PDO Overview

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Haifa Al Khaifi - PDO Finance DirectorDecember 2018

Budapest Energy Summit

Women in Energy Conference

To be Renowned and Respected for the Excellenceof our People and Value we Create for Oman and

all our Stakeholders.

P D O V i s i o n

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• African, Indian and Eurasian

plates meet the Arabian plate in

close proximity to Oman

• “Crumple Zone” effect

• Results in smaller field sizes

• Diverse reservoir properties:

▪ Age: 100 – 545 mln years

▪ Depth: 500 – 5,000 mss

▪ API: 13° – 48°

▪ Wide permeability range

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R e g i o n a l C o n t e x t

Number of producing oil fields 178

Number of active wells >10,000

Number of production stations 21

Pipelines & Flowlines (km) >18,500

Number of Drilling Rigs/Hoists 46/35

Number of wells drilled (2017) 626

Permanent Camps 7

Road System (km) >6,500

Number of Power Gen Units 29

Kilometres Driven (2017) 314.1 mln

Manhours Worked (2017) 224.9 mln

Distance drilled (2017) 1,141 km

P D O D i m e n s i o n s :Ke y F a c t s

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S u s t a i n a b l e d e v e l o p m e n t i n & b e y o n d P D O C o n c e s s i o n a r e a

▪ Deliver optimum

value in the face of

low oil prices and

production

restrictions

Staying the course

▪ Drive efficient

energy use in all

aspects

More Sustainable oil

and gas

▪ Creating more

sustainable value

beyond oil and gas

Positioning for the

Future

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C r e a t i n g Va l u e f o r t h e N a t i o n

▪Production 2,150 b/d (130% of drill

spend)

▪ CCR oil 62 MMb

CCR Gas 0.35 Tcf

▪ Mabrouk NE

Exploration

▪Oil production:582,196 b/d

▪ Condensate:68,467 b/d

▪Gas:

78.64 Mln m3/d

▪ Lean: US$1.2 blnvalue

▪Local Mtc

86 yrs saving

▪Drilled 626 wells &

21,000 interventions

▪Mega Projects

▪Record: Hawqa

EDF in 60 weeks

▪FEED & Project

Capability

Production Operations Project Delivery

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L e a d i n g t h e w a y i n E O R

Habhab

EOR PROJECTS & TRIALS

PROJECT TYPE

Thermal

Chemical

Miscible GasInjection

EOR Pilot in Execution

Amal W

Amin

Nimr

Thayfut

Al Noor

Marmul Polymer, -ASP & Produced Polymer Treatment

➢Major EOR field developments:

▪ Marmul Polymer, Qarn Alam and AmalSteam, Harweel Miscible Gas Injection.

➢22 EOR projects/pilots/concept

EOR SUCCESS

PDO’s EVOLVING (EOR) PORTFOLIO

2018 2025

Fahud

Al Ghubar S

Lekhwair DEW

EOR Development

Harweel

Qarn Alam

Primary

Secondary

Tertiary

52

10

38%23 34

43%

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U N G C & P D O S u s t a i n a b i l i t yR e p o r t

▪ PDO joined UN Global

Compact Jan 2015 |

Committed to 10 universal

principles

▪ First national upstream oil

company in Gulf to join

▪ Currently only Omani

company member

▪ Global Reporting Initiative

(GRI) sustainability

accreditation (Mar 2017)

▪ Company’s 4th Sustainability

Report published (April 2018)8

N i m r R e e d B e d s : a g r e e na p p r o a c h t o w a t e r t r e a t m e n t

140Species of

birds/animals recorded

300kTonnes of CO2

reduction per annum

115k m3/dproduced water

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B e h i n d t h e Miraah So lar Pro jec t

Construction Start

First Steam

2015

2017

36Glasshouses

3km2

Project Area

6,000 tonsDaily Steam

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B u s i n e s s D e v e l o p m e n t O p p o r t u n i t i e s

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Leveraging PDO strengths beyond our concession area

Zero Gas

Flaring

Energy

Efficiency

PV Solar

Panels

Bio-saline

Crops

N e w F r o n t i e r s

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P D O : P o s i t i o n e d f o rS u c c e s s i n t h e E n e r g y Tr a n s i t i o n

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M a n a g i n g D i r e c t o r ’s C o m m i t t e e

Thank you

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S t r a t e g i c P r i o r i t i e s : “ S t a y t h e C o u r s e ”

Strategic Priorities

▪ Sustainable production – from 550 kb/d … to 600kb/d … now towards 670-680 kb/d

▪ Act as country’s swing producer, meeting Government gas demand

▪ Reserves Replacement >1

▪ Generate strong revenues, create new value streams

▪ National value: Support economic diversification & develop Omani Talent & Businesses

Challenges: Responses:

▪ Increasing complexity

▪ Capital Intensity

▪ Evolving energy markets

▪ Economic fundamentals/funding constraints

▪ Local employment

▪ Maximise Production/Value

▪ Minimise Expenditure

▪ Continuous Business Improvement – Lean

▪ Energy/Renewables & Water Management

▪ Step-up In-Country Value programme

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R o b u s t D e l i v e r y , E x c e e d i n g E x p e c t a t i o n s

Sustainably grow oil production

300

400

500

600

700

2010 2015 2020 2025 2030

Oil

Pro

du

ctio

n (k

bb

ls/d

)

Actual

PB10

PB14

PB17

PB18

2017 average oil production: 582,196 bpd

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LEAN Mana gemen t

▪ Goal deployment ▪ Leader standard Work ▪ Performance Visuals

External LEAN Roll-out

LEAN Tools

8,300 3,500generated implemented

Additional Value, Cost Reductions & Avoidance:

$1.2 blnStaff Efficiency:

242 FTE

The bottom line 2016-2017:

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N e w Te c h n o l o g y : A Ke y E n a b l e r

Pitless Drilling

Technologies tested 90% success rate in the last 3 years.

BLADE

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