PDO Signs Duqm $1.2B Pipe Supply Contract
Petroleum Development Oman (PDO) has signed a $1.2 billion contract to supply piping for its drilling operations through Duqm.
The five-year deal with Japanese supplier Sumitomo includes a new supply yard in the Duqm Special Economic Zone, which will be a logistics centre for materials being delivered to PDO’s drilling locations.
The agreement will confirm PDO as an anchor tenant at Duqm from mid-2018, with up to two shipments a week (carrying 3,000 metric tons of pipe) being routed through the port for its oil and gas fields.
“This contract will spur the growth of Duqm and attract even more business as the port demonstrates its ability to handle major operations,” PDO Managing Director Raoul Restucci said.
“Every year, we drill 600 wells across our concession area and all the piping for that will be managed at Duqm,” he added.
The deal builds on the Government’s strategic aim to make Duqm the oil and gas port for Oman and will further attract other companies’ services to the hub, PDO said in a company statement.
“Duqm meets a strategic need for Oman, both in terms of its location and facilities. For PDO and our contractors, its proximity to some of our major fields is a great boon as it enables us to import and move vital equipment and material faster and cheaper than routing cargoes through other locations,” Restucci said.
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