Oman’s Abraj Secures $36 Million BP Contract for Major Gas Drilling Project
Muscat, Oman — In a major boost to Oman’s energy sector, local oilfield services company Abraj Energy Services has been awarded a $36 million contract by British oil giant BP. The deal focuses on gas drilling operations in Oman’s Block 61, one of the country’s most vital natural gas fields.
This multi-million-dollar agreement is expected to strengthen Oman’s domestic drilling capacity and deepen BP’s longstanding presence in the Sultanate. The project is also aligned with Oman’s Vision 2040 strategy, which aims to diversify the economy and increase energy production efficiency.
What the Contract Covers
Under the $36 million deal, Abraj will provide full drilling services, including rig operations, manpower, equipment supply, and maintenance. The contract will run over several years, contributing to increased production from Block 61 — home to the Khazzan and Ghazeer gas fields, which together account for a significant portion of Oman’s gas output.
According to industry insiders, the contract will employ advanced drilling technologies and adhere to strict environmental and safety standards, reflecting both BP’s global standards and Oman’s national energy goals.
Statements from Abraj and BP
Abraj Energy Services’ CEO, Saif Al Hamhami, expressed pride in winning the contract, calling it a “testament to Abraj’s technical expertise, operational excellence, and commitment to supporting Oman’s energy sector.”
“We are thrilled to deepen our collaboration with BP, a global leader in energy, and to play a key role in developing one of the most important gas assets in Oman,” Al Hamhami added. He highlighted that the project would create local jobs, strengthen Oman’s oilfield services sector, and drive economic growth.
BP Oman’s President, Yousuf Al Ojaili, commented that partnering with Abraj reflects BP’s commitment to working with local companies and boosting in-country value (ICV). “We believe this partnership will deliver significant value, not just for our gas operations but for Oman’s wider energy ecosystem,” Al Ojaili said.
Why Block 61 Matters
Block 61, located in central Oman, contains the Khazzan and Ghazeer fields, which are critical to the country’s gas supply. Together, they have reserves estimated at over 10.5 trillion cubic feet of recoverable gas and produce more than 1.5 billion cubic feet per day.
The gas from Block 61 helps fuel domestic industries, power plants, and liquefied natural gas (LNG) exports, making it a cornerstone of Oman’s energy strategy. With global demand for cleaner-burning fuels rising, natural gas is seen as a key transitional fuel in the global energy mix, helping countries reduce carbon emissions.
Boost for Oman’s Energy Sector
The Abraj-BP deal comes at a time when Oman is pushing to increase the role of local companies in its energy projects. Under the government’s ICV initiative, international operators are encouraged to partner with Omani firms, creating jobs and building local expertise.
For Abraj, the contract marks another step in its expansion strategy. The company, which recently listed on the Muscat Stock Exchange, has been growing its footprint across Oman and the Gulf, with ambitions to expand into new markets.
Energy analysts believe the contract will position Abraj as a leading player in the region’s oilfield services market. “Winning a BP contract is a major endorsement of Abraj’s capabilities,” said energy analyst Ahmed Al Balushi. “It strengthens their reputation and opens doors for future projects, both in Oman and internationally.”
Wider Energy Landscape
The deal also highlights the growing importance of gas in Oman’s and the Gulf’s energy future. While the region has long been known for oil production, gas is playing a bigger role as governments look to diversify energy sources, reduce carbon footprints, and meet rising domestic and export demands.
BP has been a major player in Oman since the early 2000s, investing billions in exploration and production. Block 61 is one of its flagship projects globally, and BP has described the Khazzan and Ghazeer fields as examples of world-class tight gas development.
Looking Ahead
With the new Abraj contract in place, drilling activity at Block 61 is expected to ramp up over the next year. This will not only support Oman’s gas production targets but also generate business opportunities for local suppliers, contractors, and service providers.
Abraj has said it will continue investing in technology and workforce development to meet the project’s requirements. The company plans to work closely with BP to ensure high standards of performance, safety, and sustainability.
Key Takeaways
- Abraj Energy Services wins $36 million gas drilling contract from BP Oman.
- Contract covers drilling operations in Block 61, home to Khazzan and Ghazeer gas fields.
- Deal aligns with Oman’s Vision 2040 goals and in-country value (ICV) efforts.
- Boosts local employment, technology use, and energy sector competitiveness.
- Positions Abraj for further growth in Oman and across the Gulf region.
As Oman continues to evolve its energy strategy, partnerships like the one between BP and Abraj will play a critical role in driving sustainable growth, technological advancement, and economic diversification.
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