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Al-Hadhitha Wins Oman Pipeline Replacement Deal

Source: Times of Oman 2/21/2012, Location: Middle East

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Petroleum Development Oman (PDO) signed a major contract with one of five super Local Community Contractors(LCCs) recently established to boost development in the communities living in the company’s concession area.

Al Haditha Oilfield Services Company has signed the contract to provide flowline replacement services. The five super LCCs (four of which are assigned to PDO) were approved by a ministerial committee formed in 2006 as part of the efforts exerted in developing the local communities in PDO’s concession area by providing them with business opportunities.

Prior to the establishment of these super LCCS, the share of PDO’s business to the local community contractors has been steadily increasing during the period 2008-2011 and exceeded $100 million in 2011.

“From a humble beginning in 1998, these local community contractors have grown, with increasing efficiency and competitive mindset and, in many cases, have become fully-fledged and experienced contractors competing in the local market,” said PDO’s managing director Raoul Restucci, who signed the contract for the company.

“These established entities are merging to form super (shareholder) local community contractors so that they can benefit a wider sector of Omani society and secure increasing expertise across a broader value chain of services that will ensure even greater participation in PDO projects and the oil industry in general,” he noted.

Two super LCCs, Al Haditha and Al Shawamikh with 2,507 and 1,150 shareholders respectively are assigned by the ministerial committee for the northern part of PDO’s concession area, with Al Baraka and Al Sahari, with 523 and 1,368 shareholders respectively, assigned for the southern concession area.

The value of the contract signed totals $35 million and will last for five years commencing on June 1, 2012. “The value of the contract will increase according to the scope of work Al Haditha can cover,” said Raoul. “This contract comes as part of our “In Country Value” strategy, that aims to support SLCC companies, and grow and develop products and services by Omani companies,” he added.

The In Country Value (ICV) is the total money retained in the Sultanate that can benefit the country’s business development, contribute to human capability building and stimulate productivity in the national economy.

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