Overview
PDO and OQ Group are Oman’s two most important energy entities. They serve different functions within the national energy ecosystem, and understanding their distinct roles clarifies Oman’s upstream and downstream strategies.
Petroleum Development Oman (PDO)
PDO, majority-owned by the government with Shell as a key shareholder, is Oman’s largest oil and gas producer, accounting for roughly 70 percent of crude output. PDO operates in the interior desert, managing mature fields through enhanced oil recovery and developing new discoveries. The company employs over 8,000 staff and is Oman’s largest employer of nationals in the energy sector. PDO also operates extensive solar projects to reduce gas consumption in oil extraction.
OQ Group
OQ Group, formed in 2019 through the merger of Oman Oil Company and Orpic, is the government’s integrated energy holding company. OQ spans upstream exploration, refining, petrochemicals, gas distribution, and trading. It operates the Duqm refinery, Sohar petrochemical complex, and has international upstream assets. OQ also leads Oman’s green hydrogen and alternative energy initiatives through its OQ Alternative Energy arm.
Key Differences
PDO is focused on upstream production in Oman, while OQ is an integrated energy company with a broader mandate. PDO is a joint venture with international partners, whereas OQ is fully state-owned. PDO manages mature fields requiring advanced recovery techniques, while OQ focuses on value-added downstream activities and new energy sectors. Their strategic roles are complementary.
Verdict / Bottom Line
Oman benefits from having two strong energy entities with distinct mandates. PDO ensures continued upstream production and revenue generation, while OQ drives downstream value addition and energy transition initiatives. Effective coordination between the two is essential for maximising value from Oman’s hydrocarbon resources while preparing for the energy transition.