In 2015, Petroleum Development Oman delivered a record combined oil, gas and condensate production of 1.29 million boe/d, highlighting the Company’s comprehensive focus on value creation. This included an average oil daily production of 588,937 bpd, which is the highest since 2005 and almost 14,000 bpd above the planned target, the Company’s Managing Director Raoul Restucci informed in the Ministry of Oil & Gas’ annual media briefing held in Muscat recently.

He made a presentation titled ‘Proud to Serve Oman – Staying the Course’ at the briefing and spoke about the 2015 performance and 2016 plan of the Company. PDO has intensified its efforts to increase delivery of net revenues for Oman by increasing production, especially through early monetisation and an emphatic focus on cost reduction at all levels of the business. PDO aims to continue to stay the course in terms of sustainable performance and growth, and build momentum in internal and external value creation, delivering more for less through more efficient ways of working and a closer collaborative working relationship with its contractors. “No matter how low oil prices dip, you can count on PDO,” assured the MD.

“The current environment requires us to leave no stone unturned to boost near-term cash-flow and we have reduced 2016 expenditure by $1.6 billion. We’ll continue to work with our contractors to identify further cost reduction opportunities and optimise expenditure in light of the country’s economic challenges,” stated Raoul Restucci. The Company will continue to drive additional cost reduction opportunities to further improve the country’s budgetary position.

Towards this end, PDO has stepped up its Company-wide roll-out of Lean continuous business improvement measures. It has added significant reserves and contingent resources, in excess of annual production and continued to invest in strategic projects, with the majority of corporate delivery milestones on or ahead of plan. Over 115 Lean efficiency improvement projects have been executed and more than 100 projects are on going. PDO now has seven “value streams” where Lean is being implemented to deliver more for less systematically across the Company. The Company has additionally offered assistance to a number of state authorities also embarking on Lean journeys.

PDO intends to accelerate to a sustainable new long-term oil production plateau of 600,000 bpd well ahead of the original 2019 target to support revenue generation. The augmentation of PDO’s efforts to meet growing national gas demand, non-associated gas production was 83 million m3/ day, which is one million cubic metres above the planned target.