Sultan Qaboos University College of Engineering Department of Mechanical and Industrial Engineering Management For Engineers

Project on:

Petroleum Development Oman

Students Name:

Abeer Younis Al-Barram 82313 Reem Al-Kharusi 82351 Zumuruda Al-Hashli - 82356 Section: 20 Supervised by: Dr. Sujan Piya

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Company Background:

Petroleum Development Oman ( PDO) is the foremost exploration and production company in the Sultanate. It accounts for more than 70% of the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Oman (which has a 60% interest), Royal Dutch Shell (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest). The first economic find of oil was made in 1962, and the first consignment of oil was exported in 1967. Oil Exploration & Production PDO finds oil fields and develops them into productive assets by drilling wells and constructing and operating various hydrocarbon treatment and transport facilities. The crude oil that is produced from the fields is not sold by the Company but rather delivered to a storage facility at Mina al Fahal, where it is loaded onto sea-going tankers at the discretion of the Company's shareholders.

As such, the Company does not "earn" any money from the sale of oil; its shareholders do. The shareholders in turn cover all budgeted operating and capital expenditure.

Gas exploration and Production PDO also finds, develops and operates natural-gas fields and their associated production systemsall on behalf of the Government of Oman. The Company delivers gas to the Government Gas System, which supplies fuel for most of Oman's power stations and some of its industries, and to the Oman Liquefied Natural Gas (OLNG) plant at Qalhat, near Sur.

As part of its gas-production operations, PDO also supplies some 50,000 barrels per day of condensate (liquid hydrocarbons that condense out of natural gas) and about 200 tonnes per day of liquefied petroleum gas, which is chiefly used for cooking.

Education and training In addition, PDO plays a key role in educating and developing young Omani talent through its comprehensive education and training programmes. It also supports and encourages local businesses and communities through its Business Development Centre. PDO believes that the sustainable development of the country is furthered through its education and training initiatives and through its efforts to stimulate successful Omani businesses throughout the country.

CHAPTER (2): Strategic planning 2.1 PDO Objectives

The objective of PDO is to engage efficiently, responsibly and safely in the exploration, production, development, storage and transportation of hydrocarbons in the Sultanate of Oman. The Company seeks a high standard of performance with the aim to further the long term benefits of its Shareholders, its Employees and the society of the Sultanate of Oman at large.

2.2 PDO Responsibilities

Various inter-related responsibilities of the Company are recognised: a) To Shareholders To develop and protect the investment and interest of the Shareholders in accordance with their objectives and guidelines, and to operate at all times in a cost efficient and profitable manner, bearing in mind that the Company has a clear and important duty of care in its dealings with the Shareholders' investments and interests. b) To Employees To provide all Employees with safe and healthy conditions of work and adequate and competitive conditions of service. On an equal opportunity basis, to develop in an optimal manner the skills, talents and potential of its Employees. The Company will pay particular attention to the recruitment, training and development of Omani Employees. It will respect the rights of all Employees as provided for in the Basic Law. c) To those with whom we do business To seek mutually beneficial relationships with contractors, vendors and other companies engaged in the exploration and production of oil and gas in the Sultanate of Oman and to promote the conduct of business in accordance with these principles. d) To Society Appreciative of the guidance of His Majesty the Sultan, to conduct its business as a good and responsible corporate citizen of the Sultanate of Oman, observing the Laws applicable to its conduct and the principles embedded in the Basic Law, and paying proper regard to health, safety and the environment consistent with its commitment to contribute to sustainable development. These four areas of responsibility are seen as inseparable. It is the duty of the Management of the Company to continuously assess priorities and to discharge the various responsibilities as best it can under the prevailing circumstances on the basis of that assessment.
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to achieve this PDO set long term plans divided into phases of 5 yrs plans subdivided into yearly strategic goals

2.3 Strategic Planning at PDO From scribd link

Within this three-way matrix, the geographical dimension was traditionally the most important. The fact that the operating companies were national subsidiaries provided the basis for the geographical emphasis of operational and financial decision making. This was reinforced through the strategic planning process, which put its main emphasis on planning at the national and regional levels. PDOs planning system lay at the heart of its management system. It was viewed as one of the most sophisticated and effective of any large multinational. It was much discussed and widely imitated. Its main features were the following: A strong emphasis upon long-term strategic thinking. PDOs planning horizon extended 20 years into the future much further than the four- or five-year planning that most companies engage in. Unlike most other companies, the basis for these strategic plans was not forecasts but scenarios alternative views of the future which allowed managers to consider strategic responses to the different ways in which the future might unfold. A breadth of vision, and emphasis on the generation and application of ideas rather than a narrow focus on financial performance. PDOs planning department was receptive to concepts and ideas drawn from economics, psychology, biochemistry, biology, mathematics, anthropology, and ecology. As a consequence, PDO pioneered many new management techniques, including multiple scenario analysis, business portfolio planning, cognitive mapping, and the application of organizational learning concepts to planning processes. More generally, PDO was in the vanguard of the transition from the role of the strategy function as planning towards one where the primary roles of strategy were encouraging thinking about the future, developing the capacity for organizational learning, promoting organizational dialogue, and facilitating organizational adaptation to a changing world. Planning at PDO was primarily bottom-up. The CMD identified key issues, set strategic direction, and approved major projects, and the planning department formulated the scenarios. However, most strategic decisions and initiatives originated among the operating companies. The role of the planning staff and the regional and sector coordinators was to coordinate the operating company strategic plans.

CHAPTER (3): Decision making process.

Assets in PDO face daily problems in the field. Decisions to these problems are usually made inside the clusters in each assets and if the decisions required an amount of money of higher than RO 30000 then its made the director of the asset.

Cluster >> asset >> managing director ( > RO 100000) decision process in three stages: Intelligence: Searching the environment for conditions requiring decisions. ( by clusters teams Design: Inventing, developing and analyzing possible courses of action. ( by clusters teams) Choice: Actual selection of a course of action. ( depend of the amount of money )

Also called rational or scientific approach, is based on the concept of the economic man. Recognize the need for a decision. Establish, rank, and weigh the decision criteria. Gather available information and data. Identify possible alternatives. Evaluate each alternative with respect to all criteria. Select the best alternative.

Then do the ( new projects evaluation) from the last link u sent me

CHAPTER (4): The way of communications.

CHAPTER (5): The framework of organizational structure.

CHAPTER (6): Staffing and developing employees and managers.

CHAPTER (7): How the organization motivated employees

CHAPTER (8): What types of leadership

CHAPTER (9): How management managed change, culture (diversity), conflict, and stress

CHAPTER (10): How management controlled employees

CHAPTER (11): Identifying appraising and rewarding performance.

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