Hi Brage;
It's more than just the PB runtime being required. Your App is basically trying to use the connection request as an OLE "server". The CTMO() command requesting the connection to "PowerBuilder.Application" initiates a call to the O/S to lookup in its "registry" that entry. The "PowerBuilder.Application" entry then maps in the registry to another entry which defines to the O/S what to launch (ie: EXE, DLL, etc) plus other runtime parameters.
So it could be that the registry on your PB IDE machine has these registry mappings. When you deploy, you need to also recreate the same mappings on the deployment machine for the OLE server operation.
Now depending on exactly what the "PowerBuilder.Application" OLE server is type wise, that can vary. You would have to give us more details on your Apps use of this external resource and details of its operations in order to help further.
Regards ... Chris