State-owned Petroleum Development Oman (PDO) is expected to tender a major gas processing project by the end of July, according to industry sources.

PDO is planning to develop the third phase of its Yibal depletion compression scheme to sustain production at its Yibal field in Al-Wusta governorate, north-central Oman.

The engineering, procurement and construction contract (EPC) for the project is expected to be worth more than $300m, according to PDO. The tender was previously planned for the second quarter of 2012.

Last month, PDO received bids for the estimated $450m second phase of its depletion compression project at the Saih Rawl gas field in the north of the sultanate.

PDO is 60 per cent owned by the government of Oman, with 34 per cent owned by UK/Dutch Shell Group, 4 per cent by France-based Total and 2 per cent by Portugal’s Partex.