The Company said the agreements were further evidence of the success of its In-Country Value (ICV) strategy to build a thriving small and medium enterprise (SME) sector and retain more of the oil and gas industry’s wealth in the Sultanate.
Under the terms of the deals, earthworks will be carried out by Local Community Contractor (LCC) Najed Al Ahliya at PDO fields at Fahud, Lekhwair and Yibal and by Sarooj Construction Company at Qarn Alam and Saih Rawl. Additionally, Rukun Al Yaqeen (RAY) International will conduct electrical work across the entire north of the PDO concession area.
The contracts, which were signed at an official ceremony at PDO’s Mina Al Fahal headquarters in Muscat, will run for four years with options to extend into the future.
The three companies have all pledged to uphold PDO’s rigorous standards on safety, quality project delivery and ICV, including the development and Omanisation of other LCCs and SMEs.
PDO Managing Director Raoul Restucci said: “This is a truly special day for us, as these contracts are testimony to the trust that PDO is placing in local companies to deliver high-calibre work in our fields, safely, responsibly and efficiently.
“This is about realising our ICV ambitions to work with top-quality Omani SMEs which are staffed with committed and dedicated professionals. At the same time, we expect them as contractors to work with, and assist, other Omani businesses to help build a robust local supply chain for our industry.
“We are passionate supporters of building SMEs which are capable of competing locally, regionally and internationally and which are vital to diversifying the Omani economy.”
Najed Al Ahliya and Sarooj Construction Company will be responsible for rig site preparation, access roads and all related earthworks in their respective areas while RAY International will deliver off-plot electrical work.
Najed Al Ahliya Vice Chairman Thamir bin Said Mukhaibi Al Khatiri said: “We are very proud to be associated with PDO, a company which is well-known for its support of LCCs. We conform to PDO’s standards and are determined to deliver our work on time, without compromising on safety, quality and deliverables.
“We are aiming for an 80% Omanisation rate across our company during the four-year duration of the contract. We will inject talent resources into our organisation to enhance staff skills and development and will support local contractors wherever we can.”
Sarooj Construction Company Director Simon Karam said: “We have worked as a sub-contractor with Bauer building PDO’s Nimr water treatment plant. We are now honoured to have a direct contract with PDO, which is a national driver for professionalism, the propagation of values, raising the standards in the industry and developing a skilled national workforce.
“We attach great importance to safety, corporate social responsibility and ICV and one of our objectives is also to ensure we hire and train Omani youngsters from our area.”
And RAY International Group Chairman Dr Tahir Al Kindi said: “PDO is a very sophisticated school which shares its expertise and knowledge. It has been very supportive to us since we started 10 years ago and, through this assistance, we have progressed to becoming solution providers, introducing a number of new technologies to PDO, while at the same time sharing its commitment to safety and ICV.
“This new contract is a great opportunity for us to further enhance our relationship and build up our numbers of skilled Omani staff.”
Note to editors: Petroleum Development Oman (PDO) is the major exploration and production company in the Sultanate. It accounts for about 70% of the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Oman (which has a 60% interest), the Shell Group (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest). Gas fields and processing plants are operated by PDO exclusively on behalf of the Government.
For further information please contact the PDO External Affairs Directorate:
Karima Farid Al Shahaibi,
Media Relations Advisor,