PDO oil production targeted at 659,000 bpd in 2023
Conrad Prabhu
Business Correspondent - Oman Daily Observer; Magazine Editor - ENERGY OMAN
OMAN DAILY OBSERVER / 2 SEPTEMBER 2023
Maximising value: ‘We achieved more than US$670 million in total cumulative savings against the budget, an increase of more than 21% in savings compared to 2021’: Steve Phimister
CONRAD PRABHU
MUSCAT: Petroleum Development Oman (PDO), the biggest oil and gas producer of the Sultanate of Oman, is targeting production of 659,000 barrels per day (bpd) of oil and 90,500 bpd of condensates during 2023 – figures that roughly correspond to levels achieved in 2022.
Oil production averaged 660,894 bpd in 2022, which was 8,894 bpd higher than the planned target for the year, the majority state-owned energy company said. Condensate output at 100,172 bpd was well above target, while gas production was 62.93 million m3/d in trend with lower customer demand. Combined hydrocarbon output for the year averaged 1.17 million barrels of oil equivalent per day (boepd), PDO stated in its newly released Sustainability Report 2022.
Summing up the company’s strategy for 2023 and beyond, PDO’s Managing Director Steve Phimister (pictured) stated: “As we adapt to the changing energy landscape, our direction will be guided by our strategic priorities: ensuring the cost and carbon-competitiveness of our core business – today and in the future; growing our oil and gas business safely and sustainably; and ensuring long-term portfolio resilience whilst organically diversifying revenue generation options.
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We remain committed to building a sustainable and low-carbon future, not only to ensure our Company's long-term success but also to continue generating oil and gas revenue in a cost-effective, energy-efficient manner to maximise value for the Sultanate,” Phimister further added.
Capital expenditure (Capex) for 2023 is projected to total around $5 billion, with operating expenditure (Opex) estimated at $2 billion. The targeted output of hydrocarbons is expected to generate $9 billion net cashflow for the company’s shareholders (based on an oil price of $50 a barrel and of $4.5 per million British thermal units of gas), according to PDO.
While Capex and Opex figures for 2022 were roughly similar at $5 billion and $1.9 billion respectively, the company achieved significant savings during the years, Phimister said: “We achieved more than US$670 million in total cumulative savings against the budget, an increase of more than 21% in savings compared to 2021. Oil capital expenditure (Capex) savings of US$632 million came from a mix of our Near-Term Sustainability programme (NTSP) revisions, drilling efficiencies, well optimisation and project savings; Gas Capex savings of US$38 million were achieved,” he stated in the Managing Director’s Foreword.
A key highpoint of 2022, Phimister recalled, was the adoption of a new ‘Purpose and Strategy’ that sets out a new vision and mission for the PDO amid a rapidly evolving energy landscape.
“Our goal of achieving economic and environmental sustainability informs our new Purpose of ‘Building a sustainable and low-carbon future to maximise value for Oman’, which replaces our previous vision and mission,” the Managing Director said.
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