PDO plans to invest $20bn by 2021 to sustain long-term output

Muscat - 

Petroleum Development Oman (PDO) is planning to invest more than US$20bn in exploration and production activities by 2021 as the company aims to sustain its long-term hydrocarbon output.

‘For 2018, the current capital budget is US$4.1bn including approximately US$85mn of presently identified savings in oil capital expenditure and US$60mn gas capital expenditure’, PDO said in its annual Sustainability Report released on Monday.

‘PDO plans to invest more than US$20bn up to 2021 to sustain its long-term hydrocarbon output. At the same time, we continue to work on providing our shareholders with proposals for alternative financing options’, PDO said in the report.

For financing its capital expenditure without taking much support from the government, PDO also plans to leverage on some of its assets, for which the final decision is expected to be taken in the second half of 2018.

‘A financing option was presented to shareholders during 2017 in respect to releasing of value from PDO’s working capital. During 2017, PDO continued to work on a significant proposal that would leverage some of PDO assets, with the final proposal being presented to shareholders during in the first half of 2018’, the company said.

According to the report, average production of crude by PDO stood at 582,196 barrels per day (bpd) in 2017. During the same period

PDO received 76.64mn cubic meters of gas per day from the government. ‘It was lower than the initial target of 83mn cubic meters per day due to the introduction of a new gas supplier with the start of BP’s Khazzan field’, PDO said.

In 2017, PDO’s capital expenditure came at US$5.8bn and operating expenditure stood at around US$1.8bn.

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