Fueled by success: Aflah Al Hadhrami

The fragility of the world’s oil market and the recent turbulence in the Middle East have compelled the sector’s serious players into a pattern of adaptation. To stay in the game and enjoy continued success, these firms must evolve – or perish. For Petroleum Development Oman (PDO), it’s a journey of transformation.

Oman is one of the largest Middle Eastern producers of crude oil that exists outside of the Organization of the Petroleum Exporting Countries bubble, which gives it greater flexibility in production policy. As such, Oman’s production of oil has risen annually for almost two decades, thanks to the country’s ever-growing resource sector – the backbone of the national economy.

With so much at stake, Dr Aflah Al Hadhrami, Managing Director of PDO, Oman’s leading oil and gas producer, says he feels that his position carries responsibility beyond a conventional leadership role.

"Oil and gas represent slightly over 70 percent of Oman’s revenues, so when the government gives you a mission like this, it’s hard to say no," he tells The CEO Magazine.

A longtime veteran of the oil industry, he started his career with PDO before branching off to try his hand with other leading companies.

"I climbed the ladder quickly. At the age of 33, I became a vice president, responsible for a budget of over US$2 billion. I was young and made a lot of mistakes, but I always wanted to prove that I was capable," he recalls.

After moving into a teaching role at Sultan Qaboos University, Al Hadhrami spent six years as an adjunct instructor until his retirement in 2020.

"I always wanted to retire at a young age, but then came the call," he says.

Growth mission

Al Hadhrami’s first return to the industry was with a local producer seeking accelerated growth and transformation. Less than three years and one new management team later, the business rose from a revenue of US$126 million to US$1.3 billion under his leadership.

"We did it because we focused on the core values of the organization," he says.

Having successfully delivered that transformation, Al Hadhrami prepared once again for retirement. However, opportunities to contribute to the sector continued to emerge.

"Eventually, the government put me in charge of PDO," he says. "It relies heavily on this institution and it was always run by expats.

"For me, it was a deeply personal responsibility. I had already achieved a strong level of professional fulfillment through my work; however, what truly guided me was a sense of national duty and service to the country. I took great pride in being Omani and in leading the company.

"Our purpose has always been to serve Oman and we remain fully committed to contributing to its progress, prosperity and long-term future in every way we can."

As PDO’s first Omani Managing Director, Al Hadhrami was able to transition quickly into the role and begin shaping a new phase for the organization.

"Any plan I had would not have succeeded without strong staff morale. I therefore invested considerable time in building trust and strengthening confidence across the organization," he explains.

He adopted a leadership approach centered on accessibility, engagement and transparency, guided by a shared commitment to serving Oman and maximizing long-term value for the nation.

"I always maintained an open-door approach on a weekly basis, welcoming people from across the organization to my office for open dialogue and meaningful discussions. These interactions gave me a genuine understanding of the organization’s pulse and the perspectives of its people."

Al Hadhrami’s first win was restoring the staff pension.

"It was a complex situation, but we were able to resolve it effectively," he says. "Government stakeholders are aligned, employees are reassured and trust has been restored."

"With that foundation in place, we were able to launch our ‘Journey of Transformation’ (titled ‘For Oman’), marking the beginning of a new phase of transformation, where our people create competitive and responsible hydrocarbon growth to maximize value for Oman.

The Journey of Transformation was built around four pillars: production growth; cost competitiveness; governance and ethics; and health, safety and environment. These are all underpinned by people and leadership development and digital transformation.

Voice of change

Leadership was renewed and a new organizational mindset was embedded. Valuable lessons were drawn from other organizations that had struggled in their transformation efforts. Gradually, PDO began to evolve and embrace meaningful change.

"I don’t claim to be an expert on transformation and change management, but it’s a topic very close to my heart," Al Hadhrami says.

"The results have been encouraging and have strengthened my confidence in the process. Change is inherently difficult; it creates disruption, challenges established norms and can alter existing power and authority structures. However, when resistance to change becomes strong and widespread, meaningful transformation is unlikely to succeed.

"You have to genuinely believe in the change required and ensure that the team around you believes it too."

A significant milestone in PDO’s journey of transformation was the visit of His Majesty Sultan Haitham bin Tarik, which underscored PDO’s strategic role in advancing Oman’s economic and energy priorities in alignment with Oman Vision 2040. During the visit, His Majesty also inaugurated the Integrated Operations Center, reflecting the nation’s strong focus on operational excellence, digital transformation and long-term value creation within the energy sector.

The occasion highlighted PDO’s position as a cornerstone institution supporting Oman’s national development agenda, while also reflecting the leadership of Al Hadhrami in ensuring the organization continues to deliver sustainable, long-term value for the sultanate.

Al Hadhrami emphasizes that internal politics can be detrimental to institutional effectiveness and should be firmly addressed. He also notes that any misuse of authority cannot be tolerated and must be dealt with through appropriate and decisive action.

Driving change across an organization of 9,100-plus employees and over 50,000 contractors is not a simple undertaking; nor is Al Hadhrami’s strong advocacy for greater inclusion of women and younger generations in the workforce.

"A month ago, our leadership program, Ruwad, graduated its first cohort. One-third of them were women and I am very proud of that achievement. Selection is based strictly on merit, ethics and values," he points out.

With change has come growth – Al Hadhrami says PDO plans to significantly increase its output over the next five years.

"That is a significant challenge, but we have a clear and comprehensive plan in place to achieve it. At the same time, we are positioning PDO not only as an energy producer, but also as a pipeline for national talent development, building future leaders, both male and female, for the country," he adds.

Despite PDO’s long and distinguished history, established in 1937, the company today brings together a diverse and dynamic workforce of young engineers and graduates from leading global universities. Over the decades, the company has also served as a cornerstone of national leadership development, with many of the country’s ministers, undersecretaries and CEOs having progressed through its ranks.

"We are building a cosmopolitan and performance-driven culture, and I am confident that what we are doing is strengthening the company for the future," he says. "This has required sustained effort and commitment over the past years."

Al Hadhrami emphasizes that PDO’s transformation is not driven by a single individual, but by collective organizational alignment.

"This is not a vision owned by the Managing Director alone; it is a direction embraced by the entire organization," he reflects.

There’s a certain kind of confidence that comes from knowing you’re in the last professional role you’ll ever hold. Al Hadhrami knows PDO is the swansong of his career, which has given him the ability to be frank and take risks to achieve greater growth.

"I can’t wait to retire for a third time, but I’m still in a transformational mindset," he says.