Abraj secures RO85mn Oxy contract extensions for four drilling rigs

25/08/2025 04:10 AST

Abraj Energy Services, the largest oil and gas field services company in Oman, announced the award of contract extensions for four of its drilling rigs by Occidental Oman (Oxy), with a total value exceeding RO85mn.

The contract extensions cover an additional five-year period, running until August 2030, Abraj said in a disclosure submitted to the Muscat Stock Exchange. "It comes as a result of Abraj's outstanding operational performance and its firm commitment to the highest standards of operations, health, safety and environment,"the company stated.

Abraj added that the long-term extensions highlight the strengthening of its strategic partnership with Occidental Oman. "It represents an important step towards reinforcing the company's financial sustainability through revenue visibility and continued growth in the energy services sector in Oman."

The company reaffirmed its commitment to delivering specialised and integrated solutions in well engineering and energy services, in support of Oman's aspirations to further develop the energy sector and strengthen its position as a leading service provider in this vital field.

Abraj specialises in providing services for oil and gas wells, during and after well construction.

"From building a wider service portfolio, Abraj now focuses on strategic top-tier services coupled with strong operational efficiency to maximise financial returns and achieve sustainable growth. Abraj continues to benefit from the strength of long-term contracts in generating sufficient cash flow for expansion," the company said in its financial report for the first half of 2025.

Abraj's revenue for the six months ended June 30, 2025 decreased by 6.4% year-on-year, from RO77.9mn to RO72.9mn, mainly due to rigs being stacked. In its financial report, the company said efforts are ongoing to re-deploy these rigs back into operation.

The company's net profit for the same period fell by 12.6%, from RO10.67mn in 2024 to RO9.327mn in the first half of 2025. Total expenses during the first half of 2025 declined by 5.4% year-on-year, from RO67.2mn to RO63.6mn, broadly in line with the drop in revenue.

Muscat Daily