Abraj and PDO Expand Partnership with New Contract: What This Means for Business Opportunities in Oman

• By Oman Market
• July 29, 2025July 30, 2025
• energy sector oil drilling Oman
• With 0 comments

MUSCAT: Abraj Energy Services has entered into a strategic agreement with Petroleum Development Oman (PDO) to deploy six onshore drilling rigs in Block 6, a vital asset in Oman’s energy sector. Drilling operations are scheduled to commence in phases starting from the fourth quarter of 2026. This development represents a significant expansion of the long-standing partnership between Abraj and PDO, showcasing the company’s expertise in delivering high-performance, safe, and reliable drilling solutions that meet international standards.

Hood bin Khalfan al Barashdi, Acting General Manager of Business Development at Abraj, emphasized that the agreement underscores the company’s reputation for operational excellence and the trust it has built through safe and efficient service delivery. He highlighted that this deal aligns with Abraj’s broader strategy to enhance its role in advancing Oman’s energy sector while maximizing in-country value (ICV).

This partnership with PDO is part of Abraj’s wider growth strategy. Recently, the company secured additional contracts, including a new drilling services agreement with BP Oman for Block 61 and a contract with ARA Petroleum Limited to drill three wells in Block 44. Abraj has also strengthened its regional presence by deploying a third 3,000-horsepower rig in the Wafra field, a joint operation between Kuwait and Saudi Arabia.

Engineer Sulaiman bin Abdullah al Salmi, Head of PDO’s Gas Well Drilling Team, praised Abraj’s sustained commitment to operational integrity, health, and safety. He stated that the new agreement reflects the shared ambition of both organizations to promote sustainable growth within Oman’s oil and energy sectors.

Since 2020, Abraj has contributed over RO 850 million to ICV and achieved an Omanisation rate nearing 93 percent. Activities related to PDO alone have generated RO 79.1 million in ICV over the past three years, representing 78 percent of total spending. These figures highlight Abraj’s significant role in supporting national development goals.

In 2024, Abraj reported strong financial results, with revenues reaching RO 151.6 million, EBITDA of RO 53 million, and a net profit of RO 16.9 million. The company also maintained an outstanding safety record, marking three consecutive years without lost-time injuries (LTI) across all units. Rig utilization rates exceeded 86 percent for drilling and reached 100 percent for well maintenance, demonstrating the resilience and reliability of its operations. — ONA

Special Analysis by Omanet | Navigate Oman’s Market

The strategic agreement between Abraj Energy Services and PDO to deploy six onshore drilling rigs signals significant growth and investment opportunities within Oman’s energy sector, emphasizing operational excellence and sustainability. For businesses and investors, the partnership underscores the importance of aligning with national development goals such as Omanisation and in-country value (ICV), while the robust safety and utilisation records highlight reliable, scalable operations poised for expansion. Smart investors should consider the expanding domestic drilling market and the rising demand for advanced, eco-conscious energy services as key drivers of future returns.