Petroleum Development Oman (PDO) has agreed two deals worth US$253.1mn to Omanise the provision of vital equipment for the oil and gas industry
The company has signed contracts for the local manufacture and supply of transformers and valves which will be used in its operations and beyond.
The deals represent further evidence of PDO’s In-Country Value (ICV) programme to retain more of the wealth of the oil and gas sector in the Sultanate and develop domestic supply chains.
After the first three years of these deals, both of the foreign companies have agreed to establish production facilities in the Sultanate to make the key components.
Commenting on the deal, Raoul Restucci, managing director at PDO, said, “We are working hard with our partners to ensure that Oman builds its capacity and capability to competitively and professionally service both the nation’s oil and gas industry but also that beyond our borders.”
“ICV not only shortens our supply lines and reduces our delivery times and transport costs, but also provides more vocational training and employment opportunities for Omanis while boosting the Sultanate’s economy,” Restucci added.
PDO has struck deals with Rusayl-based Voltamp Transformers Oman for the supply of power transformers and with Al Jizzi Transformers and Switchgears, located in Ma’abella, for the supply of well head transformers.
PDO has also penned other agreements with Muscat-based Techno Fit Trading and Chinese concern Wuzhou Valve Company for the manufacture of ball valves. In addition, the company has also signed deal with Indian firm Gene-tech Controls for the manufacture of mono-flange valves.
The product range covers valve items from half-inch to 24-inch in size in various material grades, covering the majority of PDO operations, as well as potentially the wider petro-chemical industry in Oman and beyond.
Accordingly to the company, approximately 41 per cent of PDO’s overall contracts are now placed with local businesses, and as much as 53 per cent of its well engineering contracts are awarded to local community contractors, amongst the highest in the region.
