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PDO targets saving $1bn during 2016-20 period: MD

Raoul Restucci tells Oil & Gas Middle East that Oman's largest oil and gas producer is on a drive to both maximise production and improve cost efficiency

Oman’s state-owned oil giant Petroleum Development Oman (PDO) has been focussing hard on increasing cost efficiency and will strive to increase oil and gas production at reduced expenses.

In an interview with Oil & Gas Middle East, PDO’s managing director Raoul Restucci said the organisation has been closely discussing with its contractors on how to cut down on operating costs.

“We have held a series of Contract Optimisation Reviews and listened carefully to our contractors for solutions on where they believe we could enhance their performance and enable us to mutually operate more efficiently,” Restucci said.

“So, as a result of this collaboration, and along with procurement savings on our mega projects, we are well on our way to booking $1bn real and structural savings from 2016-2020,” he revealed.

He added that for PDO, ‘the most important aspect for us has been to work collaboratively with our contracting community rather than issuing top-down cost reduction orders’.

In its drive to both maximise production and manage costs PDO has also launched a ‘Lean continuous business improvement programme’ to identify waste, strip out duplication and streamline operations ‘so that we do more for less’.

At the same time, PDO has continued to ramp up production. In November, PDO achieved its best monthly oil production since April 2006. “We have also just drilled the fastest well in our history, taking 3.25 days to drill to a depth of 1,289m in our Amal field in southern Oman,” Restucci mentioned.

Further, PDO has launched the ‘Every Rial Counts’ campaign, an initiative focussed on savings and efficiencies across the Company, ‘including right down to the amount of printing we do, and the level of food that is wasted’, which emphasises that all staff members have a responsibility ‘to treat PDO’s money as if it were their own’.

Staff Writer

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