27 June 2024
MUSCAT: Petroleum Development Oman (PDO), the biggest producer of hydrocarbons in the Sultanate of Oman, achieved a combined oil, gas and condensate production of 1.1 million barrels of oil equivalent per day (boepd) in 2023, generating in excess of USD 22 billion in revenue for the country.
An overview of the majority state-owned energy company’s performance was outlined in the 2023 Annual Report of Oman’s Ministry of Energy and Minerals, published here on Wednesday, June 26, 2024.
Commenting on its overall performance in 2023, PDO stated: “In a rapidly changing sector, the company stayed true to their new purpose by significantly boosting its contribution to the nation’s revenue through sustainably growing its core hydrocarbon business while lowering its production costs and greenhouse emissions, driving greater efficiency and achieving new safety records.”
Notably, revenues of over USD 22 billion were bolstered by increased liquids production (and higher oil prices) - some 65 per cent higher than planned, said PDO.
Crude oil production averaged 657,599 barrels per day (bpd) in 2023, which was within 99.8 per cent of target, said PDO. Condensate output averaged 97,426 bpd, while gas production was 58.26 million m3/d, consistent with lower customer demand, it noted.
Significantly, oil production is projected to grow incrementally over the coming years to reach the company’s production ambition of more than 700,000 bpd.
To sustain hydrocarbon production, a total of 884 new wells were drilled in 2023, entailing a 24 per cent increase over the previous year’s total of 715 wells, resulting in a new record for the company.
In another notable highlight of the year, a total of 19 new oil and gas discoveries were made in 2023, with PDO booking 120 million boe and 1.3 trillion cubic feet (Tcf) of non-associated gas as Contingent Resource volumes.
A total of 39 oil and gas exploration wells were drilled during the year, including ultra-deep ones into the Haima plays in North Oman. In addition, around 5,130 square kilometres of seismic data were acquired.
Furthermore, in line with its drive to ensure long-term sustainability and value creation, PDO's unit operating cost averaged USD 6.2 per barrel of oil equivalent (boe), while the overall (oil and gas) unit finding cost was near USD 1 per boe. This contributed to cumulative savings of USD 643 million on capital and operating expenditure of USD 7.117 billion.
“This was achieved through rigorous cost control measures, closer collaboration with it contractors, an enhanced operating model and people processes and the further implementation of new technological solutions, such as automation and digitalization,” the company said.
Building on its successful track record in In-Country Value (ICV) development, PDO’s total supply chain spend in-country surpassed 40 per cent (USD 2.47 billion), a 2 per cent increase from 2022. The company’s plans to boost this to 52 per cent by the end of the decade.
Also in 2023, PDO developed 50 localisation strategies in contracts with a total approved contract value of USD 6.3 billion and an accumulative planned retained value of USD 567 million. Eleven new ICV opportunities were implemented during the year with investments of around USD 45 million, it added.
Oman Observer is now on the WhatsApp channel. Click here
