In 1951, the Dhofar concession was allowed to expire and the company dropped 'Dhofar' from its title, becoming Petroleum Development (Oman) Ltd. Having landed at Duqm in February 1954, IPC geologists were faced with tribal conflicts which made access to the most promising oil prospect, Jebel Fahud, difficult.

[1][2] Later, when the supply line was switched to the Sumail Gap, warring tribes were able to disrupt convoys and bring operations to a halt.

Further dry wells were drilled and this lack of success, combined with worsening logistical problems and a glut of oil on the world market, led most of the partners to withdraw from the venture in 1960.

A 276-kilometre pipeline requiring 60,000 tons of steel pipe was laid, the labour being provided by the inhabitants of whichever villages happened to be near the worksite.

The whole development — including the pipeline, the coastal industrial area, the tank farm, the marine terminal, a chain of radio repeater stations and housing for staff at Ras al Hamra — cost $70 million.

In order for them to be sustainable in the long run, the plans had to be executed for substantially less money than originally envisaged, making them all the more challenging.

Because of the long-term nature of investments that would be required, the Omani Government agreed at the end of 2004 to extend PDO's exploration and production concession and operating agreements for 40 years – until 2044.

With the addition of those two processing plants, nearly one-third of the hydrocarbon energy that PDO supplies will come from natural gas—the fuel that has a central role in the Government's economic diversification plans.

Faced with oil prices above $100 a barrel and sinking field capacities, PDO was one of the many companies to introduce in-site combustion, an EOR technique involving lighting fires within the reservoirs, in 2008.

[7][8] In 2011, a series of strikes and protests took place in Oman that also involved hundreds of PDO workers demanding higher wages.

[10] In 2013, a team of members from Manpower Ministry and Oman's Trade Union Federation found nearly 50 labor law violations and mistakes in safety norms during an inspection at PDO's Fahud facilities.

[11] In 2014, P. Mohamed Ali, the former managing director of Galfar Engineering and Contracting, was sentenced to three years in jail for bribes made to PDO.

[15] In the same year, PDO signed a contract with GE Oil & Gas to provide Progressive cavity pump (PCP) equipment and related services from late 2016 onwards.

[19][20] The largest onshore discovery in 2018 was a natural-gas condensate area, found on the Mabrouk North East field, operated by PDO.

[21] The Board consists of twelve members and includes the chairman, who is the Minister of Oil & Gas His Excellency Dr. Mohammed bin Hamad bin Saif al Rumhy]], who represents the Government of Oman and representation from PDO's private shareholders, Royal Dutch Shell, Total and Partex.

The primary objective of PDO is to engage efficiently, responsibly and safely in the exploration, production, development, storage and transportation of hydrocarbons in the Sultanate.

PDO finds oil fields and develops them into productive assets by drilling wells and constructing and operating various hydrocarbon treatment and transport facilities.

PDO also finds, develops and operates natural gas fields and their associated production systems all on behalf of the Government of Oman.

The PDO established the Oman Oil and Gas Exhibition Centre in Muscat in 1995 to educate those in fossil fuel development in the country.

[29] PDO has a Diversity & Inclusion (D&I) team of 20 employees that work to create an environment free from any form of harassment and discrimination.

[30][31] In 2017, PDO donated six fire trucks to the International College of Engineering & Management (ICEM) and announced to support 18 new initiatives in Oman, focusing on health and safety, community infrastructure, employability training, charities, and animal welfare.