Oman’s leading construction firm, Galfar Engineering and Contracting Company, has announced that it bagged a major contract worth around $730 million (RO280 million) from the majority state-owned Petroleum Development Oman (PDO).
Following the news, investors ramp up purchases of Galfar shares thereby pushing the share prices by around 10% at the Muscat Stock Exchange.
“We are pleased to inform our esteemed shareholders that PDO has awarded Galfar the Off-Plot Delivery Contract Qarn Alam via a letter of award that was formally accepted by both parties on May 25, 2023, and approval from PDO to disclose was confirmed on Sunday,” Galfar Engineering wrote in a filing to the Muscat Stock Exchange.
“If the extension option of three years is approved and implemented, the potential associated additional contract value is estimated to be around $311 million,” the filing said.
According to Galfar’s first-quarter 2023 financial report, for the period ended March 2023, the company continues to maintain a significant project pipeline of $1.25 billion supported by new project awards worth $23 million, Oman’s Muscat Daily newspaper wrote in a report.
Galfar was selected for its strong track record in the oil and gas sector as the company has a long history of working with PDO, and has previously been awarded contracts for the development of the Marmul and Harweel oil fields.