OQEP signs RO21mn contracts with local firms

13/05/2025 02:50 AST

OQ Exploration & Production (OQEP), the leading exploration and production company listed on the Muscat Stock Exchange, announced on Monday the signing of four major contracts exceeding RO21mn during its participation in the Oman Petroleum & Energy Show 2025.

These agreements with local companies and small and medium enterprises (SMEs) operating in Oman's concession areas reflect OQEP's commitment to enhancing In-Country Value (ICV).

OQEP signed a contract with Technical Services Company to develop a fully integrated residential camp within the Bisat Project at Block 60. The contract includes engineering, manufacturing, procurement, installation and operational services, with completion scheduled for June 2026. The facility, designed to accommodate between 360 and 460 individuals, will directly support Bisat field operations while contributing to Omanisation objectives.

In addition, OQEP concluded a two-year agreement with Shalim Oil Company, with an option to extend for a further two years. This strategic decision will ensure the continued employment of over 80 former Shalim staff, reinforcing OQEP's commitment to workforce stability and long-term local engagement in its oil fields. Shalim, a recognised local service provider, specialises in light land drilling rigs for Block 60, OQEP's principal hydrocarbon concession.

A third contract was signed with Rimal Al Sahra Oil & Gas to supply casing materials for Blocks 60 and 48 under a four-year agreement, with an optional two-year extension. This collaboration reflects OQEP's growing capability in providing essential well construction components, while supporting local procurement and reducing reliance on imports.

The fourth contract was awarded to Shuram LLC, an Omani SME holding a Riyada card, for essential analytical services across Blocks 60, 48 and 8. As the only specialised laboratory service provider for the oil sector in Oman, Shuram's partnership with OQEP underscores the company's focus on supporting high-performing SMEs and strengthening in-country expertise.

Jaber al-Namani, Chief Financial Officer at OQEP, said, "These contracts reaffirm OQEP's steadfast commitment to ICV by forging strategic partnerships with local businesses and enabling Omani talent at all levels of operation. We believe that investing in human capital and local infrastructure is key to achieving sustainable economic growth and boosting the competitiveness of Oman's energy sector in the long term."

"By signing these agreements with SMEs in concession areas, we are reinforcing their role in driving national economic contribution while supporting private sector development and workforce empowerment," he added.

Muscat Daily