Monday 19 April 2021
 
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PROJECT MAINTENANCE WORK

Oman's PDO in big jobs boost; seals $4bn service deals

MUSCAT, 22 days ago

Petroleum Development Oman (PDO), the largest oil and gas exploration and production company in the sultanate, has signed service contracts worth $4 billion covering project delivery and maintenance and integrity work in the North and South of its concession area.
 
The agreements with Arabian Industries Projects and Special Technical Services encompass the design and execution of more than 200 on-plot projects and will run for seven years with an optional three-year extension.
 
Thanks to this deal, the 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, said the statement from PDO.
 
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, it stated.
 
Local sub-contracting businesses and small and medium enterprises (SMEs) will also benefit with specific targets for both, and an obligation on the part of the contractors to ensure and monitor their use. 
 
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, said the statement.
 
This further builds on the focus to introduce and mature a domestic contractor for turnarounds to carry out facility maintenance in scheduled shutdowns as recently endorsed by Oman LNG, OQ, Opal and PDO, it added.
 
The deals were signed at an official contract awards ceremony at PDO’s Mina Al Fahal headquarters in the presence of Managing Director Raoul Restucci, Arabian Industries Projects and Special Technical Services CEOs Sadiq Sulaiman and Rejeesh Mani, and the companies’ managing directors Amer Al Sulaimani and Alex Clark.
 
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."
 
"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 noted.
 
"We expect to transition seamlessly from our existing on-plot deals in the coming months, working hand-in-hand with Arabian Industries Projects and Special Technical Services to deliver a large portfolio of projects safely, responsibly and efficiently," stated the top official.
 
"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 added.
 
Arabian Industries Projects said it 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.
 
Over 70 major continuous improvement ideas were generated during workshops to incentivise high performance and optimise efficiency, ICV and delivery and embedded into the contracts.
 
Lauding the pact, Sulaiman said: "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."
 
"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," he added.
 
Clark pointed out that these landmark contracts for Special Technical Services mark a new level of collaboration with the Omani oil group. 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 noted.
 
"In collaboration with PDO, STS will be developing Omanis at all levels of the contract organisation 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 added.-TradeArabia News Service



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