Petroleum Development Oman signs $30mn deal to boost Omani manufacturing
PDO signs $30mn deal to boost Omani manufacturing
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Petroleum Development Oman (PDO) has signed a US$30mn contract with Schlumberger, a leading international oilfield services company, which will increase the amount of Omani-made materials used in the oil and gas sector.
The five-year deal covers the provision, manufacturing and reconditioning of completions and gas-lift equipment and accessories used to extract hydrocarbons with Schlumberger committed to supporting local manufacturers to develop the capability to supply the orders.
This commitment is, according to a press release, in line with PDO's in-country value strategy to maximise the procurement of local goods and services as well as improve the capacity and capability of Omanis and companies to secure sustainable commercial benefits for the sultanate. The agreement will create direct skilled Omani jobs involved in the manufacture and supply of key materials. Furthermore, by the end of the contract period, the majority of these should be manufactured in Oman.
PDO technical director Amran al Marhubi said, "The aim of the contract is to develop an Omani supply and manufacturing capability which can service oil and gas companies not only in the sultanate but also abroad.
"We hope this deal with Schlumberger will be a catalyst in that it will encourage local entrepreneurs to invest in new plants and labour because we are committed to using them if they meet our technical, commercial and safety standards," Marhubi said.
Gary Bremner, finance director of Schlumberger (Oman), said, "We are pleased to be able to support the development of manufacturing. We have been in Oman since 1955 and this is our biggest commitment to develop local manufacturers."
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