Oman’s Abraj Energy wins $280m drilling contract

State-run Petroleum Development Oman (PDO) has awarded Omani company Abraj Energy Services an oil drilling contract worth $280 million. 

The six-year contract covers the supply of four land drilling rigs for the onshore block 6 in the north of the country, Abraj Energy said on the Omani bourse disclosure. 

“Two of the rigs will start drilling in the first quarter of 2026 and the other two in the second quarter,” Abraj said in the disclosure. 

In June, PDO awarded Abraj a contract for six land drilling rigs for the 130 square kilometre block 6 located in the Ghaba basin.

Ghaba basin is also home to the Fahud field, Oman’s oldest, which was discovered in 1964. It has estimated reserves of more than one billion barrels of crude oil.

PDO pumps an average of 990,000 barrels per day of oil and condensate, a light crude. Oman is launching oil and gas licensing rounds and is awarding concession agreements in a bid to increase fossil fuel production.

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In June, BP Exploration awarded Abraj a $32 million contract to drill for gas in Oman’s Khazzan field, one of the sultanate’s largest. 

Abraj, a subsidiary of state-owned OQ, listed nearly half of its capital in a $244 million IPO in February 2023. Its share price of OMR0.33 is up 17 percent year to date.

The company provides oilfield services to Oman’s expanding energy industry and has attracted investor interest as Muscat accelerates upstream development.