The operations of Oman’s major oil producer Petroleum Development Oman (PDO) are returning to normal after a strike by around 400 workers demanding better retirement and health benefits.

The Muscat-based company said that strikers at oil fields, including Qarn Alam and Fahud had blocked the delivery of water and diesel and resulted in some loss of production.

PDO fired the workers last week and has been in discussions with government officials, contractors and union representatives through the Majlis-ash-Shura council.

“For now, PDO can announce the resumption of business throughout most of its operations,” says a company spokesman.

Times of Oman reported that PDO has lost about RO10m ($26m) in revenues through the strikes, while the Union of Workers denied reports that the laid-off workers had signed new employment contracts.

PDO accounts for more than 70 per cent of Oman’s crude oil production. It is 60 per cent owned by the government of Oman, with the UK/Dutch Shell, France’s Total and Portugal’s Partex owning the rest of the shares.