Oman- GE unit bags PDO contract for pump equipment and services

2/2/2016 2:34:57 AM

(MENAFN- Muscat Daily) Muscat-

GE Oil & Gas has signed a long-term multi-million dollar contract with Petroleum Development Oman for the provision of integrated reciprocating rod pump equipment (RRP) and related services commencing in the second quarter of 2016.

Joining hands with its local partner Edgo this is GE's first-ever contract awarded by PDO for the provision of integrated RRP equipment and services.

According to a GE press release on Monday the contract aligns with PDO's 'in-country value' initiative which aims to promote localised manufacturing develop local community contractors (LCCs) and strengthen Omani talent development through training programmes.

GE Oil & Gas said it would sub-contract the manufacturing and fabrication of specific pumping unit structural components in Oman and also assemble selected Lufkin automation products in the country using local companies. The local contractors will also be trained on the various aspects of RRP assembly.

'The engagement of LCCs and the sub-contracting of work to the LCCs is crucial to the success of the local talent development and local economy for the people of south Oman' the London UK-headquartered subsidiary of General Electric said.

A PDO spokesperson said 'Historically we have sourced individual RRP components from individual manufacturers and had to rely on various contractors for its installation and maintenance. This contract marks the first-ever integrated approach in the installation and service of RRP systems which will contribute significantly in addressing all associated logistical challenges and enhance our operational efficiency. 'In Country Value' was an important feature of the negotiations and this contract is further evidence of our commitment to secure long-term sustainable economic benefits for the Sultanate.

Rami Qasem president & CEO GE Oil & Gas for Middle East North Africa and Turkey said 'The contract builds on our long-term partnership with PDO and underlines our commitment to investing in Oman and supporting PDO to achieve their long-term goals. The provision of advanced equipment and services will help in meeting and exceeding the average run-life of the rod pump equipment a critical component in PDO's operations.'

GE has had an active presence in Oman since 1975. It has an installed base of 430 RRP units across the country including 235 units for PDO. The company currently has its ESP technology deployed in 250 of PDO's wells. GE also powers the three LNG trains at Oman LNG's Qalhat complex with six critical gas turbines driving the trains and six gas turbines generating power.

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