Muscat – Galfar Engineering and Contracting Company, the largest construction firm in the sultanate, has been awarded a RO32mn new contract by Shell Development Oman.

‘We are pleased to inform our esteemed shareholders that Shell Development Oman has awarded the design, build and operate contract for the field operating base in Block 10 to the joint venture of Galfar and Catering & Supplies Co,’ Galfar said in a disclosure to the Muscat Stock Exchange on Sunday.

Shell is the operator of Block 10.

The value of this contract for Galfar’s share is approximately RO32mn with an execution period of 12 months from the date of works to be commenced for Galfar scope of works, Galfar said.

‘We take this opportunity to express our appreciation to Shell Development Oman for the confidence vested on Galfar through the award of this project,’ the company added.

In December 2021, the Ministry of Energy and Minerals signed a concession agreement with Shell and its partners to develop and produce natural gas from the sultanate’s Block 10 of the Saih Rawl gas field.

The concession agreement established Shell as the operator of Block 10, holding a 53.45 per cent working interest, with OQ and Marsa Liquefied Natural Gas holding 13.36 per cent and 33.19 per cent, respectively.

Block 10 – which covers an area of approximately 1200 sqkm – is located in Saih Rawl in the Al Wusta Governate of Oman, around 400km from Muscat.