Petroleum Development Oman
Oman's leading oil and gas exploration and production company.
Last updated October 14, 2026
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Overview
Petroleum Development Oman (PDO) is the Sultanate of Oman's principal exploration and production company and one of the country's most important industrial institutions. It is responsible for the majority of Oman's crude-oil output and a substantial share of the natural gas supplied to the national gas system. PDO operates on behalf of the Omani government, while its shareholder structure combines state ownership with strategic participation by Shell, TotalEnergies, and Partex. The company was established in 1937 after the Iraq Petroleum Company received exploration concessions in central Oman and Dhofar. Early exploration was difficult. The country's terrain was remote, transport infrastructure was limited, and tribal conflict disrupted access to promising geological prospects. Initial drilling campaigns produced a series of unsuccessful wells, and most of the original partners withdrew during a period of weak oil prices and operational difficulty. Shell and Partex remained involved, allowing exploration to continue. PDO's major turning point came in 1962, when commercially significant oil was discovered at Yibal. Further discoveries at Natih and Fahud established the basis for a national oil industry. The company then built the infrastructure required to export crude, including a long-distance pipeline, storage facilities, a marine terminal at Mina al Fahal, power generation, communications systems, and worker housing. Oman's first oil shipment left the country in July 1967, transforming the economic prospects of the modern Omani state. The Omani government acquired a 25% interest in PDO in 1974 and increased that stake to 60% later the same year. The foreign shareholding was subsequently stabilized at Shell 34%, Total's predecessor Compagnie Française des Pétroles 4%, and Partex 2%. In 1980 the company was reorganized by royal decree as Petroleum Development Oman, without the parentheses used in its earlier name. During the 1970s and 1980s PDO expanded production through discoveries including Ghaba North, Saih Nihayda, Saih Rawl, Qarn Alam, and Habur. By the end of the twentieth century, the company had developed a much broader field portfolio and was using improved reservoir-management, drilling, and recovery technologies to offset natural decline in mature fields. PDO also became a major participant in Oman's gas development. A central Oman gas project supplied the processing and pipeline infrastructure needed to deliver gas to the country's liquefied-natural-gas industry, with the Saih Rawl processing plant and pipeline commissioned in the late 1990s. The company faced increasing pressure from declining production at mature fields, particularly Yibal, from the late 1990s onward. In response, PDO adopted a broad recovery and efficiency program based on water injection, enhanced oil recovery, horizontal drilling, infill drilling, and other reservoir technologies. Thermal, chemical, gas-based, and in-situ-combustion methods became part of the company's technical portfolio. The government extended PDO's concession and operating arrangements in 2004, supporting longer-term investment planning. PDO has also pursued projects beyond conventional oil production. Its activities include natural-gas exploration and processing, condensate production, water management, renewable-energy applications, and solar thermal energy for enhanced oil recovery. The Miraah solar project, developed to generate steam for thermal recovery operations, illustrates the company's attempt to reduce the fuel and carbon intensity of parts of its upstream business. PDO remains an upstream operator rather than a conventional fuel retailer. Crude produced from its fields is delivered into the national export and storage system, while gas is supplied to the Government Gas System for electricity generation and industrial use. The company operates across a concession area covering roughly one-third of Oman's land area and works with a large contractor network. Its strategic role combines resource development, national energy security, technical capability building, employment, and support for Oman's broader economic diversification agenda.
History
Oil exploration in Oman began before PDO's formation. A 1925 geological survey by the D'Arcy Exploration Company did not establish commercial prospects, but renewed regional interest in petroleum led Sultan Said bin Taimur to grant a long concession in central Oman to the Iraq Petroleum Company in 1937, alongside a separate Dhofar concession. IPC created Petroleum Development (Oman and Dhofar) Limited to conduct the work. Exploration was constrained by geography, limited infrastructure, and local conflict. Geologists reached Jebel Fahud in 1954 and the first well was drilled there in 1956, but it was dry. Additional failures, convoy disruptions, and weak oil-market conditions caused most partners to leave by 1960. Shell and Partex continued the search. A commercially important discovery at Yibal in April 1962 was followed by finds at Natih and Fahud, creating the foundation for sustained oil production. PDO and its partners then constructed a 276-kilometre export pipeline, a coastal industrial complex at Mina al Fahal, storage tanks, a tanker-loading system, power generation, communications infrastructure, and staff facilities. The first Omani oil cargo was exported on 27 July 1967. The Dhofar concession was brought back into the company's operations in 1969. The political and corporate structure changed significantly in the 1970s. The government took a 25% stake in January 1974 and increased it to 60% six months later. Shell retained 34%, while Total's predecessor and Partex held the remaining minority interests. Discoveries during the decade, including Ghaba North, Saih Nihayda, Saih Rawl, Qarn Alam, and Habur, supported rising output. In 1980 the company became Petroleum Development Oman by royal decree and adopted the corporate identity associated with its modern form. PDO broadened its field base through the 1980s and 1990s, using new drilling and recovery methods to maintain production. Gas exploration in the early 1990s showed that Oman possessed substantial gas resources. In 1996 PDO agreed to develop central Oman gas fields for supply to the country's LNG industry. The Saih Rawl processing plant and a 352-kilometre pipeline to Qalhat were completed in the late 1990s; the first LNG cargo was shipped to South Korea in 2000. Mature-field decline became more prominent at the turn of the century. Yibal, which had produced for decades, began declining in 1997, exposing the limits of relying only on incremental drilling and conventional waterflooding. A company-wide review in 2002 produced a new program emphasizing reservoir studies, enhanced oil recovery, cost control, and more technically intensive field development. The government extended PDO's concession and operating arrangements in 2004, allowing the company to plan large recovery investments over a longer period. During the 2000s and 2010s, PDO commissioned additional gas-processing facilities, expanded the use of enhanced recovery, and investigated in-situ combustion and other methods for difficult reservoirs. The company also pursued solar steam generation for thermal recovery through the Miraah project. At the same time, labor relations, contractor oversight, safety compliance, and anti-corruption controls became visible governance issues. PDO continued to operate as Oman's dominant upstream producer while gradually adding renewable-energy and water-management capabilities to its portfolio.
- 2017
Fifty years of oil exports commemorated
[1]PDO marked the fiftieth anniversary of Oman's first crude export and highlighted its expanding energy portfolio.
- 2010
New oil and gas discoveries announced
[1]PDO announced three new oil discoveries and one new gas discovery.
- 2004
Concession extended
[1]The Omani government agreed to extend PDO's exploration and production concession and operating arrangements for 40 years, to 2044.
- 2002
Production-recovery transformation launched
[1]A comprehensive review led PDO to expand enhanced oil recovery, reservoir management, and cost-reduction programs.
- 2000
First LNG cargo supplied
[1]The first downstream LNG cargo from the associated national project was shipped to South Korea.
- 1996
Central Oman gas development agreement
[1]PDO agreed to develop central Oman gas fields and supply infrastructure for the country's LNG industry.
- 1980
Company renamed Petroleum Development Oman
[1]A royal decree registered the company under its current name without parentheses.
- 1974
Government became majority shareholder
[1]The Government of Oman increased its interest in PDO to 60%, establishing the ownership structure that remains associated with the company.
- 1967
First Omani oil export
[1]The first tanker shipment of Omani crude left the Mina al Fahal export terminal on 27 July.
- 1962
Commercial oil discovered at Yibal
[1]The Yibal discovery established the commercial basis for Oman's modern oil industry.
Products and positioning
State-backed national upstream energy operator
Upstream hydrocarbons · 1967
Crude oil
PDO explores for, develops, produces, treats, stores, and transports crude oil from Oman's onshore fields. The company delivers crude into the national storage and export system rather than operating as a consumer-facing fuel retailer.
Upstream hydrocarbons
Natural gas
PDO develops natural-gas fields and associated processing infrastructure, including facilities in central Oman. Processed gas is delivered to the Government Gas System, which supplies power generation and industrial users and supports Oman's LNG value chain.
Upstream hydrocarbons
Gas condensate
Condensate is recovered as an associated hydrocarbon from selected gas and condensate fields, including discoveries in the Mabrouk North East area.
Energy production technology · 2002
Enhanced oil recovery services and operations
PDO applies water injection, horizontal drilling, infill drilling, thermal recovery, in-situ combustion, and other enhanced-recovery methods to sustain production from mature and technically challenging reservoirs.
Renewable energy application · 2010
Solar steam for oil recovery
Through the Miraah solar project, PDO has pursued solar thermal steam generation for heavy-oil recovery, using renewable heat as an alternative to some gas-fired steam generation.
Controversies
2014
Bribery convictions involving a contractor executive and PDO tender official
A former Galfar Engineering and Contracting managing director and a former PDO tender-committee head were reported to have been sentenced in bribery-related cases. PDO subsequently warned contractors to comply with anti-corruption requirements.
Marketing campaigns
- 2017Fifty Years of Omani Oil Exports
Oman
PDO commemorated five decades since the first shipment of Omani crude and used the anniversary to present its wider energy and technology agenda.
Outcome. The anniversary reinforced PDO's role in the development of Oman's modern economy.
- 2010Miraah Solar Project
Oman
PDO began work on the Miraah solar initiative, designed to generate high-temperature steam for enhanced oil recovery in Oman.
Outcome. The project became a prominent example of PDO's effort to apply renewable energy within an upstream oil operation.
Brand decisions
2010
Expansion into solar thermal energyStrategyBackground
PDO sought to reduce the gas intensity of thermal enhanced oil recovery and diversify its energy technologies.
Action taken
The company worked on the Miraah solar project to generate steam for oil-field operations.
Aftermath
Solar thermal generation became part of PDO's broader energy-transition and operating-efficiency agenda.
2002
Enhanced recovery and cost-reduction transformationStrategyBackground
Decline in mature fields, especially Yibal, required PDO to improve recovery and control the cost of long-term production.
Action taken
PDO expanded waterflooding, enhanced oil recovery, reservoir studies, and efficiency measures.
Aftermath
The program became the basis for continued production optimization and investment in technically challenging reservoirs.
Planned cost savings. $2 billion (2002-2008)
1996
Central Oman gas projectStrategyBackground
Gas exploration indicated that Oman could support a significant gas and LNG industry.
Action taken
PDO agreed to develop central Oman gas fields, processing facilities, and a long pipeline to the LNG plant at Qalhat.
Aftermath
The project supported the first LNG cargo from the associated downstream development in 2000.
Project cost. $1.2 billion (1996-2000)
1974
Government acquisition of majority ownershipStrategyBackground
Oman sought greater control over its petroleum resources and the company developing them.
Action taken
The government first acquired a 25% interest and then increased its holding to 60%.
Aftermath
PDO became a state-majority upstream operator while retaining strategic international shareholders.
Recent events
PDO announces Steve Phimister as managing director[3]
Petroleum Development Oman announced Steve Phimister's appointment as managing director, effective July 2021, succeeding retiring Raoul Restucci.
ProSep launches joint industry project with Qatar Petroleum and Petroleum Development Oman[4]
Reported:
ProSep launched an Industry Technology Facilitator joint industry project with Qatar Petroleum and Petroleum Development Oman to develop an offshore-capable unit for oil-in-water removal and media regeneration using ProSep's Osorb Media technology. The project started in December 2014.
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