PDO seeks firms to bid for $7bn oil deals
Muscat, July 26, 2009
State-run Petroleum Development Oman (PDO) will close the qualification process on Tuesday for companies interested in contracts worth up to $7 billion for work on its oilfields, according to PDO's website.
PDO is Oman's largest oil producer and an affiliate of Royal Dutch Shell. It pumped 633,000 barrels per day of Oman's crude and condensate output of 757,000 bpd in 2008.
Oman is a small independent producer, but its crude oil forms part of the benchmark price for around 12 million barrels per day (bpd) of crude exports from Middle East producers to Asia.
There are four contracts on offer, two each on fields in the country's north and south. Companies interested in bidding have until July 28 to submit paperwork to PDO.
One contract in each area covers engineering and maintenance at fields, each with annual turnover of up to $200 million. The contracts have a duration of seven years, with an option to extend for three more.
Those deals would be tendered in the fourth quarter and awarded in the third quarter next year. Two other contracts cover work offsite from the oilfields, such as hooking up pipelines, again one in the north and one in the south.
Each contract would have annual turnover of up to $150 million over seven years, with an option for three more years.
Oman has spent heavily on new technology to enhance oil output from its old, depleted fields. It aims to boost total crude and oil condensate output to 805,000 bpd in 2009, up from 757,000 in 2008. - Reuters