PDO signs agreement to strengthen Oman’s engineering sector

The Engineering, Procurement and Construction (EPC) contract is structured in three phases

Petroleum Development Oman (PDO)

Petroleum Development Oman (PDO)

Muscat: Petroleum Development Oman (PDO) provided a further boost to Omani engineering with the signing of a new contact with the Oman Engineering Procurement & Construction (OmEPC), a joint partnership between four Omani SMEs; Value Engineering Centre (VEC), Hamad Engineering Services (HES), Precision Engineering Consultancy (PEC) and Rock International.

The phased contract is the latest development in the oil and gas industry’s In-Country Value (ICV) Blueprint Strategy launched in December 2013 in which PDO is supporting efforts in job creation and training as well as providing commercial and investment opportunities for local businesses.

The contract valued at around OMR10 million for the first phase was signed on February 13 at PDO’s Knowledge World centre in Muscat by the Company’s Managing Director Raoul Restucci and OmEPC Chairman Mohammed Al Said, representing the four-company partnership.

The Engineering, Procurement and Construction (EPC) contract is structured in three phases. The first is for three years and covers engineering services. Upon successful delivery, it will then be expanded to cover both engineering and procurement for a further three years and construction management will then be added at the end of year six.

“This is an important EPC contract for PDO as it will provide services for our business in key areas, utilising a skilled Omani workforce and providing opportunities for emerging local businesses in supporting their development,” said Restucci.

“It is a further example of our long-term contribution and commitment to ICV in the Sultanate, creating jobs for Omani people by localising the supply chain,” he added.

The contract includes a broad range of technical services including Production Systems Optimisation, Small Project Design, Asset Verification, Process Engineering Flow Scheme (PEFS) conversion works and Front End Engineering Design (FEED) for smaller and less complex projects.

There is also the opportunity to extend the scope of work to include additional opportunities, e.g. maintenance and service activities, shutdown management, construction project management and EPC contracting capability for medium-sized projects.

Al Said commented, "OmEPCis a result of continuous ICV efforts by PDO to create meaningful employment for Omanis. With this contract, PDO has granted OmEPC an opening not only for employment of Omanis but also development and growth of local EPC capabilities and capacity beyond the boundaries of PDO’s operations. We are grateful to PDO for this opportunity and look forward to delivering the contract and living up to expectations."

OmEPCwas founded in 2018 by the four Omani SMEs allowing the strengths of each to be combined which broadens the services provided to the oil and gas sector.

PDO has played a significant role in the industry’s ICV Blueprint Strategy since its launch six years ago, leading 43 out of the 53 opportunities. Currently, 28 opportunities have been realised through a wide range of activities including the establishment of Omani factories, workshops and repair facilities offering in-country engineering services, equipment and materials to the oil and gas sector. The provision of engineering and operation services through EPC is Opportunity 8 in the blueprint strategy.


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