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PDO Signs US$ 30m Contract with Schlumberger

Source: 5/26/2013, Location: Middle East

Petroleum Development Oman (PDO) has signed a US$ 30 million contract with Schlumberger, a leading international oilfield services company, which will increase the amount of Omani-made materials used in the oil and gas sector.

The five-year deal covers the provision, manufacturing and reconditioning of completions and gas lift equipment and accessories used to extract hydrocarbons with Schlumberger committed to supporting local manufacturers to develop the capability to supply the orders.

This commitment is in line with PDO’s In-Country Value (ICV) strategy to maximise the procurement of local goods and services as well as improving the capacity and capability of Omani people and companies to secure sustainable commercial benefits for the Sultanate. The agreement will create direct skilled Omani jobs involved in the manufacture and supply of the key materials. Furthermore, by the end of the contract period, the majority of these should be manufactured in Oman.

PDO Technical Director Amran al Marhubi said: “The aim of the contract is to develop an Omani supply and manufacturing capability which can service oil and gas companies not only in the Sultanate but also abroad. “We hope this deal with Schlumberger will be a catalyst in that it will encourage local entrepreneurs to invest in new plant and labour because we are committed to using them if they meet our technical, commercial and safety standards.

“This rock-solid commitment is good news for domestic businesses who we believe can deliver high-quality goods on time and on budget and is a further extension of our ICV policy which will hopefully see a lot more contracts awarded to Omani businesses in the years ahead.”

The contract, which has an option for a two-year extension, will cover the provision, manufacturing and reconditioning of gas-lift materials and low-end completions (components) such as mandrels, packers, valves, casings, tubing and plugs to be used mainly in PDO’s northern fields at Qarn Alam, Fahud, Saih Rawl, Saih Nihayda and Lekhwair.Gary Bremner, Finance Director of Schlumberger (Oman), said: “We are very pleased to be able to support the development of manufacturing in Oman by Omani companies. We have been in Oman since 1955 and this is our biggest long-term commitment to develop local manufacturers.”

He added: “We have a team of technical and manufacturing experts who have been assigned the task of supporting local Omani suppliers in developing the capabilities necessary for manufacturing these goods. Through Schlumberger’s regional and global presence in the oil and gas industry we will be able to potentially open up new markets for Omani suppliers. The Omani suppliers can be assured a steady stream of orders which will enable them to plan and expand current capacity by investing in the development of local talents and machinery.”

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