PDO inks $35m worth of deals with Omani firms
Petroleum Development Oman has awarded three contracts worth $35m (OMR13.5m) to local companies for the supply and servicing of compressors
Petroleum Development Oman (PDO) has signed three contracts, with a combined value of $35m (OMR13.5m), with Omani firms.
The agreements cover the supply and servicing of compressors. They also reflect the company’s commitment to keeping more of the oil and gas industry’s wealth in the sultanate and developing local supply chains, in support of the country’s In-Country Value (ICV) initiative, according to PDO.
Two of the contracts were signed with Bin Salim Enterprises LLC for the supply of instrument air compressor packages, and for the maintenance and repair of installed units.
The third contract is a service agreement signed with PipeLine Supply Company LLC for an existing compressor fleet.
Raoul Restucci, managing director of PDO, 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 that Omani companies play a greater role in the oil and gas sector and beyond, so that we can develop competitive, capable, professional, and efficient local supply chains."
He added: "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 ICV strategy blueprint for Oman’s oil and gas operators was launched in 2013 to boost local business participation in the hydrocarbon exploration and production sector.
A document compiled by Accenture has identified 53 ICV opportunities, with PDO leading the implementation of 38 of them, Oman News Agency (ONA) reported.
The company has reportedly localised the supply and manufacture of goods and services in a number of key areas, including scaffolding, carbon steel pipes, well engineering equipment, and the provision of polymer for enhanced oil recovery.
Approximately 38% of its overall contracts are now placed with local businesses, and as much as 53% of its well engineering contracts have been awarded to local contractors.
Compressors are used throughout PDO’s operations to increase well production, maintain reservoir pressure, and improve hydrocarbon flow through pipelines.