PDO signs deals worth $800m with Omani firms
The five companies will provide workover services on wells in PDO’s concession area, including modification, repair and maintenance, suspension and abandonment.
Times News Service
MUSCAT: Petroleum Development Oman (PDO) has Omanised its hoist fleet for the first time in its history, after agreeing to get into contracts with five local companies worth more than US$800 million.
The company signed the 10year deals at the Oil and Gas West Asia (OGWA) Exhibition and Conference at a special ceremony held under the auspices of Mohammed Al Zubair, His Majesty’s Adviser for Economic Planning Affairs.
The five Omani firms — Abraj Energy Services, MB Petroleum Services, Cactus Premier Drilling Services, BaOmar Oil Field Services and Mideast Integrated Drilling & Well Services Company (Midwesco) — will provide workover services on wells in PDO’s concession area, including modification, repair and maintenance, suspension and abandonment.
PDO External Affairs and Value Creation Director Abdul-Amir Al Ajmi said, “These contracts represent an important milestone for us, as we deliver on our In-Country Value (ICV) commitments to the country.”
“For the first time in our history, our entire hoist fleet is fully owned and operated by Omani companies, underlining our effort to retain more of the wealth of the oil and gas industry in the Sultanate,” he added.
“These long-term agreements are testament to our belief that Omani businesses have the ability and professionalism to support our well engineering directorate so that it can continue to deliver well services safely, reliably, efficiently, on time and on budget,” Al Ajmi said.
“At the same time, they offer a fantastic opportunity to build the capability and experience of Omani crew as we move towards greater automation in our well engineering operations, as well as the opportunity to manufacture and assemble some of the awarded hoist units,” he added.
Under the terms of contracts, the five companies will support local small and medium enterprises (SMEs) and Local Community Contractors (LCCs). They will also make contributions to a fund to train and enhance the skills and capabilities of Omanis who work in the oil and gas sector and beyond. There are 35 mobile units in the PDO hoist fleet, which also include crew from communityowned Super Local Community Contractors (SLCCs) Al Shawamikh and Al Baraka, Shaleem Petroleum Company and its own insourcing organisation, launched to boost operational performance and competency among Omani well engineers.
The new hoist deals mean the company has now completed 25 of the 53 ICV oil and gas industry opportunities, which were revealed in the ICV Blueprint Strategy document unveiled by the Ministry of Oil and Gas in 2013. These were identified as supply chain and service opportunities, which could be delivered in the Sultanate, and PDO is leading on the implementation of 43 of them.