, which spans over 130 km2. The area offers proximity to existing infrastructure and holds significant development potential,' PDO stated in its post. Operators interested in the exploration, appraisal and development of Area-A have been invited to submit a letter confirming their willingness to participate in a competitive process, along with supporting documents to demonstrate their relevant experience. The deadline for submission of EoIs is June 5, 2025. According to industry experts, the move is in line with PDO's broader strategy of engaging specialized operators to manage specific assets within its portfolio. Illustrative of this trend is the company's decision in 2006 to partner with Indonesia's MedcoEnergi to operate the KSF cluster—a group of 18 small and mature oil fields located in southern Oman. This arrangement was designed to allow PDO to focus on its larger, core assets while leveraging MedcoEnergi's expertise to optimize production from these smaller fields. Under the contract, MedcoEnergi assumed full operational responsibility, including exploration, drilling, and production activities, while PDO retained ownership of the hydrocarbons. The initial 10-year contract was extended in 2015 for an additional 25 years, running through 2040. Another example is the Rima Cluster contract overseen by Daleel Petroleum and focusing on a group of mature oil fields located in south-central Oman. Like the Karim Small Fields, they require cost-efficient, focused, and flexible field development strategies. While the above-mentioned examples are based essentially on 'service contracts', an eventual deal over the Area-A resource is anticipated to be on the lines of a broader partnership that also rewards the new player for its use of proprietary technology, if any, and other financial, tech, and performance inputs. The Ghaba Basin, while contributing the mainstay of PDO's oil and gas production, is characterized by complex structural traps and diverse reservoir types that require significant financial and technological wherewithal to unlock their hydrocarbon potential. International operators typically bring to the table cutting-edge technologies, proprietary tools, and specialized expertise in enhanced oil recovery (EOR), deep reservoir exploration, tight or complex geological structures, and digital oilfield integration and automation. By partnering with these players, PDO can accelerate the deployment of these technologies, thus reducing risk and improving recovery factors, experts add.
Observer
19-05-2025
- Business
- Observer
The pillars for building a sustainable green economy in Oman
In recent years, the global conversation around sustainability has shifted from vision to action. Oman, through its ambitious Vision 2040, is aligning itself with this transformation by laying the foundation for a sustainable, inclusive green economy. While hydrocarbons still account for 68% of government revenue (NCSI 2023), this transition represents both a challenge and an opportunity to redefine economic development through a strategic, holistic lens that addresses Oman's unique conditions - including water scarcity (only 89m³ renewable water per capita annually) and growing energy demand (projected 5% annual increase to 2040). To succeed, Oman must build its green economy on four interdependent pillars, such as transition to renewable energy, sustainable resource management, innovations in the green technology area, and green legislation and international partnership that leverage its natural advantages while addressing its constraints. These pillars are not only aligned with the United Nations Sustainable Development Goals (SDGs) but also rooted in Oman's geographic, environmental, and economic realities. TRANSITION TO RENEWABLE ENERGY Oman's economy has long relied on oil, but the shift toward sustainability demands transformative change. Fortunately, the Sultanate of Oman is rich in untapped renewable resources, particularly solar and wind energy. Pioneering projects like the 'Miraah Solar Plant' in Amal and the 'Dhofar Wind Farm' are already reshaping the country's energy landscape. Developed through a partnership between Petroleum Development Oman (PDO) and GlassPoint, the Miraah plant generates over 1,000 MWth (megawatts thermal) of solar steam, making it one of the world's largest solar thermal facilities. Meanwhile, the Dhofar Wind Farm, a collaboration with Masdar of the UAE, supplies clean power to thousands of homes in the south. Parallel initiatives from industrial energy retrofits to smart metering are enhancing efficiency and minimizing waste, ensuring optimal use of clean energy. Complementing these efforts is Oman's ambitious push into green hydrogen. Through Hydrom, the Sultanate has signed $30 billion worth of Memoranda of Understanding (MoUs) with global players like BP, ACME, and Posco, positioning itself as a future exporter of green fuels to Asia and Europe by 2030–2035. One of the promising green fuels in the energy transition is ammonia, and within the SalalaH2 consortium, Marubeni, OQ Alternative Energy, Samsung C&T, and Dutco are jointly developing a 1 million-ton per year renewable ammonia project in Salalah. Together, these projects from Miraah's solar steam to Dhofar's wind power and Oman's $30 billion green hydrogen drive are not just reducing carbon emissions but future proofing the economy. The target is clear about the cut reliance on oil, diversify the energy mix, and ensure 30% of Oman's energy comes from renewables by 2030, as outlined in the National Energy Strategy. SUSTAINABLE RESOURCE MANAGEMENT Oman is redefining sustainability through circular economy principles that turn waste into resources. The nation now recycles 12% of its 1.6 million annual tons of plastic waste, targeting 30% by 2030, while Be'ah processes 4,500 tons of e-waste yearly. Industrial byproducts like steel slag see 90% reuse rates in Sohar's construction sector. Water innovation shines through projects like Barka IV solar desalination (250,000 m³/day, 20% emissions reduction) and Darsait's wastewater recycling (70% reuse). Agriculture undergoes revolution with Nizwa's smart irrigation (40% water savings) and Barka's hydroponics (8x yield per water unit). The sultanate's comprehensive transition to the utilization of all resources, regardless of their energy potential, serves as a regional model for sustainable resource management. INNOVATION AND DEPLOYMENT OF GREEN TECHNOLOGY Oman's green economy transition is gaining momentum through targeted investments in the innovation and deployment of green technologies. Institutions like Sultan Qaboos University (SQU) have filed 17 green tech patents since 2020, focusing on solar efficiency and hydrogen storage, while GUtech has developed solar panels that retain 92% efficiency in dusty desert conditions. At Innovation Park Muscat, 62 cleantech startups are now active, with over 40% specializing in renewable energy applications. Smart infrastructure is also evolving rapidly. Muscat's AI-driven water management system has reduced losses by 25%, and Duqm is piloting blockchain-based energy trading within its smart grid. The electric vehicle sector is expanding, with 48 public charging stations installed in 2023 and a government target to electrify 30% of its fleet by 2025. Through these integrated efforts, Oman is positioning itself as a regional hub where sustainable technologies are developed, tested, and deployed at scale. GREEN LEGISLATION AND GLOBAL PARTNERSHIPS Oman is cementing its sustainable transition through robust policy frameworks and strategic alliances. The government has implemented mandatory carbon standards for 82 industrial facilities (73% compliance in 2023) and introduced tax incentives for green businesses, driving a 40% increase in ESG-compliant investments since 2022. The Oman Sustainability Centre, established in 2023, now tracks 65+ indicators to align with net-zero targets. Internationally, partnerships with IRENA and UNDP have secured $120 million in climate financing for renewable projects, while local campaigns like "National Green Awareness" engage 200+ schools and 5,000+ businesses in sustainability practices. This dual approach combining legislative muscle with global cooperation positions Oman as a regional model for systemic green transformation. Oman's energy transition presents both unprecedented opportunities and complex challenges. With oil revenues constituting 68% of national income (2023), the pivot to renewables requires careful economic recalibration. The four-pillar approach demonstrates Oman's comprehensive strategy, but true leadership will demand: 1) Effective strategies to attract national and international firms to multiply the investment in renewables (currently at $1.2bn annually) 2) Addressing technical bottlenecks in grid integration and decentralized renewable power and green fuel generation. 3) Developing local expertise through programs like the National Green Skills Initiative. The Sultanate of Oman's unique advantage lies in its ability to leverage hydrocarbon expertise for green hydrogen and ammonia development. As Vision 2040 enters its decisive phase, Oman's energy transformation may well become the GCC's most instructive case study in managed transition.
Observer
13-05-2025
- Business
- Observer
PDO commits RO 4.4m to social investment projects across Oman
MUSCAT: Petroleum Development Oman (PDO) has signed 14 landmark agreements worth around RO 4.4 million to fund a wide range of social investment projects, reinforcing its role as a key partner in Oman's sustainable development agenda. Signed on the sidelines of Oman Sustainability Week and the Oman Petroleum & Energy Show (OPES) 2025, the agreements span sectors including education, health, environment, and community infrastructure—directly supporting Oman Vision 2040 and the UN Sustainable Development Goals. 'These projects reflect PDO's deep-rooted commitment to social responsibility and its ongoing efforts to create lasting impact in communities,' said Dr. Aflah bin Said al Hadhrami, Managing Director of PDO. 'They also exemplify how strategic partnerships can drive development that is inclusive, innovative, and future-focused.' Education took center stage in PDO's new investments. A key agreement with the Ministry of Higher Education, Scientific Research and Innovation will fund 150 full scholarships for students in PDO's concession area for the 2025–2026 academic year—85 for diploma-level and 65 for bachelor's programs. PDO is also co-financing the establishment of the Emerging Technologies Unit at Sultan Qaboos University—an initiative expected to benefit over 20,000 students annually and support 3,000+ graduation projects in fields such as artificial intelligence, big data, blockchain, and cybersecurity. Five additional development programs—Ma'rifa, Ta'zeez, Tamayouz, Work Experience, and Engineering Village Camp—will be rolled out with the Ministry of Education to guide students' career paths and foster innovation. Two kindergarten classrooms will also be built in schools within the concession area. In partnership with the Ministry of Health and Daleel Petroleum, PDO will help expand the emergency department at Ibri Hospital, which serves over 50,000 patients annually. Another health facility will be built in Andat, Dhofar Governorate, improving access to care for residents and energy sector workers in the area. Environmental sustainability is also on the agenda. PDO will work with Nama Water Services to construct a desalination plant and distribution network in southern Ghubrah, Al Jazir, benefiting more than 300 residents. A camel cheese production facility will be established in Rakhyut through a partnership with Al Jisr Foundation and the Food and Agriculture Organization (FAO), aimed at empowering over 4,000 camel owners and developing a new income-generating activity. PDO is also supporting upgrades to the camel racing track in Maqshan, Dhofar. PDO will fund defensive driving courses for 580 ambulance drivers in collaboration with the Royal Oman Police, provide high-tech equipment for SQU's Water Technology Laboratory, and help complete the final phase of the Bahla Cultural Center in Al Dakhiliyah. To nurture young talent, PDO will support 20 skills development programs at the Youth Center, reaching over 4,000 Omani youth. Additionally, the "Must'adad" program by Outward Bound Oman will benefit 500 young men and women, equipping them with essential life and leadership skills. The signing ceremony was attended by HH Sayyid Dr Fahd bin al Julanda al Said, President of Sultan Qaboos University, alongside undersecretaries, governors, and senior officials from participating institutions. —ONA
