Local companies win Oman oil and gas contracts worth $330m

13 October 2016

Petroleum Development Oman awards deals on local fields as part of In-Country Value programme

Petroleum Development Oman (PDO) has awarded three engineering, procurement and construction (EPC) contracts worth a combined $330m to local companies to build oil and gas facilities in Oman.

Earthworks contracts will be carried out by Najed al-Ahliya at the Fahud, Lekhwair and Yibal fields, and by Sarooj Construction Company at the Qarn Alam and Saih Rawl fields.

Rukun al-Yaqeen (RAY) will carry out electrical works across the entire north of PDO’s Block 6 concession area in central Oman, which includes the five fields.

The EPC projects were originally tendered in 2014. It is unknown why there were delays in assessing the bids for the various contracts.

“Najed al-Ahliya and Sarooj Construction Company will be responsible for rig site preparation, access roads and all related earthworks in their respective areas, while RAY International will deliver off-plot electrical work,” PDO said in its announcement.

The awards are part of PDO’s In-Country Value (ICV) strategy to build a small and medium enterprise (SME) sector and retain more of the oil and gas industry’s revenues in the sultanate.

“This is a truly special day for us, as these contracts are testimony to the trust that PDO is placing in local companies to deliver high-calibre work in our fields, safely, responsibly and efficiently,” said PDO managing director Raoul Restucci.

Sarooj Construction Company said the deal was its first direct EPC contract from PDO having previously worked as a sub-contractor on the company’s Nimr water treatment plant.

PDO is the largest oil and gas producer in Oman accounting for about 70 per cent of crude output in the sultanate. It is 60-per-cent-owned by the Omani government with the UK/Dutch Shell holding 34 per cent, France’s Total 4 per cent and Portugal-based Partex 2 per cent.

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