PDO awards five-year hoist contracts

BUSINESS REPORTER
MUSCAT, OCT 27
Petroleum Development Oman (PDO) has awarded five-year hoist services contracts to Abraj Energy Services and Shaleem Petroleum Company, targeting lower operating costs and a more modern fleet while expanding opportunities for domestic suppliers.
The contracts cover 15 hoist units supporting well intervention and servicing operations, with nine awarded to Abraj and six to Shaleem, PDO said on October 27.
The agreements are expected to deliver direct savings of 7 per cent against existing contract rates over five years, alongside an additional 6 per cent in cost avoidance against market trends.
PDO said the awards would strengthen operational reliability and efficiency while maintaining its standards for health, safety and the environment, asset integrity and process safety.
The contracts will increase the proportion of modern units in PDO’s hoist fleet to 53 per cent from 40 per cent. The equipment is expected to reduce manual intervention, improve workforce welfare and strengthen safety performance.
Six modern hoist units will be assembled in the Sultanate of Oman, creating opportunities for technical knowledge transfer, workforce development and greater participation by Omani small and medium enterprises.
PDO Managing Director Dr Aflah al Hadhrami said the awards would strengthen the company’s operating capabilities and support its production and efficiency objectives.
“These strategic contracts represent an important step in strengthening our operational capabilities and supporting our ambitions for production growth, greater efficiency and cost competitiveness,” he said.
The awards form part of PDO’s transformation programme, which focuses on production growth, cost competitiveness and operational performance. The company said developing domestic capabilities would also increase the economic value retained within the country.
“By partnering with local companies and developing national capabilities, we are building a more competitive and resilient supply chain that supports our long-term operational needs and contributes to national economic development,” Al Hadhrami said.
Abraj Chief Executive Saif al Hamhami said the addition of six new-build workover hoists would expand the company’s capabilities and strengthen its ability to support PDO’s evolving requirements.
He said Abraj would continue investing in Omani talent, technology and operational performance to support the long-term development of the energy sector.
Shaleem Chief Executive Mohammed al Sibani said the contract extended a partnership with PDO spanning more than 25 years. He said Omanisation at Shaleem had exceeded 91 per cent, reflecting its investment in national workforce development.
The local assembly programme is intended to strengthen the domestic supply chain by combining equipment investment with technical capability development, supporting PDO’s longer-term operating requirements.
PDO said the contracts aligned with Oman Vision 2040 through their emphasis on local content, national skills and opportunities for smaller businesses. The awards combine fleet renewal with measures intended to improve the efficiency and cost competitiveness of its well servicing operations over the five-year term.