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{{Short description|Omani state-owned oil and gas company}}
{{Infobox company
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'''Petroleum Development Oman''' ('''PDO''') is the leading exploration and production company in the [[Sultanate of Oman]]. The Company
==History==
A [[geological survey]] of the country in 1925 by the [[D'Arcy Exploration Company]] found no conclusive evidence of oil. Twelve years later, when American geologists began intensively searching for oil in neighboring [[Saudi Arabia]], [[Said bin Taimur|Sultan Said bin Taimur]] granted a 75-year concession for central Oman to the [[Iraq Petroleum Company]] (IPC), and a separate concession for the province of Dhofar. Pausing only for the [[Second World War]], exploration for oil was under way in Oman.
IPC created an associate company, Petroleum Development (Oman and Dhofar) Ltd, to operate the concession. The company had the same five shareholders as IPC, four of which had an interest of 23.75%: the [[Royal Dutch/Shell]] Group, the [[Anglo-Persian Company]] (which would eventually become the [[British Petroleum]] Company, or BP), [[Compagnie Française des Pétroles]] (a predecessor of
In 1951, the [[Dhofar Governorate|Dhofar]] concession was allowed to expire and the company dropped 'Dhofar' from its title, becoming Petroleum Development (Oman) Ltd.
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|publisher = Green Mountain Press (UK)
|isbn = 978-0-9552212-0-0
|
|title = In the Heart of the Desert
|url = http://www.greenmountainpress.co.uk/in_the_heart_of_the_desert_morton.html
|author = Morton, Michael Quentin
|
|edition = 1st |id = 095522120X
|access-date = 2011-06-27
|archive-url = https://web.archive.org/web/20180603090609/http://www.greenmountainpress.co.uk/in_the_heart_of_the_desert_morton.html
|archive-date = 2018-06-03
|url-status = dead
}}</ref><ref>{{Citation
|publisher = Vico Press
|isbn = 0-9537758-1-X
|
|location = Dublin
|title = Fahud, the Leopard Mountain
|author = Don Sheridan
|
|id = 095377581X
}}</ref> Later, when the supply line was switched to the Sumail Gap, warring tribes were able to disrupt convoys and bring operations to a halt.
Further dry wells were drilled and this lack of success, combined with worsening logistical problems and a glut of oil on the world market, led most of the partners to withdraw from the venture in 1960. Only Shell and Partex opted to remain in Oman to continue the search for oil. The first successful findings, on an commercially relevant level, were made at [[Yibal]] in April 1962.<ref>{{cite web|last=PDO|title=PDO's History|url=http://www.pdo.co.om/expatriate_site/pdohistory.htm|
In 1963 the Natih field was discovered, followed closely by success at Fahud, only a few hundred metres from the original IPC well. Investment in a pipeline to the coast and all the other hardware necessary to transport and export Oman's crude was made. A 276-kilometre pipeline requiring 60,000 tons of steel pipe was laid, the labour being provided by the inhabitants of whichever villages happened to be near the worksite.
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===Consolidation===
All through the 1970s, PD(O) strove to maintain its production and replace its reserves while developing its professionalism. Some significant discoveries early in the decade contributed to that objective: [[Ghaba North]] in 1972, followed by [[Saih Nihayda]], [[Saih Rawl]], [[Qarn Alam]] and [[Habur, Oman|Habur]]. All five fields were on stream by 1975, the crude oil being transported via a new {{convert|20|in|mm|adj=on}} pipeline to the main pipeline 75 kilometers east of Fahud. Thanks in part to these new sources of oil, production averaged {{convert|281778|oilbbl/d|m3/d}} (bpd) in 1972 and {{convert|341000|oilbbl/d|m3/d}} in
The first half of the 1970s was important for other reasons as well. On 1 January 1974 the Government of Oman acquired a 25% shareholding in the Petroleum Development (Oman); six months later the shareholding was increased to 60%, backdated to the beginning of the year. As a result, the foreign interest in PD(O) was now made up of the Shell (34%), Compagnie Française des Petroles (4%) and Partex (2%). These shareholdings have remained unchanged to the present day.
===Maturity (1994–2002)===
By the end of 2000 PDO witnessed an increase in production. This was due to the increase in production arose from the application of the latest technology to increase [[Petroleum extraction|oil recovery]] in existing fields. And some of the production increase over the years was made up of "new oil" from fields that were not only found but also developed at an ever-accelerating pace. During the period
When PDO's gas-exploration campaign in the early 1990s made it clear how bountiful the country's gas fields were, the Government decided to establish a completely new industry: the export of [[liquefied natural gas]] (LNG). In 1996 PDO concluded an agreement with the Government to develop the central Oman gas fields in order to supply gas to an LNG plant in Qalhat, near Sur. To fulfill its end of the agreement, the
This upstream LNG project, costing $1.2 billion, is the single biggest project in PDO's history. And it was executed as planned. The Saih Rawl Central Processing Plant and the gas pipeline from Saih Rawl to Qalhat were dedicated to the nation in November 1999, the first downstream cargo of LNG was shipped to Korea in April 2000, and His Majesty the Sultan officially opened the LNG plant six months later.
Having built up such momentum in its oil production as it entered the 1990s, the Company fully expected the trend to continue. Unfortunately, the
===Sustainability (2002–present)===
Following a comprehensive review in 2002 that led to a sweeping change programme, PDO laid out ambitious production-recovery plans based not only on waterflooding but also on enhanced oil recovery (EOR) techniques: the application of heat, chemicals or gas solvents to alter the way oil or injected water flows in a reservoir. But, in order for them to be sustainable in the long run, the plans had to be executed for substantially less money than originally envisaged, making them all the more challenging. A total of $2 billion in cost savings over the five-year period 2002–2008 were incorporated into the
Meanwhile, gas continues to be a growth area for the
Faced with oil prices above [[United States dollar|$]]100 a barrel and sinking field capacities, PDO was one of the many companies to introduce in-site combustion, an [[enhanced oil recovery]] technique involving lighting fires within the reservoirs, in 2008.<ref>{{cite
In 2010, the company announced the discovery of three new oil- and one gas field.<ref>{{cite web|url=https://www.ft.com/content/034c152c-d027-11df-bb9e-00144feab49a|title=Oman walks energy balance tightrope|date=October 5, 2010|work=Financial Times|
Since 2010, PDO has been working on the [[Miraah]] Solar Project, a 1,021 mega[[watt]] [[Solar thermal energy|solar thermal]] facility, which is to be used in [[Enhanced oil recovery|EOR]] from 2017/2018 onwards.<ref>{{cite web|url=https://www.wsj.com/articles/oman-to-build-giant-solar-plant-to-extract-oil-1436344310|title=Oman to Build Giant Solar Plant to Extract Oil|date=July 8, 2015|work=Wall Street Journal|
In 2011, a series of strikes and protests took place in Oman that also involved hundreds of PDO workers demanding higher wages.<ref>{{cite web|url=https://www.ft.com/content/fd4cd0ba-4f03-11e0-9c25-00144feab49a|title=Oman protesters demand corruption investigation|date=March 15, 2011|work=Financial Times|
Since the decline of natural production capacity, PDO has invested heavily to keep up and try to increase production again. Having to rely on marginal wells and enhanced oil recovery techniques more and more, the overall quality of oil is ''getting heavier and drifting down'' said the director of Purvin & Gertz, an international energy consulting firm, in 2011.<ref>{{cite web|url=https://www.nytimes.com/2011/07/21/world/middleeast/21iht-M21B-DUBAI-OIL.html|title=Dubai Exchange Faces Steep Climb on Crude Oil Deals|date=July 20, 2011|work=New York Times|
In 2013, a team of members from Manpower Ministry and Oman's Trade Union Federation found nearly 50 labor law violations and mistakes in safety norms during an inspection at PDO's [[Fahud]] facilities.<ref>{{cite web|url=https://gulfnews.com/news/gulf/oman/pdo-contractors-violate-safety-and-labour-laws-1.1135440|title=PDO Contractors violate safety and labour laws|date=January 21, 2013|work=Gulf News Oman|
In 2014, [[P. Mohamed Ali]], the former managing director of [[Galfar Engineering and Contracting]], was sentenced to three years in jail for bribes made to PDO. In the same year Juma Al Hinai, the former head of the tender committee at PDO, was also charged with bribery and sentenced to three years in jail, including a fine of 600,000 [[Omani rial|rials]]. He was banned from public office for 20 years.<ref>{{cite web|url=https://uk.reuters.com/article/uk-oman-trial-verdict/oman-government-official-two-executives-jailed-fined-for-graft-idUKBREA0B0CE20140112|title=Oman government official, two executives jailed, fined for graft|date=January 12, 2014|work=Reuters|
In 2016, PDO launched a $3.4 billion loan program with [[HSBC Bank Middle East|HSBC bank]].<ref>{{cite web|url=https://www.reuters.com/article/pdo-loans/lpc-omans-pdo-says-raising-approx-us3-4bn-loan-idUSL4N18T3YE|title=LPC-Oman's PDO says raising approx. US$3.4bn loan|date=June 1, 2016|work=Reuters|
In 2017, following many years of reconstruction and oilfield optimization, PDO confirmed a new combined oil, gas and condensate production record (1.293 million [[Barrel of oil equivalent|barrels of oil equivalent]] per day, BOE) for 2016. The company is still faced with a low price environment and continues to work on cost controlling measures.<ref>{{cite web|url=https://timesofoman.com/article/106275|title=Petroleum Development Oman sets new production record|date=April 3, 2017|work=Times of Oman|
The largest onshore discovery in 2018 was a gas-condensate area, found on the Mabrouk North East field, operated by PDO.<ref>{{cite web|url=https://financialtribune.com/articles/energy/90719/2018-discovered-petroleum-resources-increase-30|title=2018 Discovered Petroleum Resources Increase 30%|date=July 30, 2018|work=Financial Tribune|
==Corporate structure==
===Board of directors===
The Board consists of twelve members and includes the
=== Managing Director's Committee ===
The Managing
==Operations==
PDO operates in a concession area of about 90,000 km2 (one third of
The primary objective of PDO is to engage efficiently, responsibly and safely in the exploration, production, development, storage and transportation of hydrocarbons in the Sultanate.
===Oil exploration and production===
PDO finds oil fields and develops them into productive assets by drilling wells and constructing and operating various [[hydrocarbon treatment]] and transport facilities. The [[crude oil]] that is produced from the fields is not sold by the
===Gas exploration and production===
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===Solar===
Since 2010, PDO has been working together with partnering [[GlassPoint Solar|GlassPoint]] to create the [[Miraah]] Solar Project, a 1,021 mega[[watt]] solar thermal facility which has been under construction in Southern Oman since 2015. The facility produces steam, which will be used for thermal [[enhanced oil recovery]] (EOR), extracting [[Heavy crude oil|heavy oils]] from the Amal oilfield. The plant is one of the largest solar plants in the world and will generate around 6,000 [[ton]]s of solar steam every day, and by replacing the current EOR system which relies on the burning of natural gas, it will reduce [[Carbon dioxide|{{CO2}}]] emissions by over 300,000 tons annually.<ref name="power" />
===Education and training===
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PDO has been awarded more than 50 different honors since 2011.
Since 2011, PDO has received various awards for the Nimr Reed Beds water treatment plant, including The Global Water Award, presented to [[Bauer AG|BAUER]] water by [[Kofi Annan]] in 2011,<ref>{{cite web|url=https://lectura.press/en/article/kofi-annan-presents-global-water-award-2011-to-bauer-water/646|title=Kofi Annan presents Global Water Award 2011 to BAUER Water|date=May 11, 2011|work=Lectura Press|
==Miscellaneous==
PDO has a Diversity & Inclusion (D&I) team of 20 employees that work to create an environment free from any form of harassment and [[discrimination]].<ref name="oil">{{cite web|url=http://www.pdo.co.om/en/about/Pages/default.aspx|title=About PDO|work=Petroleum Development Oman|access-date=November 21, 2018}}</ref><ref>{{cite web|url=http://www.pdo.co.om/en/about/diversity-and-inclusion/Pages/default.aspx|title=Diversity and Inclusion|work=Petroleum Development Oman|access-date=December 3, 2018}}</ref>
In 2017, PDO donated six [[Fire engine|fire trucks]] to the International College of Engineering & Management (ICEM) and announced to support 18 new initiatives in Oman, focusing on health and safety, community infrastructure, employability training, charities, and animal welfare.<ref>{{cite web|url=https://timesofoman.com/article/121123|title=PDO donates fire trucks for students training in Oman|date=November 5, 2017|work=Times of Oman|access-date=December 3, 2018}}</ref><ref>{{cite web|url=https://timesofoman.com/article/129668|title=PDO to support 18 new initiatives in Oman|date=March 7, 2018|work=Times of Oman|access-date=December 3, 2018}}</ref>
==See also==
{{Portal|Oman|Energy}}▼
* [[Economy of Oman]]
* [[List of companies of Oman]]
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==Notes==
{{
==External links==
* {{Official website|www.pdo.co.om}}▼
▲{{Portal|Oman|Energy}}
▲* {{Official|www.pdo.co.om}}
{{Authority control}}
[[Category:Oil and gas companies of Oman]]
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[[Category:Energy companies established in 1967]]
[[Category:Non-renewable resource companies established in 1967]]
[[Category:Companies based in Muscat, Oman]]
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