Oman’s Galfar Engineering has won a $300m contract for construction of a new central processing facility at Petroleum Development Oman’s (PDO) Yibal Khuff project.

The contract duration is for 51 months and will include civil, mechanical, electrical and instrumentation works.

Petroleum Development Oman, the country’s biggest oil and gas producer and 60 per cent owned by the Sultanate’s government, accounts for about 70 per cent of the country’s crude-oil production and nearly all of its natural-gas supply.

“We expect reasonable income from this project,” Galfar said in a statement.

After a difficult year last year, Galfar Engineering initiated a transformation programme that would enable it to attain sustainable improvements in performance and operational efficiencies.

Despite posting a net loss of $74.93m in 2015, on the back of a large provision for receivables, Galfar Engineering ended the year with a healthy balance sheet, confirming in a report to the Muscat Stock Exchange that it had an order book of more than $1.6bn.