Petrofac Ltd said it won an about $900 million contract from state-controlled Petroleum Development Oman (PDO) to provide services at a field south west of Muscat.

The company said it would provide engineering and procurement services at PDO’s Yibal Khuff project under the four-year contract.

Oil and gas majors, hit by a oil price rout, have slashed capital spending and are holding back on new projects, hurting the prospects of services companies.

However, national oil companies (NOCs) in the Middle East and North Africa show no signs of cutting investment, a boost for companies including Petrofac, which has a large exposure in the Middle East.

PDO, Oman’s top oil and gas producer, is 60% owned by the government, 34% by Royal Dutch Shell, 4% by Total and 2% by Portugal’s Partex, according to its website.

Petrofac’s shares were up 1.6% at 910.5 pence at 0707 GMT on the London Stock Exchange on Thursday.

Source: Reuters