Page 19 - MEOG Week 13 2021

MEOG PROJECTS & COMPANIES MEOG

PDO signs $4bn of contracts

for Block 6 maintenance

OMAN STATE-BACKED Petroleum Development three years.
Oman (PDO) last week signed $4bn worth of A month earlier, Arabian Industries
maintenance contracts for work on the compa- announced the completion of two new storage
ny’s 900,000-square km Block 6 concession. tanks for PDO at Marmul and Lekhwair, with
In a press release, the company said the deals work nearing completion on a further four tanks
covered project delivery and maintenance and at Kauther and SaihNihayda.
integrity work in the north and south of the Meanwhile, in November it delivered 22
block, which has a total production capacity of multiport selector valve (MSV) skids for MPP3
around 650,000 bpd and is estimated to contain under an on-going four-year frame agreement
more than 75% of the Sultanate’s remaining oil contract with Petrofac for 54 skids, with 15 to be
reserves. delivered this year and the remainder to follow
Covering the design and execution of more in 2022 as required.
than 200 projects, the deals were signed with According to its website, Arabian Industries
local firms Arabian Industries Projects and Spe- is currently carrying out seven contracts for
cial Technical Services (STS). The agreements PDO throughout Oman.
have a seven-year term with an option for a PDO is 60% state-owned, with the remain-
three-year extension. der held by Royal Dutch Shell (34%), Total (4%)
According to PDO, Arabian Industries will and Thailand’s PTT E&P (2%). It is in the process
carry out project delivery in northern Block of transferring its stake in Block 6 to the newly
6 and maintenance and integrity work in the formed Energy Development Oman (EDO). The
south, while STS will be responsible for project new company is expected to tap global financial
delivery in the south and maintenance and integ- markets by way of a bond or an initial public
rity in the north. offering (IPO), in order to ease the government’s
In February, UK-based services provider Pet- debt burden.
rofac said it would provide “reimbursable engi- Muscat is understood to have been advised
neering services, integrated project support and on the process by JP Morgan Chase & Co. and
management services” to Arabian Industries, EDO is expected to go to market during the next
PDO’s contract holder for selected concessions few months to raise $3bn based on the reserves
in northern Oman. held in Block 6, making it the Middle East’s first
The contract also has an option to extend for reserves-backed raise.™

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