GE Oil & Gas has signed a long-term, multi-million dollar contract with Petroleum Development Oman (PDO) for the provision of integrated reciprocating rod pump (RRP) equipment and related services commencing in Q2 2016
Along 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 localised manufacturing, develop local community contractors (LCCs) and strengthen Omani talent development through training programs.
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.
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.”
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. It 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.
Rami Qasem, CEO, GE Oil & Gas for Middle East, North Africa and Turkey, added, “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.”
Moreover, GE has also rolled out dedicated training programmes for Omani professionals at the Florence Oil & Gas University to support ‘Omanisation’ and human capital development.