Petroleum Development Oman (PDO) has announced that it will now locally source key well construction parts for its oilfields from a newly opened $20m (OMR7.7m) factory in Sohar.

The company said in a statement that it has partnered with Chinese manufacturer, Changbao, to establish the Changbao Oman Oil Pipe Company LLC, a tubing threading and finishing plant in the Sohar Free Zone.

The opening of the new factory is expected to help PDO, which typically spends around $100m (OMR38.5m) every year on importing casing and tubing from China, localise seamless oil country tubular goods (OCTG) technology.

PDO noted that while plain tubing will continue to be sourced from China, it will be threated and finished in the Sohar factory.

The facility will provide 30 jobs when it runs at maximum capacity, with the aim being to Omanise all positions over the coming years, according to PDO.

PDO’s wells operations manager, Said Al Mahrooqi, commented: “We have been working hard to retain more of the wealth of our industry in-country by Omanising the manufacture and supply of key oil and gas equipment.

“The new plant will not only reduce the cost of tubing and casing for PDO wells but also shorten delivery times to our fields.”

The facility will have a threading capacity of 50,000 tonnes per year, and will also offer storage and repair services.