Fact fileFact file2015

Proud toServe Oman

60%Government of Oman

34%The Shell Group

4%Total

2%Partex

Petroleum Development Oman (PDO) isthe major exploration and productioncompany in the Sultanate of Oman.

It accounts for around 70% of thecountry’s crude oil production and nearly all its natural gas supply. The Company is owned by the Government of Oman (60%), the Shell Group (34%), Total (4%), and Partex (2%). Gas fields and processing plants are operated by PDO exclusively on behalf of the Government.

PDO is at the forefront of technologicalinnovation in the oil and gas sector in the Sultanate of Oman. It operates in some of the most complex and challenging oil and gas fields – and is among the world leaders in Enhanced Oil Recovery (EOR) techniques, pioneering the use of polymer, steam and miscible gas injection on a full-field scale.

1

2

Number of producing oil fields

Pipelines & flowlines (km)

18,534

Operating Expenditure of

US$ 1.8 billionCapital Expenditure of

US$ 5.2 billion

Expenditure 2015

QUICK FACTS

132

2015distance drilled1,267 km

Number of production stations 21

Road system (km)

6,540

Number of active wells

~8,000Permanent

camps72015

kilometres driven278 million

Number of power generation units 28

2015manhours worked185 million

3

PRODUCTION HIGHLIGHTS IN 2015

• Oil production of 588,937 barrels per day (bpd), nearly 14,000 bpd over target

• Highest oil production since 2005• A new total oil, gas and condensate

production record of 1.29 million barrels of oil equivalent per day (boepd)

Well and Reservoir Management• Commissioned the first two Company-owned

hoists in more than 20 years• Increase in production of 92,600 barrels per day

Well Engineering Achievements• 574 oil and gas exploration and

production wells drilled – 15% up on 2014• Drilled the fastest well in PDO history at

Amal, 1,289m in 3.25 days• Drilled a total of 1,267 km (179 km

more than 2014)

Other Notable Successes• Conducted 13,199 completion and

well intervention (CWI) activities• Carried out 502 rig moves covering

14,058 km• Ran 157 operating units (50 rigs,

34 hoists and 73 CWI units)• Used 115,000 metric tons of steel

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250

500

750

1 , 000

1 , 250

1 , 500

1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Record BOE production, oil exceeds 2005 levels

550 550 550 563 565 575 585

553 549566 570 571

589

500

550

600

2010

2011

2012

2013

2014

2015

2016

Oil P

rodu

ctio

n (k

bbls/

d)

Target

Actual

94 94 92 96 87 96 77

95 94 9286

7883

50

75

100

2010

2011

2012

2013

2014

2015

2016

Cond

ensa

te P

rodu

ctio

n (k

bbls/

d)

Target

Actual

77 81 83 80 83 85 82

7174

7780

7781

60

75

90

2010

2011

2012

2013

2014

2015

2016

NA

Gas

pro

duct

ion

(mln

m3 /d

)

Target

Actual

NA GasOil Condensate

2015 Production: 1.288 mln boe/dBlack oil: 588.9 kb/dCondensate: 82.9 kb/dNon-Associated Gas: 522.1 kboe/dAssociated Gas: 94.2 kboe/d

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OPERATIONS EXCELLENCEHIGHLIGHTS IN 2015

Mina Al Fahal Terminal, Muscat Responsible for overseeing shipment of 330 million barrels of oil a year• Installed three new single buoy moorings to

ensure the continued safety of crude oil exports at MAF for the next 40 years

• First unit in PDO to be awarded the Operating Integrity SG5 certificate

• Cut the number of Tier-1 Asset Integrity-Process Safety incidents by 54%

• Central Gas deferment of gas and condensates fell to 13,500 boepd in 2015 (32,800 boepd, 2012)

• Assets received global excellence evaluations for their safe running

Business Efficiency and Lean• Reduced 2016 planned expenditure by US$1.6 billion• 115 Lean business improvement projects have been executed• 300 cost-saving, efficiency or productivity improvement ideas worth US$450 million

over the period 2015-2020• 17 (seven above target) Contract Optimisation Reviews (CORs) were held for key

contracts identifying over US$400 million of potential cost savings over the period 2015-2020

• 2,200 PDO staff have been given Lean awareness training• 200 staff have participated in Lean practitioner training• 250 managers, team leaders and supervisors have been trained as Lean managers• 18 local internal coaches are following the Continuous Improvement Competence

Framework to become accredited Lean coaches

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PROJECT DELIVERYHIGHLIGHTS IN 2015

Once complete, Miraah will save 5.6 trillion British Thermal Units of natural gas each year

The Miraah project in Amal will be a 1,021 megawatt solar thermal facility

by 300,000tons annually

Miraah is also expected to reduce

Work began on Miraah, the

world’s largest solar energy project at peak capacity

IBGô``````````````````````````````eMiraah

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Foundations laid at Rabab Harweel Integrated Project (RHIP)

RHIP is the largest capital project in PDO with a

reserve add of more than 500 million boe

Yibal Khuff, one of the largest and technically most complex ventures to be implemented by PDO, is moving smoothly to the “Execute” phase

Ras Al Hamra development project delivered

241 residential units marking the end of phase 1

ENHANCED OIL RECOVERY (EOR)HIGHLIGHTS IN 2015

Reappraisal of EOR activities to account for more than

25% of production by 2025

Commissioning of the Al Noor 3A sour miscible gas injection pilot

2.8 million tons of steam was injected into the Shuaiba oil-bearing formation and

5.6 million barrels of oil were produced

Harweel 2AB project started miscible gas injection, ramping up to a full capacity injection rate of

5 million m3/day

Start-up of phase 2 ofthe Marmul polymer project

The Marmul polymer plant8

9

27exploration wells delivered

2% increase in Stock Oil Initially In Place (STOIIP) to

67.8 billion barrels

109 million barrels of contingent oil reserves booked

Significant oil discovery at Sadad North added

44.5 million barrels of commercial contingent reserves

4% increase in Gas Initially In Place (GIIP) to

78.2 trillion cubic feet (Tcf)

Contingent gas bookings above target at

0.38 trillion cubic feet

EXPLORATION AND HYDROCARBON MATURATION HIGHLIGHTS IN 2015

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IN-COUNTRY VALUE (ICV)HIGHLIGHTS IN 2015

PDO In-Country Value Strategy: To secure long-term sustainable commercial benefits for the Sultanate by increasing the procurement of local goods and services through local community companies and SMEs, and improving the capacity and capability of Omani people and companies.

Created

7,200 job, training and re-deployment opportunities for Omanis

More than 4,000 Omanis currently working with Super Local Community Contractors (SLCCs) and Local Community Contractors (LCCs) in different disciplines

Awarded contracts worth more than

US$3.7

billion to nationally registered firms

Value of work executed by SLCCs during 2015 was equivalent to

US$96.3 million

190 active LCCs benefiting from PDO contracts

Value of work executed by LCCs was equivalent to

US$176.4 million

362 young Omanis successfully achieved Level 2 of the National Vocational Qualification and the Construction Industry Training Board programme

Total value of SLCC and LCC spend:

US$272.7

million, a 16% rise on 2014

A total of 195 young Omanis qualified as advanced welders at 6G level

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1,450 Omanis going through the Graduate Development Programme and Technician Omanisation Programme (TOP)

8,880staff

6,724Omani employees – a new record and

a 5% increase

The Omanisationrate was

76% A total of

683 Graduate Development Programme rolled out to all functions

More than

300,000 manhours were invested in developing staff through courses and sessions

844 Omanis among 968 female staff

5 Omani women on 15-member Managing Director’s Committee

Omanis werehired

PEOPLE AND STAFF DEVELOPMENTHIGHLIGHTS IN 2015

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Achieved a 12.5% reduction in Lost Time Injury Frequency, down to 0.28 Lost Time Injuries per million manhours worked

35% fall in severe road safety incidents

Tell A Friend Road Safety Campaign roadshow continued to travel all over the country

30% reduction in overall Motor Vehicle Incident Rate

Rolled out Project Prism to improve welfare of more than

30,000 contractor personnel

Commuter Bus Scheme expanded and now covers 26 hubs, 65 villages and key PDO locations

GENERAL WELFAREHIGHLIGHTS IN 2015

Supporting the Community

250 employees signed up for Baader volunteering project, supporting 8 non-governmental organisations

PDO’s social enterprise Banat Oman project trained 70 more women, taking the total to 250Secured a commercial agreement with Muscat Duty Free for Banat Oman products to be sold to air travellers

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Other Social Investment Achievements

PDO pledged to fund 12 mobile veterinary clinicsCommitments for the construction of a public majlis in Sadhun village, Qatbit

Support for ESO environmental protection and awareness campaigns

MoU with the Ministry of Education to finance the construction of a schoolin Dhaboon, wilayat Thumrait

MoU with the Ministry of Higher Education to sponsor 200 students from the concession area for university education

A three-year MoU with Outward Bound Oman to support its mission to equip Omani youngsters with practical life skills

The graduation of 25 high school students as Montessori nursery teachers from a PDO-funded training course

The donation of almost RO 170,000 to help victims of the humanitarian crisis in Yemen following a staff charity appeal

The donation of RO 114,000 after a staff appeal to help victims of the Nepal earthquake The donation of RO 10,000 to a campaign to help free debtor prisoners so they could spend Eid with their families.

RO

Environmental Stewardship

58% reduction in number of oil spills per million tonnes of production

Gas flaring volumes fell 14.3%, down from 0.84 million tonnes in 2014 to 0.724 million tones

9% drop in hazardous waste generation

4% cut in greenhouse gas emissions

CONNECT WITH PDO

www.pdo.co.om

Petroleum Development Oman

@pdo.oman

PetroleumDevelopmentOmanPDO

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Intisaar Al Kindy, Exploration DirectorIbtisam Al Riyami, People and Change Director

Ruqaiya Al Hinai, Corporate Planning DirectorAmran Al Marhubi, Technical Director

Abdul-Amir Al Ajmi, External Affairs DirectorMohammed Al Rashdi, Well Engineering DirectorAli Al Gheithy, Petroleum Engineering Function DirectorSami Al Lawati, Infrastructure DirectorAbdullah Al Shuely, Engineering & Operations DirectorRaoul Restucci, Managing Director

Haifa Al Khaifi, Finance DirectorSuleiman Al Tobi, Oil Director SouthSalim Al Sikaiti, Gas DirectorKhamis Al Saadi, Oil Director NorthAbla Al Riyami, In-Country Value Director

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