Mubasher GE Oil and Gas said Monday that it has signed a landmark long-term, multi-million-dollar contract with Petroleum Development Oman (PDO) for the provision of Progressive Cavity Pump equipment (PCP) and related services commencing in the third quarter of 2016.
This is aligned with PDO’s ‘In Country Value’ initiative and marks the first contract awarded by PDO to GE, for providing PCP equipment and services, according to a bourse filing
The ‘In Country Value’ strategy is aiming at promoting localised sourcing, developing local community contractors (LCCs) and strengthening Omani talent development through training programs.
GE Oil and Gas said that it will sub-contract services to LCCs that will also be trained on the various aspects of PCP services, adding that the engagement of the LCCs and sub-contracting of work to them is crucial to driving local talent development and boosting south Oman’s local economy.
A PDO spokesperson said: “The award of the integrated PCP contract to GE for the Nimr fields synergizes and aligns with the integrated RRP contract for the Nimr fields previously awarded to GE. ‘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”.
As part of the deal, GE Oil and Gas has joined hand with its local partner Edgo to provide a wide range of specialised equipment and ensure preventive and corrective maintenance for a number of inherited PCP systems in addition to supervising the use of these systems in well interventions. GE Oil and Gas will also provide technical training to the PDO team.
“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 PCP equipment, a critical component in PDO’s production operations,” Rami Qasem, President and CEO, GE Oil and Gas for Middle East, North Africa and Turkey, said.
