Petroleum Development Oman (PDO) has awarded five-year contracts for hoist services to Abraj Energy Services and Shaleem Petroleum Company, aiming to reduce operating costs and modernize its hoist fleet while increasing opportunities for domestic suppliers. The agreements, announced on October 27, cover a total of 15 hoist units used in well intervention and servicing operations, with nine units assigned to Abraj and six to Shaleem.
The contracts are projected to deliver a direct cost saving of 7 percent compared to current rates over the five-year period, along with an additional 6 percent in cost avoidance relative to market trends. PDO emphasized that the new agreements will enhance operational reliability and efficiency without compromising its commitments to health, safety, environmental standards, asset integrity, and process safety.
With the new contracts, the share of modern hoist units within PDO’s fleet is expected to increase from 40 percent to 53 percent. The upgraded equipment is designed to reduce manual handling, improve worker welfare, and bolster overall safety performance. Notably, six of the modern hoist units will be assembled within Oman, supporting technology transfer, workforce development, and increased participation from Omani small and medium-sized enterprises.
PDO Managing Director Dr. Aflah al Hadhrami highlighted the strategic significance of the contracts in reinforcing the company’s operational capabilities and advancing its goals for production growth, enhanced efficiency, and cost competitiveness. “These strategic contracts represent an important step in strengthening our operational capabilities and supporting our ambitions for production growth, greater efficiency and cost competitiveness,” he said.
The awards are part of PDO’s broader transformation program, which focuses on boosting production, improving operational performance, and enhancing cost efficiency. The company also stressed the importance of developing local capabilities to maximize economic value within Oman. Dr. al Hadhrami added, “By partnering with local companies and developing national capabilities, we are building a more competitive and resilient supply chain that supports our long-term operational needs and contributes to national economic development.”
Abraj Energy Services Chief Executive Saif al Hamhami said the acquisition of six new build workover hoists would expand the company’s service capacity and strengthen its ability to meet PDO’s evolving requirements. He also reaffirmed Abraj’s commitment to investing in Omani talent, technological advancement, and operational excellence to support the long-term growth of the country’s energy sector.