Petroleum Development Oman (PDO) has signed a $1.2-billion contract for the supply of pipes for its drilling operations through Duqm.

The five-year deal with Japanese supplier Sumitomo further includes a new supply yard in the Duqm Special Economic Zone, which will be a logistics centre for materials being delivered to PDO’s drilling locations.

The agreement will confirm PDO as an anchor tenant at Duqm from mid-2018, with up to two shipments a week (carrying 3,000 tonnes of pipe) being routed through the port for its oil and gas fields.

The logistics hub will provide integrated supply chain management services, such as storage, planning and delivery, and 30 trucks a day will be needed to transfer the pipes from the new supply yard to PDO’s drilling locations.

The move will significantly build capability at Duqm to become the primary logistics hub for the sultanate’s oil and gas sector.

PDO managing director Raoul Restucci said: “This contract will spur the growth of Duqm and attract even more business as the port demonstrates its ability to handle major operations.

 “Every year, we drill 600 wells across our concession area and all the piping for that will be managed at Duqm.”