Petroleum Development Oman (PDO) will start sourcing key well construction parts for its oilfields from Oman with the opening of a new $20mn factory in Sohar. Every year, the company spends approximately $100mn on importing casing and tubing from China. However, PDO has worked with Chinese manufacturer Changbao to set up a new tubing threading and finishing plant where plain tubing will be sourced from China and then threaded and finished in the new facility in the Sohar Free Zone. The move will kick off the process of localising seamless oil country tubular goods (OCTG) technology. The Changbao Oman Oil Pipe Company facility will provide 30 jobs when it runs at maximum capacity and the aim is to Omanise all positions over the coming years.
It was officially opened in the presence of Changbao Chairman Cao Jian and PDO’s wells operations manager Said Al Mahrooqi, who said: “We have been working hard to retain more of the wealth of our industry in-country by Omanising the manufacture and supply of key oil and gas equipment. The opening of this factory is another milestone in this journey and we thank our Chinese partners Changbao for making this significant investment in Oman. The new plant will not only reduce the cost of tubing and casing for PDO wells but also shorten delivery times to our fields.”
The facility will have a threading capacity of 50,000 metric tonnes a year and also offer storage and repair services.
PDO Well Engineering Directorate currently spends $1.8bn on local contracts as the company ramps up its in-country value policy to generate Omani job and training opportunities and develop a robust and skilled local supply chain.
The directorate drills around 650 oil and gas production and exploration wells annually and drilled 1,473.7 kilometres last year, a 16 per cent rise on 2015. There were also 19,600 well interventions – a 49 per cent jump on 2015 – as the Company ramped up its production activities.