MUSCAT - Musandam Global Investment Company (MGIC), one of Oman’s fastest-growing investment firms, has announced a partnership with local oilfield services company Black Rock Energy LLC to establish a state-of-the-art downhole tools manufacturing facility in the Sultanate of Oman.

As a first step towards realising this goal, Musandam Global has acquired a majority stake in Black Rock Energy. MGIC CEO Abdul Razzaq al Balushi described the move as “a pivotal step in our diversification strategy that reinforces our commitment to building Oman’s industrial future”.

He further added: “Together, we are launching a state-of-the-art downhole tools manufacturing facility in Oman, equipped with advanced computer numerical control (CNC) machinery and world-class quality systems. This facility will produce high-performance tools that meet stringent regional and international standards, driving innovation, industrial excellence and global competitiveness”.

Welcoming the partnership, Black Rock Energy noted in a post: “We believe this partnership will open new opportunities, strengthen Oman’s industrial capabilities, and support the sustainable growth of the energy sector”.

Downhole tools, often described as the “eyes and ears” of the oilfield, are specialised instruments used inside the wellbore during drilling, completion and production operations. They include stabilisers, jars, reamers, packers, motors and other assemblies that make drilling possible in complex geological formations.

As many of Oman’s fields are mature, carbonate-heavy and geologically challenging, downhole tools are critical for optimising drilling trajectories, managing high temperatures and pressures; and maximising reservoir contact. Reliable downhole equipment prevents blowouts, stabilises drilling conditions and ensures long-term well integrity.

According to the partners, local downhole tool manufacturing aligns with Oman Vision 2040 goals for economic diversification and industrial development. It also reduces vulnerability to global supply disruptions, while in-country value (ICV) mandates incentivise operators to procure locally made equipment.

“This venture is not only a testament to our growth strategy, but also a significant enhancement to Oman’s in-country value. By investing in local manufacturing, technology transfer and workforce development, we are directly contributing to national capabilities and achieving a sustainable economic impact”, Musandam Global’s CEO stated.

Over the past year, Musandam Global — a publicly listed closed joint-stock company on the Muscat Stock Exchange (MSX) — has significantly expanded and diversified its investment portfolio across multiple sectors. The company is partnering with the Ministry of Housing and Urban Planning on Tilal Al Nakheel (Palm Hills) — Musandam Governorate’s first integrated residential project under the Surouh initiative — featuring 650 housing units across 650,000 m² in the Wilayat of Khasab.

In renewable energy, Musandam Global is collaborating with Poland’s Njord Energy to pilot the region’s first Airborne Wind Energy (AWE) system, testing continuous renewable power generation in Musandam. The company is also joining Turkish investors to establish Musandam Drydock and Marine Industries LLC, offering ship repair, maintenance and manufacturing services.

Additional initiatives underway include an integrated fish hatchery and packing facility, beautification projects in the Wilayats of Khasab and Bukha, high-end resort and heritage developments, smart city and education zones; and efforts to deepen Musandam’s integration into global trade networks.

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