OUR BRAND IDENTITY

The ammonite shell was chosen to be Petroleum Development Oman’s

(PDO) logo in 1980, coinciding with one of the most significant milestones
in the company’s history which was the registration of PDO as a limited
liability company in the Sultanate of Oman.
HIS MAJESTY
SULTAN HAITHAM BIN TARIK
Contents

ABOUT THIS REPORT 08 OPERATIONS EXCELLENCE 56

CHAIRMAN’S FOREWORD 11 EXPLORATION AND HYDROCARBON MATURATION 62

BOARD OF DIRECTORS 14 PROJECT DELIVERY 66

WHO WE ARE 16 IN-COUNTRY VALUE (ICV) AND CORPORATE SOCIAL RESPONSIBILITY 70

MANAGING DIRECTOR’S FOREWORD 24 PEOPLE AND STAFF DEVELOPMENT 78

OUR STAKEHOLDERS AND THEIR PRIORITY AREAS 32 ENVIRONMENTAL SUSTAINABILITY AND NEW TECHNOLOGY 84

SAFETY PERFORMANCE AND GENERAL WELFARE ENVIRONMENTAL PERFORMANCE 98

38

HYDROCARBON PRODUCTION AND RESERVOIR MANAGEMENT 46

ABOUT THIS REPORT
The body of this report is organised according to nine
priority areas, which are integrated into the Company’s
business processes. The Company continues to aim to
strike the right balance between successfully delivering oil
and gas sustainably to its shareholders, whilst respecting
the welfare of society and of the natural environment,
and the need to build a low-carbon future and diversified
economy.

This report also integrates the Company’s sustainability

performance, charting its performance to operate safely,
responsibly and effciently to deliver lasting economic
benefits to the whole of Oman. It covers the economic,
environmental and social impact of our performance.

This update is testimony to our commitment to

transparency and honesty in our business dealings. We
will be using it as our Communication On Progress to the
United Nations Global Compact (UNGC), which we formally
joined in January 2015. We remain firmly committed to the
UNGC’s 10 principles on human rights, labour, environment
and anti-corruption.

This report can also be viewed on our website www.pdo.

co.om and on our internal staff intranet.

Most of our technical functions are certified by the

relevant national, regional or international bodies, and
the organisation as a whole is annually audited by the
State Audit Institution of Oman, which is financially and
administratively independent of us.

This document covers the 2023 calendar year and follows

on from our previous Annual Sustainability Report for
2022, which was published in June 2023. Wherever
possible, we endeavour to measure our practices against
national and international benchmarks, such as the ISO If you have any queries

14001 certification. Going forward, our intention is to seek about this report, please contact us at
full external assurance. [email protected]
Petroleum Development Oman LLC
P.O. Box 81, Postal Code 100
Muscat, Sultanate of Oman
 CHAIRMAN’S FOREWORD
In the Name of Allah, the Compassionate and, the Merciful.
It is an honour to affirm the unwavering dedication of all those working in PDO, and the wider
Omani energy sector, who supports Oman Vision 2040 for the nation's sustainable development.

They are fully aware of the pressing need to The Company also placed significant onus on
continue generating revenues for our country’s operational excellence, deferment reduction
progress while diversifying the economy and and improving the availability of its facilities.
achieving carbon neutrality by 2050.
Its aspiration is to cut all forms of deferment to
The aspirations and ambitions laid down in the less than 5% by 2030 in its oil assets. This can
Oman Vision 2040 are noble, vital and achievable be achieved by improving artificial lift reliability
if everybody involved in the oil and gas industry and implementing tech-enabled availability
works with a collective commitment and focus. and maintenance improvements as this will
definitely contribute to reaching the target.
In this respect, I am pleased to report that
PDO performed magnificently in 2023, laying The Company’s new Purpose of building a
solid foundations for Oman’s orderly Energy sustainable and low-carbon future to maximise
Transition. value for Oman and its refreshed Strategy,
which places carbon and cost competitiveness
One of the key pillars of that journey will be HSE,
which the Company holds as a core value and at the heart of everything it does, are already
overarching priority. In that respect, it made a reaping rewards.
concerted effort to arrest a recent negative trend
Last year, PDO generated US$22 billion from
in safety. This led to an impressive turnaround
in 2023, with the Company posting its best liquid production while reducing its carbon
personal safety record since 2011 and the best footprint.
process safety performance in its history.
Notable strides were also made in priming
The “Boots-On-The-Ground” initiative to PDO’s hydrocarbon maturation funnel with 19
quickly support the frontline with expert help, new oil and gas discoveries, in addition to the
ongoing intensive training to raise capability and booking of 120 million barrels of oil equivalent
an unremitting focus on identifying and closing
and 1.3 trillion cubic feet of non-associated gas
gaps with additional resources, all contributed
as Contingent Resource volumes.
to the magnificent effort.
Likewise, it was encouraging to see the faster,
The combined efforts of both staff and
contractors show just what can be achieved more cost-effective, delivery of projects, such
through greater co-operation, a shared vision as the Greater Saqr Gathering Station, which
and an unrelenting commitment to ensuring the will generate significant long-term revenue for
well-being of all in the workplace. I know PDO is the nation by ensuring maximum production
SALIM BIN NASSER AL AUFI determined to take this momentum forward and and cost optimisation whilst protecting the
Minister of Energy and Minerals and Chairman of the Board of Directors further reinforce its safety culture, practices, environment.
policies and systems to attain Goal Zero.

10 SUSTAINABILBILTY REPORT | 2023

 It is a banner addition to PDO’s burgeoning behaviours and structural impediments that
portfolio of projects, which are both economically hamper change.
and environmentally beneficial, not least with
reference to those it has developed and those The deployment of Lean techniques and tools
under development in the renewable space for end embrace of greater digitalisation such as
power generation. I firmly believe such ventures robotic process automation, data analytics and
will contribute to Oman producing 30% of its artificial intelligence have already helped in this
electricity from green sources by 2030. regard, and I am confident PDO’s people are
ready and able to capitalise on the opportunities
The Company’s second Solar Independent
created by the rapidly changing energy sector.
Power Producer project and Riyah Wind Farm
scheme are rostered to come on stream in 2025 I reaffirm my pledge to to ensure that PDO,
and 2026 respectively. There is no doubt that the as well as the national oil and gas industry,
greater deployment of such “clean” technologies continue to support the Oman Vision 2040
will enable Oman to gradually capture gains
and your determination to transform our great
from the solar and wind value chains, as well as
country.
those of other clean energy technologies such
as hydrogen and low-emissions synthetic fuels. In conclusion, I would like to thank all those
What has also been impressive is how the working to source and develop cleaner, more
Company has worked with Omani academia, secure, sustainable and affordable energy and
industry and the SME community to develop maximise value for the Sultanate.
and deploy their Energy Transition expertise
so that the Sultanate can become a trailblazer This report offers transparency in illustrating
in achieving a decarbonised and diversified the challenges and successes of this approach
economy.
in 2023.
Another area where Company is leading the
way is in the implementation of In-Country May Allah protect the Sultanate so that
Value (ICV). In 2023, it realised a further seven Oman continues as a pioneer of sustainable
opportunities from the ICV Blueprint document, development, delivering peace, progress and
taking the number to 91 since the strategy
prosperity for its people and fulfilling its global
was unveiled in 2013. This commitment has
led to the creation of more than 3,200 jobs, the obligations.
operationalisation of 78 ICV facilities, and the
completion of 65 social investment projects
aligned with the United Nations’ Sustainable
Development Goals.

In line with the strategic shift PDO is undertaking,

a cultural change is also underway to create a
more flexible, dynamic and inclusive workforce
and workplace. This is a necessary but positive
move to harness the talent and tenacity of staff
and contractors alike, in addition to eradicating

12 SUSTAINABILBILTY REPORT | 2023

 BOARD OF DIRECTORS

ENERGY DEVELOPMENT OMAN, REPRESENTING THE GOVERNMENT OF OMAN REPRESENTING THE PRIVATE SHAREHOLDERS

H.E. Salim Bin Nasser Al Aufi Mr. Mazin Bin Rashid Al Lamki Mr. Peter Costello Mr. Walid Hadi
Minister of Energy and Minerals Chief Executive Officer Shell Netherlands Shell Oman
Chairman Energy Development Oman (EDO)

Eng. Isam Bin Saud Al Zadjali Mr. Sultan bin Ali Al Mamari Mr. Azhar bin Ahmed Al Kindi Mr. Sergio Giorgi Mr. Vitoon Chaisomboonpan Mr. Eric Greenlee
Board Representative Chief Finance Officer Chief Operating Officer Total Energies PTTEP Oman E&P Corporation Shell Oman
Energy Development Oman (EDO) Energy Development Oman (EDO) Energy Development Oman (EDO)

EXECUTIVE OFFICER SECRETARY

Dr Aflah bin Said Al Hadhrami Al Mukhtar Mohamed Al Hinai

Managing Director Head of Board Secretariat
Petroleum Development Oman (PDO) Petroleum Development Oman (PDO)

14 SUSTAINABILBILTY REPORT | 2023

 WHO WE ARE
We intend to continue to maximise value to Oman through growth in our core oil and gas businesses.

Petroleum Development Oman (PDO) is the leading exploration and production company in We will support the energy security and resilience of Oman by mobilising domestic and global partners,
the Sultanate of Oman. We deliver the majority of Oman’s crude oil production and natural gas inspiring a new generation of world-class, Omani talent and deploying new technologies across our
supplies, but above all else, we focus on sustainable value and growth for Oman, within and well
business to enhance production, while reducing our associated carbon footprint.
beyond our industry.
In delivering on our purpose, our strategy maximises value from our oil and gas core business in the
short and the long term, whilst organically building low-carbon revenue streams for the future.

We aim to pioneer the new energy landscape, leading technology deployment, operational excellence,
carbon reduction, and supply chain development for Oman’s oil and gas industry.

*(Gas fields and processing plants are operated by PDO exclusively on behalf of the Government).

PDO is a limited liability company and operates Purpose and Strategy, designed to guide us in
on a no-profit, no-loss basis and is officially our part to ensure energy security, affordability
revenue-neutral. In 2023, our total capital and and sustainability and to serve Oman.
operating expenditure was US$7,117 million.
Their implementation directly addresses
On 1 January 1980, PDO was registered by Royal the volatile energy landscape and mounting
Decree (50/80) as a limited liability company in climate change realities while delivering on our
the Sultanate of Oman. commitments to Oman Vision 2040 and Net
Zero 2050.
The Company adopted its name in 1951,
first discovered oil in Yibal in 1962 and has Our purpose, “Building a sustainable and
been exporting oil produced in its 75,119 km2 low-carbon future to maximise value for
concession area, known as Block 6, since 1967. Oman“ defines our core reason for being and
Our headquarters are based at Mina Al Fahal in the resulting positive impact we have, and can
Muscat. continue to have, in Oman and throughout the
world.
We operate more than 200 oil producing fields,
43 gas fields, more than 11,000 active wells, over It commits us to both cost and carbon
33,000 kilometres of pipelines and flowlines and competitiveness, safely, efficiently and
sustainably, growing our core oil and gas
over 100 rigs and hoists.
businesses whilst minimising emissions from
In March 2023, we officially unveiled our new our operations.

16 SUSTAINABILBILTY REPORT | 2023

 The key components of our refreshed strategy The Company has become a global pioneer in The MDC is answerable to the Board of Directors and apply equally to corporate decision-making
are to: EOR due to its maturing asset base and the which provides objectives and guidelines to and the individual behaviours expected of
complexity and challenging nature of Oman’s the Managing Director. The Board consists employees when conducting business for, and
• Achieve and sustain Goal Zero, no harm
geology. The three main recovery methods we of 12 members. There are five government on behalf, of PDO. Contractors and suppliers are
to our people, communities, environment
currently use are thermal, chemical and miscible representatives, including our Chairman, the also expected to comply with those principles as
or assets, as the fundamental bedrock of
high pressure gas injection. Minister of Energy and Minerals, His Excellency part of their relationship with PDO.
everything we do.
Salim bin Nasser Al Aufi, and those who
PDO meets its wider responsibilities to society, represent PDO’s private shareholders. (The Shell The Company has a long-standing commitment
• Maintain ethics and compliance.
and secures a social licence, by taking economic, Group Total and PTTEP). in Corporate Social Responsibility, being the first
• Build and leverage PDO’s cost social, and environmental factors into account national oil company in the Gulf to become a
competitiveness to generate resilient cash in all decisions, specifically in terms of the PDO GENERAL BUSINESS PRINCIPLES member of the United Nations Global Compact
flows far into the future. provision of oil revenues, domestic employment, AND UN GLOBAL IMPACT MEMBERSHIP (UNGC), the largest voluntary corporate social
staff, and contractor development, the support responsibility initiative globally. As a member,
• Grow oil production sustainably beyond PDO’s reputation and success critically depend
and advancement of local businesses, and PDO is committed to supporting the UNGC’s
700,000 barrels per day. on compliance with applicable laws, and with
community investment. 10 universal principles on human rights, labour,
the highest ethical standards of behaviour. PDO
environment, and anti-corruption. Since joining
• Execute carbon competitiveness strategies We aim to sustain a robust HSE culture conducts its business in accordance with the
in 2015, PDO has remained committed to
to meet our net-zero ambitions by 2050 and by meeting, if not exceeding, international principles of honesty, integrity, and fairness,
strengthening its already rigorous internal
halving emissions by 2030. standards. This is being achieved through our including relationships with its contractors and
controls and continuing its UNGC membership.
Golden Rules of Comply, Intervene and Respect suppliers.
• Manage integrated infrastructure network
and our refreshed Life Saving Rules, as well PDO CODE OF CONDUCT
(power, water, oil evacuation) to support To ensure the above, the PDO General Business
as close collaboration with the government,
growth and meet sustainability targets. Principles form the foundation of our business The PDO Code of Conduct provides requirements
regulators, contractors, operators, and
strategies, activities, and reputation. These and guidance on how to apply the PDO General
We manage a large and diverse portfolio of academia.
principles are endorsed by our shareholders Business Principles in practice. Compliance
oilfields in terms of field sizes, reservoir, and oil
At the end of 2023, PDO had 9,206 staff and
types, development methods and maturity.
over 50,000 contracting employees, resulting
Our aim is to improve the recovery factor in a combined workforce made up of over 60
of hydrocarbons through the application of nationalities.
a combination of world-leading well and
reservoir management, the deployment THE MANAGING DIRECTOR’S
of the latest innovative technology and a COMMITTEE
comprehensive range of recovery mechanisms
including: The Managing Director’s Committee (MDC)
shares responsibility for the Company’s overall
• Primary, such as fields on natural flow and
performance and business direction.
artificial lift.

• Secondary, such as fields under water flood It is headed by the Managing Director who
reservoirs and pressure maintenance. is assisted by 13 other directors, who are
responsible for setting the technical, operational
• Tertiary, such as Enhanced Oil Recovery
and functional standards, the allocation of staff,
(EOR), where we work to modify the
and their development.
physical/chemical properties of in-situ oil.

18 SUSTAINABILBILTY REPORT | 2023

 with the Code of Conduct is expected from all perceived conflicts of interest annually, or when
PDO staff, as well as contractors and suppliers. they arise.
Staff are made aware that any violation of and compliance topics including sanctions
the Code of Conduct provisions and related • We also operate a Gifts, Hospitality, Travel, and trade controls awareness training for
policies, procedures, as well as applicable and Confidentiality declaration process to selected teams.
laws or regulations governing PDO’s business ensure transparency and compliance with
• Whistle-blowing training and
activities, may have severe consequences for the anti-bribery and avoidance of conflict- investigations: A total of 6,117 staff received
individuals concerned and PDO. of-interest laws, as well as a “Blow The training on whistleblowing and reporting
Whistle” programme for anyone inside or mechanisms in PDO, which increased
The Code of Conduct addresses the following
outside of PDO to openly, or anonymously, the number of reported violations. The
Anti-bribery raise concerns regarding adherence with Ethics and Compliance team received and
and corruption initiated 62 investigations into allegations
the compliance requirements by PDO staff,
of improper behaviour, breach of business
contractors or any third party.
People & safety ethics, and internal policies resulting in
• PDO’s senior management and Board ‘appropriate response and consequence’

Safe guarding are regularly updated by the Ethics and management actions.
information and assets Compliance team on issues, key statistics • Reporting and feedback: Every quarter,
and trends. the Ethics and Compliance team shares
Free competition
and trade controls key learnings from their investigations
ETHICS AND COMPLIANCE KEY and other activities with the Managing
Communication
ACTIVITIES IN 2023 Director’s Committee. This ensures that
management the PDO leadership is aware of the ongoing
Our values are an integral part of our licence challenges in the Company, reinforces a
key areas: to operate. To support this, our activities in corporate ethical culture, and ensures that
2023 aimed at ensuring that we continue to do this is embedded in our business priorities
Our Ethics and Compliance Risk Management
business ethically and responsibly: across all levels.
activities aim to mitigate any issues in these areas.
Through a structured approach of continuous • Anti-bribery training: we continued the • Ethics and Compliance Champions
education and awareness programmes, our programme: In 2023, we expanded
application of our online training modules,
Ethics and Compliance Risk Management our Ethics and Compliance Champions
with 1,763 staff completing the training.
framework contributes to effectively combating programme by appointing more local Ethics
corruption and bribery challenges, as well as the • Ethics and compliance training for staff at and Compliance Officers/Champions from
misuse of power, bid rigging, unfair business ‘high risk’: a total of 114 staff in higher-risk staff in various directorates. The intention
practices, and undue influence exerted for private is to ensure that ethics and compliance
positions were trained for several hours in
gain. PDO continuously monitors business remains a corporate priority and to empower
face-to-face sessions to provide insights
activities by engaging with various departments directorates in setting the standards from
into potential areas or compliance risk and above. At the same time, the programme
and conducting surveys for the purposes of early
opportunities for control improvements at helps us to continue embedding ethics and
detection and response to ethics and compliance
various departments. compliance requirements into business
risks. PDO also operates an internal Conflict of
Interest declaration tool that all staff are required • Face-to-face awareness sessions: we
to sign declaring their actual, potential, and conducted 49 awareness sessions on ethics

20 SUSTAINABILBILTY REPORT | 2023

 processes, raise the accountability of the international standards and practices. We are The total capital and operating expenditure for
business with respect to compliance issues actively working on the Ethics and Compliance 2023 was US$7,117million.
and ensure better communication and early Strategy, and a five-year action plan that will
PDO SERVICES
prevention of the ethical issues within PDO. enable us to further expand our activities in line
with the Company’s vision and mission. PDO Services (PDO-S) is a limited liability subsidiary
• Integrity due diligence: a total of 601 company of PDO, which was established in 2021
COST COMPETITIVENESS
vendors were assessed in 2023 before to commercialise our strong technical capabilities,
we entered contractual relationships with Business efficiency is a strategic aim to ensure inherent capacity and competitive edges in niche
them while several improvement process PDO’s long-term sustainability and deliver value areas, including enhanced oil recovery, geo-
and system opportunities were further to stakeholders. solutions, and adjacencies.

identified that will enhance controls and

Cost competitiveness has been identified as a key In 2023, PDO continued to monitor PDO-S
better mitigate the risks associated with during its incubation period, and it successfully
organisational objective and we have embarked
doing business with third parties. secured its revenue targets, contributing to PDO’s
on a journey to maintain our unit operating cost
continuous improvement & talent exposure, as
NEW ETHICS AND COMPLIANCE (UOC) at US$6 per barrel of oil equivalent (boe)
well as meeting shareholders’ priorities.
STRATEGY until 2030. Various activities and projects have
been established throughout the Company to MEMBERSHIPS
In 2023, PDO launched its overall Strategy
reduce operating expenditure (Opex) and meet
Refresh to transform the Company and achieve PDO is a member of the:
the given target without compromising safety
its newly set strategic goals. As part of this new
and diluting value.
approach, Ethics and Compliance was named a
“must-win” and one of the key enablers of our • United Nations Global Compact
In 2023, our UOC was US$6.2 per barrel of oil
transformation. equivalent (boe), and we made cumulative • Regional Clean Sea Organisation

We have planned and already executed some savings of US$643 million on capital and • Oil and Gas Methane Partnership 2.0
of the activities that will help us to progress Opex. This was achieved through rigorous
• Aiming for Zero Methane Emissions
the strengthening of an ethical culture, greater cost control measures, closer collaboration Initiative (OGCI)
transparency in what we do and enhanced with our contractors, an enhanced operating
• Gulf Co-operation Council (GCC)
management of operational issues by model, people processes, and the further
National Oil Company Steering
increasing accountability, staff performance and implementation of new technological solutions, Committee
capabilities, together with cost, and financial such as automation and digitalisation.
• Oman Energy Association (OPAL)
discipline.
We have also placed significant focus on • International Association of Oil
In 2024, we aim to revamp the existing Ethics deferment reduction and improving the Producers (via Shell)
and Compliance programme by introducing a availability of our oil and gas facilities. Our
new Code of Conduct and the use of technology aspiration is to cut all forms of deferment to less
to manage and monitor our compliance
than 5% by 2030.
processes, as well as further train our staff on
ethics and compliance issues in line with the best

22 SUSTAINABILBILTY REPORT | 2023

 MANAGING DIRECTOR’S FOREWORD
It is with great honour and pride that we present Health, Safety and Environment
Petroleum Development Oman’s (PDO) Annual
After a monumental effort across our entire
Sustainability Report for 2023, my first as
organisation, PDO achieved its best personal
Managing Director of this illustrious company.
safety performance since 2011 and its best
process safety record ever.
The report transparently charts our performance,
our successes and challenges, during another There were no work-related fatalities, and
testing year where the ongoing need to produce we halved our Lost Time Injuries (LTIs) to 22
affordable, secure and sustainable energy. (compared with 2022), equating to a Lost Time
Injury Frequency of 0.12 (from 0.22). Total
Our economic, environmental and moral Recordable Case Frequency per million manhours
obligation to achieve this priority took place worked was also down to 0.57 (from 0.79).
against a difficult backdrop of multiple geo-
In our pursuit to achieve Goal Zero, i.e. no harm
political factors, inflation, energy market volatility
to people, the environment, communities or
and the emergence of new technologies, such as assets; we accelerated our journey via a Safety
artificial intelligence. Refresh initiative, based on a three-phase
urgent response to personal safety issues. The
PDO’s approach was shaped by our new Purpose first phase involved a “Boots-on-the-Ground”
of “Building a sustainable and low-carbon future deployment of resources in our operation fields
to maximise value for Oman” and our new in the Interior to support the frontline teams
refreshed Strategy. This supports the delivery in their site supervision and interventions. The
of the Purpose and places cost competitiveness second phase addressed the staff capability and
and the drive for revenue and cash flow squarely capacity gaps in managing operations safely, and
the third and final phase investigates our end-to-
alongside the goal of carbon competitiveness
end resources strategy to ensure PDO reaches
and the need to reduce our emissions.
and sustains its desired safety status.
Throughout 2023, PDO staff, a record 91% of Tangible progress can also be seen with regard to
whom are now Omanis, and our contractors road safety. There were no Motor Vehicle Incident
have worked diligently to embed the Purpose (MVI) related fatalities and our serious MVI rate
and Strategy to support Oman Vision 2040, per million kilometres fell to 0.034 in 2023 from
especially with the aim of diversifying the 0.05. Such results reflect the steady progress we
economy and achieving the Net-Zero Emissions made on our Darb Al Salama road safety (DAS)
plan, a three-year initiative, involving our HSE
aspiration by 2050 (NZE 2050).
and Operations teams, to encourage safe driving
Through an unstinting drive for excellence, PDO behaviour, safe vehicles and safe roads.
generated more than US$22 billion in revenues
were recorded compared to 12 in 2022 showing
from increased liquid production (and higher oil a 67% decrease. This continued a year-on-year
prices), some 65% higher than planned, while still improvement in process safety results from Dr Aflah Al Hadhrami
reducing our carbon footprint. 2017.
Managing Director

24 SUSTAINABILBILTY REPORT | 2023

 PEOPLE and take streamlined data-driven decisions
concerning employees so that we have the right
Our people are our most valuable asset, and people in the right jobs at the right time. This is
they are our sustainable competitive advantage. being accomplished by integrating our Learning
In this respect, the attainment of a record staff Management System with HR core modules,
Omanisation level of 91% is a vivid testament to
such as the management of performance,
the capacity and capability of Omanis to take
succession and talent acquisition and workforce
PDO forward in a fast-changing energy sector
planning.
landscape.
I am confident that the launch of an enhanced
The Company’s long-running commitment to
Employee Value Proposition will improve
Diversity and Inclusion as a business imperative
our ability to attract and retain the very best
is clearly paying off and I am pleased to see
in line with my desire to improve our work
women playing an ever greater role in the
environment, making it more agile, collaborative
business, not just at Mina Al Fahal but also in
and transparent.
the field.

Our talent pipeline is well primed with more

ETHICS AND COMPLIANCE
than 800 graduating from the Shababuna
Our values are an integral part of our licence to
development programme, which has been
operate, and we must ensure we continue to do
automated to improve business excellence,
business ethically and responsibly. As part of our
employee experience and efficiency.
overall Strategy Refresh, Ethics and Compliance
We are now building an Integrated Talent System was named a “must-win” and one of the key
enablers of our transformation.
We executed some activities that will help COST-COMPETITIVE PRODUCTION
to deliver targeted learning interventions
us to strengthen our ethical mindset. These
include greater transparency in what we do and Business efficiency is a strategic aim to
enhanced management of operational issues ensure PDO’s long-term sustainability and
by increasing accountability, staff performance deliver value to stakeholders. Therefore,
and capabilities, together with cost and financial cost competitiveness has been identified as
discipline. a key organisational objective and various
activities and projects have been established
An extensive programme of training on topics to reduce operating expenditure (Opex) without
such as anti-bribery, ethics and compliance for compromising safety and diluting value.
staff in “high-risk” areas, whistleblowing and
In 2023, our unit operating cost (UOC) was US$6.2
the recruitment of more Ethics and Compliance
per barrel of oil equivalent (boe) and we made
Champions underlined the importance of
cumulative savings of US$643 million on capital
business probity as a corporate priority.
expenditure (Capex) and Opex. This was achieved
through rigorous cost control measures, closer
We are working to revamp our Ethics and
collaboration with our contractors, an enhanced
Compliance programme by introducing a new operating model and people processes and the
Code of Conduct and the use of technology further implementation of new technological
to manage and monitor our compliance solutions, such as automation and digitalisation.
processes to ensure they adhere to the highest The total capital and operating expenditure for
2023 was US$7,117million.
international standards.

26 SUSTAINABILBILTY REPORT | 2023

 We also placed significant focus on operational
excellence, deferment reduction and improving
the availability of our facilities. Our aspiration This work was carried out in tandem with as TECHNOLOGY AND IN-COUNTRY VALUE
is to cut all forms of deferment to less than 5% many as 150 emission-reduction projects,
including the renewables and water space, as We launched 27 game changing technology
by 2030 in our oil assets by improving artificial
part of a goal to halve emissions from our 2019 initiatives (a 28% increase on the previous year’s
lift reliability and implementing tech-enabled baseline of 12 million tonnes per year of carbon record) to tackle critical corporate technical
availability and maintenance improvements. dioxide, equivalent to six million tonnes, by 2030. challenges, such as HSE, energy management,
well construction, artificial lifting and water
CARBON-COMPETITIVE PRODUCTION Most of our CO2 emissions come from power management.
generation and the development of large-scale
PDO still firmly believes that oil and gas will play renewable projects, especially solar and wind These endeavours promise to revolutionise the
and their associated supply chains that are way we operate, optimising and automating our
a key role in Oman’s economy for decades to
critical to reach Oman’s sustainability targets. decision-making and workflow processes in real
come, but production must be sustainable. This time, while unlocking new avenues for growth.
It is expected we will derive 30% of our power
necessitates expedited projects and volume capacity from such sources by 2026 with the
maturation, the development of stranded assets aspiration of reaching 50% by 2030. This approach dovetails with our overall
In-Country Value (ICV) programme, which
and Enhanced Oil Recovery (EOR).
SUSTAINABLE GROWTH stimulates business development, builds Omani
capability and capacity, and expedites economic
On the other hand however, it requires The total value of projects under execution in productivity and diversification, in line with the
investment in low-carbon fuels, Carbon Capture, 2023 was US$1.1 billion. One key milestone was Oman Vision 2040.
Utilisation and Storage (CCUS), power to liquids, the completion of the Greater Saqr Gathering
and flare and methane emission abatement Station, delivered safely in a record time of Our unwavering commitment to localisation
18 months, three months ahead of schedule, saw the Company surpass the 40% threshold
techniques, as well as strong energy-efficiency
despite the disruption caused by COVID-19. of in-country retained value in our total supply
practices. chain for the first time. We realised 11 more
The facility represents our Strategy in action, opportunities from the ICV Blueprint Strategy,
This twin approach is necessary to fund national delivering sustainable hydrocarbon growth amounting to US$40 million. One such was the
economic development and diversification from six satellite fields whilst reducing costs launch of the first local manufacturing facility for
and meet international climate change and emissions, with a peak production capacity drilling rigs in Oman and the Middle East.
of approximately 30,000 boepd and an expected
commitments. PDO has now brought to fruition 91 such
annual carbon dioxide emission reduction of
6,600 tonnes. opportunities since the blueprint was unveiled in
Our average oil production in 2023 was 657,599 2013, with a total investment value of US$615
barrels per day (bpd), which was within 99.8% of GAS BUSINESS million, the creation of 3,216 jobs for nationals
the target. Condensate output was 97,426 bpd, and operationalisation of 78 ICV facilities and
while gas production was 58.26 million m3/d, In the gas domain, we achieved the start-up of workshops in nine years.
Khulud Phase-2 project again one month early.
consistent with lower customer demand. The At the same time, we maintained our drive to
This will advance the development of Khulud
combined total average barrel of oil equivalent West fields, with a primary goal of enhancing maximise our beneficial social impact in line with
production per day (boepd), oil, condensate and production. the United Nations’ Sustainable Development
gas, was 1.1 million boepd. Goals.
Thanks to the Exploration Directorate who made
The strong production effort was buttressed 19 new oil and gas discoveries and booking We completed 65 social investment projects
by a record number of more than 24,000 hoist, a total of 120 million boe and 1.3 trillion cubic and committed to a further 95 aligned with the
completion and well intervention activities and feet of Non-Associated Gas (NAG) as Contingent themes of HSE, education and science, youth
the delivery of 884 new oil and gas wells, a 24% Resource volumes. The overall unit finding cost and female empowerment, infrastructure and
rise from 2022. was near US$1 per boe. community welfare.

28 SUSTAINABILBILTY REPORT | 2023

 REVENUE DIVERSIFICATION Lean. Our CI roll-out is helping us to challenge
the status quo and become safer, more efficient
It is crucial that we diversify revenue streams and cost-conscious. More than 6,000 new
in support of Oman Vision 2040 objectives. ideas were generated and 85% of these were
This involves exploring new opportunities such implemented. In total, the Lean drive delivered
as investment in technology adjacencies and over US$140 million in value and freed up the
the potential of CCUS as a key new technology equivalent of 50 full-time staff for value-added
enabler to a greener future. tasks.

In this respect, we launched a three-month 2024 AND BEYOND

pilot to explore the use of CO2 emissions from
our operations to enhance oil production Our strategic priorities remain ensuring the
from existing fields. We continue to explore cost and carbon-competitiveness of our core
opportunities to commercialise our strong hydrocarbon business and aspiring for a cost-
technical prowess, inherent capacity and efficient oil production plateau of beyond
competitive edges in niche areas. 700,000 bpd while attaining and sustaining
Goal Zero. This must correlate with bolstering
OPERATING MODEL AND CULTURE the resilience of our hydrocarbon portfolio
whilst halving our emissions by 2030 (against a
During the year, we carried out extensive work 2019 baseline) and achieving NZE 2050.
to simplify our operating model, our systems,
processes and governance and organisational We aim to diversify our revenue options as we
structures, to achieve greater safety, efficiency move in an orderly fashion towards a sustainable,
and ethical standards. low-carbon future while maximising value
for the Sultanate. We will continue to pursue
This rationalisation has resulted, for example, renewable opportunities based around the
in a modernisation of our contracting and accelerated deployment of solar and wind.
procurement organisation with the aim of
making it a world class integrated supply We will strengthen partnerships with key
chain function, a halving of our hydrocarbon technology players and local vendors to support
maturation cycle time and an acceleration of the our Energy Transition priorities and significantly
delivery of high-margin projects. contribute towards the national agenda of a
greener Oman. We plan to boost our ICV rate to
We are investing heavily in our commercial There is no doubt that we will continue to
52% by the end of the decade and have identified
mindset and leadership capability to improve face challenges, including heightening climate
more than 100 opportunities for goods, services
collaboration, increase the quality of decisions change realities, digital disruption, a volatile
and manpower.
and empower our people to work in more energy market and supply constraints and
productive ways. We also cascaded a dynamic We are proud to retain our membership of the UN costs. However, I firmly believe every challenge
new corporate culture to eliminate behaviours Global Compact and will stay committed to its presents an opportunity to innovate, improve
and processes which thwart efficiency and 10 principles on human rights, the environment, and generate value. If we can build on all the
embrace those which facilitate it. labour and anti-corruption, and embedding positivity from our 2023 performance, I’m
them in our Strategy, culture and day-to-day confident PDO can make a lasting contribution
Digitalisation and IT efficiency, including the to Oman’s sustainable development as both a
operations. These principles underpin our core
recruitment, retention and development role model and enabler.
values and ethical approach to business and
of proficient staff will enable our cultural
provide the framework in which our staff and
transformation, along with the deployment of
contractors are expected to operate. Amal Steam Project

30 SUSTAINABILBILTY REPORT | 2023

 OUR STAKEHOLDERS AND THEIR
PRIORITY AREAS
PDO is the central engine of Oman’s economy. Its activities and performance directly impact
the fortunes and futures of a rich diversity of stakeholders, including local communities, the
government, shareholders, customers, suppliers, regulatory bodies, municipal authorities,
academia, non-governmental organisations, the media, and of course, employees, and
contractors.

Our determination to be a good corporate citizen, realities, pressures to phase out fossil fuels,
putting sustainability at the heart of all we do, cut emissions, develop renewable energy
necessitates that we regularly engage with alternatives, and rapid digital disruption.
our stakeholders to understand their needs,
opinions, and expectations. As a result, we took extensive soundings from
our Board and more than 300 stakeholders to
The aim is to act not only as a role model for craft a new corporate purpose, which will help us
the wider society but also as a collaborator in, retain our position as a key partner of the Omani
and enabler for, the necessary change for the economy, as the provider of secure, affordable
sustainable development of the country and its and sustainable energy in a decarbonised world.
economic diversification in line with the Oman
Vision 2040. This endeavour resulted in a following purpose
- “Building a sustainable and low-carbon
PDO believes it is important to engage with future to maximise value for Oman.” – which
our key stakeholders honestly and clearly and was officially unveiled to local and international
report on our achievements and activities, while media representatives at Oman Sustainability
at the same time receiving feedback from them Week in March 2023.
as this helps us to respond to any concerns
about our impact and continuously improve our Maximising value for Oman is at the heart of
performance. our purpose, to fulfil our role in contributing to
Oman’s Vision 2040 and net-zero emissions
Our reporting focuses on the economic, 2050.
environmental, and social challenges that
matter most to our stakeholders, and their This is underpinned by a new strategy with its
feedback and information come from a variety emphasis on building and leveraging our cost
of sources, including formal and informal face- competitiveness to generate resilient cash
to-face meetings, telephone meetings, visits, flows, as well as achieving and sustaining Goal
workshops, surveys, and digital communication. Zero in HSE and zero tolerance of ethics and
compliance breaches.
Stakeholder engagement continues to play a
vital part in building, protecting, and projecting It also mandates the need to grow production
PDO’s reputation. sustainably beyond 700,000 barrels a day,
diversify Block 6 revenue, execute carbon
We are aware of the need to clarify and
competitiveness strategies, and manage an
consolidate our role in a fast-changing world
characterised by mounting climate change integrated infrastructure network.

32 SUSTAINABILBILTY REPORT | 2023

 Al Hewar sessions with the Managing Director,
The purpose and strategy will enable us to Meanwhile, a Governance Streamline project is
sustain our current energy system, meet Managing Director’s Committee (MDC)
nearing completion and has already achieved
existing customer needs and deliver value for engagements, more than 160 corporate
success by optimising the Board and MDC
Oman at the same time as building a new one. announcements, a live survey and messaging
structures.
This means that, as we navigate the change, tool (Tawasol), digital banners and our dedicated
we must increase production while cutting The number of Board committees has been corporate television channel, PDOTV..
emissions and rolling out cleaner alternatives to reduced from nine to five and the total of MDC
fossil fuels. committees has been halved from 22 to 11, EXTERNAL STAKEHOLDER
providing a sharper strategic focus, greater ENGAGEMENT
The comprehensive consultation with
alignment and clear remits and responsibilities.
stakeholders enables us to obtain internal Our dedicated Government and Stakeholder
and external feedback on our challenges and Relations team hosted the State Council and
The Company is also intent on transforming the
opportunities during the energy transition and
Contracting and Procurement organisation into State Audit Institution at our Mina Al Fahal
secure full buy-in for our future.
a world-class integrated supply chain function, headquarters, where members were updated
A NEW OPERATING MODEL AND integrating it with logistics and warehousing to on our operations, major projects and PDO’s
CULTURE ensure strategic alignment, efficient business vital contribution to the national economy.
delivery and security of supply.
It has been a top priority to fully engage all There were also site visits to oil and gas fields
stakeholders, both external and internal, on As an integral part of the transformation in Block 6 including by the Minister of Economy
the transformation taking place in our fast- journey, dialogues have taken place across PDO and Minister of Agriculture, Fisheries and Water
moving sector and the organisational changes and with external stakeholders. As a result, a
which need to take place to ensure PDO is ready Resources, the Oman Investment Authority
cohort of 350 leaders has emerged to lead the
and able to tackle the challenges and seize the Chairman, and the Tender Board Chairman.
cultural evolution, drawn from every level of our
opportunities ahead.
organisation. A number of engagements were conducted with
To embed our new purpose and implement the Ministry of Labour and Social Development
Through qualitative interviews, focus groups,
our strategy, we have developed a new on areas of mutual interest and improvement
“culture carpet” sessions, workshops and
operating model, which has a high-performing, and there was constant interaction with
empowering work culture at its heart based on summits, there were discussions with more
than 1,000 individuals, identifying elements in contractors, specifically around boosting HSE,
attracting and retaining exceptional talent.
the PDO culture that either enable or hinder the In-Country Value and operational efficiency.
The focus extends to developing long-term skills realisation of the strategy. Additionally, 6,000
and capabilities that highlight value creation people shared their perspectives on the culture In addition, as part of the duty to safeguard the
and a commercial mindset in all areas. A crucial through a survey. Company’s reputation and risk management
element of this evolution is the enhancement of approach, we released the first non-technical
PDO’s performance management system. The engagements highlighted those negative risk escalation procedure to ensure that
behaviours which thwart progress, such as incidents affecting external stakeholders are
Digitalisation will also be a key enabler to deliver micro-managing and working in silos, and eliminated or mitigated to as low as reasonably
the strategy and PDO is embarking on a three- the positive ones, such as learning, listening, practicable.
year push to increase IT efficiency, talent, and collaborating, empowering, acting and
overcoming barriers. Our Community Development team hosted
skills. We will optimise ongoing tech investments
more than 100 walis and related dignitaries to
to transform IT, the corporate infrastructure, This extensive engagement programme
raise awareness on PDO’s role in supporting
and landscape, with a view to becoming an in- was underpinned by a wide-ranging internal
communities as well as to give a high-level
country cloud service provider. communications drive, which featured six

34 SUSTAINABILBILTY REPORT | 2023

 overview on our operations. These events Since 2019, we have worked closely with the
covered all eight wilayats in the concession area Oman 2040 Vision Unit to help it simplify
along with participation from Director-Generals. governmental processes. We have supported
25 government entities, trained more than 600
Ensuring PDO’s operations are carried government staff, and improved more than 280
out sensitively remains a key part of government processes.
our responsibilities, and the Community
Development team worked tirelessly to COMMUNICATIONS AND EVENTS
facilitate an Exploration Directorate Nibras 3D
seismic data acquisition operation, engaging Our External Affairs and Value Directorate
three villages and more than 100 izbas. managed and supported 119 events throughout
the year, including Oman Sustainability Week,
There was extensive community outreach,
including the delivery of HSE awareness the Gas Producers’ Association GCC Chapter,
campaigns to more than 400 people, visits to COMEX, ADIPEC, and the 10th Annual PDO Day. It
children hospitalised over the Eid Al Fitr holidays also conducted nine Culture and Transformation
and clean-up campaigns. labs, engaging thousands of staff in discussions
on the evolution of PDO’s corporate DNA and the
We conducted two PDO Majlis sessions on
changes to its operating model as it becomes a
an important topic aligned with the Oman
Vision 2040: “Accelerating Climate Solutions: full-fledged energy business.
The Pivotal Role of the Industry Sector for a
To ensure a timely, accurate, and newsworthy
Sustainable Future.” These discussed the role
of the industrial and energy sectors in creating flow of information, 2023 saw the execution of
a sustainable future in the North Al Batinah more than 60 media engagements, interviews,
Governorate and how renewables and energy and activities with a potential reach of 1.1 billion.
efficiency could be key enablers.
Indeed, social media remains a key focus for
We maintained our outreach through our Khebra PDO to reach a wider audience and increase
project to share our expertise with staff from the
digital brand visibility. There were more than
government and private sectors, supervising 46
1,000 posts on a wide variety of activities,
on-the-job trainees, making a total of 772 since
the scheme was launched in 2018. topics, and campaigns across the Company’s six
social media platforms, which directly engaged
There was also further engagement through over 223,000 people with a potential reach of
our Edhaat programme, which ensures our 157.9 million. The Company’s LinkedIn page is
staff are acquainted with government and
the most followed Omani corporate account in
main stakeholder initiatives and processes. In
the Sultanate.
2023, this focused on goods prohibited by the
Consumer Protection Authority and Oman’s
digital economy.
475,000 120,200 79,400
There was also further outreach to government
ministries on embedding lean ways of working in
their systems and processes to add more value,
enhance efficiency, and streamline procedures. 20,00 9,380

36 SUSTAINABILBILTY REPORT | 2023

 SAFETY PERFORMANCE AND GENERAL WELFARE
competency, worksite hazard management, We also conducted 92 HSE performance audits
worker welfare and road conditions. of our contractors in a bid to elevate the safety
2023 Highlights standards across our contractor community.
Many other initiatives contributed to the
improved performance, including an HSE Our Contractor CEO Forum saw more joint
• No work-related fatalities and the best safety performance since 2011. Ambassadors campaign which saw Omani leadership site visits and opportunities for cross
football legend Ali Al Habsi and singer Haitham learning, further strengthening our partnership
• No Motor Vehicle Incident related fatalities or Lost Time Injuries. Rafi reach out to more than 2,000 PDO and with our contractors and managing HSE as a
• HSE contractor engagement and training strengthened. contractor employees. collective challenge.

The welfare of people and the natural environment are enshrined in PDO’s Business Principles. We
endeavour to provide all of our employees with safe and healthy working conditions. We will never
be satisfied with the way we carry out our ambitious plans unless we do so in a way that respects
people’s health and safety, that benefits our neighbouring communities and that maintains the
environmental richness of the country.

SAFETY In our push to Goal Zero, we accelerated our

safety journey via a three-phase urgent response
Safety is a core value for PDO, with an
to personal safety issues. The first phase
unrelenting focus on Goal Zero – no harm to
involved a “Boots-on-the-Ground” deployment
people, environment, communities or assets.
of resources to the Interior to support frontline
In 2022, we embarked on Safety Refresh, a teams in their site supervision and interventions.
multi-year plan to tackle safety concern areas in
The second defines staff capability and capacity
a more structured and systematic approach.
gaps in managing operations safely. The third
In 2023, we recorded our best personal safety investigates our end-to-end resources strategy
performance since 2011 and our best ever to ensure PDO reaches and sustains its desired
process safety performance. safety status.

There were no work-related fatalities and We are now boosting critical resources in high-
we halved our Lost Time Injuries (LTIs) to 22 risk areas to ensure this progress is sustained.
(compared with 2022), equating to a Lost Time
The impact has been significant and we saw
Injury Frequency of 0.12 (0.22). Total Recordable
sharp increases in supervision and quality
Case Frequency per million manhours worked
life-saving interventions. We also identified
was also down to 0.57 (0.79). There was also a
long-standing challenges that are now being
33% fall in repeated incidents and a 40% reduction PDO HSE Ambassadors Campaign with Ali Al Habsi and Haitham Rafi
addressed through our Permit To Work System,
in High Potential Incidents.

38 SUSTAINABILBILTY REPORT | 2023

 Supporting this, 106 staff and 151 contractor communication, awareness and collaboration
Safety Performance 2019 – 2023
personnel were trained and certified as HSE campaigns. These included DAS Week, driver
Category 2019 2020 2021 2022 2023
assessors, enabling them to evaluate the HSE forums at all Interior sites, a DAS Oasis roadside
competencies of other employees. campaign and one during the Khareef season
Fatalities 6 5 10 12 2
in Salalah in partnership with the Royal Oman
We believe that the deployment of new
Police. PDO/contractor fatality
technology, such as automation and proactive from work-related 2 4 5 5 0
digital and CCTV safety monitoring, was also Through a combination of road assessment incident

pivotal to the enhanced performance. surveys and a meticulous analysis of MVI Third party fatality from
1 0 1 3 0
hotspots, we established a priority list to address work-related incident
We also boosted existing safety programmes,
high-risk areas. By targeting these critical zones, Reportable, non-
with the launch of an upgraded online platform
we are proactively mitigating potential hazards recordable, work- 0 0 0 0 0
and mobile application for our behaviour-based related incident
and reinforcing our commitment to a safer road
Ihtimam scheme. The platform introduces PDO/contractor non-
infrastructure. work-related private 3 1 4 4 2
enhanced capabilities integrated with advanced commuting
digital solutions. The extension of the DAS initiative to encompass
Serious Injury, Illness
Ras Al Hamra and staff commuting, has been 2 4 5 9 0
and Fatality (SIF)
ROAD SAFETY
a pivotal step forward, especially as we sadly

There were no Motor Vehicle Incident (MVI) experienced two non-work-related private LTI injuries 21 34 38 43 22

related fatalities or Lost Time Injuries and our commuting fatalities in 2023.
Worksite Lost Time
serious MVI rate per million kilometres fell to 19 29 32 39 22
To sustain these gains, the requirements and Injuries
0.034 in 2023 from 0.05 in 2022.
recommendations outlined in the plan have been
Road traffic Lost Time
2 5 6 4 0
By the end of December 2023, 21 months had integrated into the latest off-plot development Injuries

passed without any fatalities, with nearly 500 and logistics contracts. This will ensure that
No. of people injured
non-compliant fleets are phased out in favour 120 113 132 148 108
million kilometres driven. (excluding FAC)
of vehicles meeting stringent safety standards,
Such results were underpinned by the steady RAM 4+ incidents
thus enhancing overall road safety. (updated monthly)
118 84 79 82 56
progress that has been made in relation to our
Darb Al Salama (DAS) plan, a three-year initiative, MEDICAL CARE Motor Vehicle Incidents
86 61 48 60 64
(MVIs)
involving our HSE and Operations teams, to
PDO promotes medical, occupational and public
bring about safe drivers, vehicles and roads. We Severe MVI (LTIs, MTC,
health to achieve workforce wellness alongside 27 13 12 15 11
have seen a significant uptick in compliance with RWC and rollovers)
its provision of medical care facilities.
a 70% fall in Life Saving Rule driving incidents,
Minor MVI (first aid,
59 49 36 45 53
underscoring the efficiency of our ongoing. The health and welfa re of our workers are damage)

40 SUSTAINABILBILTY REPORT | 2023

 We have a well-established Occupational Health on its blood donation drive, which attracted
Rollover MVI 27 7 6 11 10 1,101 staff donors in 2023.
department managed by an occupational health
adviser, five industrial hygienists and two public In addition to the MoH, our healthcare experts
Incident rates
health officers, focusing on promoting the extended their support to several other
LTIF (per million government and non-government organisations,
0.10 0.17 0.21 0.22 0.12 highest degree of physical, mental and social
manhours)
wellbeing for workers to prevent any deleterious including the Ministry of Labour, the Environment
TRCF (total injuries per Authority and Oman Energy Association (OPAL).
0.56 0.56 0.69 0.79 0.57 health impacts associated with the workplace.
million manhours)
The support includes establishing and reviewing
MVIR (motor vehicle The Medical team continues to offer various fitness-to-work standards within our contractor
incident rate per million 0.26 0.19 0.16 0.19 0.20 programmes, including psychological
km)
community and the wider sector, occupational
counselling, workplace mental health support health regulations and furnishing training and
Severe MVIR (LTI, and resilience sessions for employees. Other
0.08 0.04 0.04 0.05 0.03 expert advice.
rollover, MTC, RWC) services for staff include general lifestyle health
sessions, chronic medical illnesses, health risk
Minor MVIR (first aid,
0.18 0.15 0.12 0.14 0.17 The medical team works closely with the
damage only) assessments, ergonomic, radiation, noise and
respiratory protection and first aid. Infrastructure Directorate to progress the
SIF/F (per hundred
million manhours)
0.92 2.02 2.70 4.55 0.00 centralisation of medical facilities and provide
We are also focusing on mental well-being
and launched a new scheme aimed at raising equal care for all remote workers, ensuring cost-
Exposure employee awareness of the subject. effective, evidence-based treatment.

Million manhours
216 203.7 185.5 197.8 189.7
The Medical department works regularly in
worked collaboration with the Ministry of Health (MoH)

Million kms driven 325 326.3 301.5 317.2 322.0

regarded as a top priority and are enshrined address the needs of every employee’s health
within our General Business Principles. We issues. It also ensures support for secondary
and tertiary care, mostly through external
ensure medical coverage for PDO staff and
providers or in-house multi-specialty services
contractor facilities serving more than 60,000 provided by Omani visiting consultants in the
workers in more than 150 camps. following specialties: cardiology, obstetrics,
gynecology, ear, nose and throat, ophthalmology
PDO’s Medical Centre in Mina Al Fahal and physiotherapy.
(MAF), and its 10 Interior clinics, deliver high
quality, integrated healthcare and a real value The multi-disciplinary team at the MAF Centre

proposition for employees, their eligible families and Interior clinics includes 17 GPs, 55 nurses,
and our pensioners. five paramedics, four qualified lab technicians,
one physiotherapist, three pharmacists and an
The centre prides itself on being a leader in
providing a comprehensive range of services to administration team.

42 SUSTAINABILBILTY REPORT | 2023

 Blood Donation Drive

44 SUSTAINABILBILTY REPORT | 2023

 HYDROCARBON PRODUCTION AND These results are a direct outcome of our

RESERVOIR MANAGEMENT Continuous Improvement (CI) initiatives and our

focus on narrowing the gap-to -potential, a key
performance indicator that measures the gap
Oil Production Gas Production
between the current situation and what could be
2023 Highlights 657,599 bpd 58.26 mln m /d 3
achieved if the full potential was realised.

Our success is also mirrored in the global

• A combined oil, gas and condensate production of more than 1.1 million PDO average oil production for 2023 was recognition of our Nimr Insourcing team, which
boepd. 657,599 barrels per day (bpd), which was within has consistently achieved outstanding positions
99.8% of target. Condensate output was 97,426 in the Shell Global Rig ranking.
• Oil production was within 99.8% of the target despite operational challenges. bpd, while gas production was 58.26 million
m3/d, consistent with lower customer demand. Our Refreshed Wells 2030 Strategy, which
• Exceeded condensate production target.
As the country’s largest hydrocarbon producer, is aligned with PDO’s purpose of “Building a
• Generated more than US$22 billion in revenues from increased liquids we continued our role as the country’s swing sustainable and low-carbon future to maximise
producer for gas, requiring us to operate in a value for Oman.” The strategy has been
production.
highly dynamic mode. designed and crafted by our staff with input
• Delivered a record number of new wells and completion in addition to well from our stakeholders to advance “Personnel
intervention activities. The combined total average barrel of oil Safety”, “Wells Process Safety”, “People
equivalent production per day (boepd), oil, and Talent Management”, “Cost and Carbon
condensate and gas, was 1.1 million boepd. We Competitiveness” and “Sustainable Production
generated more than US$22 billion in revenues Growth.”
Hydrocarbon production and reservoir management aim to optimise production from existing oil from increased liquids production and, combined We are committed to further leveraging
and gas fields in such a way that short-term output is maximised without jeopardising production with higher oil prices, revenues were 65% higher In-Country Value and the advantages of
than anticipated. digitalisation. By automating our processes, we
sustainability or health, safety and the environment (HSE).
aim to liberate our engineers to focus on value-
The future will see continued production growth
adding tasks. Additionally, we plan to optimise
in line with our production ambition of more than our operations utilising our newly inaugurated
700,000 bpd. Wells Operations Centre. Here, we will
employ advanced video analytics and Artificial
WELL ENGINEERING
Intelligence to enhance safety and propel our
The production push was underpinned by the operational excellence to new heights.
drilling of 884 new oil and gas wells – a 24%
This Refreshed Wells 2030 Strategy marks
rise on 2022 and a record for PDO. Our Well
a decisive step in realigning our objectives
Engineering Directorate also executed more with the current realities, positioning us for
than 24,000 hoist and completion and well enduring success and sustainability in a dynamic
intervention activities, outstripping the record environment.
set in 2022 of 22,000.
HSE
Our competitive edge is evident in our
performance benchmarks, with a significant Although we delivered more wells than ever
proportion of our wells ranking in the top before in one year, we managed to advance
quartile and being considered ‘best in class’. further towards Goal Zero – no harm to our

46 SUSTAINABILBILTY REPORT | 2023

 people, assets or environment. We believe that FIRST LOCALLY MANUFACTURED RIG
’Musta’ed’, our job-planning and transition-to-
work tool, the use of closed-circuit television A landmark achievement on our ICV journey was
for proactive safety monitoring and our ‘Boots- the commissioning of the first rig manufactured FULL FIELD DEVELOPMENTS UNDER
on-the-Ground’ initiative (where our leaders entirely in the Sultanate of Oman. This was the EOR PROCESSES
spend considerable time on site engaging for first of four rigs that KCA Deutag committed to
excellence), have enabled us to make significant building in the Sultanate after securing a ten- The Marmul Polymer Phase 1 and Phase 2
progress in this regard. year contract. Around 40% of the investment projects were commissioned in 2010 and 2015
for the rigs was allocated to Omani small and respectively with a total oil contribution of
Looking forward, our focus remains resolute on medium-sized enterprises (SMEs), fostering
32 million barrels of oil to date. The combined
enhancing safety leadership, risk management, domestic growth and development.
production gain from both phases hit the highest
and contractor HSE management, as we continue
our determined journey towards operational ENHANCED OIL RECOVERY (EOR) production rate of 9,700 bpd in April 2022. Work
excellence and safety as a core value. continues on the third phase to further improve
PDO’s journey in growing the future EOR
execution readiness. The project, which started
During 2023 we conducted HSE audits on all our contribution to oil production continued in 2023.
in Q1 2023 will develop an additional 61 million
contractors and the vast majority have made It is anticipated that by 2031 around 28% of our
barrels of incremental oil.
noticeable progress in addressing their previous production will come from such projects. We are
shortfalls. In future, we want our contractors currently operating a range of commercial-scale
Greater Birba asset is at the frontier of EOR MGI
to reach and sustain “green-banded” status. EOR schemes, including chemical EOR, miscible
developments with more than 65% of production
This signifies their capability to effectively and gas injection (MGI) and thermal applications.
associated with the MGI mechanism. Future MGI
consistently self-manage HSE aspects within Further optimisation of the PDO portfolio and
projects include the Rabab Harweel integrated
their operations, demonstrating a high level of entry of new opportunities into the hydrocarbon
project (RHIP Tranche 2) and the Birba Budour
proficiency and autonomy in this critical area. maturation funnel has increased the production
integrated project (BBIP), which are being
contribution from primary and secondary
To cut emissions, our initial focus was on processes. matured to come on-stream around 2030.
replacing diesel generators with electric ones in
The Harweel 2AB project (Zalzala field) started
camps, water wells and master pits, beginning 5%
12% MGI in April 2014 and is currently injecting at
with the implementation of variable frequency
about 3 million cubic metres per day (m3/d).
drive integrated power in hoists. These measures 29%
50%
So far, 8.6 billion m3 of gas have been injected.
2014 2020
66%
enhance safety and efficiency through central
digital control. By the end of the year, we had 38% A clear response to the MGI process has been
eight electrified hoists. established in terms of incremental oil rates
(to date around 45 million barrels), and target
Our efforts to minimise flaring during well 19%
28% pressures above the minimum miscibility
operations, such as well testing and fracking, 36%
36%
pressure across the field. The expected total
continued throughout 2023, employing 2025 2031
45%
recovery with MGI is about 50%.
techniques such as inline testing and flare-
less operations. In addition, we developed new 36%

well designs for carbon capture, utilisation, and

Primary Secondary EOR
storage (CCUS) in the Lekhwair and Duhlaima
fields. EOR contribution to PDO oil production by 2030

48 SUSTAINABILBILTY REPORT | 2023

 MGI Injection in the Sakhiya (SAK) field, as part of with a 2023 average injection rate of around For thermal EOR in general, a PDO-wide project injection, surfactant foam, cyclic solvent injection
a mini-flood project, was initiated in mid-2015 15,191 tonnes per day. Currently, there are 385 is ongoing to lower greenhouse gas emissions and polymer/water simultaneous injection have
with high injectivity of up to 2.5 million m3/d active thermally compliant wells (producers, related to steam generation. Technologies being been tested in the laboratory, and by desktop,
from three injectors. So far, some 4.9 billion m3 injectors and observation wells) in both Amal investigated include direct solar radiation (such and have shown positive results. Furthermore,
of gas have been injected and a positive reservoir West and Amal East. as at Miraah). off-the-shelf and cheaper chemical formulations
pressure response continues to be observed. have shown promising results in the lab. Moving
The Amal West Phase 2A project is currently in FIELD TRIALS AND EOR RESEARCH
forward, we are exploring the most efficient
The RHIP Tranche 1 – the largest and most the execute phase. Once on stream, this project
We are continuing to identify and develop novel and cost-effective methodology to trial these
expensive project in our history, commenced is expected to reach peak production levels of
technologies that have the potential to unlock technologies in the field.
in June 2019. To date, 53 wells (21 injectors, 2,200 m3/day (13,840 bpd).
difficult hydrocarbon resources, further reduce
32 producers) of the planned 55 (21 injectors, Successful ASP field trials (Phase-1 project in
The steam for the Amal Steam project is being the technical costs of these developments and
34 producers) have been drilled. Currently, gas 2019-2021) with two different ASP formulations
generated by the Miraah Solar Plant and heat accelerate project delivery. This is being done
recycling into the Rabab gas field has reached through a series of dedicated laboratory and
recovery steam generators in Amal West and and in two different oil reservoirs indicated a
5.5 million m3/d while MGI into the SAK 2 fields desktop studies and field-testing programmes
once-through steam generators in Amal East. potential of 20-30% incremental oil recovery due
(A2C and A3C) and the Dafaq field was close to its in collaboration with local and international
to ASP injection after the water flooding. ASP
2023 target of approximately 8.6 million m3/d. At the Qarm Alam Steam project, thermal EOR institutions, as well as screening third-party, off-
Phase1 project also proved that the ASP solution
Additional total MGI incremental oil to date is in 2023 is responsible for another 3,703 m3/d the-shelf solutions.
around 29 million barrels from SAK A2C and 8.7 can be injected in the quaternary mode (post-
(equivalent to 23,291 bpd) of oil production from
million barrels from SAK A3C. The expected total As an output from these alliances, technologies polymer) with a reasonable 7-10% incremental
naturally fractured carbonate rocks. The oil is
recovery with MGI in A2C reservoir is also about such as alkaline surfactant polymer (ASP), foam oil recovery under field conditions.
produced by a process called Thermally Assisted
50% and around 35% for A3C. Gas Oil Gravity Drainage (TAGOGD), a technology
pioneered by PDO. TAGOGD is a form of thermal
The Al Noor Phase 3A MGI project began in 2015
EOR in which steam is injected into the natural
but at a very low uptime/availability. However,
fractures in reservoirs. This heats up the oil in
follow-up improvements have been intensively
matrix rock in between fractures, lowering its
pursued, with solid progress since 2019. To
viscosity and allowing it to drain from the matrix
date, 2.4 billion m3 of gas have been injected
into the fractures where it is produced.
and a positive reservoir pressure response
continues to be observed, with MGI incremental A daily average of 11,934 tonnes of steam,
oil to date standing at around 12.1 million generated using heat recovery steam generators,
barrels. The expected total recovery with MGI is is injected per day at Qarn Alam to produce this oil.
approximately 17%.
In 2023, a final investment decision was taken
The Amal Steam project continues to on the Habur TAGOGD project. This aims to
demonstrate a good performance with a year- recover 5.4 million m3 of highly viscous oil
average oil production for 2023 of 2,626 m /d 3
from the Habur field, located approximately
(equivalent to around 16,500 bpd). There was a eight kilometres south of the Qarn Alam Steam
continued strong steam injection performance, project.

50 SUSTAINABILBILTY REPORT | 2023

 Commercial ASP application in Marmul was properties. The screening analysis showed that
selected to identify the optimal concept to the opportunity of applying cEOR lies more
maximise ultimate oil recovery from polymer within the Shuaiba formation than the Natih
and ASP flooding in an integrated approach. This formation, where Gas Oil Gravity Drainage
approach helps us to generate the maximum (GOGD) is being used as a recovery mechanism.
cashflow while reducing our overall carbon Based on best-industrial practice and research/
footprint as opposed to waterflooding. We lab data availability and potential scalability, the
expect ASP at Marmul Al Khalata to unlock cEOR technologies in carbonates could be split
approximately 50 million barrels of reserves into three categories:
with Phase 2 coming on stream in 2026.

Other research initiatives have targeted cost

optimisation in our current and future EOR
Promising
surfactant injection and
developments. Work is ongoing to expand the
nanosphere application
surfactant polymer application for more viscous
oil. If successful, this will open significant
potential volumes across our fields, estimated
at around 185 million barrels based on the Emerging
latest EOR portfolio review. We are striving to
foam/low-tension gas
reduce technical and development costs and
and gel injection for
greenhouse gas emissions during the next conformance control
chemical-flooding phase.

In the carbonate portfolio, the EOR team

conducted an international workshop where
several oil operators and chemical vendors Challenging
were invited. The applicability of several polymer
chemical EOR (cEOR) options (including polymer,
surfactant/foam, nanosphere and conformance
control) was evaluated for PDO carbonate Currently, the most attractive technologies are
reservoirs. In addition, any learnings form new nanospheres and surfactants. The first phase
advances or insights in applications of cEOR in of surfactant injection was trialled in 2023 at
harsh conditions (such as high temperature, Lekhwair in the form of foam/low-tension gas
high salinity or tight carbonate structures) by (LTG) technology. Foam was generated in-situ
different companies worldwide were captured. and conformance improved around the wellbore.
The second phase starts in 2024 with the aim
Screening of different technologies was then
of confirming that the identified chemical
carried out to define their operating envelopes
formulation can efficiently displace any remaining
based on different reservoir conditions and
oil after waterflooding, improving conformance

52 SUSTAINABILBILTY REPORT | 2023

 and reducing residual oil saturation. A phased total recoverable volume of 80 million barrels.
agile implementation strategy will be followed This is in line with our Lean and Replication
(upon the success of Phase 2 of the trial) to de- processes. It is envisaged that OL will allow for
risk the LTG technology and capture any lessons faster field implementation through a phased
and improvements for future phases. The development approach and reduce risk and cash
expected unlocked volume from this concept is exposure.
approximately 63 million barrels.
In the last five to 10 years, various EOR
The EOR team leveraged on best-industrial technologies have been further developed
practice to expediate the field trial in PDO of and several EOR projects and trials have been
nanosphere as a deep conformance control successfully conducted. This has generated
technology. valuable information from a field testing and
performance perspective, including operational
A nanosphere trial is expected to come on stream
learnings. It has also allowed for a much wider
at Yibal in Q3 2024 and the expected unlocked
window of application and contributed to our
volume from this technology is approximately 25
aspirational target of exceeding our 700,000
million barrels. The formulation has been proven
bpd production plateau aspiration.
to be efficient at lab scale with optimised slug
sizes and concentrations in stable conditions. To We believe cEOR will help us reduce emissions by
expand the application of the deep conformance reversing water cut. Such a fall would result in a
control chemical, the EOR team are assessing carbon dioxide intensity reduction of around 6%.
implementing nanosphere in the Qarn Alam area All chemical EOR projects anticipate a greenhouse
through a horizontal development concept and gas intensity of less than 0.1 tCO2/tHC.
thin oil column, with an anticipated pilot in 2025.

PDO is also investigating the applicability of the

operational lease (OL) concept to EOR projects.
This is being particularly pursued for new
chemical polymer projects in the south, such as
Nimr A and E and Haima West, with an expected

Rabab Harweel Integrated Project (RHIP)

54 SUSTAINABILBILTY REPORT | 2023

 OPERATIONS EXCELLENCE
by using the latest tools, technologies and progress that has been made. PDO implements

2023 Highlights expertise. The AI-PSM steering committee, led internal safety policies in line with international
by PDO functional directors, meet on a monthly standards. It maintains an ISO 55001:2014
basis to support and review the progress being certification for its asset management systems,
• The best process safety performance in the history of PDO with a 67% fall in
made. PDO implements internal safety policies including PDO’s AI-PSM processes which relate
Tier 1 and Tier 2 incidents.
in line with international standards. It maintains to the management of assets to support the
• Introduction of monthly reports to improve contractor performance.
an ISO 55001:2014 certification for its asset production, treatment, storage and transport of
• Operational safety audits completed in North, South and Gas assets. management systems, including its AI-PSM oil and gas in our concession area.

• Robotic process automation of safety-critical element reporting. processes which relate to the management of
An annual structured gathering called "The Deep
assets to support the production, treatment,
storage and transport of oil and gas in our Dive” allows senior leadership to take a broader
The Operations Excellence initiative in PDO has been instrumental in ensuring the superior concession area. view and consider the Company’s AI-PSM path
management and maintenance of all surface facilities, leading to the realisation of targeted toward Goal Zero – no harm to our people,
AI-PSM STEP CHANGE PROGRAMME
levels of reliability and availability in our processing plants. The primary focus is facilitating the
assets or the environment. In 2023, the session
secure and continuous flow of oil and gas through pipelines to the terminal. The commitment to Our AI-PSM Step Change Programme focused on Tier 3 and Tier 4 leading indicators.
maintaining top-class standards in the running, and maintaining surface facilities, reflects our involves 10 non-negotiable Process Safety
It was agreed to shift the AI-PSM focus from
dedication to upholding the highest operational efficiency and safety protocols. Fundamentals (PSFs) to increase compliance
across all functions. a purely technical one to also embrace the
ASSET INTEGRITY AND PROCESS SAFETY "Our Assets Are Safe and We Know It." A total behavioural culture of “9,200 PDO staff and
MANAGEMENT (AI-PSM) of four Tier-1 and Tier-2 events with no harm It outlines three primary goals for our
Engineering, Operations, Petroleum and Well around 50,000 contractors,” and encourage
to people were recorded compared to 12 in
We intensified our commitment to safety functions: effective LFIs to raise the AI-PSM performance
prevention and risk management, which we 2022 – a 67% fall. This continued a year-on-
year improvement in process safety results Goal 1 focuses on enhancing compliance through our
to the next level.
regard as being at the core of the sustainability
of the oil and gas industry. This multi-disciplinary extending back to 2017. PSFs.
LETTER OF ASSURANCE (LOA)
endeavour relies on dedicated teamwork and a
We are committed to continuously improving Goal 2 aims to improve learning from incidents (LFIs).
high degree of commitment from all staff at all
AI-PSM by training staff and contractors The goal of the Letter of Assurance (LoA) is
levels. Our AI-PSM strategic objective remains: Goal 3 centres on leadership behaviours .
to ensure that process safety hazards are
102 Quarterly evaluations are conducted by the recognised, recorded and controlled to a level
functional directors, with further semi-annual as low as reasonably practicable (ALARP). One
76
66 assessments carried out by the Technical of the most significant AI-PSM achievements
Director in collaboration with managers to gauge
in 2023 was having an integrated (Petroleum,
42 39 38 progress in these key areas. Substantial strides
24 Wells, Engineering, and Operations) assets
have been made in all of them.
12 LoA review with the Technical Director, which
4
Additionally, our AI-PSM Steering Committee reflects the commitment to an effective cross-
2015 2016 2017 2018 2019 2020 2021 2022 2023
meets monthly to support and review the functional collaboration.
Tier 1 & Tier 2 Process Safety Events

56 SUSTAINABILBILTY REPORT | 2023

 AIPSM L2 ASSURANCE

The Operations Directorate conducted an AIPS L2

assurance process at the Greater Birba Terminal and
the Engineering Directorate performed one at Qarn
Alam Oil in June 2023. The assurance results indicated
systemic progress, however, specific localised
risks remain, particularly around compliance with
standards and procedures and Change Management.
Recommendations were made to focus on closing
existing systemic actions and emerging specific risks,
while supporting site organisations with a broad
coaching model. In addition, PDO is working towards
formulating an integrated approach in delivering the
first integrated Level 2 AI-PSM audit in September
2024.

AI-PSM Key Performance Indicators (KPIs) for

Engineering and Maintenance Contractors

Monthly performance updates were submitted

by all contractors in 2023 in line with our HSE/AI-
PSM monitoring plan. An SP-2338 (Specification for
Discipline Authorities – DAs - in Contracts) has been
issued, and structured audits have been conducted to
ensure the effective deployment of the specification.

CUMULATIVE RISK MANAGEMENT

The AI portal for cumulative risk visualisation remains

an important tool in managing AI-PSM risks and
supporting the LoA process. Further functionality
to support visibility and improvement of safety-
critical element (SCE) performance was added, along
with the increasing use and visibility of Tier 3 and
Tier 4 measurements. Data from the AI portal was
also used to support the first use case of the PDO
"Digital Twin” focusing on visualising cumulative

58 SUSTAINABILBILTY REPORT | 2023

 risks to support frontline decision making and EXCEPTION BASED SURVEILLANCE (EBS)
risk awareness.
EBS deployment was completed and alarm
SCE MANAGEMENT IMPROVEMENTS acknowledgment improved from 65% in 2022
to 85-90% in 2023 with the gas asset exceeding
More than US$ 140 Equivalent of 50 First in-house
SCE Management Improvements continued to
90%. An EBS bi-weekly gathering across assets
million in value delivery full-time staff freed for
value-added tasks
Six-Sigma Black
be made with the automation of SCE reporting Belt programme
is to be conducted to assure sustainability.
using robotic process automation for consistent
and error-free reporting. In addition, the The new EBS scope for 2024 encompasses
visibility of overall SCE performance was fully tackling well hydraulic panel issues and high
automated in the AI portal to allow each cluster back pressure due to fluid assurance issues.
to understand their current SCE status and areas
of risk. CHANGE AND CONTINUOUS IMPROVEMENT
(LEAN) BUSINESS EFFICIENCY
ENSURING SAFE PRODUCTION
Our Continuous Improvement (CI) drive delivered First CI qualifications to More than 6,000 More than 200 CI
An Ensure Safe Production Asset Management over US$140 million in value, the equivalent of be accredited by Sultan new ideas generated projects delivered
System was sustained across the board with 50 full-time staff freed for value-added tasks. Qaboos University and 85% implemented
audits completed in the North, South and Gas More than 6,000 new ideas were generated by staff
assets. Benefits include the prioritisation of from the business and roadshows and 85% of
operator work through daily operator instructions these were implemented. More than 9,000
and an improved alarm management regime. staff are engaged in cascading a dynamic new
corporate culture, with the aim of eliminating
The use of the new procedure variance and
habits, behaviours and processes which thwart
temporary portable equipment (TPE) tools has
productive working and embracing those which
been embedded bringing an improved digitalised
spur it forward. To underpin the spirit of change,
risk assessment.
we held our first Leadership Culture Change 5 critical contractors 29 Strategy Refresh More than 5,000 staff
engaged in “Culture
Summit. given CI support roadshows conducted
A new operational Statement of Fitness tool has Cascade” sessions
also been enhanced to meet the latest Asset
We hosted 19 government CI secondees and 25
Management System requirements and improve
government entities received our support, with
risk visualisation.
over 600 people trained and 5,000 coaching
In addition, a new Facility Upgrade Management hours invested. PDO has been responsible for
System was enhanced to increase operability helping to improve more than 280 government
and improve the ability to manage change processes, culminating in the Ministry of Labour’s
Change Management Excellence Award. We also
throughout the Facility Change Proposal lifecycle.
extended CI support to five critical contractors.
An automated Well Location Custody Transfer
tool has now been introduced along with a plan
to ensure compliance at all new wells.

Nimr Wetlands Project

60 SUSTAINABILBILTY REPORT | 2023

 EXPLORATION AND HYDROCARBON MATURATION
Simultaneously, through the innovative use of technique to identify and mature novel
newly acquired Wide Azimuth (WAZ) 3D seismic opportunities and improve the exploration
2023 Highlights data, extensive assessments of oil and gas success rate.
assets were conducted. Our "Innovation Pod,”
a cutting-edge, agile-based operational model, Oil bookings were at the core and emerging
• Booked 120 million barrels of Contingent Resource (CR) oil volumes. played a pivotal role in advancing the drilling of plays of Shuaiba, Hanifa, Sudair, Khuff, Gharif,
• Booked 1.3 trillion cubic feet (Tcf) contingent resource (CR) gas volumes wells as part of an expanded drilling programme. Buah and Khufai reservoirs in the North and
from the Amin and Birba plays. This initiative is a cornerstone of our five- predominantly in the Mafraq, Gharif and Karim
year exploration strategy aimed at thoroughly
• Maintained a low unit finding cost (UFC) for oil and gas of ~US$1.0 per barrel reservoirs in the South. The overall UFC for oil
of oil equivalent (boe). cataloguing the oil and gas portfolios in Block 6.
was around US$1.7 per barrel.
• Completed 3D seismic acquisition over the Nibras area covering around The directorate also achieved the safe drilling
GAS MATURATION
5,130 square kilometres (km 2). of 38 exploration wells for oil and gas, including
ultra-deep ones into the Haima plays in the North.
• Goal Zero: completed 8 years without a Lost Time Injury (LTI). Gas maturation followed a similar five-
Maintaining a strong emphasis on early hook-
year roadmap to oil. The work continued a
up and production from more exploration wells
strategy that focuses on extending the novel
was a priority throughout the year. The "Produce
While We Explore" initiative, launched in 2022, is stratigraphic and pinch-out trapping concepts in
The core mission of the Exploration Directorate sophisticated models to predict the flow of
is to safely and effectively explore and mature hydrocarbons into wells. This comprehensive set to continue, underscoring our commitment the gas provinces and opening the deeper and
commercially viable and technically feasible approach enables us to make informed decisions to maximising the value from exploration wells, potentially complex reservoirs close to existing
hydrocarbon volumes within Block 6. This thereby enhancing our strategic objectives and facilities. This approach is considered critical to
on the optimal extraction methods, considering
not only generates immediate value, but also operational efficiency. replenish and rejuvenate the portfolio for long-
the entirety of available data and inherent
ensures the sustained growth and success of
uncertainties. OIL MATURATION term sustainability and potential growth. To
PDO and its stakeholders.
achieve success, it was critical to integrate play-
Our continued exploration efforts, bolstered by Our five-year exploration growth roadmap is
Entrusted to the Exploration Directorate, is the based regional assessments with advanced QI
focused on extending the creaming of the proven
discovery and appraisal of new reservoirs, while cutting-edge seismic imaging technology and
plays of Shuaiba and Gharif through expanding to define new concepts and opportunities. These
the Hydrocarbon Maturation Centre of PDO the expertise of our passionate geoscientists
the evaluation of novel oil trapping concepts concepts were tested in multiple plays - Gharif,
spearheads field simulations and conceptual and engineers, guarantee the replenishment of across Block 6, as well as growing the delivery Barik, Miqrat, Amin, Birba, Buah and Khufai.
planning. This framework allows our reservoir our extracted resources, thereby reinforcing our potential for the emerging Mesozoic plays such
engineers and production geologists to focus strategic position in the industry. as Mafraq, Jilh and Sudair. The new concepts As a result of extensive maturation work, the
on forward-looking strategies without being and plays are part of the activity plan supporting
Gas Exploration team were able to book 1.3
side-tracked by the exigencies of short-term In 2023, the directorate celebrated a notably PDO’s production target.
TcF of CR gas volumes. They also added 1 Tcf of
production. successful year, marking significant oil and gas
In 2023, focus continued with oil portfolio risked ultimate recovery prospective portfolio
discoveries across a range of geological plays. We
By focusing on the subsurface elements of rejuvenation and diversification using the latest volumes and five TcF of new undefined risked
booked 120 million barrels of oil and 1.3 trillion
field development (underground), we aim to 3D WAZ seismic data. In addition, dedicated prospective volumes. This addition was made
cubic feet (tcf) of Non-Associated Gas (NAG) as
identify and harness hydrocarbon-bearing resources were set to further process this
Contingent Resources (CR), with the overall (oil across different plays spanning shallow to deep,
reservoirs, thoroughly assess their dimensions, information and facilitate advanced quantitative
and gas) Unit Finding Cost (UFC) impressively opening more options and choices in future gas
composition, and dynamics, and devise interpretation (QI). This will provide another
close to US$1 per barrel of oil equivalent (boe). maturation plans.

62 SUSTAINABILBILTY REPORT | 2023

 GEOPHYSICAL ENDEAVOURS GEOMATICS INITIATIVES

Throughout 2023, our commitment to cutting- The Geomatics Team has consistently provided
edge exploration technology was exemplified unparalleled, efficient, cohesive, and forward-
by our relentless pursuit of 3D WAZ seismic thinking geospatial services and solutions
acquisition, employing the ultra-high productivity throughout the organisation, a foundational
(UHP) method along with innovative wireless aspect of critical operations including well site This year also saw a surge in demand for “Visual
nodal system receiver technology. A notable
establishment, engineering surveys, urban Line of Sight” (VLOS) inspections, with VLOS teams
milestone was achieved with the introduction of
development planning, facility assessments, dedicatedly supporting operations by inspecting
the compressive sensor technique within PDO,
subsidence tracking in fields, and the application overhead lines, wellheads, flares, and tank stations.
marking its inaugural application through the
of geographic information systems (GIS) and This technological advancement broadens PDO’s
3D WAZ seismic data acquisition in the Nibras
remote sensing technologies. operational perspective, promising reductions in
region, successfully completed 85 days ahead of
the original plan. operational delays, safety risks, and emissions.
By harnessing our internally managed
geospatial data and expertise, our team has Furthermore, we extended the reach of our “Beyond
A considerable expanse of seismic data, totalling
5,130 km², was collected over 365 days of continued to develop and refine sophisticated Visual Line of Sight” (BVLOS) remotely piloted
operation, executed with paramount safety, geospatial platforms, resulting in greater
aircraft systems (RPASs) across all northern assets.
zero lost-time injuries (LTIs), no significant asset business integration, streamlined processes,
These long-distance drones, equipped with the
damage, or environmental repercussions. These and improved decision-making capabilities.
latest sensors, allow for remote data collection and
accomplishments did not go unnoticed, as the Noteworthy among these innovations is the
analysis through proprietary artificial intelligence
Seismic Operations Team was honoured with HSE Management System, which has been
the esteemed annual Chairman’s Award for technology, enabling the department to report any
successfully implemented across all contractors
Excellence and the Oman Energy Association’s anomalies to asset managers within 24 hours via a
within the Exploration Directorate.
(OPAL) top accolade for Best Practices in PDO-designed dashboard. This initiative broadens
Operational Excellence. This system forms a comprehensive framework the company’s strategic approach, further reducing
that simplifies the “Plan, Do, Check, Act” cycles production downtimes, minimising safety risks, and
The Exploration Directorate has taken significant of HSE performance management. It facilitates decreasing emissions.
leaps in enhancing seismic data processing the logging, tracking, and analysis of our HSE
and interpretation by automating workflows, performance and compliance, thereby enhancing In summary, the department has not only expanded
thanks to our strategic alliances and enduring the protection and maintenance of safety-critical its operational scope but has also leveraged
partnerships. These innovative processes operations within the directorate. technological and digital advancements to enhance
have paved the way for uncovering new plays, value creation for stakeholders. Above all, it has
expediting operational tempo, and refining In addition to its foundational responsibilities, upheld its commitment to safety excellence, marking
42 years without lost-time injuries (LTIs).
the identification of subtle traps as well as the department has expanded its focus to
the mapping of geobodies. This progress is include pivotal business initiatives like the
epitomised by the implementation of state-of- journey towards net-zero emissions. Our remote
the-art velocity model construction using full sensing team has played a critical role in tracking
waveform inversion, coupled with sophisticated emissions using satellite technology and drone-
techniques for eliminating multiples in the South mounted sensors, enabling prompt detection
region.
and remediation of leaks.

64 SUSTAINABILBILTY REPORT | 2023

 PROJECT DELIVERY
Overall, the project consists of a 23-kilometre field in the South and encompassed drilling
gas pipeline network, 11 water injection new wells, upgrading existing flowlines and
2023 Highlights manifolds, 10 main selector valves and more pipelines and intensifying polymer injection
than 400 wells, with staff and contractors into the field to boost production.
• Targeted project onstream milestones in the Oil North, Oil South and Gas working 4.2 million manhours without any
In the North, the completion of the Malan
Asset portfolios. LTIs.
Shammar development one month ahead
• Greater Saqr Gathering Station opens ahead of schedule. The venture is regarded as a showcase for the of the schedule was a major achievement.
• Start of Marmul Polymer Phase 3 with zero Lost Time Incidents (LTIs) in Company’s contribution to Oman Vision 2040 This harmonises development at Lekhwair
2023. and represents PDO’s strategy in action, to of the Malaan West, Shammar, Lekhwair
deliver sustainable growth of its core oil and East, Lower Shuaiba and the Upper Shuaiba
• MLNW Shammar development on stream two months ahead of schedule.
gas businesses whilst reducing costs and reservoirs by establishing a shared production
• Award of new North and South off-plot delivery contracts (ODCs). emissions. gathering facility. The project’s scope involved
overhauling existing facilities, rerouting
With a peak production capacity of specific flowlines, and introducing new/
approximately 30,000 barrels of oil equivalent expansion elements, such as a central remote
Project Delivery Excellence, in its broadest billion. Despite the external challenges
per day (boepd), it is expected to contribute to manifold station (RMS) and satellite Lekhwair-
sense, is about planning, engineering, faced in meeting all milestones on time, the
an annual emission reduction of 6,600 tons of East RMS facilities, along with interconnected
procuring, executing, setting the right controls team demonstrated their commitment to
carbon dioxide (CO2). pipelines and flowlines for the new complex.
and commissioning facilities safely, with excellence by achieving several critical capital
quality, on budget and on time, as promised to project milestones either on or ahead of time, PDO opted for a Design-Build-Own-Operate- In the domain of gas, we achieved the start-up
PDO shareholders. showcasing noteworthy schedule and cost Maintain (DBOOM) concept in developing the of the Khulud Phase 2 project, again one month
performances. project, where the Canadian company Enerflex
In the short term, the Company’s primary early. This will advance the development of
Water Solutions is responsible for the design Khulud West fields, with a primary goal of
focus lies in optimising the cost-efficient Key considerations were safety, cost control,
and construction, as well as the long-term enhancing production. The scheme’s main
extraction of oil and gas from our fields in project service, operation, commissioning,
operation and maintenance services over its scope includes the establishment of two
alignment with existing development plans. construction, engineering, contracting,
20-year lifespan. RMSs and two 12-inch duplex stainless steel
In the longer term, good project delivery In-Country Value (ICV) and Diversity and
becomes even more important as PDO brings Inclusion (D&I). We promoted Omanisation (DSS) pipelines.
ICV was central to the scheme’s success.
on stream more complex sour and enhanced and ICV through the application of common PDO exceeded its Omanisation targets, with We also awarded two significant ODCs to
oil recovery projects, which require advanced strategies for our projects and the continued nationals comprising over 80% of staff across Omani construction majors – Al Tasnim
technology to produce the oil, and explore development of Omani graduates. different administrative levels during the Enterprises and Galfar Engineering and
diverse opportunities within the renewable operational phase. Additionally, more than
In the South, the start of production at the Contracting.
energy space through the reduction of carbon US$5.88 million was paid to local small and
Greater Saqr Gathering Station project came
emission to transition to a net-zero operation medium enterprises and more than US$30 Under the agreements, Al Tasnim will oversee
in record time, 18 months ahead of schedule
by 2050. million to nationally registered suppliers for the South ODC, which encompasses Nimr,
despite the disruption from COVID-19.
their work. Amal, Marmul and Greater Birba, while Galfar
The Project Delivery Department focused This gathering station plays a main role in
will be responsible for the Qarn Alam and Saih
on the execution of a large portfolio of oil maximising oil recovery from six satellite The start-up of the Marmul Polymer Phase Rawl areas. The project work covered by the
and gas recovery projects. The total value of small fields through the implementation of 3 (MPP3) project was another success. This agreements will be completed within seven
projects under execution in 2023 was US$1.1 standardised water flooding patterns. aims to enhance production in the Marmul years.

66 SUSTAINABILBILTY REPORT | 2023

 With the high level of often complex construction
activities, the focus on staff and contractor HSE
performance and our aspiration to attain Goal Zero,
no harm to our people, assets or environment,
was paramount, particularly with reference to
road safety and asset integrity and process safety
management (AIPSM). The quality performance
of our vendors and contractors was also, and will
remain, an area of continuing focus.

The full deployment of Continuous Improvement

(CI), new technology and digitalisation optimised
costs and improved performance. Moving forward,
these will be critical to success along with a shift
from deliverables-driven to information-driven
project frameworks to enhance both people
and process efficiency through closer team
collaboration.

Greater Saqr Station

68 SUSTAINABILBILTY REPORT | 2023

 IN-COUNTRY VALUE (ICV) and CSR
Our ICV Development team secured a total of key to consolidating and expanding ICV. A
1830 job opportunities in disciplines such as case in point was the initiation of the Emdad
2023 Highlights HSE, pipeline, protection relay testing, planning,
Internship programme, which contributed to
maintenance, rig mechanics and IT through our
the employment of 190 from 357 candidates
employment and training initiatives in 2023.
• Surpassed the 40% (US$2.5 billion) threshold of our total supply chain spend enrolled since its inception.
in country. PDO also signed 21 capability-building and
employment Memorandums of Collaboration
• Invested US$0.9 billion with SMEs and LCCs – 18% of our total supply chain As part of our dedication to promoting local
spend. (MoCs), providing over 961 jobs and vocational
workforce development and creating meaningful
training opportunities. Two graduation
• Secured 1830 jobs for Omanis and redeployed 2,754 employees from old job opportunities, we have also introduced
ceremonies were held for 588 graduates from
contracts.
both technical and non-technical training innovative initiatives, such as the Industrial
• Oversaw the local manufacture of drilling rigs, a first for Oman and the schemes. Apprenticeship programme, offering part-time
Middle East.
opportunities for job seekers to learn industrial
• Developed 50 localisation strategies in contracts with a total approved value In addition, we successfully redeployed and
of US$6.3 billion. transferred 2,754 employees from old to new trade skills.

• 65 social investment projects were completed and 95 new ones agreed. contracts.
Our commitment to providing meaningful job
We also completed the first year of our Skills and training opportunities for Omanis saw our
PDO’s In-Country Value (ICV) programme has transformed thousands of lives for the better Development (Kafa’a) programme, establishing
Emdad scheme win two awards during the year:
by retaining more of our total spend in country to benefit business development, build Omani 28 schemes to develop 10 essential engineering
the Oman Petroleum and Energy Show (OPES)
capability and capacity and stimulate productivity and diversification in the country’s economy, in skills among a pool of 1,000 engineers.
line with the Oman Vision 2040. Award for Human Capital Development; and
Partnerships with the government, in addition the Alam AlIktisaad Award for Sustainability
Our business philosophy has been based on To help spur economic diversification and
to other operators and contractors, have been
four key pillars: progress, our focus has been, and will remain, Leadership in Job Creation.

on digitalisation, the Energy Transition, business

development, job creation, assurance and The first rig manufactured
entirely in Oman
Developing and creating job sustainability, maximising ICV from contracts
opportunities for locals
and capability building.

Maximising the procurement of JOBS AND TRAINING

Omani goods and services and
local vendor development Our Emdad programme works closely with the
Ministry of Labour, PDO contractors and local
Investment training institutes to reduce the number of
in Oman jobseekers in the Sultanate. This is achieved by
vocational training for young Omanis, providing

Social the private sector with skilled nationals, and,

Investment in parallel, securing employment for registered
jobseekers.

70 SUSTAINABILBILTY REPORT | 2023

 GOODS AND SERVICES We also signed an agreement with oil field LOCAL BUSINESS DEVELOPMENT sub-contractor participants to foster a deeper safety
equipment and services provider Borets, to culture in their operations, blending theory and
PDO surpassed the 40% threshold of in-country We aim to share the benefits of the oil and gas practice so they can identify and mitigate risks and
establish two manufacturing facilities. These will
retained value of our total supply chain spend for industry with local communities through our ICV operate secure working environments.
produce industrial power cables, including cables
programme.
the first time. This amounted to US$2.5 billion and permanent magnet motors for electrical A total of 528 LCCs had been registered on the
and represented a 2% increase on 2022. submersible pumps (ESPs) – again a first for To this effect, we invested US$0.9 billion with online Joint Supplier Registration System (JSRS)
small and medium enterprises (SMEs) and Local up to December 2023.
Oman. The two facilities will jointly offer around
We plan to boost the ICV level to 52% by the end
Community Contractors (LCCs). – 18% of our
180 job opportunities with an Omanisation rate Our LCC spend was around US$171 million and
of the decade and we identified more than 100 total supply chain spend in 2023.
of up to 85% within five years of commercial some 2,378 Omanis are currently working with
opportunities for goods, services and workforce,
operations. LCCs.
outlining clear plans for their realisation within We have formulated a comprehensive strategy
to increase our spend on SMEs and LCCs, which SUPER LOCAL COMMUNITY CONTRACTORS
the next 10 years. 800 is expected to increase by 2% per year for the
764
(SLCCS)
700
Furthermore, 50 ICV strategies in contracts were
625 coming five years.
600
SLCCs are closed shareholding companies
developed with a total approval contract value 500
The strategy has also established direct established by PDO and the government to
456
383
of US$6.3 billion and an accumulative planned 400 345
opportunities for SME and LCC development support communities in the oil and gas concession
300
retained value of US$567 million. in several technical fields such as chemicals, areas with around 10,000 shareholders.
200
100 construction, maintenance and the Fourth
We realised 11 more ICV opportunities These companies create jobs, investment and
0 Industrial Revolution, with the provision of some
entrepreneurship opportunities for people living
amounting to US$40 million, which generated 2019 2020 2021 2022 2023
four ring-fenced opportunities annually over the
in and around our fields, in addition to providing
over 20 job opportunities for Omanis. SME Spend- mln US$ next five years.
a range of core oil and gas activities, including
PDO has now realised 91 ICV Blueprint hoist operations, well intervention, pipeline
One such was the launch of the first local In addition, we are working hard to build
maintenance, drill water services, flowline
manufactured drilling rig in Oman and the Middle Strategy opportunities, with a total investment capability in the SME space. In the last three
replacement and facility management services.
value of US$615 million. This has led to the full financial years we have also conducted the
East – another target from the ICV Blueprint
Tazeez Training Programme for more than 60 All five – Al Baraka Oilfield Services, Al Haditha
Strategy list launched in 2013. creation of 3,216 jobs for nationals and the
SME representatives to help their businesses Petroleum Services, Al Sahari Oil Services, Al
operationalisation of 78 ICV facilities and bid more effectively for PDO contracts. Shawamikh Oil Services and Sakan Facility
The unit was the first of four highly automated
workshops in nine years. Management – maintained their focus on
rigs designed and constructed by KCA Deutag. We also completed the first phase of our Afaq growth, efficiency and business diversification
These highly automated, fast-moving, 1,250 programme, which aims to build the capability beyond oil and gas throughout the year.
To ensure compliance with our contractual
horsepower rigs are tailor-made with a focus of local SMEs so they can compete in markets
ICV plan, ICV assurance reviews were The total cumulative revenue from PDO SLCCs
on digitalisation, utilising the latest technologies related to the Energy Transition, carbon
conducted for 12 contracts worth US$ reduction, and technology. contracts was more than US$277 million.
to deliver safe, efficient and sustainable drilling
operations. 2.1 billion across different directorates. Around 1,850 Omani employees currently work
We received 31 proposals from 16 SMEs
This process encompassed nine service with our SLCCs and we have granted contract
offering solutions to some of our key challenges
Other opportunities realised included the agreements and three call-off agreements. extensions to all companies until 2029 to
and two proof-of-concept trials were completed
supply of local solar string DC cables and sustain their business growth and raise their
Robotic process automation (RPA) was used successfully with the support of our Operations
Omanisation ratio.
mounting structures, and Omani manufacture of team in the Interior.
in the monitoring process.
telecommunications towers. Throughout the year, the work of our Community
Moreover, PDO conducted a six-month HSE
Relations team in empowering local contractors
Competency Coaching programme for 40 LCC and

72 SUSTAINABILBILTY REPORT | 2023

 through strategic initiatives continued apace. They conducted a future roadmap workshop for SLCCs Gaza, which raised up to US$ 3.1 million with established seven joint committees that were
and initiated an SLCC governance audit in collaboration with the Oman Centre for Governance and matched funding. formed in collaboration with the Ministry
Sustainability.
of Health, the Environment Authority, the
The team thoroughly evaluated over 700
2023 FULL-YEAR SLCCs/LCCs Spend (Revenues) Ministry of Agriculture, Fisheries and Water
proposals for support from across the country,
Resources, the Ministry of Social Development,
The cumulative total revenue from PDO contracts for SLCCs, Matured LCC and the LCC expenditure strategically selecting the most promising
Sultan Qaboos University, the Ministry of
was almost US$639.46 million. ones for presentation to our Corporate Social
Higher Education, Research and Innovation
Responsibility Steering and Sponsorship, Grants
and the Ministry of Education to identify the
The following chart illustrates SLCC and LCC revenues in 2023: and Donations Committees.
most impactful projects and oversee their

In their pursuit of identifying CSR programmes implementation.

that best serve Oman, the team successfully

During the summer campaign, 305 employees
established seven joint committees that were
800 755
provided support to 179 organisations over a 90-
formed in collaboration with the Ministry
700
hour period as part of our Baader volunteering
682
664 661

of Health, the Environment Authority, the

616

600
525 initiative. Our staff also helped the Oman Food
Ministry of Agriculture, Fisheries and Water
494 501
500
Bank during Ramadan, where over 2,000 meals
470 478

Resources, the Ministry of Social Development,

395
400 384

were prepared and delivered to the needy.

362
336

Sultan Qaboos University, the Ministry of

273
300 235
279
254
277
234

200 Higher Education, Research and Innovation There were 28 post-implementation review
177 186
165 157
146
132
116
102

and the Ministry of Education to identify the visits to various completed projects that were
96
100 70

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 most impactful projects and oversee their carried out to assess the impact and gather
SLCCs LCCs Total implementation. lessons for the future and 90 quality assurance
site visits were conducted for ongoing projects
SOCIAL INVESTMENT (SI) During the summer campaign, 305 employees
To ensure our schemes are efficiently delivered,
provided support to 179 organisations over COMMUNITY SERVICES
We are on a continuous quest to maximise the our Commercial Projects Team supported
a 90-hour period as part of our Baader[LW2]
social benefits from our various operations. our SI work, providing project management Community Scholarship Programme
consultancy on completed schemes such as the volunteering initiative. Our staff also helped the
As a responsible corporate citizen, PDO Bahla, Mudhaibi and Shuwaymeia fish markets Oman Food Bank during Ramadan, where over We signed a Memorandum of Co-operation
is committed to delivering meaningful SI and the Al Wafa Social Centre in Adam. 2,000 meals were prepared and delivered to the (MOC) to enrol a further 150 students on our
programmes that create sustainable benefits needy. Community Scholarship programme (CSP) to
for Omani society in line with the United Nations’ Such projects will have tangible impacts on
Sustainable Development Goals (SDGs). enable them to reach higher education.
the quality of life of thousands of people living There were 28 post-implementation review
in our concession area and beyond, providing visits to various completed projects that were The CSP gives students from PDO’s concession
In 2023, we committed to 95 new SI projects,
infrastructure development, training and the carried out to assess the impact and gather area the freedom to choose any undergraduate
totalling some US$12.8 million, including
provision of technology and equipment. lessons for the future and 90 quality assurance programme that suits their interests and
donations and sponsorship projects. A total of
site visits were conducted for ongoing projects provides a monthly support allowance for five
65 projects worth approximately US$5 million Moreover, three charity appeals were launched
were completed. We also secured co-funding years up to Bachelor degree level.
to help the victims of the earthquake in Turkey In their pursuit of identifying CSR programmes
for SI projects with various entities worth
and Syria, flooding in Libya and the conflict in that best serve Oman, the team successfully As part of our commitment to sustainable
US$13,730,600.

74 SUSTAINABILBILTY REPORT | 2023

 development, we annually sponsor the tuition and boarding of five grade six
elementary students at the Sultan School in the Governorate of Muscat until
secondary graduation with an International Baccalaureate diploma. There are
currently 35 students across various grades at the school.

TAWTEEN

To stabilise educational provision in remoter communities, we agreed to enrol a

further 20 students in the Tawteen programme to train students as local teachers.

MARIFAH AND TAZEEZ

We sponsored a month of academic and non-academic workshops, trips and

activities for 70 students from concession area schools with GUtech. The top
25 students from the Marifah programme were selected to go to the UK for one
month in 2023 on the Tazeez scheme to develop their educational potential.

KHEBRAT AL AMAL

We hosted 14 concession area students for five days as part of our Khebrat Al
Amal programme at Nimr and Fahud to give them an insight into the oil and gas
industry and the jobs it offers.

A NEW ICV STRATEGY

To ensure our ICV objectives continue to be met in a fast-changing energy sector,

PDO delivered an ICV Strategy Refresh, which spotlights localisation opportunities
related to the Energy Transition and emissions reduction.

This also focuses on maximising ICV across Oman, establishing an ICV ecosystem
in collaboration with key stakeholders, innovation and start-up development.

PDO is determined not to be just a driver of ICV but also an enabler, expanding
its principles and practices nationwide. In this respect, the signing of a Letter
of Agreement with Sultan Qaboos University to introduce a first-of-its-kind
approved ICV Master of Business Administration (MBA) degree, which launched in
September, was another notable milestone.

76 SUSTAINABILBILTY REPORT | 2023

 PEOPLE AND STAFF DEVELOPMENT
CULTURE, DIVERSITY, AND INCLUSION Our journey towards remote working began
with the Maktabi Pilot Project in 2017,
2023 Highlights We recognise the critical importance of which involved 300 employees from various
Culture, Diversity, and Inclusion. Hence, we technical and non-technical sectors. This
envision a workplace defined by fairness— initiative fostered a broader understanding
• Attained a record staff Omanisation level. one where equality, impartiality, and non- and acceptance of remote working within
discrimination prevail, and where processes our organisation, highlighting its numerous
• Achieved the highest number of women on staff. concerning our people are grounded in advantages and integrating it into our
meritocracy, offering opportunities based on corporate culture.
• Launchhed an enhanced Employee Value Proposition for staff. individual ability and skills.
The foundation laid by Maktabi allowed
We champion a culture of openness, for a swift and seamless transition to
encouraging our employees to voice their remote working across the organisation
At PDO, we firmly believe that our employees are our most valuable asset. With a skilled and
opinions and offer suggestions for future when the pandemic emerged in 2020. This
knowledgeable workforce, where nine out of ten members are proudly Omanis, we stand at the enhancements. This includes providing shift enabled over 4,000 employees to
forefront of contributing to the nation’s development. It is through the collective dedication, skills, various channels for reporting and idea work remotely, utilising advanced digital
and expertise of our team that we continue to drive sustainable growth and development across submission, aiming to create a more collaboration tools in adherence to social
the country. dynamic and innovative workplace. A distancing and lockdown protocols.
primary avenue for this exchange is our
People Survey, through which we gather and By 2022, remote working practices were
STAFF NUMBERS EMPLOYEE ENGAGEMENT
act upon feedback to identify and implement formalised and became a norm within our
Our annual People Survey serves as a vital improvements. operations. We acknowledge the significant
As of the end of 2023, PDO’s workforce
tool for assessing employee sentiment and sustainability benefits of remote working,
totalled 9,206 employees, with a composition In 2023, we initiated a culture transformation such as reduced commutes leading to better
pinpointing opportunities for enhancement.
of 85% male and 15% female (amounting to Recognising the significance of this feedback, journey to redefine our corporate culture, air quality, lower greenhouse gas emissions,
1,353 women), including 8.8% (112) Omani we are committed to engaging with, and recognising the pivotal role of organisational and an improved work-life balance for our
acting upon, these insights constructively. dynamics and human behaviour in achieving employees.
women based in the interior – a testament
superior business outcomes. This endeavour
of our ongoing efforts to increase female is focused on identifying the core values, In September 2022, we officially embraced
The 2023 survey witnessed an impressive
participation in the field. Additionally, 9% 81% participation rate, a testament to the beliefs, mindsets, and behaviours essential remote working for most positions at the
of our staff were international employees, concerted efforts of team leaders and 124 for optimising how everyone within our Coast, adopting a hybrid model where
survey ambassadors who played a pivotal organisation collaborates to achieve PDO’s employees are expected to spend three
hailing from 57 nationalities, showcasing
role in motivating and encouraging our staff renewed strategic objectives. This path days a week in the office. This approach
the diverse and global perspective they bring balances the flexibility of remote work
to contribute their perspectives. towards cultural refinement involves a
to our operations. The substantial majority, dedicated effort to modify longstanding with the essential aspects of face-to-
91%, were Omani nationals, representing all Out of the 7,059 surveys completed, behaviours, aiming to cultivate an face interactions for team cohesion and
11 governorates, marking a new milestone the findings from 2023 underscore the environment that is both safe psychologically connectivity.
in PDO’s Omanisation efforts and our need for increased focus on areas such and physically and inclusively geared
as Organisational Leadership, Employee towards fostering ongoing engagement and To support this new way of working, we
commitment to workforce localisation and developed a comprehensive Work Flexibility
Engagement, Total Rewards and Benefits, innovation.
inclusiveness. and Responsible Business Practices. Playbook. This guide provides employees
Conversely, the survey highlighted strengths REMOTE WORKING with detailed instructions on navigating the
in Team Leadership and Collaboration, areas hybrid work model, ensuring consistent and
where positive feedback was prominently The post-COVID-19 era has fundamentally fair application across the organisation. It
noted. These insights are invaluable in transformed our work practices and also offers valuable advice on maintaining
guiding our ongoing efforts to foster a the Company’s approach to embracing wellbeing and psychological health.
9,206 1,353 200
supportive, engaging and rewarding work alternative working arrangements, making
Staff Women Omani Graduates We are dedicated to continuously evaluating
environment for all our employees. flexible working a key aspect of life at PDO. the implementation of remote working,

78 SUSTAINABILBILTY REPORT | 2023

 adapting our approach based on employee Moreover, our Distance Learning Scheme PDO is in the process of developing an EVOLVING EMPLOYEE VALUE
feedback, market trends, and business annually facilitates 40 staff members to Integrated Talent Management System PROPOSITION AT PDO
needs. A post-implementation review pursue BScs and MScs, blending academic aimed at offering targeted learning
is planned to assess the effectiveness advancement with ongoing professional At PDO, our workforce is a rich tapestry
interventions and enabling streamlined,
and impact of these work arrangements, responsibilities. Currently, 96 employees are of talent, predominantly comprising
data-driven decisions regarding employee
ensuring they meet our goals for flexibility, benefiting from this scheme. Omani nationals, alongside directly hired
sustainability and productivity. development. This initiative involves the expatriates and secondees from Shell. We
In 2023, PDO’s Learning and Development integration of our Learning Management ensure that the benefits extended to these
TRAINING System (LMS) with core HR modules such varied groups are in line with the policies
Academy executed over 1,000 training
programmes across various specialties, as Performance Management, Succession and employment terms specific to their
Since its launch, the Shababuna programme, classifications, adhering to the Omani Labour
totalling 44,645 mandays. To embed safety Management, Workforce Planning, and
previously known as the Graduate Law and benchmarks set within the national
as a core value, 4,551 staff underwent HSE Talent Acquisition Management. This
Development programme, has successfully and expatriate employment sectors.
seen over 800 staff graduates, with more training exceeding the target by 316% and comprehensive approach ensures a holistic
than 200 enrolments last year alone. 1,894 received process safety training, view of each employee’s journey and In a significant move in 2023, the PDO
Initiated in 2013, Shababuna aims to provide achieving a 177% increase over the planned potential within the organisation. Board gave its support to a new, enhanced
structured on-the-job training, monitoring, figure. Employee Value Proposition (EVP), which
Additionally, we have introduced a Creative includes both monetary and non-monetary
and assessment for Omani nationals joining
To further enrich the learning ecosystem, Multimedia Lab (CML) to display and improvements. These enhancements are
PDO post-graduation from universities or
the Academy has integrated specialised explore cutting-edge technologies such designed to foster continued excellence and
colleges with bachelor’s degrees or higher.
e-learning platforms, including LinkedIn reward high achievers within our workforce.
This also extends to specific categories as augmented, virtual, and mixed reality,
Learning, where staff completed over Furthermore, the Board has sanctioned a
of existing PDO staff who have completed interactive E-learning, holograms and
7,800 courses, illustrating the feasibility of discretionary tool aimed at attracting and
further studies. computer-based training. The CML is
continuous learning alongside professional retaining talent, specifically addressing
designed to increase awareness, expand the challenge of retaining high-performing
Shababuna offers competency-based duties.
technological literacy, and demonstrate the individuals. This strategic initiative
development encompassing technical,
Aiming to enhance well engineering application of these technologies to tailor underscores PDO’s commitment to not only
leadership, and soft skills, employing varied
capabilities, our Wells Learning Centre, learning programs and enrich the learning attracting the best talent but also ensuring
learning methodologies: 70% on-the-job their continued engagement and satisfaction
accredited by the International Well Control experience.
training, 20% through coaching, mentoring, within the organisation, thereby securing a
Forum, hosted 122 learning events for
and social learning, and 10% via formal This facility also offers PDO’s business dynamic and motivated workforce aligned
513 PDO participants and 112 from other
training courses. With a forward-looking with our long-term objectives.
operators and contractors, generating units the opportunity to directly engage
focus, the Shababuna platform has been
substantial income and savings. with these technologies, fostering ideation
automated to enhance business excellence,
and visualising the potential for developing ROAD SAFETY
employee experience and operational New courses have been developed focusing
customised learning solutions tailored to
efficiency. on high-risk well management and complex
their specific needs. There were no Motor Vehicle Incident (MVI)
control scenarios, covering technical
In the past year, PDO supported 68 active related fatalities or Lost Time Injuries and our
challenges, well barrier management, Ultimately, the CML is set to propel our
scholars pursuing degrees in Oman, the
design principles, human factors, and risk serious MVI rate per million kilometres fell to
UK, and Canada, with 38 celebrating their academy forward by revolutionising the
mitigation.
graduation marking the 35th cohort of PDO learning landscape through self-paced, 0.034 in 2023 from 0.05 in 2022.
sponsored students since our flagship Additionally, our Academy achieved virtual and immersive learning options.
Scholarship Scheme began in the 1980s. “Gold Star” approval from the Oman This advancement underscores PDO’s
These scholars specialised in diverse fields, By the end of December 2023, 21 months had
Energy Association (OPAL) for in-house commitment to leveraging technology
including Renewable Energy, Advanced delivery of OPAL-unified HSE courses, passed without any fatalities, with nearly 500
Control and Systems Engineering, Applied further underscoring our commitment to in enhancing employee development
Geosciences and several additional comprehensive employee development and and facilitating innovative, efficient and million kilometres driven.
engineering and geological disciplines. safety education. engaging learning experiences.

80 SUSTAINABILBILTY REPORT | 2023

 Such results were underpinned by the steady
progress that has been made in relation to our
Darb Al Salama (DAS) plan, a three-year initiative,
involving our HSE and Operations teams, to bring
about safe drivers, vehicles and roads. We have seen
a significant uptick in compliance with a 70% fall in
Life Saving Rule driving incidents, underscoring the
efficiency of our ongoing

communication, awareness and collaboration

campaigns. These included DAS Week, driver forums
at all Interior sites, a DAS Oasis roadside campaign
and one during the Khareef season in Salalah in
partnership with the Royal Oman Police.

Through a combination of road assessment surveys

and a meticulous analysis of MVI hotspots, we
established a priority list to address high-risk areas.
By targeting these critical zones, we are proactively
mitigating potential hazards and reinforcing our
commitment to a safer road infrastructure.

The extension of the DAS initiative to encompass Ras

Al Hamra and staff commuting, has been a pivotal
step forward, especially as we sadly experienced
two non-work-related private commuting fatalities
in 2023.

To sustain these gains, the requirements and

recommendations outlined in the plan have been
integrated into the latest off-plot development
and logistics contracts. This will ensure that non-
compliant fleets are phased out in favour of vehicles
meeting stringent safety standards, thus enhancing
overall road safety.

Rabab Harweel Integrated Project (RHIP)

82 SUSTAINABILBILTY REPORT | 2023

 ENVIRONMENTAL SUSTAINABILITY AND NEW
TECHNOLOGY SOLAR ENERGY AMIN 100-MW SOLAR PV IPP PROJECT

North Solar Independent Power Producer Our landmark 100-MW Amin Photovoltaic
(IPP) Project Power Plant started commercial operations
2023 Highlights in May 2020, having been commissioned
The project will involve the development of three months ahead of schedule.
a utility-scale solar photovoltaic (PV) plant
that can deliver a maximum 100-MW peak The IPP near Nimr, provides power to our
• Solar power introduced at three PDO airports.
power into our grid during daylight hours. interior operations and is the world’s first
• Solar rooftop systems commissioned on six Mina Al Fahal buildings. This system will use a PV single-axis tracking utility-scale solar project to have an oil and
system. gas company as the sole buyer of electricity.
• Tender process launched for three major Independent Power Producer
projects. This daily cycle will then be repeated for Going into its fourth year of operation, the
each day of the year throughout the project’s plant is feeding into PDO’s grid to reduce
• A record 27 technology trials initiated to tackle corporate challenges. term. The developer will be encouraged to dependency on fossil fuels and greenhouse
optimise the design of the plant and offer gas (GHG) emissions.
the lowest tariffs for the delivery of electrical
energy at the delivery point. MINA AL FAHAL (MAF) CAR PARK PHASE 3
While oil and gas will continue to be fundamental to our energy mix, we are developing innovative The plant will be located close to Saih The third phase of the MAF solar car park is
renewable and “green” solutions to create new growth opportunities for the Company as well as for Nihayda, next to Qarn Alam airport, in the being commissioned in 2024 to inject more
the nation in line with our Low-carbon journey. northern region of Oman, approximately 170 energy into our HQ power grid. The project
kilometres south of Nizwa. It is due to come will feature a 974-kWdc solar system
This transition to a full-fledged energy company also means leveraging new technology, greater
on stream in Q4, 2025.
collaboration and improving our overall energy efficiency and water management.
By transitioning to cleaner technologies, implementing rigorous emissions reduction strategies and
investing in renewable energy sources, PDO aims to not only reduce its carbon footprint to net-zero
emissions (NZE) by 2050 but also set a precedent for sustainable practices within the industry.
Our current power target is to source 30% of our power capacity from renewable sources by 2026 and
we are aspiring to reach 50% by 2030.

RENEWABLE ENERGY The study determined our concession

area has excellent wind potential with an
Wind Energy (Riyah-1 and Riyah-2) average wind speed of 8m 3/d. As a result,
Independent Power Producer Projects we are now in the development phase of two
100-megawatt capacity wind farm projects
This solution involves using turbines to
at Amin and Nimr West, called “Riyah-1” and
convert the wind’s kinetic energy into
“Riyah-2.”
mechanical power which a generator then
transforms into electricity. The request for proposal (RfP) documents
for Riyah-1 and Riyah-2 were floated in
A 12-month feasibility study, including a site
measurement campaign, was conducted to April 2023 and PDO is currently evaluating
identify the best wind farm lay-out, position the technical and commercial bids. The two
and most suitable wind turbine model, and facilities are expected to be completed by
ultimately calculate the expected energy Q2, 2026.
Miraah Solar Plant
yield.

84 SUSTAINABILBILTY REPORT | 2023

 installed on top of a well-designed car park structure.
It is expected to offset more than 1,800 tonnes of
CO2e every year by generating energy from the sun’s By harnessing the sun’s power, the airports salt heaters. We are currently identifying
rays. The project is being executed by a local company are set to save approximately 786 tonnes other viable renewable technologies to
that is working for the first time for PDO, and it is of carbon dioxide (CO2) emissions per year generate steam.
progressing as expected. – the equivalent to the impact of planting
23,000 trees annually. A total of 340.4 ENERGY MANAGEMENT
MAF SOLAR ROOFTOPS standard cubic metres of gas is also forecast
to be saved annually. PDO embarked on a structured optimise
Solar rooftop systems are currently being
energy management programme to reduce
commissioned on six MAF buildings - the Central The project was executed by an SME
Archives, the Clinic, Ras Al Hamra (RAH) School, Bait working for the first time with PDO and was demand, enhance energy efficiency and find
Saih Al Maleh, Bait Mina Al Fahal and the Learning & completed without any Lost Time Injuries. alternatives for gas and energy supplies. Our
carbon reduction target is to achieve net-
Development Centre - with a total installed capacity
exceeding 500-kWdc. The project will help to reduce STEAM GENERATION USING RENEWABLE zero by 2050.
our electricity bills and our carbon footprint. ENERGY
Our Energy Management is based on the “3
PROJECT NOOR Steam generation for enhanced oil recovery Rs”:
(EOR) is considered one of our critical
In 2022, PDO launched Project Noor for its employees, • Reduce: flare, power consumption,
production processes. However, it requires a
the largest residential solar scheme in Oman and a process fuel gas and fuel gas for power
massive amount of natural gas to generate
landmark in our Energy Transition journey. generation
one tonne of steam. In response, we launched
The work is being undertaken by a local contractor, our pioneering Miraah solar project in Amal. • Replace: inefficient equipment with
with almost 577 staff applications so far, 445 signed more efficient ones
The falling cost of renewable energy has
agreements for the work to commence and 195 solar
installations completed at PDO employee homes. increased the potential to adopt it more • Renew: increase the proportion of
widely for steam generation, not only for solar renewable energy alternatives
The manufacture of the solar DC, AC and grounding applications but also electrical and molten
cables, as well as metering boxes, is all being
performed locally.
Corporate Energy Management Strategy
The Company is providing green funding and
contributing to the solar panel installation costs in
return for carbon credit ownership for 25 years.

AIRPORT SOLAR GROUND MOUNTED PROJECT

REDUCE REPLACE RENEW
By the end of 2023, we had introduced solar
(Energy Conservation) (Energy Efficiency) (Renewable Energy)
photovoltaic (PV) energy at our airports at Marmul,
Fahud and Qarn Alam. The three sites now boast a
combined solar capacity of 609 kilowatts peak (kWp) Other
through a total installation of 1,332 PV panels. Subsurface
Power Energy Renewable Green House
Flaring Energy
Generation Efficiency Energy Gas/Carbon
Management
The renewable power capacity significantly reduces Offest
their reliance on conventional energy sources during
daytime and are anticipated to generate 1,227
megawatt hours (MWh) annually. This marks a Achieve Environmental, Social and Economic Sustainability
substantial contribution to the energy needs of the
three sites, translating into a reduced dependence on
traditional power grids.

86 SUSTAINABILBILTY REPORT | 2023

 PDO’S ENERGY MANAGEMENT STRATEGY power stations. Existing power stations are a three-pronged approach: Reduce, Reuse, and
being converted from open cycle to closed cycle Relocate (3Rs) for produced water. In 2023, this
The Energy Management Strategy "3Rs" or having cogeneration added to greatly improve strategy was refreshed to enable better value
outlines further details for each pillar to the generation efficiency of the overall system. creation.
support the road map towards 2050 Net Zero
NZE goal and is applied throughout PDO: In 2023, open-cycle power plant stations in THE 3RS OF PDO’S WATER MANAGEMENT
Suwaihat and Saih Nihayda were retired, with STRATEGY:
• Reduce dependency on conventional power
a plan to withdraw the remaining stations in • Reduce: This principle focuses on minimising
• Expand renewables the next three years. New power stations are water brought to the surface, disposed of,
designed with cogeneration of steam or heat and extracted from aquifers.
• Minimise growth in energy consumption such as at Qarn Alam, Amal and Yibal Khuff. A
(power and steam) and operate our assets • Reuse: This approach focuses on maximising
new 400 kilovolt overhead line from Nihayda
efficiently the use of produced water for EOR through
to Suwaihat was commissioned to provide the
methods such as water-flooding and
• Cut water production, and disposal and flexibility for a power transfer between the North steam injection. Additionally, exploration of
aquifer abstraction, to as low as reasonably and South and integrate renewable energy. The alternative, energy-efficient and beneficial
practicable (ALARP) efficiency of our power and steam generation applications is encouraged.
improved from 223 m3 of gas required to
• Decrease local fuel gas consumption, non- • Relocate: This involves transporting excess
generate 1 MWh in 2019 to 163 m3 in 2023 – a
routine, safety and subsurface flaring and produced water from areas with surplus to
other GHG emissions to ALARP 27% fall. locations experiencing water scarcity.

• Achieve zero routine flaring by 2030 as per The Energy Efficiency programme ensures that all All potential options that are considered to
the Ministry of Energy and Mineral’s mandate our facilities are working towards a top-quartile be under the 3R’s, shall be generating value
and the our World Bank commitment energy efficiency level. Various tools are used towards monetising the water resources.
to achieve this including regular benchmarking,
• Offset remaining emissions through carbon CURRENT WATER PRODUCTION AND
visual energy efficiency monitoring and
capture, utilisation and storage, nature- ASPIRATIONS
based solutions and carbon credits. continuous opportunity identification reviews.
Our Energy Efficiency Surveillance Tool (EEST) is As of the end of 2023, PDO’s total daily water
The Energy Management funnel is healthy now in operation across all assets. This indicates production flow-rate stood at approximately
and covers a range of aspects and various any operational equipment inefficiencies by 948,600 m³/d. Projections estimate this figure
areas of focus. Improving the GHG emissions will reach 1.4 million m³/d by 2030.
issuing an alarm so operators can take the
performance is a key pillar and one of the main
appropriate action to fix any issue.
drivers of PDO’s energy management efforts. • Value Creation: A significant portion (nearly
In 2023, PDO’s actual GHG emissions were 70%) of this water resource contributes
In parallel, PDO conducts energy assessments,
below the set target in 2023 and achieved to value creation, primarily through EOR
~2.4% reduction for scope 1 & 2 compared to and equipment-based studies, to identify energy
initiatives.
2021 baseline. In addition, PDO achieved Gold optimisation efficiency opportunities for all
Standard on methane emissions reporting with power consumers in production stations. These • Water Disposal Reduction: We currently
the basis of a credible implementation plan. are further studied in terms of energy savings, dispose of 13% of the water, representing
economics and GHG emission reductions. an area for improvement. We aspire to
ENERGY EFFICIENCY eliminate water disposal entirely by 2030.
WATER MANAGEMENT
Improving energy efficiency is a key focus • Sustainable Surface Water Handling: The
of PDO’s Gas Conservation Strategy. PDO We have established a comprehensive Water remaining 17% pertain to sustainable surface
continues to mature its efforts to minimise Management Strategy in collaboration with water management practices, including the
energy requirements by use of waste heat from use of Nimr Reed Beds and the Rima Water
relevant government ministries. This prioritises
Treatment Plant projects.

88 SUSTAINABILBILTY REPORT | 2023

 HISTORICAL AND PROJECTED WATER of around 10 MW, equating to a reduction of
to increase vegetation cover by planting trees its unwavering commitment to explore and
MANAGEMENT SUCCESS 48,000 tonnes of CO2 emissions a year.
within their premises. adopt new technologies. By continuously
Our Water Management Strategy has These projects have garnered recognition evaluating and qualifying innovative solutions,
NEW TECHNOLOGY
demonstrably achieved significant progress for their contributions to environmental the Company has accelerated value generation
towards its goals. sustainability efforts, including the greening The oil and gas industry is undergoing a profound and strengthened its position as a leader in the
desert lands, pioneering water solutions and transformation driven by new technologies and industry.
• Eliminating Water Disposal: A key objective reducing GHG discharges.
is achieving water disposal elimination by innovative solutions. From advanced exploration
techniques to digital transformation and energy Behind this success lies a well-established
2030. Since 2009, there has been a 65% BIODIVERSITY
reduction. sustainability, these technologies are reshaping methodology and a value-based approach that
We have conducted a biodiversity study in the industry’s landscape. Embracing such has been honed over more than 35 years of
• Value Creation from Water Resources: Nimr and Marmul to identify, survey and map innovations will play a crucial role as we navigate experience in implementing new technologies.
PDO’s 2023 business plan incorporated significant biodiversity areas in clusters. the evolving energy landscape. By harnessing This extensive track record has allowed us
projects aimed at creating value through salt
their power, PDO and the wider oil and gas to navigate the complexities of technological
and mineral extraction. Examples include the We agreed to continue such survey as a joint
sector are poised to become more efficient, advances with confidence, ensuring that every
Fahud Salt Making project, the Qarn Alam project with the Environment Authority (EA) to
cover other clusters, including at Greater Birba safer and environmentally responsible in the investment in innovation brings tangible benefits
Steam Hypersaline project and the use of
and Bahja. years to come. to the Company and Oman’s economy.
surface water for plantation projects.

• Aquifer Abstraction Reduction: PDO has 10 MILLION TREES INITIATIVE PDO has consistently demonstrated its ability Building on the record-breaking pace of 2022,
demonstrably reduced its reliance on to overcome significant challenges through we further amplified our innovation engine
In 2020, PDO launched a 10-year initiative to
exploitable aquifers. Abstraction has fell from
plant 10 million native trees with the EA. This
36,000 m3/d in 2020 to 28,000 m3/d in 2023.
ambitious project aims to:
This achievement is primarily attributed to
the implementation of the Yibal to Lekhwair • Enhance and expand vegetation cover.
pipeline, which diverts produced water to
replace aquifer abstraction previously used • Foster community awareness regarding
for water injection in Lekhwair. environmental conservation.

SUCCESSFUL WATER MANAGEMENT PROJECTS • Optimise the Omani ecosystem for carbon
emissions reduction, carbon sequestration,
We have implemented two ground-breaking and In-Country Value (ICV) enhancement.
water resource management projects.
As part of the initiative, PDO has committed to
Nimr Reed Beds: This boasts a water handling planting 1.5 million trees by the end of 2030.
capacity of 175,000 m3/d and has facilitated the To date, PDO has successfully planted 116,000
phasing out of eight deep water pumps. This has trees, distributed 47,000 seedlings and utilised
resulted in substantial energy savings of around drone technology and traditional methods to
40 MW, translating to an annual reduction of sow two million mangrove seeds.
113,000 tonnes of CO2 emissions.
Again, working with the EA, we planted 5,500
Rima Water Treatment Plant: Launched in trees in Dhofar Governorate and a further 5,000
2022, this installation uses innovative biological at the Ras Al Shajer Nature Reserve.
processes. The technology has phased out
approximately 40,000 m3/d of deep-water Additionally, in collaboration with the EA, we
disposal and yielded significant energy savings have supported two public schools in Muscat

90 SUSTAINABILBILTY REPORT | 2023

 in 2023, launching a remarkable 27 game- institutions, we awarded six ground-breaking
changing technology initiatives to tackle critical joint academia-industry research and
DEPLOYED TECHNOLOGIES
corporate technical challenges, representing development (R&D) projects that exemplified our
a 28% increase on the previous year’s record. commitment to foster innovation, partnership. In 2023, we deployed 16 diverse solutions across various
These endeavours promise to revolutionise the Moreover, we concluded four R&D projects domains. These innovations effectively address critical
way we operate and unlock new avenues for which demonstrated tangible results and corporate challenges including HSE, energy management,
growth.
showcased the power of collaboration in driving artificial lifting, well construction and water management.
Additionally, we successfully validated and meaningful progress. These achievements serve
as a testament to our unwavering dedication to Foam-Assisted Lift Technology is one of these technologies
concluded 19 promising technologies through which was successfully trialled and selected for deployment.
nurturing a culture of innovation, where cross-
rigorous trials, paving the way for their seamless It was concluded as a secondary de-liquification solution to
sector partnerships thrive and transformative
integration into, and delivering significant prolong gas well production. The results were positive with
solutions are brought to fruition.
value for, our business. These technologies increased production performance of up to 50,000 m3/day
span a wide range of applications, from In continuation of our commitment to reduce our from eight tested wells. The technology is undergoing a
emissions and our vision for a sustainable future, deployment scope for 28 gas wells in the next five years.
enhanced oil recovery techniques to energy
we have striven to accelerate the progress
efficiency and advanced data analytics. Such an Another example is the Double-Block-and-Bleed (DBB)
made in 2023 through our Energy Management
accomplishment showcases our dedication to programme. Saver technology, which tackles passing valve challenges
stay at the forefront of technology advances and in pipelines and maximises plant availability by avoiding
our capacity to effectively implement innovative We embarked on five technology initiatives and the depressurisation requirements of up and downstream
solutions. successfully concluded four, focusing on key installation parts. The wider deployment in PDO will
areas such as GHG reduction, flaring, energy potentially produce a cost saving of over US$5 million in the
Through close collaboration with universities, efficiency renewable energy, power generation next five years.
colleges and other academic and research and energy intensity.
The Flufuse technology is undergoing a deployment scope
after a successful trial at Nimr field. This technology tackles
the challenge of water and polymer injection conformance
along the injector profile in long, horizontal wells. The trial
succeeded to an almost 90% conformance level (more than
70% of the planned target) and it is expected to realise a good
sweep in the reservoir, resulting in improved oil production
in the nearby supported producer wells.

During the trial stage, there was a 2-3% water cut reduction
which has so far led to an oil gain of up to 10 m3/d. The
estimated value from its deployment will exceed US$100
million over the next five years.

ESPCP technology has successfully eliminated all rod

and tubing failures. The system combines an electric
submersible pump (ESP) with a progressive cavity pump

92 SUSTAINABILBILTY REPORT | 2023

 (PCP) installed with a permanent magnet motor permeability, while keeping internal cladding One such trial involves the Octopoda Annulus
(PMM). It has yielded a 10% reduction in artificial lift stresses low. This is the second key factor in Intervention System for well intervention and
power consumption and eliminated failures in rod creating high-corrosion resistance in a thermal maintenance activities. It aims at minimising
and tubing systems. Moreover, PDO has deployed spray cladding. The success has led to a decision rig time and associated expenses and enables
PMMs to substitute conventional induction motors to replicate the same solution for other vessels the deployment of intervention equipment and
in ESP and PCP wells, thereby reducing power with a potential cost avoidance of more than tools via the annulus of a well, negating the need
consumption and enhancing operational reliability. US$3.6mln for each application. for traditional wireline, coiled tubing or slickline
It can be installed at greater depths and run at techniques through tubing or workover.
higher speeds with fewer trips than conventional Dispersion Band technology was also
PCPs, leading to an estimated 10% increase in oil concluded. This addresses the challenge of back- It can reduce the risk of environmental damage
production per well a year. produced polymer that significantly impacts the or contamination, improving the sustainability of
performance of the crude dehydration process the oil and gas operation by preventing potential
The deployment scope of an array of other game- and results in an increased water level of export well leaks or failures. The estimated potential
changing technologies are progressing and oil. It offers detailed information on the fluid
value exceeds US$5.1 million over the next five
continuing from 2022 as per the set targets, including phases inside test separators and the build-
years.
Autonomous Inflow Control Device (AICD), Beyond up of the emulsion band and poor separation
Visual Line of Sight (BVLOS) drones, ESP Power during back-production of EOR chemicals. Wider To move away from closed, proprietary,
Save and Sand Guard. deployment within PDO could lead to a potential distributed control systems towards a standards-
cost saving of over US$5 million in the next five based, open, secure and interoperable process
CONCLUDED TRIALS
years. automation architecture, a pilot project was
Several trials for pioneering technologies were initiated for the Open Process Automation
Local Expander (LE) technology was also
successfully concluded with significant potential System (OPAS).
successfully trialled. This offers a cost-
value, paving the way for wider deploymnet and
effective, time-efficient alternative to current
increased efficiency. This will allow for the construction of safe,
practices of restoring well integrity. This has
reliable, secure process automation systems
A pilot programme at Greater Birba for advanced been recommended for wider deployment as a
Personal Gas Detection Devices was concluded that are scalable from very small to very large. It
solution to repair annulus integrity issues. Future
with live cloud-based data analytics, location candidate wells will be selected based on an does not require a system shutdown to perform
tracking and two-way, voice over communication. approved selection matrix and rational criteria updates and extensions and it can be applied
The new improved technology in this equipment to ensure optimal well integrity and avoid any to existing systems and new construction
will help optimise operations and maximise HSE production impact. It is estimated that more than projects. The OPAS will cut capital and operating
performance, especially in critical sour operations
US$2 million can be gained in the next five years. expenditure by enhancing the interoperability of
areas and remote facilities. The technology has been
approved for further deployment across facilities INITIATED TRIALS different system components and the portability
with around 600 devices in the next five years. of applications. The new concept will also reduce
A total of 27 new technology trials were initiated the hardware requirements for new facilities
To accelerate the restoration and refurbishment to explore impactful solutions in critical areas
by at least 30% and the deployment time for
of the process vessels in our operating stations, such as produced water and energy management,
a field trial for the High Velocity Thermal Spray process automation systems from nine months
artificial lifting, EOR, well construction and
(HVTS) technology was successfully conducted at to roughly four.
production measurement.
Amal station. This technology enables us to apply
claddings with much greater density and decreased

94 SUSTAINABILBILTY REPORT | 2023

 A new (OSI) tool trial started for artificial To cut emissions, a project was launched THE FUTURE
lift systems focusing on downhole chemical to test High Pressure Air Assist System
treatment to tackle issues such as corrosion, (HPAS) technology for smokeless flaring. Staying ahead of the curve in the technology
sand control and gas separation. This uses air as the primary means of landscape is a cornerstone of our future
obtaining smokeless performance. The trial growth. Our continued investment in cutting-
The proprietary, micro-encapsulation edge solutions is both a pursuit of efficiency
aims to ensure HPAS can perform efficiently
technology enables the most effective oilfield and a commitment to safeguarding the
in stopping smoke at AP flares in line with
treatment chemistry to be put into solid stick long-term.
HSE regulations. If successful, the solution
form, placed into specifically engineered
will be replicated across other PDO assets,
tools and installed below the pump intake. PDO’s unwavering pursuit of technological
potentially leading to a cost saving of more
It is expected to extend ESP run life by 1.5 excellence aligns seamlessly with Oman
than US$18 million over five years.
times per well,reducing oil deferment and Vision 2040. Our investments in cutting-
maintaining well potential over a longer RESEARCH AND DEVELOPMENT (R&D) edge solutions are our stepping-stones
period. It will decrease subsurface deferment towards realising the Sultanate’s aspirations
Our continued R&D focus highlights our of becoming a diversified, knowledge-based
incurred by scale/gas lock by at least 40%
unwavering belief that combining academic economy.
per well, contributing to a potential value of
expertise with industry knowledge is key to
US$52 million for a five-year deployment
driving innovation and building a more cost- We will continue to progress our
scope of 20 wells per year.
competitive, carbon-resilient and energy- harmonisation efforts between new
Nanospheres (NS) technology was also efficient company. By actively partnering technology and digitalisation to capitalise on
initiated at Yibal, where two water injector with Omani universities and academic technological breakthroughs fast-changing
wells and three oil producers were selected. institutes, we are addressing our own industry and world and as an essential
Nanospheres are very small particles of technical challenges and investing in the enabler of our long-term viability.
proprietary cross-linked polyacrylamide future of Oman’s knowledge economy.
Each breakthrough fuels innovation across
composition that are used for conformance
We awarded six joint academia-industry industries, empowers our workforce and
control deep in formations to improve the
projects to Omani universities (27 in total), strengthens our nation’s position as a global
oil recovery in heterogeneous reservoirs
prioritising areas crucial for our continued leader in responsible energy development.
under water flood. This is accomplished by
success and Oman’s economic diversification.
adjusting the water relative permeability
These focus on critical themes including
in the reservoir and diverting the flow to
energy efficiency, water management, EOR,
unswept zones with by-passed oil.
bioenergy, material and corrosion science
A potential improvement on the unit and renewable energy.
operating cost if US$2-3 per barrel is
expected through the implementation of One study was a ‘local waste to concrete and
the technology in water-flooded carbonate asphalt’ which aims to promote the reuse and
reservoirs. The technology will further recycling of waste as a partial component in
improve the commerciality of growth
concrete and asphalt mixes with a carbon
volumes by up to six million cubic metres of
dioxide reduction of up to 30,000 tonnes.
oil from the water-flood carbonate portfolio
in our northern fields.

96 SUSTAINABILBILTY REPORT | 2023

 ENVIRONMENTAL PERFORMANCE
GREENHOUSE GAS (GHG) EMISSIONS and monitor assets, are leading to lower HSE
exposure, fewer emissions, in addition to less
2023 Highlights We cut GHG emissions by 1% to 10.4 million deferment.
tonnes (almost 0.17 million tCO2e) from our
2022 total. This can be attributed to our In line with our aspiration to achieve net-zero
• Reduced quantity of oil spilled by 80% efforts in reducing methane discharges and the emissions by 2050, major efforts and measures
implementation of flare reduction opportunities,
have been implemented to drive continuous
• Methane leaks repaired and saved 91% of the fugitive emissions. power generation, converting from open cycle to
GHG reduction.
closed cycle gas turbine (CCGT) and renewable
• Increased waste recycling by 10.2% energy projects, production water management,
These include:
energy efficiency projects and other GHG and
• Cut greenhouse gas emissions by 1%
methane managment. Against this, our total
• Setting annual GHG targets
GHG intensity increased by ~4% from 0.179 to
0.187. • Establishing energy management and GHG
PDO is constantly striving to protect Oman’s environment, reduce our carbon footprint and prevent
governance
pollution. In 2023, we improved our environmental performance across many aspects, including Increased inspections and the greater
oil spills, GHG emissions, flaring and waste management. The achievements are summarised in deployment of drones to remotely collect data
• Regular engagements and reviews
this chapter.

OIL SPILLS

We have taken significant steps to eliminate oil leaks and no major spill occurred in 2023. Overall,
the number of oil spills over one barrel (159 litres) per million tonnes of oil production fell to 0.06
compared to 0.09 in 2022 - a 33% decrease. The quantity spilled also fell to 0.01 tonne per million
tonnes of production compared to 0.05 t/Mt production in 2022 - an 80% decrease.

Total GHG Emissions 2013-2023

0.25
0.223
0.218
0.210
0.199
0.20 0.183
0.196
0.187
0.178 0.179
0.171 0.168

0.15

0.10

0.05

0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

GHG Intensity 2013-2023

(GHG Intensity includes PDO oil and gas assets and is calculated based on sale hydrocarbons)

98 SUSTAINABILBILTY REPORT | 2023

 2022 to 0.88 million and flaring intensity also dropped from 9.93 tonnes of
• Development of dedicated roadmaps for International Methane Emissions Observatory
1,000 tonnes of hydrocarbons produced to 9.86.
major GHG sources (IMEO) and the Oil and Gas Methane Partnership
2.0 (OGMP2.0) reporting framework. We joined We completed a flare efficiency measurement campaign across PDO using
ASSURANCE AND VERIFICATION OF GHG video-imaging spectro-radiometry (VISR) technology. Based on the initial
this initiative in 2021, and our achievements
DATA results, most of the flares have a methane destruction efficiency of more
have been highlighted in the "An Eye on Methane:
than 98%. The same technology was also used to survey the efficiency of 21
Since 2019, we have independently verified International Methane Emissions Observatory
combustion sources.
our GHG data annually and last year completed 2023 Report,” published by the UNEP. Flaring Performance 2013-2023
1.40
the process for 2022. This was carried out in
As part of our ongoing methane management 30.00
1.20
accordance with the internationally agreed and OGMP2.0 implementation plan, we 25.00
standard ISO 14064 process, which included conducted helicopter and ground-based
1.00

a review of our emission scope, calculation measurement surveys in collaboration with 20.00 0.80

HC producton
methodologies and verification visits to a range the German Aerospace Centre (DLR), covering 0.60
15.00
of facilities. three clusters and 10 facilities. The outcome of
0.40
the survey will help PDO to benchmark existing 10.00

More generally, PDO was recertified in 0.20

detection technologies and achieve the Level 5 5.00
accordance with the ISO 14001:2015
Methane Reporting Standard. 0.00
Environmental Management System. 0.00

Additionally, a flare and combustion efficiency *2013

form 2017,
2014 flaring
2015 results include
2016 2017 all assets
2018 2019and well-test
2020 2021 flaring.
2022 2023
METHANE MANAGEMENT WASTE MANAGEMENT
measurement campaign was carried out across Flaring Flaring
( upstream ) intensity
We have actively engaged in methane reduction our operations which helped us to achieve Level (milli on tonne Flared) ( tonne/1000 compared
There was a marked improvement in waste management tonne of HCto) 2022.

efforts, reflected by our endorsement of a 4 Methane Reporting Standard requirements as Waste recycling increased by 10.2% (10,787 tonnes) against the previous year
per the OGMP2.0 reporting framework and to and we also launched automated waste tracking software.
methane emission intensity target of 0.2% by
2025 and near zero methane emissions by benchmark the measured source-level efficiency Total waste generated was 1,038,764 tonnes, out of which 22,067 tonnes
2030. In addition to flare reduction projects, with industry average values. These efforts were recycled.
we have undertaken facilities maintenance collectively underscore our dedication to reduce
HAZARDOUS WASTE MANAGEMENT
programmes, equipment electrification and methane emissions and promote sustainable
extensive flowlines and pipeline monitoring. practices within the oil and gas industry. There was an increased focus on the reuse and recycling of hazardous waste.

We have employed a focused and tiered methane We used treated contaminated soil in levelling non-hazardous waste yards
GAS FLARING
at Marmul, Bahja and Nimr and auctioned 525.9 tonnes of decontaminated
management campaign using satellite, leak
ESP cable reels at Bahja, where a decontamination unit for naturally occurring
detection and repair (LDAR) and drone surveys. We sustained our focus on flare reduction by radioactive material (NORM) is starting.
These campaigns have led to reduction of 91% of setting short, medium and long-term targets
In parallel, we established a reuse option for treated contaminated soil in the
the fugitive emissions. including projects for the “World Bank Zero graded road re-sheeting within Block 6 to minimise the creation of additional
Routine Flaring by 2030” initiative. borrow pits and our overall environmental footprint. All other cleaned waste,
In terms of methane reporting, we achieved including batteries, empty drums and plastic, have been recycled by SMEs.
the Gold Standard Pathway in 2023, as per the Upstream flaring fell from 0.89 million tonnes in
United Nations Environment Programme (UNEP)

Rima Water Treatment Plant

100 SUSTAINABILBILTY REPORT | 2023

 We have initiated a study of the reuse industrial grit blasting with the Environment
Authority and 1,230 tonnes was sent to the Raysut cement company for a trial.

There was an improvement in oil recovery from oily sludge in Marmul, Nimr
and Rima via gravity separation and the direct pumping of recovered fluid to
production stations. This prevents road transportation of oily sludge waste
in vacuum tankers, thereby reducing emissions and minimising road traffic
exposure.

Oil-based mud (OBM) treatment started for new incoming OBM through
microemulsion injection and separation technology at Fahud and for legacy
OBM through a dissolving process at Bahja.

NON-HAZARDOUS WASTE MANAGEMENT

Comprehensive clean-up strategies were implemented across various

dumpsites. This involved the use of machinery, manual labour and proper waste
disposal methods.

Significant progress was made, with the Qarn Alam, Bahja and Lekhwair
dumpsites achieving a remarkable 100% clearance rate. Additionally, substantial
progress was seen at the Marmul, Fahud and Nimr dumpsites, with clearance
rates of 95%, 99%, and 85% respectively.

We commissioned additional organic composter machines for Marmul, Nimr,

Bahja, Fahud and Lekhwair, this is in addition to the one already at Qarn Alam,
to efficiently handle food waste.

These are capable of handling up to 85% of food waste through innovative

processing techniques, generating fertiliser as a by-product.

In terms of In-Country Value, numerous Omani SMEs were introduced under our
contract with the Oman Environmental Services Holding Company (be’ah). These
firms were involved in the recycling of various materials such as tyres, plastic,
paper and wood and were provided with the opportunity to collect recyclable
materials.

We effectively managed construction and demolition (C&D) waste by

crushing and processing it within designated staging points.

We launched a "Cover All Recycling" initiative in collaboration with be’ah and

Renaissance Sager Environmental Solutions (RSES). To kickstart the process,
SMEs were enlisted to gather scrap metal from waste yards and transport it to
iron factories. This ensured a steady supply of suitable materials for fabrication
of boxes, which will be used to collect clothing to be distributed to those in need.

Rima Water Treatment Plant

102 SUSTAINABILBILTY REPORT | 2023

 Environmental Data-PDO
Oil in effluents to surface
environment (OIW to sea) 0.010 0.008 0.022 0.007 0.007 0.004 0.006 0.006
2016 2017** 2018** 2019** 2020** 2021** 2022** 2023** thousand tonnes

Greenhouse gas emissions (GHGs)

Water

Total GHGs (million tonnes CO2

10.49 10.79 11.18 11.60 10.87 10.70 10.60 10.44 Water consumed from
equivalent)
desalination units (million cubic 6.88 7.03 7.06 7.73 6.50 8.28 9.73 8.59
metres)
Greenhouse gas intensity ratio
(tonne of CO2 equivalent / 0.183 0.199 0.218 0.223 0.210 0.196 0.179 0.187
tonne of HC)
Produced water handled 1,000
803.97 855.52 908.95 927.54 856.86 917.53 937.04 948.6
m3/day
Flaring

Flaring (upstream) (million

0.88 1.19 1.21 1.29 0.96 0.75 0.69 0.68 Produced water used for
tonnes flared)
injection activities 1,000 m3/ 412.84 449.50 484.21 495.9 504.87 684.65 581.98 703.52
Flaring intensity (tonne/1,000 day
12.86 17.90 19.07 20.52 14.37 10.95 9.93 9.86
tonnes of HC)

Energy intensity Produced water used for

disposal activities 1,000 m3/ 348.81 336.96 329.22 300.18 206.85 154.02 193.24 152.64
day
Upstream (gigajoules per tonne
1.46 2.31 2.58 2.62 2.67 2.73 2.47 2.52
production)
Waste generation
Acid gases and VOCs emissions per unit of HC production

Hazardous (thousand tonnes) 225.9 222.00 383.69 268.95 282.45 232,975 315.942 703.68
Sulphur oxides (SOx) (tonnes
1.03 2.50 2.63 2.32 1.90 1.43 1.13 0.59
per thousand tonnes)

Nitrogen oxides (NOx) (tonnes Non-hazardous (thousand

0.31 0.45 0.47 0.49 0.44 0.45 0.50 0.52 41.5 62.15 76.47 135.63 102.97 91,818 118.588 122.13
per thousand tonnes) tonnes)

Volatile organic compounds

(VOCs) (tonnes per thousand 0.21 0.29 0.29 0.28 0.23 0.20 0.16 0.15
tonnes) Total waste (thousand tonnes) 267.4 284.15 460.15 404.58 385.42 324,793 434.530 825.81

Spills and discharge

*From 2016, data includes gas asset performance, while earlier years only present the data from oil assets except for total
# of oil spills > 1 barrel GHG and GHG intensity ratio which are estimated based on an ISO14064 audit.
(0.16m3) per million tonnes of 1.97 1.57 0.65 0.66 0.49 0.47 0.09 0.06 ** From 2017 onwards, emissions figures have been back-calculated based on an ISO14064 audit.
production [No/Mt production]

Quantity of oil spilled > 1 barrel

(0.16m3) per million tonnes of 32.00 3.46 0.46 2.05 5.36 1.12 0.05 0.01
production [t/Mt production]

104 SUSTAINABILBILTY REPORT | 2023

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