In an exclusive interview with Oil & Gas Middle East, Saif Al Hamhami, CEO of Oman-based Abraj Energy Services — a fully-owned subsidiary of OQ — talks about Oman’s drilling sector, the company’s new brand identity and its planned IPO next year.
Oil & Gas Middle East: With an increasing focus on higher oil and gas production, can you provide an overview of Oman’s drilling sector?
Al Hamhami: Oman’s drilling sector is an attractive market that distinguishes itself from other MENA nations due to the longer duration of drilling contracts, which allows for more stable rates and provides greater resilience to market fluctuations. Even as the price of oil has greatly fluctuated over the past decade, rig demand in Oman has grown consistently, mainly due to internationally competitive production costs and well-established fiscal and regulatory regimes. By 2027, the total hydrocarbon production in Oman is forecasted to reach 2 million barrels of oil equivalent per day.
The sector benefits from a diverse exploration and production landscape, as well as the presence of major international oil companies such as Total Energies, Shell, BP, Eni, and Oxy. This encourages innovation and technical advancements, and ensures that workplace safety and environmental standards are aligned with global benchmarks.
Oman has been a leader in implementing enhanced oil recovery technologies in the Middle East and North Africa region. This has supported the growth of the market for drilling and well intervention services, and it is expected that demand for rigs will increase along with increased activity and production.
Oil & Gas Middle East: Abraj Energy recently rebranded to focus on the modernisation and innovation of its service offerings. Can you tell us more about it?
Al Hamhami: Abraj’s new corporate brand identity reflects its commitment to becoming a market leader in high-quality drilling and well services in the region. The new identity, which is bold and contemporary, celebrates the company’s history while also reflecting its focus on a brighter and more sustainable future. The emphasis on greener and more efficient operations demonstrates Abraj’s dedication to progress and innovation.
Can you comment on Abraj’s announcement of a planned IPO next year?
Al Hamhami: In September 2022, the possibility of a future listing was announced around the time of the MSX Roadshow. Currently, the company is evaluating the possibility of an IPO and is in the process of obtaining the necessary regulatory approvals. Advisors have been appointed to assist with this process. Further updates on the potential listing will be provided to stakeholders as decisions are made.
Oil & Gas Middle East: Given the high risk of rig work, what is Abraj doing to mitigate occupational hazards in the fields?
Al Hamhami: Abraj has a strong track record in health, safety, and environmental (HSE) standards that are aligned with global benchmarks. The company’s drilling, workover, and well services were among the first in Oman to be certified as API Q2 compliant by the American Petroleum Institute, which sets standards for companies providing services in the oil and gas production sector. Abraj consistently provides its customers with safe and effective services and has among the lowest Lost Time Incident Rates and Total Recordable Incident Rates in the world.
The company is committed to continuous improvement and has implemented extensive training programs to increase safety awareness and minimize time lost to injuries. For example, the company has introduced the Abraj Eyes program, which uses live streaming CCTV to improve safety on its rigs. Abraj’s safety culture extends to the workplace and the environment and is reinforced by all executives and management.
Oil & Gas Middle East: Can you talk about projects in the pipeline and plans for 2023?
Al Hamhami: At this time, we cannot make any forward-looking statements. However, Abraj currently provides drilling and well services for several ongoing oil and gas projects in Oman, including the Khazzan and Ghazeer fields with BP, the Saih Rawl, Saih Nihayda, Wadi Musalim, Burhaan, Yibal fields with PDO, the Abu Tabul and Bisat fields with OQ, and the Safa and Wadi Al Latham fields with Oxy Oman.
Since commencing operations in 2007, Abraj has drilled over 6,000 kilometers, averaging 239 wells per year between 2019 and 2021. This strong performance has helped the company capture a significant market share in Oman and paved the way for future growth opportunities.
