Mubasher: Petroleum Development Oman (PDO) on Thursday signed a $1.2 billion contract with Japanese supplier Sumitomo Corporation and Nippon Steel & Sumitomo Metal Corporation to supply pipes for its drilling operations in Duqm zone.
The five-year deal with the Japanese supplier includes a new supply yard which will be a logistics centre for materials being delivered to the company’s drilling locations, PDO said in a press release.
The logistics hub will provide integrated supply chain management services such as storage, planning and delivery, while 30 trucks a day will be needed to transfer the pipes to the drilling locations.
“Every year, we drill 600 wells across our concession area and all the piping for that will be managed at Duqm” the company added.
PDO – which is owned 60% by the Omani government, 34% by Shell, 4% by Total, and 2% by Partex - produces around 70% of total Omani crude oil and 100% of the country's natural gas on behalf of the government.
