What's Happening?
SLB has been awarded two five-year contracts by Petroleum Development Oman (PDO) to supply wellheads and artificial lift systems for operations in Block 6, Oman’s largest oil and gas concession. The agreements involve providing low- and high-pressure
wellheads, thermal wellhead systems, and artificial lift technologies, including electric submersible pumps (ESPs) and progressive cavity pumps (PCPs). These technologies aim to support PDO’s efforts to sustain production and improve recovery across mature assets in the concession. The contracts also emphasize local manufacturing and workforce development, with wellheads to be produced at SLB’s facility in Rusayl and ESPs assembled, tested, and serviced at the company’s center in Nizwa.
Why It's Important?
The contracts are significant as they support PDO’s production and recovery objectives while advancing local manufacturing and workforce development in Oman. Block 6 is a critical component of Oman’s upstream sector, accounting for the majority of the country’s oil and gas production. By enhancing local manufacturing capabilities, including the introduction of made-in-Oman gate valve production, SLB is contributing to the in-country value (ICV) program, which aims to boost the local economy and create job opportunities. The deployment of advanced technologies such as modular compact wellhead systems and ESP surveillance solutions is expected to improve long-term field efficiency and reduce power consumption.
What's Next?
SLB plans to expand its local manufacturing capabilities further, including the production of made-in-Oman gate valves within the first six months of contract execution. This expansion is likely to enhance the local workforce's skills and contribute to the economic development of Oman. The successful implementation of these contracts could set a precedent for future collaborations between international companies and local entities in the region, potentially leading to more such agreements that focus on local value creation and technological advancement.
