Petroleum Development Oman (PDO) has announced that it has received the first Oman-made electric submersible pump (ESP) system for its oil operations from a factory in Sohar.

In a statement, the company revealed that the product was supplied by Borets Seven Seas & Co, which opened its $7.5m (OMR2.9m) facility in Oman’s Sohar Industrial Estate on 29 October, 2017.

The facility will assemble and service ESPs, which provide an efficient and reliable artificial-lift method for extracting moderate to high volumes of fluids from wellbores, for use in oil and water wells.

Borets Seven Seas contractors will also install, commission, test, and maintain the equipment in the field.

Read: PDO to source well construction parts from new $20m factory in Oman

According to PDO, the opening of the facility followed its negotiation with Dubai-headquartered Borets for a three-year $105m (OMR40.4m) contract.

The terms of the contract, which also has an option for a seven-year extension, mandated the establishment of the plant in the country, so it can provide training and job opportunities for Omanis.

Raoul Restucci, managing director of PDO, commented: “We are delighted that […] Borets has opened this new facility in Oman, which is already producing ESPs for our operations.

“We have worked hard to make this happen as factories like this will help create job opportunities, develop local technical capabilities, shorten our supply chains, and reduce our costs.”

He continued: “A key enabler for this achievement is PDO’s new ESP contracting strategy, which is structured in a way that makes it mandatory for contractors to set up ESP manufacturing facilities in Oman as part of their agreements.

“A central plank of our ICV (In-Country Value) programme is to retain more of the wealth of our industry in Oman, and this new factory really is ICV in action.”

Borets is reportedly planning to extend the facility to cater for the assembly, testing, and service of the surface components of the systems, alongside the current downhole ones.

It is using Sohar port to import ESP parts, and has opened a path for potential cooperation and knowledge transfer with Sultan Qaboos University and other Omani educational and research institutes.

The Sohar assembly plant is the first of three ESP facilities to be opened in Oman after PDO’s negotiations with its contractors.