Petroleum Development Oman is quietly executing one of the most diverse upstream investment programs in the Middle East. As of early 2026, the company is managing a multi-billion dollar portfolio that spans traditional oil and gas developments, enhanced recovery systems, gas processing infrastructure and a growing layer of renewable and digital energy assets.

The strategy reflects PDO’s shift toward what it calls a “Hybrid Energy” model. Large hydrocarbon recovery programs remain the backbone of production, but the operator is simultaneously integrating solar power, carbon management and digital infrastructure across its fields.

For EPC contractors and equipment suppliers, the portfolio represents a steady pipeline of engineering, construction and technology opportunities across upstream facilities, utilities, renewable generation and field infrastructure.

Budour Birba integrated gas project

The Budour Birba Integrated Gas Project represents a strategic expansion of gas production in PDO’s southern fields. The project is designed to unlock additional gas supply while improving liquids recovery from the Budour and Birba reservoirs.

Spetco International Petroleum has been selected to execute the design build scope, with the project now progressing through detailed engineering and early procurement.

Total EPC investment is expected to fall between $800 million and $1.2 billion depending on final processing capacity and pipeline scope.

Typical capital allocation suggests approximately $350 million for gas processing facilities, $250 million for compression and utilities, $300 million for gathering systems and pipelines, and roughly $150 million for wellsite infrastructure and supporting utilities.

Rabab Harweel integrated project phase 2

The Rabab Harweel Integrated Project remains one of PDO’s most technically complex developments. The facility handles sour gas processing and miscible gas injection for enhanced oil recovery in southern Oman.

Phase 2 focuses on optimizing production and integrating additional wells into the existing system. Petrofac continues to support engineering and EPC work on the project while Maccaferri provides specialized ground stabilization solutions.

Optimization and expansion works are estimated to represent $400 million to $600 million in additional EPC spending.

Roughly $200 million is typically associated with process modifications and compression upgrades, $150 million for injection and well integration systems, and about $100 million for civil works, utilities and infrastructure upgrades.

Yibal Khuff mega project

The Yibal Khuff development stands as one of the most technically demanding projects in Oman’s upstream sector. The project processes high sour oil and gas streams from deep carbonate reservoirs.

Petrofac is delivering major EPC work packages and the development is now more than 95 percent complete, with commissioning activities progressing.

Total project investment has been estimated at approximately $1.5 billion to $2 billion.

Capital distribution typically includes $600 million for sour gas processing units, $400 million for sulfur recovery and treatment systems, $300 million for utilities and compression infrastructure, and roughly $300 million for pipelines, flowlines and field facilities.

Marmul polymer phase 3

The Marmul Polymer Phase 3 development is the largest polymer injection project in the world, designed to enhance recovery across the Marmul heavy oil field.

The program involves extensive drilling campaigns, polymer mixing facilities and expanded water injection infrastructure. Mott MacDonald provides consultancy and design services while Petrofac supports EPC activities for the plant and associated infrastructure.

Total expansion investment is estimated between $1 billion and $1.3 billion.

Typical capital distribution includes $450 million for polymer preparation facilities, $300 million for injection systems and pipelines, $350 million for drilling and well integration, and around $200 million for utilities and supporting infrastructure.

Environmental and digital infrastructure

Beyond traditional upstream developments, PDO is also investing in environmental and digital projects.

The Nimr Water and Sewage Facilities project, awarded to Ion Exchange India and Hofincons Group, represents an estimated $200 million environmental infrastructure investment supporting water management in the southern concession area.

Meanwhile, the Dhulaima CO2 EOR pilot, developed with Shell, could form the foundation for future carbon storage developments in Oman if pilot injection results prove successful.

Finally, PDO’s Marmul Digital Oilfield initiative introduces AI enabled monitoring systems across mature fields. With Halliburton providing Landmark digital systems and Microsoft delivering cloud infrastructure, the program is expected to expand across multiple assets.

A diversified EPC pipeline

Taken together, PDO’s top projects represent an upstream and energy infrastructure pipeline exceeding $6 billion to $8 billion in active and near term EPC spending.

The program illustrates how Middle Eastern national operators are evolving their development strategies. Rather than shifting away from hydrocarbons, companies like PDO are integrating renewable power, carbon management and digital optimization into traditional upstream projects.

For contractors across engineering, equipment supply and energy technology, PDO’s hybrid portfolio offers one of the most diverse EPC opportunity sets currently developing in the Gulf region.