GE Oil & Gas has signed a landmark long-term, multi-million dollar contract with Petroleum Development Oman to supply 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, and is aligned with PDO’s ‘In Country Value’ initiative.

The ‘In Country Value’ strategy aims to promote localized manufacturing, develop Local Community Contractors (LCCs) and strengthen Omani talent development through training programmes.

GE Oil & Gas will sub-contract the manufacturing and fabrication of specific pumping unit’s 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 the 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.  

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 Mena 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.”

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. GE Oil & Gas will also provide 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. – TradeArabia News Service