FOS was created in 1999 with an initiative of His Majesty's Government that encouraged the strengthening of the local infrastructure by supporting Omani owned companies. The enterprising Omani partners of FOS looked for leading International Companies highly committed to Omanisation and chose Halliburton Worldwide Ltd. to negotiate an agreement on becoming alliance partners. The Technical Services agreement signed in early 2000 benefited FOS from the support and access to, Halliburton’s Management System and global network of technical resources. The commencement of a major PDO Pumping Services contract in early 2000 by Halliburton and its alliance partner FOS was cited as an 'innovative solution to meet the needs of the Oman Government' and a landmark in the development of independent, wholly Omani-owned oilfield service companies.

In the years of incubation from 2000 to 2003, FOS worked in a unique relationship with Halliburton. FOS provided Halliburton-quality products and services and operated to the highest international standards while developing its strengths as a local company. During this period, FOS decided to diversify into several areas of oilfield service activity.
Further success swiftly followed when FOS was awarded the PDO Drill Stem Testing contract in 2001 and the PDO Exploration Well Testing contract in early 2002.

After only four years operation, FOS reached a sufficient level of maturity and confidence to initiate a restructuring of its business strategy. The acquisition of the Halliburton well testing business in Oman in 2004 established FOS as a stand-alone business specializing in exploration well testing and related services.