Oman-Germany JV wins major PDO contract extension

Conrad Prabhu -

MUSCAT, MARCH 17 -

German based international industrial services provider Bilfinger SE has announced that its Oman joint venture has secured an extension of its contract to provide engineering and maintenance services to Petroleum Development Oman (PDO) for another four years — a deal that could potentially generate multiple hundreds of millions of euros in revenue for the Mannheim based group.

The joint venture of Tebodin & Partner in the Sultanate, which is part of Bilfinger, along with STS, a prominent engineering construction services company in Oman, was awarded the contract extension last week.

The JV has been providing all on-plot engineering, procurement services, construction, commissioning besides management services and maintenance support for PDO’s oil and gas projects in the North of Oman since 2011.

The contract with majority government-owned PDO will now run until 2021, with an estimated turnover of about 200 million euros for Bilfinger, the German engineering group said.

“We are pleased to be able to continue the longstanding partnership with PDO. The order confirms our new strategy: the Middle East is a growth market with potential for us. Bilfinger has an excellent reputation in the region and stands for the highest level of quality and safety. This is the basis for current and future success,” said Tom Blades, CEO — Bilfinger, in a statement.

Niels van Rhenen, CEO — Tebodin, a business division of Bilfinger, added: “The extension of the contract is very important and secures a significant part of our business in Oman for the coming years. Through delivery of high quality services on a daily basis to PDO, we have created a strong foundation to last for another four years.”

Well-known around the world as an industrial services provider for the process industry, Bilfinger serves a large portfolio of over 200 companies in the Middle East, including Oman, UAE and Saudi Arabia. In the Sultanate, the company is represented by its local subsidiary, Tebodin & Partner.

Annual global revenues are in excess of 4 billion euros.