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PDO signs US$4bn long-term service contracts

Industry

Petroleum Development Oman (PDO) has signed US$4bn service contracts, covering project delivery and maintenance and integrity work in the north and south of its concession area

The agreements with Arabian Industries Projects (AIP) LLC and Special Technical Services (STS) LLC encompass the design and execution of more than 200 on-plot projects and will run for seven years with an optional three-year extension.

Current Omanisation levels will double over the life cycle of the contracts, resulting in several thousand additional employment opportunities for Omanis, with a focus on skilled jobs, supervisors and engineering positions. 

A Training for Employment scheme has been introduced, enabling the training, re-skilling and upskilling of over 1,000 Omani personnel, and about 1,500 Omani employees from incumbent PDO contractors will be transferred and redeployed to the new contractors.

In addition, the deals include a strategy to develop a domestic firm to execute maintenance and integrity tasks in a selected cluster in the PDO oil and gas portfolio within five years.

The signing ceremony was attended by PDO managing director Raoul Restucci; AIP and STS CEOs Sadiq Sulaiman and Rejeesh Mani; and the companies’ managing directors Amer Al Sulaimani and Alex Clark.

PDO managing director Raoul Restucci said, “These strategic agreements create a win-win culture for PDO, our partner contractors and Oman, in that they maximise capital efficiency, generate multi-million-dollar savings and enhance In-Country Value (ICV) opportunities.

Under the terms of the deals, AIP will carry out project delivery in the north of Block 6 and maintenance and integrity work in the south, while STS will be responsible for project delivery in the south and maintenance and integrity in the north.

Sulaiman added, “Arabian Industries will deliver these contracts by maximising in-country value and the employment of the Omani workforce, providing them with the necessary training and development and reskilling as required, as well as engaging and developing LCCs and SMEs to the maximum extent possible.”

 

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