Oman's Galfar bags $75mln contract from OQ

Muscat – Galfar Engineering and Contracting Company has been awarded a RO29mn worth of engineering, procurement and construction (EPC) contract by OQ Exploration & Production Company, a subsidiary of Oman’s global integrated energy group OQ.

‘We are pleased to inform our esteemed shareholders that Galfar signed a contract with OQ Exploration & Production for the EPC project of Bisat Permanent Power Supply Project at Block 60,’ Galfar said in a disclosure submitted to the Muscat Stock Exchange on Monday.

In January this year, OQ Exploration & Production had announced the commissioning of its third crude oil processing plant in the Bisat oil field in Block 60, raising the oil field’s production capacity to 60,000 barrels per day.

Galfar said that the estimated value of this contract is ‘approximately RO29mn with an execution period of 26 months’.

‘We take this opportunity to express our appreciation to OQ Exploration & Production for the confidence vested on Galfar through the award of this project,’ Galfar added.

Galfar won several contracts this year, particularly in oil and gas sector.

Earlier in June, Galfar was awarded a massive contract worth RO280mn by Petroleum Development Oman (PDO) for Off-Plot Delivery Contract Qarn Alam.

Galfar estimates the value of this massive call-off contract to be approximately RO280mn for an execution period of seven years. The contract also includes an additional three-year extension option worth RO120mn.

According to Galfar’s first-quarter 2023 financial report, for the period ended March 2023, the company continued to maintain a significant project pipeline of RO481mn supported by new project awards worth RO9.1mn in the first quarter of 2023.