Under the five-year deal, PDO would obtain from Nippon Steel "piping for its drilling operations" and "a new supply yard in the Duqm Special Economic Zone," the Omani company said in a statement.
Oman announced in 2008 plans to build a port and shipyard in Duqm, on the Indian Ocean, to handle ultra-large crude carriers and compete with Dubai's Jebel Ali free zone.
The sultanate, a member of the six-nation Gulf Cooperation Council, derives 79 percent of its revenues from oil, of which it produces only about one million barrels per day.
Oman hopes that Duqm, which is still under development, will be a means to help it diversify revenues beyond oil.
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Yahiya al-Jabri, chairman of the Duqm Special Economic Zone, said the contract signed with Nippon Steel would have "an important impact on the port and the economic zone", state news agency ONA reported.
PDO managing director Raoul Restucci said the deal "will spur the growth of Duqm and attract even more business as the port demonstrates its ability to handle major operations.
The Omani government holds a 60 per cent stake in PDO, with the rest held by the Shell Group (34 per cent), Total (four per cent) and Partex (two per cent).
PDO says on its website that it accounts for "about 70 per cent" of Oman's crude-oil production and "nearly all of its natural-gas supply".
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