Muscat – OQ, Oman’s global integrated energy company, has awarded a RO40mn worth of contract to Galfar Engineering & Contracting Company for the construction of a gas pipeline project in the OQ concession area in the sultanate.
“We are pleased to inform our esteemed shareholders that the company (Galfar) signed a contract with OQ Group for an engineering, procurement and construction (EPC) project for Central 48” Rich and Lean Gas Pipeline Segregation Project at the OQ Group’s concession area,” Galfar’s chief executive officer, Dr Hamoud al Tobi, said in a disclosure to the Muscat Stock Exchange on Sunday.
OQ is the exclusive operator and owner of materially all of Oman’s gas transportation system since 2018. OQ gas network transports natural gas to 59 connected parties in Oman through 4,000km high-pressure gas pipelines.
According to Tobi, the estimated value of this contract, which was signed on Thursday, is approximately RO40mn with execution period of around 42 months (including maintenance period).
He said, “It is expected that this contract will contribute to the company’s revenues and further strengthen our presence in oil and gas and high capacity pipeline projects.”
“We take this opportunity to express our appreciation to the OQ Group for the confidence vested on Galfar Engineering & Contracting Company through the award of this critical contract,” he added.
During the first half of 2021, Galfar received new orders worth RO69mn and is optimistic to receive more contract orders before the year-end. The company continues to maintain a significant order book of around RO364mn worth of jobs to be executed.
Going forward, the company expects to maintain a solid project pipeline with a significant number of tenders under evaluation across a diverse array of sectors and clients.
Galfar returned to profit in the first half of this year after six straight years of losses as the company’s new turnaround plan, which was adopted earlier this year, shows signs of progress.
The company reported a net profit of RO2.62mn for the six months period ended June 30, 2021 compared to the net loss of RO11.04mn for the same period of 2020.
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