Petrofac has won a contract expected to be worth at least US$1 billion on a massive oil and gas project in Oman.
The London-listed oilfield services contractor that operates out of Abu Dhabi and Sharjah was selected by Petroleum Development Oman (PDO).
It covers engineering and procurement on the Rabab Harweel Integrated Project, which will also include a sour gas facility.
“This award underpins Petrofac’s strategy to enhance service capability in the Middle East,” said Craig Muir, the managing director for the company’s engineering and consulting services.
It is the company’s second major award in Oman in as many months. It was awarded a $1.2bn contract on the Khazzan gas project in the country last month.
Despite the recent wins, the company said it expected only “flat to modest growth in net profit” this year during its results presentation last month.
Oman is ramping up oil and gas spending and investing in enhanced recovery techniques to boost production. Oil and gas spending in the country reached $10bn last year, according to government figures.
PDO accounts for about 70 per cent of Oman’s oil production and almost all of its gas. It operates in a concession area that spans 100,000 square kilometres, or about one third of the country’s land mass.
Countries including Oman and the UAE are increasingly tapping sour gas deposits, named because of their high sulphur content, which makes them more expensive to process. Rising energy demands are making the commercial development of such fields more economically viable.
Associated sulphur production from gas projects under development in the Middle East is expected to leap by 44 per cent during the next three years, creating opportunities to develop downstream industries, such as fertilizer production.
Sour gas experts from across the region will descend on the capital tomorrow for the Sour Oil and Gas Advanced Technology Conference.
scronin@thenational.ae
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