Galfar Engineering and Contracting, a company listed on the Muscat bourse, has been awarded a $15m (OMR5.8m) contract by Petrofac.
The contract related to the Salalah Liquefied Petroleum Gas (LPG) Extraction project, being developed by Salalah LPG SFZCO (SLPG).
SLPG is a wholly owned subsidiary of Oman Oil Facilities Development Company (OOFDC).
Petrofac E&C Oman has awarded Galfar the sub-contract for a package comprising engineering, procurement, and construction (EPC) building works.
Dr Hans Erlings, chief executive officer of Galfar, said the sub-contract's completion period is 17 months.
"This is an important contract to Galfar and further serves to underpin our revenue streams," Erlings added in a missive issued to the Muscat bourse.
Petrofac was awarded the project's main contract to implement EPC works, worth almost $600m (OMR231m) in January 2017.
Under the terms of the 36-month lump-sum EPC contract, Petrofac’s scope of work includes the construction of the LPG unit and its associated facilities, including tie-ins to existing pipeline infrastructure, alongside LPG storage and jetty facilities at the Port of Salalah.
Payment delays have affected Galfar Engineering and Contracting's financials this year.
In a missive issued to the Muscat bourse, Galfar stated it had been "significantly affected by the delays in receiving its dues of [...] projects".
Galfar said its parent-level revenues were "significantly impacted by reduced levels of activity in public infrastructure".
While the contractor confirmed it had a "solid work pipeline" to look forward to, chairman Majid Salim Said Al Fannah Al Araimi said that payment delays had significantly impacted the company, which was particularly awaiting payments of "already completed projects".
Galfar's parent company boasts an order book of $1.36bn (OMR526.7m), and the value of its new contracts, extensions, and variations for the first nine months of 2017 is $216m (OMR83.2m).
The latter includes a contract award for the Ministry of Transport and Communications' Batinah Expressway project, and Oman Electricity Transmission Company's Grid Stations at Birkat Al Mouz and Sumail.