PDO to Invest USD 1 Billion to Power Oman’s Gas and Renewables Push

Petroleum Development Oman (PDO) is ramping up its role in Oman’s energy transition with a USD 1 billion investment spanning both fossil fuel development and clean energy expansion, according to the Ministry of Energy and Minerals’ 2024 Annual Report.

It imay be noted that PDO’s flagship gas project targeting the Haima reservoirs, Amin, Miqrat, and Barik,where 12 wells were brought online last year. The development is expected to yield 2.22 billion cubic metres of gas and 0.34 million cubic metres of condensate, helping to bridge projected supply gaps anticipated between 2024 and 2026, and again after 2031.

“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 USD 1 billion,” the annual report noted.

In parallel, PDO is expanding into renewables in collaboration with OQ Alternative Energy and TotalEnergies. The joint effort includes the development of a 100 MW solar photovoltaic plant in northern Oman and two wind farms totaling 200 MW in the south. These renewable assets, expected to be commissioned by 2026, will collectively generate over 1.4 terawatt-hours of electricity annually, reducing carbon emissions by more than one million tonnes each year.

The move aligns with Oman’s national target to achieve net-zero emissions by 2050 and reflects a strategic pivot towards a more diversified and sustainable energy mix.

In 2024, PDO also retained its position as Oman’s leading exploration company, accounting for 24 of the 54 oil wells and 9 of the 19 gas wells drilled nationwide. The company holds 62 percent of the country’s total oil and condensate reserves, underscoring its dominant role in meeting domestic energy demand.

As Oman navigates the global energy transition, PDO’s dual-track strategy of strengthening conventional output while investing in renewables positions it as a central player in shaping the Sultanate’s long-term energy security.