PDO Awards $4B Service Deals
Petroleum Development Oman (PDO) has announced that it has signed “major” service contracts worth $4 billion covering project delivery and maintenance and integrity work in the North and South of its concession area.
The company said 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.
The scope of the contracts will span the execution of maintenance, integrity, field improvement proposals, turnaround activities, and the delivery of brownfield projects, PDO revealed. 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 carry out project delivery in the South and maintenance and integrity in the North.
“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,” PDO Managing Director Raoul Restucci said in a company statement.
“They represent a benchmark of best practice by capturing the lessons learned over the past 17 years from engineering, maintenance, and construction contracts across our concession area,” he added.
“Considering the sheer size and dimensions of these contracts, embedding such improvements within 15 months of the tendering period during the Covid-19 pandemic is an outstanding achievement,” he continued.
STS Managing Director Alex Clark said, “these landmark contracts mark a new level of collaboration between PDO and STS”.
“They build on a long-standing relationship which spans more than three decades and encompass a significant number of projects undertaken in Oman. Most importantly, the award of these contracts represents a major step forward for development and employment of the local workforce,” he added.
“In collaboration with PDO, STS will be developing Omanis at all levels of the contract organization from the site workforce to the contract leadership and management. The award of these contract will ensure STS can build further on its impressive and dedicated track record of national growth and training,” he went on to say.
AIP Managing Director Amer Al Sulaimani said, “Arabian Industries is pleased with the awarding of these long-terms contracts, which demonstrate PDO’s confidence in the capabilities and competencies of local contractors to deliver world class services”.
“Arabian Industries will deliver these contracts by maximizing 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,” he added.
“Furthermore, we see these contracts as the ideal platform to bring innovation and efficiencies that will surely contribute to the overall efficiency of the hydrocarbon industry in Oman,” Sulaimani continued.
PDO describes itself as the leading exploration and production company in the Sultanate of Oman. The business delivers the majority of the country's crude oil production and natural gas supply, according to its website.
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