30-07-2025
$1 bn worth of oil and gas projects launched in 2024
MUSCAT, JULY 30
Petroleum Development Oman (PDO) – the largest producer of hydrocarbons in the Sultanate of Oman – kicked off the execution of oil and gas projects valued at around $1 billion in 2024, underscoring the majority state-owned company's ongoing commitment to supporting the national economy.
The new investments are among the key highlights of PDO's overall performance in 2024, outlined in the company's newly published 2024 Sustainability Report.
Summarising the company's performance, Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals and Chairman of the Board of Directors of PDO, commented: 'In 2024, new projects with a total value of $1 billion were launched, reflecting a strong sense of accountability, coordination and resilience.
PDO achieved an average oil production of 679,922 barrels per day — the highest in two decades — exceeding its target by 7,000 bpd. Total hydrocarbon output, including condensates and non-associated gas, reached an average of 1.1 million barrels of oil equivalent per day, generating over $22.5 billion in revenues.'
Affirming the company's commitment to resilient growth, he added: 'Through continuous cost optimisation and operational efficiency, staff and contractors successfully maintained a low unit operating cost of just $7.4 per barrel, reinforcing our drive for financial resilience and sustainable growth.'
Significantly, new oil and gas discoveries across multiple geological plays have bolstered PDO's reserves. During 2024, the company booked 135.4 million barrels of oil and 0.73 trillion cubic feet (Tcf) of non-associated gas (NAG) as Discovered Contingent Resources (dCR). The company also maintained an aggregate (oil and gas) Unit Finding Cost (UFC) of approximately $1.3 per barrel of oil equivalent (boe). Additionally, PDO added 0.7 Tcf of risked ultimate recovery prospective portfolio volumes, maintaining a portfolio replenishment ratio of 1. It also identified an additional 5 Tcf of undefined, high-risk prospective volumes.
'These additions, spanning shallow to deep plays, provide more options for future gas maturation plans,' the company stated in its Sustainability Report.
Oil and gas recovery projects worth a total of $1 billion were in execution during 2024. In the North portfolio, the Greater Al Huwaisah (GAHP) start-up was successfully commissioned two months ahead of schedule. Likewise, the Saih Rawl Northwest and MAF Export Meter Upgrade projects were brought on stream as planned.
In the South portfolio, the Marmul Gas Compression Project (MGCP) is currently in the commissioning phase. The project aims to enhance gas efficiency by increasing production, minimising flaring and reducing emissions, in line with PDO's South Development Strategy.
