Abraj secures RO14mn drilling contract from BP for Block 61

07/05/2025 02:19 AST

Abraj Energy Services, Oman's leading oil and gas services provider, has announced the award of a significant new contract by BP Exploration (Epsilon) Limited, marking a renewed collaboration between the two companies in Block 61, one of the sultanate's largest gas-producing areas.

In a disclosure to the Muscat Stock Exchange, Abraj confirmed it had secured a contract from BP Exploration (Epsilon) Limited for the provision and operation of an onshore drilling unit. The contract is for an initial term of three years, with an option to extend for a further two years, highlighting the long-term nature of the partnership.

Abraj stated the contract is expected to generate approximately RO14mn in revenue over its duration, bolstering the company's financial position and reaffirming its strategic role in Oman's upstream energy sector.

Abraj said that the drilling rig for this project was previously operated under a contract with BP but had been stacked since the expiration of that agreement last year. The company noted the rig is now scheduled to commence operations in the fourth quarter of 2025.

Block 61, situated in central Oman, is home to the massive Khazzan and Ghazeer gas fields, which play a crucial role in supporting the country's gas supply and export capacity. BP operates the block in partnership with OQ and Petronas, with its output contributing significantly to both domestic energy requirements and LNG exports.

Abraj signs term sheet with Algeria's Sonatrach

In a separate disclosure to the Muscat Stock Exchange on Tuesday, Abraj Energy Services also announced the signing of a term sheet with Algeria's state-owned energy giant Sonatrach, setting the foundation for a strategic partnership focused on delivering integrated oilfield services in Algeria and potentially beyond.

The agreement, finalised on Monday, outlines plans for a joint effort to offer a wide range of services - including drilling, workovers, and well intervention - in one of North Africa's most important oil and gas markets, with scope for international expansion.

Abraj noted in its disclosure that the partnership aims to leverage its considerable expertise and resources to deliver efficient, high-quality oilfield services in Algeria's energy sector.

This term sheet builds upon the Memorandum of Understanding (MoU) signed between the two companies in Muscat on April 24, 2024 and represents a key milestone in enhancing energy sector cooperation between Oman and Algeria.

Muscat Daily