Which recent sustainable initiatives has your company introduced, and how do you see these shaping the industry in the coming years?

PDO Energy Management and GHG (Sustainability)

PDO embarked on a very well-structured energy management program to reduce demand, enhance energy efficiency, as well as to find alternatives for gas and energy supply. PDO has set a commitment to reach net zero emissions by 2050 with an interim target of 7% GHG emission reduction by 2030 from 2021 baseline in line with Oman NDC GHG targets specifically for the Oil & Gas sector. In addition, reach net zero methane target by 2030 and eliminate routine flaring by 2027 and no later than 2030.

EM in PDO is based on a 3 Rs strategy that focus on:

• REDUCE: minimize flare, energy consumption and fugitives.
• REPLACE: inefficient equipment with more efficient ones.
• RENEW: increase renewable energy mix in the energy generation system (i.e., for power, steam and process heat generation).

The strategy is supported by six main pillars: Power generation, Renewables, Energy Efficiency, Subsurface Energy Management, Flaring and other GHG sources.

PDO Energy Management Strategy

The 3Rs strategy is further detailed for each pillar to achieve NZE and applied throughout PDO:

• Reduce dependency on conventional power
• Expand in renewables
• Minimize growth in energy consumption (power and steam) and operate our assets efficiently
• Reduce water production, water disposal and aquifer abstraction to As Low as Reasonably Possible (ALARP)
• Reduce local fuel gas consumption, non-routine, safety, and subsurface flaring and other GHG emissions to ALARP
• Achieve Zero routine flaring by 2030 as per the World Bank commitment
• Offset remaining emissions through CCUS/NBS and carbon credits

The Energy Management funnel is healthy and covers a wide aspects and various areas of focus.

The carbon emission from total PDO oil and gas operation is expected to decrease from 10.8 mln ton CO2e/yr in 2024 to 9.7 by 2030. This is a significant improvement compared to Business As Usual (if the planned Energy Management projects were not implemented, emissions would increase to 17 mln tonnes/yr by 2030).

-Faiza Harthy (Head of Energy & Water Policy)

Can you share how your company is contributing to the UN Sustainable Development Goals (SDGs) and the impact your strategy will have?

Petroleum Development Oman (PDO) has been a cornerstone of Oman's economic growth and social development for the past 70 years, making it the primary contributor across all 17 United Nations Sustainable Development Goals (SDGs). As the main driver of the nation’s progress, PDO has played a pivotal role in fostering sustainable development by integrating environmental, social, and economic considerations into its operations.

PDO makes substantial contributions to SDG 7 (Affordable and Clean Energy) and SDG 12 (Responsible Consumption and Production). By implementing innovative and sustainable practices, PDO ensures the provision of affordable and clean energy while upholding the highest environmental standards. Its adoption of innovative technologies in energy production and resource management underscores its commitment to sustainability and responsible consumption.

Similarly, PDO has been instrumental in advancing SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure). Through its vast revenues and investments, PDO powers economic expansion and integrated development across all sectors in Oman. By embracing state-of-the-art technologies and fostering innovation, the company has consistently driven ambitious and sustainable economic growth, reinforcing Oman’s position as a leading player in the energy sector.

Furthermore, PDO’s contributions extend directly and indirectly to SDG 3 (Good Health and Well-being) and SDG 4 (Quality Education). Directly, the company ensures the provision of high-quality healthcare facilities and educational institutions, particularly within its concession areas, through its generous social investment programs. Indirectly, PDO’s role in sustaining rapid economic development has facilitated the advancement of high-standard health and education systems, benefiting communities across the nation.

Additionally, PDO has made significant strides in addressing SDG 13 (Climate Action) and SDG 11 (Sustainable Cities and Communities). The company is at the forefront of Oman’s climate action strategy, contributing to the country’s ambitious commitment to achieving carbon neutrality by 2050. PDO has pioneered the development of the first national decarbonization roadmap, integrating landmark and globally recognized emission reduction projects, such as solar energy initiatives and sustainable water treatment projects in Nimr and Rima concession areas. These efforts have set a precedent for sustainable practices in the industry.

A true champion of SDG 17 (Partnerships for the Goals), PDO has established itself as a role model by fostering strategic, win-win partnerships at the national and international levels. By collaborating with various stakeholders, including government entities, private sectors, and local communities, PDO has facilitated holistic and sustainable development that aligns with global sustainability objectives.

PDO’s outstanding contributions are exemplified by its widely recognized In-Country Value (ICV) program, which maximizes economic and social benefits across Oman. This pioneering initiative was later implemented across all energy sectors in the country, serving as a testament to its excellence. Another notable example is the Local Community Contractors (LCC) scheme, which has significantly bolstered local entrepreneurship, enabling small and medium enterprises to thrive within the oil and gas sector. Moreover, PDO’s social investment programs have been instrumental in developing high-quality infrastructure, roads, healthcare facilities, and educational institutions, further elevating the standard of living across key regions in Oman.

Overall, PDO’s contributions to the UN SDGs are both extensive and profound, with impacts at the corporate and national levels. These efforts have garnered widespread recognition through numerous prestigious awards and international ISO certifications, reaffirming PDO’s role as a sustainability leader. By continuously driving innovation, fostering economic growth, and prioritizing environmental and social responsibility, PDO remains committed to shaping a sustainable future for Oman and beyond.

Looking ahead, PDO’s future strategy is centered on ensuring the long-term sustainability of hydrocarbon production while simultaneously enhancing Oman's economic growth and development. By driving operational excellence in hydrocarbon extraction and production, PDO aims to sustain a robust and competitive energy sector. The company is committed to maintaining carbon and cost competitiveness by leveraging advanced technologies, optimizing resource utilization, and integrating sustainable energy solutions into its operations. Moreover, PDO will continue to uphold the highest standards in health, safety, and environment (HSE), reinforcing its dedication to operational integrity and employee well-being. Governance remains a critical pillar of PDO’s strategy, ensuring transparency, accountability, and ethical business practices across all its activities. Through these strategic initiatives, PDO will continue to be a catalyst for economic diversification, social progress, and environmental sustainability, securing a prosperous and resilient future for Oman and its people.

- Mohammed Shuayli (Head Sustainability & Low Carbon Policy)

What are some of the key innovations and eco-friendly initiatives that attendees can look forward to seeing from your participation at OSW?

At OSW, attendees can expect to see a range of innovative and eco-friendly initiatives focused on decarbonisation and sustainability. These efforts center around cleaner energy production, reducing emissions, and improving efficiency across operations. Here are some of the key highlights:

1. Renewable Energy Projects

One of the standout initiatives is the Miraah Solar Project, which uses solar energy to generate steam for oil extraction. This reduces the need for gas-fired steam generation, cutting 100,000 tonnes of CO₂ emissions annually. The Amin Solar PV Park is another major project, contributing significantly to clean energy production.

Additionally, a Produced Water Desalination Station powered by thermal renewable energy will be operational by late 2024. This plant will provide 24/7 renewable-powered water treatment, eliminating the carbon footprint of conventional desalination methods and reducing 365,000 tonnes of CO₂ emissions per year.

2. Reducing Emissions from Oil & Gas Operations

A major focus is reducing flaring—burning off excess gas in oil production—which is a significant source of emissions. Technologies being implemented include:

• Digital Flare Mitigation, which converts waste gas into usable energy, preventing 33,000 tonnes of CO₂ emissions annually.
• Flare Gas Recovery Projects, such as the Daphne Technology Zero Emission Flare Recovery system, which aims to capture and repurpose gas that would otherwise be burned off.

Additionally, Enhanced Oil Recovery (EOR) using CO₂ is another innovation. Instead of venting CO₂, it is injected into reservoirs to boost oil extraction while permanently storing the CO₂ underground. This could cut between 300,000 to 600,000 tonnes of CO₂ per year, with full-scale deployment expected by 2029.

3. More Efficient Equipment & Processes

To improve energy efficiency in operations, several new technologies are being used:

• Permanent Magnet Motors (PMM) in Electric Submersible Pumps (ESP) are replacing traditional induction motors, leading to 10-30% power savings per well.
• Electric Boilers are being introduced as an alternative to traditional gas-fired boilers, reducing carbon emissions in industrial heating.

4. Sustainable Water Management

One of the most innovative eco-friendly projects is the Nimr Reed Beds, a natural water treatment system that cleans wastewater using plant filtration. This not only treats industrial water but also creates a thriving habitat for 140 species of birds and animals.

5. Circular Economy & Waste-to-Value Innovations

Efforts are also being made to repurpose waste materials and reduce environmental impact, including:

• Using waste materials in concrete and asphalt production, reducing reliance on raw materials.
• Producing bio-diesel from date seeds, turning agricultural waste into clean fuel.

These initiatives showcase a clear commitment to reducing emissions, improving efficiency, and leveraging renewable energy to build a more sustainable future. The focus at OSW will be on practical, scalable technologies that help industries transition toward cleaner operations without compromising efficiency.

- Nashwa Busaidi (Head of New Technology)

What value does participating in OSW bring to your company and your overall business strategy?

Participating in Oman Sustainability Week (OSW) is a pivotal opportunity for PDO to showcase our journey of transformation and reinforces our commitment to driving sustainability in support of Oman Vision 2040.

At PDO, sustainability is deeply embedded in our Health, Safety, and Environment (HSE) practices. It is rooted in our hydrocarbon development plans right from initiation all the way to execution and operations. OSW provides a platform to highlight our innovative approaches in safeguarding our people and the environment while ensuring sustainable energy production. It allows us the opportunity to connect with the industry to share best practices, as well as a learning platform to enable continuous improvement in extracting and processing hydrocarbons in most sustainable and safe ways that minimise impact to the environment.

Growing production, Cost competitiveness and Governance are key pillars in PDO’s journey of transformation and OSW is a wonderful avenue to support this purpose. Through OSW we can exchange thoughts on how to balance innovation and operational excellence to enhance efficiency while minimising resource consumption, which is in complete sync with Oman’s sustainability objectives.

On the cost front, our participation underscores our ability to integrate cost-effectiveness with sustainable practices, driving value creation for Oman. OSW offers us the chance to share insights on achieving operational efficiencies competitively and without compromising our environmental or social commitments.

Governance is another cornerstone of our transformation journey, and OSW provides an excellent opportunity to highlight PDO’s robust frameworks that ensure transparency, accountability, and ethical leadership. These elements are fundamental to our business.

By participating in OSW, PDO not only amplifies its thought leadership and commitment to sustainability, but also strengthens collaborations with industry stakeholders. This event aligns perfectly with our strategic focus on creating long-term value for Oman, our shareholders, and the communities we serve.

- Sami Al Lawati (Executive Technical Director)