Petroleum Development Oman (PDO) has awarded five-year hoist services contracts to local companies ABRAJ Energy Services and Shaleem Petroleum Company, covering 15 hoist units as part of efforts to modernise its fleet, improve operational efficiency and strengthen local content.

Under the agreements, ABRAJ will provide nine hoist units, while Shaleem Petroleum will supply six to support PDO’s well intervention and servicing operations, reported Oman News Agency.

The contracts are expected to enhance operational reliability and efficiency while maintaining the company’s stringent health, safety and environment (HSE), asset integrity and process safety standards.

They are also projected to deliver direct cost savings of 7% against existing contract rates over five years, alongside an additional 6% in cost avoidance compared with market trends.

The agreements will increase the proportion of modern units in PDO’s hoist fleet from 40% to 53%.

The introduction of advanced equipment is expected to reduce manual intervention, improve workforce welfare and strengthen safety performance.

A key component of the contracts is the assembly of six modern hoist units in Oman, creating opportunities for technology transfer, national capability development and increased participation by Omani small and medium enterprises (SMEs).

The initiative is also expected to strengthen local supply chains and retain more economic value within the country, supporting Oman Vision 2040.

Dr Aflah Al Hadhrami, PDO Managing Director, said: "These strategic contracts represent an important step in strengthening our operational capabilities and supporting our ambitions for production growth, greater efficiency and cost competitiveness. They also reflect the priorities of our Journey of Transformation, For Oman, and our commitment to maximising the value of the country's hydrocarbon resources.”

"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," he added.

Saif Al Hamhami, CEO of ABRAJ Energy Services, said: “Our longstanding partnership with PDO reflects a shared commitment to safe, reliable, and efficient operations that support Oman’s long-term energy ambitions. The addition of six new-build workover hoists marks an important step in expanding ABRAJ’s operational capabilities and strengthening our ability to support PDO’s evolving needs. Through continued investment in national talent, technology and operational excellence, we remain committed to delivering sustainable value and contributing to the long-term development of Oman’s energy sector.”

Mohammed Al Sibani, CEO of Shaleem Petroleum Company, said: "We are delighted to sign this strategic agreement, which builds on a strong partnership spanning more than 25 years. We greatly appreciate PDO's continued support, its executive leadership and its inspiring national vision, which serves an industry that remains a key driver of the country's development.

Al Sibani noted that "Shaleem Petroluem remains fully committed to fulfilling its operational obligations to the highest standards and continuing to develop Omani talent, with Omanisation already exceeding 91%, further contributing to local content development."

The awards mark another milestone in PDO’s Journey of Transformation, supporting production growth, cost competitiveness and operational excellence.

Through investment in modern equipment, national talent and local supply chains, the company aims to strengthen its operational capabilities and maximise the long-term value of Oman’s hydrocarbon resources.