GE Oil & Gas has signed a long-term, multi-million dollar contract with Petroleum Development Oman (PDO) which is coming into effect in Q2, 2016.
Joining hands with its local partner Edgo, this is GE’s first ever contract awarded by PDO for the provision of integrated integrated reciprocating rod pump equipment (RRP) and related services.
As part of the deal, GE Oil & Gas will provide a wide range of specialised equipment including Lufkin C912, C1280 Beam Pumps, and Lufkin Automation Products.
The company is also due to supply preventive and corrective maintenance for a number of inherited RRP systems; supervise their use in well interventions and provide technical training to the concerned team.
The contract aligns with PDO’s ‘In Country Value’ initiative, which aims to promote localised manufacturing, develop local community contractors and strengthen Omani talent development through training programmes, GE said in a statement.
The two companies have agreed to sub-contract the manufacturing and fabrication of specific pumping unit’s structural components to firms in Oman. GE will also need to assemble selected products in the country using local companies.
GE will also train local contractors on the various aspects of RRP assembly, while subcontracting work to local companies, calling it “crucial to the success of the local talent development and local economy for the people of South Oman.”
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.”
