Galfar wins $95mn BP contract for gas gathering system

Muscat - 

Galfar Engineering & Contracting Company has been awarded an approximately US$95mn contract by BP in Oman for the construction and installation of the gas gathering system.

‘This is to inform our esteemed shareholders and investors that BP Exploration (Epsilon) Limited – Oman has awarded Galfar a contract for the construction and installation of gas gathering system (phase II)’, Galfar said in a disclosure filed with the Muscat Securities Market.

The company said, ‘The contract term is for 33 months starting from March 15, 2018, including mobilisation and is valued circa US$95mn. We expect reasonable income from this contract’.

Earlier this month Galfar was also awarded a US$41mn subcontract by Petrofac E&C Oman for CMEI works package 1 for Salalah LPG project.

In its annual report for the year ended December 31, 2017 which was released last week, Galfar said its order book stands at RO483mn, out of which RO156mn is related to the oil and gas sector.

Despite contraction of spendings due to depressed oil prices, Galfar said it is well placed to maintain a healthy order book and has potential opportunities in the areas of gas production and downstream projects.

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