MUSCAT: Oman’s largest producer of oil and gas, Petroleum Development Oman (PDO), has achieved a remarkable year in 2023, showcasing exceptional accomplishment in its pursuit of building a sustainable low-carbon future to maximise value for Oman. With a strong focus on safety, operational performance, and value creation, PDO has set new records and surpassed targets across various key metrics.
In terms of safety, PDO achieved a significant milestone by recording zero fatalities in work-related incidents, making it the safest year since 2011. This accomplishment reflects PDO's unwavering commitment to ensuring the well-being and protection of its workforce. Furthermore, the company achieved a noteworthy 50% reduction in lost time incidents compared to 2022, demonstrating its continuous efforts to enhance workplace safety. PDO also recorded an impressive 66% reduction in process safety incidents compared to the previous year, marking the best performance in its history.
On the operational front, PDO generated remarkable liquid revenue in 2023, surpassing expectations with a staggering $22.6 billion, a 65% increase from the planned revenue of $13.7 billion. This substantial growth can be attributed to the company's efficient production and exploration activities, as well as favourable market conditions.
Despite global challenges, PDO managed to achieve a slight increase of 0.5% in hydrocarbon production, reaching 1.084 million barrels of oil equivalent per day (boe/day), against a planned target of 1.79 million boe/day.
Additionally, PDO successfully contained its expenditure in 2023, with actual spending of $7,117 million, down by 0.6% compared to the planned expenditure of $7,163 million.
PDO's commitment to environmental sustainability is evident in its efforts to reduce greenhouse gas (GHG) emissions. In 2023, the company achieved a reduction of 1% in GHG emissions, with actual emissions amounting to 10.4 million tonnes of CO2 equivalent against a planned target of 10.5 million tonnes. These efforts align with PDO's objective of mitigating its environmental impact and playing a proactive role in combatting climate change.
Value creation remained a key focus for PDO in 2023, as evidenced by the discovery of 19 new oil and gas reserves, surpassing the previous year's performance by 10 additional discoveries. The company also drilled 884 new oil and gas wells, marking a significant 24% increase compared to 2022.
PDO also made notable contributions to Oman's economy by allocating $0.9 billion to Small and Medium Enterprises (SMEs) and Local Community Contractors (LCCs). This expenditure accounted for 18% of the total supply chain spend, demonstrating PDO's dedication to supporting local businesses and fostering economic development.
Another significant achievement was PDO's commitment to Omanisation, with a 1% increase in the employment of Omani nationals compared to 2022, reaching an impressive 91% Omanisation rate. The company recruited 648 Omanis, including mature professionals, graduates, and talent from the Top Omanisation Programme (TOP), representing a notable 35% increase compared to the previous year.
Finally, PDO achieved a commendable 40% in-country retained value, amounting to a total value of $1.8 billion. This represents a 2% increase compared to 2022 and highlights PDO's commitment to maximizing local content and driving economic growth within Oman.
PDO’s achievements in 2023 speak volumes about its commitment to safety, operational excellence, and value creation. With remarkable records in safety performance, revenue generation, hydrocarbon production, and value-added contributions to the economy, PDO has demonstrated its role as a leading player in the sustainable development of Oman's oil and gas sector.
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