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. These
contracts involve providing low- and high-pressure wellheads, thermal wellhead systems, and artificial lift technologies, including electric submersible pumps and progressive cavity pumps. The equipment is intended 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 production and assembly taking place in Oman.
Why It's Important?
These contracts are significant for both SLB and Oman’s oil and gas sector. For SLB, securing these contracts strengthens its presence in the Middle East and North Africa region, potentially leading to further business opportunities. For Oman, the contracts are vital for maintaining and enhancing oil production, which is a cornerstone of the country's economy. The focus on local manufacturing and workforce development aligns with Oman’s in-country value program, promoting economic diversification and job creation. This collaboration could serve as a model for other countries looking to balance foreign investment with local economic benefits.
What's Next?
SLB plans to expand its local manufacturing capabilities, including the introduction of made-in-Oman gate valve production within the first six months of contract execution. The deployment of advanced technologies, such as modular compact wellhead systems and ESP surveillance solutions, is expected to enhance field efficiency and reduce power consumption. Monitoring the implementation of these technologies and their impact on production efficiency will be crucial for assessing the success of the contracts.
