GE Oil & Gas wins landmark contract from Petroleum Development Oman

GE Oil & Gas (NYSE: GE), has signed a landmark long-term, multi-million dollar contract with Petroleum Development Oman for the provision of 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.

PDO’s ‘In Country Value’ strategy aims to promote localized 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. 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 Middle East, North Africa 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. 

GE Oil & Gas supports its partners in Oman with a wide range of products and services including Artificial Lift products such as Rod Lift Systems, Automation, Electrical Submersible Pumps, Progressing Cavity Pumps, Surface Pumping Systems, Zenith systems, Power 2 Lift, Pressure Control systems (PC) and Turbo Machinery Services (TMS), among others. 

With an active presence since 1975 and an installed base of 430 RRP units across the country including 235 RRP units for PDO, GE is a key partner in supporting the Sultanate’s energy production. GE currently has its ESP technology deployed in 250 of PDO’s wells to support production. GE is also powering the three LNG trains at Oman LNG’s Qalhat complex with six critical gas turbines driving the trains and six gas turbines generating power.

Moreover, GE has also rolled out dedicated training programs for Omani professionals at the Florence Oil & Gas University, a testament to the abiding commitment to support Omanization and human capital development.