Abraj wins third major Oman drilling deal in 2025

 

Occidental Oman (Oxy) has offered Abraj Energy Services a five-year contract for oil drilling, ensuring operations at Oman's Mukhaizna fields Block 53 through August 2030, the Muscat-listed firm said in a bourse disclosure.

The deal encompasses drilling services with four oil rigs in Block 53, estimated to contain 600 million barrels of crude reserves.

 Oxy, the block's majority owner, has committed to spending USD 30 billion exploring and developing Mukhaizna, one of the nation's largest heavy oil fields.

“This extension reaffirms our solid relationship with Occidental Oman and highlights our increasing role in providing vital upstream services to drive Oman's energy business," said a spokesperson for Abraj Energy.

Key Highlights:

• Occidental Oman extends Abraj’s Block 53 drilling contract till 2030
• Mukhaizna field holds 600m barrels and Oxy commits USD 30bn investment
• Abraj secures third major oil & gas contract in 2025

The deal is the Abraj's third significant victory in 2025. In June, state-owned Petroleum Development Oman awarded Abraj a six-year onshore Block 6 drilling contract. In May, BP Exploration awarded Abraj a USD 32 million contract to drill for gas at Oman's Khazzan field, one of the sultanate's largest.

Industry commentators note these back-to-back deals capture the government's wider effort to support local service providers. "Abraj's success in signing up multi-year contracts year in and year out demonstrates international operators' increasing confidence in Omani capabilities," said Muscat-based energy analyst Khalid Al Rawahi.

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Abraj, a subsidiary of state-owned OQ, raised USD 244 million in a landmark IPO in February 2023, selling nearly half its capital. Despite the new contracts, its share price of OR0.28 (USD 0.73) has slipped by about a third year-to-date.