PDO signs $35 million deals with Omani firms

Business Reporter -

MUSCAT, MAY 24 -

Petroleum Development Oman (PDO) has signed three contracts worth $35 million with Omani firms for the supply and servicing of compressors.

The deals are a further example of the Company’s commitment to In-Country Value (ICV) to retain more of the oil and gas industry’s wealth in the Sultanate and develop local supply chains.

PDO has agreed two contracts with Bin Salim Enterprises LLC for the supply of instrument air compressor packages and the maintenance and repair of installed units.

It also penned another service deal with PipeLine Supply Company LLC for an existing compressor fleet.

PDO Managing Director Raoul Restucci said, “We are delighted to sign these contracts, which once again show our commitment to investing in Omani businesses and people. The deals will enable both the local manufacture of vital equipment for our operations and the development of Omani service engineers and repair facilities.

“We are working all the time to ensure Omani companies play a greater role in the oil and gas sector and beyond so that we develop competitive, capable, professional and efficient local supply chains.

“It is also pleasing that more of our contractors are now realising their ICV commitments. That includes not only meeting but exceeding their set ICV targets, and reporting their performance through our online system so we can monitor accurately the progress we are making.”

The supply and maintenance of compressors was the 15th opportunity to be realised by PDO since the ICV Strategy Blueprint for the Sultanate’s oil and gas operators was unveiled in 2013 to boost local business participation in the nation’s hydrocarbon exploration and production sector.

The document, compiled by Accenture, identified 53 such opportunities, and PDO is leading the implementation of 38 of them.

So far, the Company has localised the supply and manufacture of goods and services in a number of key areas, such as scaffolding, carbon steel pipes, well engineering equipment and the provision of polymer for enhanced oil recovery.

Approximately 38 per cent of its overall contracts are now placed with local businesses, and as much as 53 per cent of its well engineering contracts are awarded to Local Community Contractors, amongst the highest in the region and beyond.

Ishaq al Rawahy, Managing Director of Bin Salim Enterprises LLC, said, “Thank you to PDO for this great opportunity. To have such support can only enhance what we already do for Omanisation.

The contract will have a multiplier effect throughout our business and help us to elevate some Omanis to higher levels.”

Xavi Thekkath, Managing Director of Pipeline Supply Company LLC, said, “This contract will enable us to recruit and train competent Omanis.

We appreciate both the need for ICV and PDO’s direction, and we respect the fact that we must contribute.”

Compressors are used throughout PDO’s operations to increase well production, maintain reservoir pressure and boost hydrocarbon flow through pipelines.