Oman’s PDO signs $86m contract extension with Al Baraka

Petroleum Development Oman also awarded a water drilling services contract to Al Shawamikh Oil Services

PDO has extended its contract with Al Baraka Oilfield Services [representational image].
PDO has extended its contract with Al Baraka Oilfield Services [representational image].

Petroleum Development Oman (PDO) has renewed a contract it signed with Al Baraka Oilfield Services in 2013.

According to PDO, it increased the contract value by more than $85.7m (OMR33m) to cover the three-year extension.

Under the renewed agreement, Al Baraka Oilfield Services will execute work related to the Bahja off-plot delivery contract (ODC). This will include engineering, procurement, construction, pre-commissioning, and commissioning of various equipment, such as off-plot manifolds and flowlines, rig location well pads, overhead lines, and sectional flowline replacements and removal.

The extension was one of the two contracts that PDO awarded to super local community contractors (SLCCs) as part of its In-Country Value (ICV) drive to boost Omani business and create employment opportunities for nationals, Oman News Agency (ONA) reported.

The second was a water drilling services contract, which was awarded to Al Shawamikh Oil Services.

Under the deal, the contractor will provide all required management and supervision for well services, including installation and maintenance activities. These services will be carried out mainly in North Oman, as and when required by PDO, with the potential to expand into South Oman.

Raoul Restucci, managing director of PDO, said: “Local companies play an instrumental role in supporting and diversifying the country’s economic growth, building robust national supply chains, training and employing Omanis, and sharing the wealth of our industry across our communities.

“Both SLCCs have continued to deliver impressive work in our fields, safely and efficiently, and these new contracts are testament to the high standards they have set and their ability to compete with other providers.

“We are determined to sustain our SLCC partnerships to create commercial opportunities and help build up the capacity and capability of local businesses so they can service our industry competitively, reliably and professionally,” he added.

SLCCs are closed Omani shareholding companies owned by thousands of individual investors that live in PDO’s concession area. They were established to create career opportunities and develop entrepreneurial skills, to provide services to oil and gas companies in Oman, in competition with other established local and international companies, according to ONA.

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