Galfar Engineering wins $300mn contract from PDO
Company to build new central processing facility at the Yibal Khuff oilfield south west of Muscat
Oman's Galfar Engineering has been awarded nearly $300mn contract by Petroleum Development Oman's (PDO) for its Yibal Khuff project south west of Muscat.
The contract duration is 51 months and will see Galfar build a new central processing facility at the field.
"We expect reasonable income from this project," Galfar said in a bourse statement on Wednesday.
Yibal Khuff Sudair integrated development project will come online in 2019, according to Shell's website.
The project is estimated to produce both oil and gas, with the latter expected to be used for enhanced oil recovery in other upstream projects across the country.
Oman is ramping up its investment in the oil and gas sector despite a protracted period of low oil prices and sluggish global demand.
In May 2015, Oman announced it will invest $7bn in oil and gas projects in Indonesia, where it also plans to build a refinery in the country’s Riau province.