PDO unveils new corporate strategy for low-carbon future

Petroleum Development Oman (PDO) unveiled its new corporate strategy yesterday at the Oman Sustainability Week in Muscat.

According to Managing Director Steve Phimister, the new strategy is a direct response to Oman’s commitment to achieving carbon neutrality by 2050.

“If energy systems and country economies have to shift in line with global and regional changes then companies are the vehicle together with governments to do that. So we will all move our energy systems to sustainable low carbon energy systems within Oman,” he stated, adding, “Our purpose is to build a sustainable and low carbon future to maximise value to Oman.” The new strategy will focus on reducing the company’s carbon emissions while simultaneously increasing production.

"Oil & Gas has a role in the global energy system for decades to come, but hydrocarbon development must be sustainable. We have a responsibility to sustain the current energy system whilst we build the new [low carbon] energy system. PDO has bold plans to safely increase oil & gas production whilst at the same time halving its emissions" shared Phimister.

To achieve this the company’s updated strategy will focus on cost and carbon competitiveness.

Phimister stressed the importance of cost competitiveness. “If oil and gas demand is going to come down in the world... you must be competitive economically or else customers are going to buy the cheapest barrel elsewhere.” The company intends to increase its daily production of oil from 660,000 barrels per day to over 700,000 barrels per day .

“Oman and PDO need to ensure that they are cost competitive. .. and we will continue to ensure that we are cost competitive,” he added.

In regards to carbon competitiveness, Phimister shared the company’s plans of halving its carbon emissions by 2030, and achieving carbon neutrality by 2050.

The company plans to do so by resorting to electrifying its operational systems and using renewables, reducing flaring, utilising carbon capture and storage technologies.

Last year, Petroleum Development Oman signed a memorandum of understanding with Shell Development Oman to explore Carbon Capture Utilisation and Storage (CCUS) opportunities in Oman.