New Tools Manufacturing Project in Oman: What It Means for Investors and Business Growth
MUSCAT, OCT 20 — Musandam Global Investment Company (MGIC), one of Oman’s fastest-growing investment firms, has announced a strategic partnership with Black Rock Energy LLC, a local oilfield services provider, to establish a cutting-edge downhole tools manufacturing facility in Oman.
As part of this initiative, Musandam Global has acquired a majority stake in Black Rock Energy. MGIC CEO Abdul Razzaq Al Balushi described the acquisition as “a pivotal step in our diversification strategy that reinforces our commitment to building Oman’s industrial future.”
He added, “Together, we are launching a state-of-the-art downhole tools manufacturing facility in Oman, equipped with advanced computer numerical control (CNC) machinery and world-class quality systems. This facility will produce high-performance tools that meet stringent regional and international standards, driving innovation, industrial excellence, and global competitiveness.”
Black Rock Energy welcomed the partnership, stating, “We believe this collaboration will create new opportunities, bolster Oman’s industrial capabilities, and support the sustainable growth of the energy sector.”
Downhole tools—often called the “eyes and ears” of the oilfield—are specialised instruments used inside wellbores during drilling, completion, and production operations. These tools include stabilisers, jars, reamers, packers, motors, and other assemblies essential for drilling in complex geological formations.
Given that many of Oman’s oil fields are mature, carbonate-heavy, and geologically challenging, reliable downhole tools are vital for optimising drilling trajectories, managing extreme temperatures and pressures, and maximising reservoir contact. They also play a critical role in preventing blowouts, stabilising drilling conditions, and ensuring long-term well integrity.
The partners emphasized that local manufacturing of downhole tools aligns with Oman Vision 2040’s objectives for economic diversification and industrial development. It also mitigates risks associated with global supply chain disruptions, while in-country value (ICV) mandates encourage operators to source locally produced equipment.
“This venture is not only a testament to our growth strategy but also a significant enhancement to Oman’s in-country value. By investing in local manufacturing, technology transfer, and workforce development, we are directly contributing to national capabilities and securing a sustainable economic impact,” said Musandam Global’s CEO.
Over the past year, Musandam Global — a publicly listed closed joint-stock company on the Muscat Stock Exchange (MSX) — has expanded and diversified its investment portfolio across multiple sectors. Its projects include partnering with the Ministry of Housing and Urban Planning on Tilal Al Nakheel (Palm Hills), Musandam Governorate’s first integrated residential development under the Surouh initiative, with 650 housing units spanning 650,000 square meters in the Wilayat of Khasab.
In renewable energy, Musandam Global is collaborating with Poland’s Njord Energy to pilot the region’s first Airborne Wind Energy (AWE) system, aiming to test continuous renewable power generation in Musandam. Additionally, the company is joining forces with Turkish investors to establish Musandam Drydock and Marine Industries LLC, providing ship repair, maintenance, and manufacturing services.
Other ongoing projects include an integrated fish hatchery and packing facility, beautification initiatives in the Wilayats of Khasab and Bukha, high-end resort and heritage developments, smart city and education zones, and efforts to deepen Musandam’s integration into global trade networks.
Special Analysis by Omanet | Navigate Oman’s Market
Musandam Global Investment Company’s move to localize downhole tools manufacturing through its partnership with Black Rock Energy is a strategic leap in Oman’s industrial diversification, aligning closely with Oman Vision 2040’s goals. For businesses, this reduces dependence on global supply chains and unlocks opportunities to innovate in oilfield technologies, while smart investors should watch for growing in-country value mandates and expanding industrial capabilities enhancing sustainable growth. Entrepreneurs and stakeholders should consider how advancing local manufacturing and technology transfer can create competitive advantages in the mature and technically challenging hydrocarbon sector.
