Maltese-based firm to set up logistics hub at Port of Duqm
The Middle Eastern subsidiary of Maltese-based international logistics services provider Medserv has announced plans to set up a new logistics hub at the Port of Duqm as part of a long-term contract to supply oilfield pipeline goods to Petroleum Development Oman (PDO).
METS, the regional subsidiary, said it has been selected by Japanese conglomerate Sumitomo Corporation to provide supply chain management services for the $1.2 billion deal signed recently by the Japanese business giant with PDO. The latter agreement covers the supply, via the Port of Duqm, of Oil Country Tubular Goods (OCTG) for PDO’s drilling operations for a five-year period effective from mid-2018.
As a first step in the execution of its deal with Sumitomo, Medserv says it will set up a 117,000 sq metre yard at the Port of Duqm to handle the large volumes of piping materials destined for various oilfields across PDO’s expansive Block 6 licence.
According to Anthony Diacono, Chairman, Medserv plc, the facility will cater to sizeable shipments expected to arrive at Duqm Port at the rate of two consignments per week, each of around 3,000 metric tonnes of piping supplies.
“This equates to approximately 70 truck-loads each and every day for five years to be managed/handled by METS Oman. We are delighted to be playing a part in this and are committed to continuing to add value to PDO’s operations in the Sultanate of Oman. The contract award is testament to METS’ ability to deliver reliable, high quality Supply Chain Management Services,” he said.
PDO’s pipeline supply arrangement with Sumitomo Corporation effectively reinforces Duqm’s role as a gateway for oilfield equipment and goods sourced by PDO — an objective designed to add further InCountry Value (ICV) to the majoritystate-owned oil and gas producer’s operations. Around 60 new job opportunities will also be created as a result of Medserv’s logistics operations in Duqm, the Maltese firm said.
“Sumitomo and METS are delighted to place in-country value at the heart of this contract delivery and to contribute to the strategic objective of the Government of Oman to establish Duqm as PDO’s logistics hub of the future,” Medserv added.