Galfar awarded 4-year PDO contract

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December 08, 2016

Muscat - Galfar Engineering and Contracting Co has been awarded the Qarn Alam off-plot mechanical contract by Petroleum Development Oman (PDO).

The contract is a four-year service contract with the option to extend it by a further six years (2+2+2 years), Galfar said in a filing with the Muscat Securities Market on Wednesday.

Dr Hans Erlings, chief executive officer of Galfar, said the company expects to generate revenue of around RO70mn during the four-year period of the contract.

The contract involves flow lines, pipelines, well hook ups including all civil, mechanical, electrical and instrumentation works.

Galfar shares surged 6.25 per cent on Wednesday.

The company maintains a healthy order book position of approximately RO690mn or 25 months backlog, according to the company's financial report at the end of September.
It was awarded new projects and extensions on existing projects worth RO285mn during the first nine months of 2016.

This included: PDO's off-plot delivery contract of North Oman which was extended for a further two years; the award of the RO114mn Yibal Khuff on-plot construction project; and the RO60mn Duqm fishery port project.