Oman: Galfar wins $48mln contract from Oxy

PHOTO

Muscat – Galfar Engineering & Contracting Company, the largest contracting firm in Oman, has been awarded a five-year service contract worth RO18.5mn by Occidental Oman (Oxy), the largest independent oil producer in the Sultanate.

The contract also includes an extension option of two years, with an estimated additional value of RO6.5mn.

‘We are pleased to inform our esteemed shareholders that Occidental Oman has awarded Galfar the service contract for the provision of civil works services for Blocks 53 and 72,’ Galfar said in a disclosure submitted to the Muscat Stock Exchange. The contract was formally accepted by both parties on July 25, the company added.

Galfar estimates the value of this call-off contract to be approximately RO18.5mn, with an execution period of five years starting from October 1, 2024. If the two-year extension option is mutually agreed upon, the potential associated additional contract value is estimated to be RO6.5mn, Galfar said.

‘The estimated value of this call-off contract – which is subject to the agreed terms and conditions and termination clauses – may fluctuate based on the terms or services required by the client. Consequently, the estimated contract value might increase or decrease depending on changes in the scope of work,’ Galfar noted.

Galfar said that this contract award will potentially further enhance its order-book and sustain its market share within energy and industry projects.

‘We take this opportunity to express our appreciation to Oxy for the confidence placed in Galfar through this award,’ the company added.

Recently, Galfar was awarded a RO35mn contract for the expansion of the Raysut water reclamation plant by Nama Dhofar Services Company in the Dhofar governorate. The contract from Nama Dhofar Services Company includes an execution period of 36 months from the commencement date.