Oman’s PDO to spend $10 bln on hydrocarbon projects

Petroleum Development Oman, the Sultanate’s largest oil and gas producer, plans to invest over $10 billion in three mega ventures over the next five to 10 years, the Oman Daily Observer reported, citing Managing Director Raoul Restucci.

The three projects, the Rabab Harweel Integrated Project (RHIP), the Yibal Khuff integrated oil and gas facility and the Budour integrated project, are all making progress in their planning and implementation, Restucci said.

The Greater Birba in the south of Oman, the oil and gas reservoirs where the projects are located, may produce a third of the company’s oil in the future.

RHIP is scheduled for completion in 2019, with a goal of 36,000 barrels per day soon after.

A completion date for the Yibal Khuff and Budour projects was not mentioned.

The sultanate has been hit hard by slumping oil prices, prompting a rise in corporate income tax and a slash in subsidies as sources of non-oil revenue came into focus. The budget deficit for 2016 is estimated to be OMR 3.3 billion.

PDO is 60 percent owned by the Omani government and 34 percent owned by Dutch Shell Group.