Latest news with #PetroleumDevelopmentOman
Observer
2 hours ago
- Business
- Observer
ICV strategy unlocks $1.8 billion in energy sector contracts for Omani SMEs
MUSCAT: Oman's In-Country Value (ICV) strategy delivered strong results in 2024, driving job creation and deepening economic localisation across the energy and mining sectors, according to the Ministry of Energy and Minerals' annual report. The Ministry confirmed that spending on small and medium enterprises (SMEs) reached $1.8 billion last year—accounting for 17.2% of total procurement in the energy sector. The overall ICV rate across the sector stood at 31.9%, underscoring efforts to retain more value within Oman's economy and promote domestic supply chains. Employment growth was a key outcome. The oil and gas sector achieved a national Omanisation rate of 89%, employing over 17,900 Omanis in 2024. Leading operators such as Petroleum Development Oman (PDO) and Daleel Petroleum surpassed the 90% mark, collectively hiring more than 1,400 nationals during the year. The mining sector also expanded its local workforce, reaching a 23% Omanisation rate, with approximately 900 Omani employees across its activities. Strategic projects such as the Al-Ghuzayn and Al Wash-hi copper developments are contributing directly to employment, with the former alone committing to 50 Omani jobs in its first phase. 'These figures reflect a deliberate shift from extractive revenue to inclusive economic impact,' the report stated, noting that localisation targets are now embedded in major energy and mineral contracts. To formalise these gains, the Ministry launched the 'Majd' programme in 2024 as a unified platform for ICV across the energy and minerals value chain. It also introduced the ICV Certificate system—currently in pilot phase and set for full rollout in 2025—aimed at rewarding companies that demonstrate high local content performance with bidding privileges. As part of the broader strategy, 23 specialised service contracts—including leak detection, oil tank cleaning, and hydrogen sulfide handling—were awarded to local firms, boosting SME participation in technical and industrial services. Since the inception of Oman's ICV policy in 2013, over 100 local workshops and industrial facilities have been established, and more than $400 million in localisation opportunities have been implemented. The report concluded that the combination of targeted policies, procurement reform, and national workforce integration is positioning Oman to transition toward a more sustainable, diversified, and resilient energy economy—core pillars of Oman Vision 2040.
Observer
2 days ago
- Business
- Observer
Oman's crude oil reserves dip 2.8% to 4.8 billion barrels
MUSCAT: Oman's crude oil and condensate reserves totaled around 4.825 billion barrels at the end of 2024, reflecting a decrease of 2.8 per cent compared to the previous year. Natural gas reserves stood at 23.3 trillion cubic feet (TCF), up from around 23 TCF a year earlier. Announcing these figures in its 2024 Annual Report, the Ministry of Energy and Minerals noted that Petroleum Development Oman (PDO) — the largest oil and gas producer in the Sultanate — accounted for about 62 per cent of total crude oil and condensate reserves in 2024. Highlighting the central role of hydrocarbons in Oman's national economy, Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, stated: 'Amid global challenges facing energy markets — ranging from price volatility to evolving demand dynamics — Oman, guided by strategic foresight and sound policies, succeeded in maintaining stable production levels in the oil and gas sector. The average daily production of crude oil and condensates reached 992.6 thousand barrels, with total exports of approximately 308.4 million barrels.' He added: 'The average price for Omani crude stood at USD 80.79 per barrel. In the natural gas sector, average daily production reached 149.2 million cubic meters, comprising 117.5 million cubic meters of non-associated gas and 31.7 million cubic meters of associated gas. Exports of liquefied natural gas (LNG) totaled 12 million tonnes, delivered across 181 shipments — a clear indication of the sector's operational efficiency and resilience.' Eng Salim al Aufi, Minister of Energy and Minerals As of end-2024, Oman was home to 475 producing fields, comprising 400 oil fields and 75 gas fields. A total of 73 exploration and appraisal wells were drilled last year — 54 for oil and 19 for gas, the report noted. According to Al Aufi, the year 2024 was marked by continued advancements across the oil and gas sectors. 'Our vision remains firmly set on a diversified economic future, enhanced in-country value, and empowered Omani talent across all levels. Despite global challenges, Oman succeeded in maintaining stable production levels in the oil and gas sector, thanks to strategic foresight and sound policies.' Significant progress was also witnessed in the refining and petrochemical sector, said the Minister. A total of 122 million barrels of petroleum products — including gas oil, jet fuel, and naphtha — were exported, while imports dropped to around 2 million barrels, demonstrating growing self-sufficiency and improved value chain efficiency. On the green hydrogen front, 2024 marked a year of 'pioneering milestones' aimed at reinforcing Oman's position as a regional hub for renewable energy and green hydrogen, Al Aufi noted. This was underscored by the signing of eight major hydrogen production agreements — five in Al Wusta Governorate and three in Dhofar. Electricity generated from renewable sources — chiefly solar and wind — accounted for roughly 9 per cent of total power generation in the country last year. This modest but growing share underscores the Ministry's commitment to diversifying the national energy mix and advancing low-carbon solutions, Al Aufi said. The contribution of renewables is set to increase steadily with the commissioning of the Manah 1 and Manah 2 solar farms, which will have a combined capacity of 1,000 MW. Also slated for launch by 2026 are the North Oman Solar project and the Riyah 1 and 2 wind farms, which together are projected to reduce CO₂ emissions by over 1.4 million tonnes annually, the Minister noted.
Observer
4 days ago
- Business
- Observer
PDO leads Oman's energy push with $1 bn gas project
MUSCAT: Petroleum Development Oman (PDO) is powering Oman's dual energy strategy with a $1-billion gas development project and major new investments in renewable energy, according to the Ministry of Energy and Minerals' 2024 Annual Report. The company's flagship gas initiative targets the Haima reservoirs — Amin, Miqrat and Barik — and brought 12 wells online last year. The project is expected to recover 2.22 billion cubic metres of gas and 0.34 million cubic metres of condensate, supporting domestic demand and securing future supply. 'In 2024, the Directorate of Project Delivery focused on the execution of a comprehensive portfolio of oil and gas extraction projects with a total value of $1 billion,' according to the Annual Report. The development comes at a critical time as Oman seeks to bridge projected gas gaps between 2024 and 2026, and again beyond 2031. PDO's production adds long-term stability to the country's energy mix. In parallel, PDO advanced into clean energy through three major renewable projects. In partnership with OQ Alternative Energy and TotalEnergies, the company is developing a 100 MW solar PV plant in north Oman and two wind farms totalling 200 MW in the south. The projects will come online in 2026 and are expected to generate over 1.4 terawatt-hours of electricity annually — reducing emissions by more than one million tonnes per year. The shift supports Oman's goal to reach Net-Zero emissions by 2050. PDO also remained Oman's leading exploration company in 2024, drilling 24 of the country's 54 oil wells and 9 of 19 gas wells. It accounted for 62% of the nation's total oil and condensate reserves.
Zawya
03-07-2025
- Business
- Zawya
Oman: SalamAir to operate 33 weekly flights for PDO
Muscat — SalamAir has signed a five-year agreement with Petroleum Development Oman (PDO) to operate 33 weekly flights to Fahud and Marmul Airports, starting July 1. The flights will serve PDO employees, ensuring efficient and reliable transport between key operational hubs. SalamAir CEO Adrian Hamilton-Mans said the renewal reflects PDO's confidence in the airline and underscores SalamAir's commitment to expanding domestic services with its modern fleet. PDO Managing Director Dr Aflah al Hadhrami highlighted the partnership's role in supporting Oman Vision 2040 goals, including economic diversification and sustainability. SalamAir currently operates 13 Airbus aircraft and plans to expand its fleet to 25 by 2028. PDO is Oman's leading oil and gas company, producing most of the country's crude oil and natural gas. This partnership will be beneficial not only for SalamAir and PDO but also for Oman as a whole, supporting the country's economic diversification, sustainability goals, and overall national development under Oman Vision 2040. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Muscat Daily
02-07-2025
- Business
- Muscat Daily
SalamAir to operate 33 weekly flights for PDO
By OUR CORRESPONDENT Muscat — SalamAir has signed a five-year agreement with Petroleum Development Oman (PDO) to operate 33 weekly flights to Fahud and Marmul Airports, starting July 1. The flights will serve PDO employees, ensuring efficient and reliable transport between key operational hubs. SalamAir CEO Adrian Hamilton-Mans said the renewal reflects PDO's confidence in the airline and underscores SalamAir's commitment to expanding domestic services with its modern fleet. PDO Managing Director Dr Aflah al Hadhrami highlighted the partnership's role in supporting Oman Vision 2040 goals, including economic diversification and sustainability. SalamAir currently operates 13 Airbus aircraft and plans to expand its fleet to 25 by 2028. PDO is Oman's leading oil and gas company, producing most of the country's crude oil and natural gas. This partnership will be beneficial not only for SalamAir and PDO but also for Oman as a whole, supporting the country's economic diversification, sustainability goals, and overall national development under Oman Vision 2040.
