The five-year logistics contract has the option of a one-year extension, with the potential for subsequent renewals. Work is due to begin by the end of July. The scope of work covers transport management of all PDO's goods and materials, chiefly of rigs, which account for 60 per cent of the company's transport expenditure. PDO estimates that improved management can cut mileage by 10-20 per cent.

The venture is Tibbett & Britten's first in the sultanate, but the firm already operates in Saudi Arabia in joint venture with the Olayan Groupand in the UAE in partnership with the Al-Futtaim Group.

Prequalification is due to be launched imminently for two further major five-year service contracts for PDO, the first covering 'off-plot' delivery and the second for engineering and maintenance, following an invitation of expressions of interest in May (MEED 21:5:04).