Petroleum Development Oman (PDO) signed contracts with two super local community contractors (SLCCs) as part of its in-country value (ICV) drive to boost Omani business, and create increased employment opportunities for nationals.
The company extended a previous contract signed with Al Baraka Oilfield Services in 2013 to carry out replacement and maintenance services of flowlines in Bahja in the southern part of its concession area. The contract value was increased by more than $85.83mn to cover the three-year extension.
The renewed agreement will see Al Baraka 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.
PDO also awarded a water drilling services contract to Al Shawamikh Oil Services, under which 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.
The deals were signed by Raoul Restucci, managing director, PDO, and Sheikh Ghanim bin Dhahir Al Bathari, chairman, Al Baraka Oilfield Services, and Sheikh Ahmed bin Saif Al Mahrooqi, chairman, Al Shawamikh Oil Services, at an official ceremony at PDO’s Mina Al Fahal headquarters in Muscat, Oman.
Restucci 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,” added Restucci.
“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,” observed Restucci.
Sheikh al Bathari said: “We highly appreciate the confidence PDO has placed in us to carry out the extra work as stipulated in the agreement. This extension reflects Al Baraka’s continuous improvement and its ability to carry out big projects professionally and efficiently, which places it among the large contractors in the industry.”
SLCCs are closed Omani shareholding companies which are owned by thousands of individual investors who 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.
Al Baraka and Al Shawamikh are two of four SLCCs working in partnership with PDO across its operations. The others are Al Haditha Petroleum Services and Al Sahari Oil Services. All four currently have more than 9,700 shareholders drawn from their local communities and boast a cumulative share capital value of $57.22mn.
