Oman hands $900m contract to Petrofac
Petrofac will work on Petroleum Development Oman's Yibal Khuff project, south-west of Muscat, under a four year contract
Petrofac announced it has won a contract worth $900m from Oman’s state-run Petroleum Development Oman (PDO) to provide engineering and procurement services in a field south-west of Muscat.
PDO’s Yibal Khuff project will be the site of work for Petrofac, under a contract which spans a four year duration, Reuters reported.
Oman’s government holds a 60% stake in PDO, which is the country’s top oil and gas producer. Royal Dutch Shell (34%), Total (4%), and Partex (2%), a Portugese firm, also hold ownership of the company.
Yibal Khuff Sudair integrated development project will come online in 2019, according to oil & gas giant Shell's website.
The project is estimated to "produce oil & gas to sustain the Sultanate of Oman’s industrial growth and provide gas for enhanced oil recovery techniques to boost the amount of crude oil that can be extracted from the country’s other oilfields".
Oman is ramping up its investment in the oil & gas sector despite global apprehension surrounding the sector due to price fluctuations and market concerns.
In May 2015, Oman announced it will participate in the development of Indonesia’s downstream oil & gas industry through investments worth $7bn, and is preparing to build a new oil refinery in the country’s Riau province.