Majority Omani government-owned Daleel Petroleum has awarded a contract to the local firm Galfar Engineering & Contracting for construction services.

In a bourse filing to the Muscat Securities Market, Galfar said it was awarded a $77.24m (OMR29.7m) contract from Daleel for a duration of four years, with a one-year extension option.

The contract is effective from 15 February and Galfar has a three-month mobilisation period to begin work on its contract.

“We expect reasonable income from this project,” Galfar stated, without elaborating what its scope of work is or what the operator’s objectives are from the project.

Daleel Petroleum is the operator of the sultanate’s onshore Block 5 in the northwest of the country, which is estimated to produce 50,000 barrels a day of oil.