GE Oil & Gas wins landmark contract from Petroleum Development Oman (PDO) for providing Reciprocating Rod Pump systems and services

GE Oil & Gas (NYSE: GE), has actually signed a landmark long-term, multi-million dollar contract with Petroleum Development Oman for the arrangement of integrated Reciprocating Rod Pump devices (RRP) and associated services commencing in the 2nd quarter of 2016.

Signing up with hands with its regional partner Edgo, this is GE's first-ever agreement granted by PDO for the arrangement of integrated RRP equipment and services, and is aligned with PDO's 'In Country Value' initiative.

PDO's 'In Country Value' strategy intends to promote localized production, develop Local Community Contractors (LCCs) and strengthen Omani skill advancement through training programs.

GE Oil & Gas will sub-contract the manufacturing and fabrication of specific pumping system's structural elements in Oman as well as assemble selected Lufkin Automation items in the nation making use of regional companies. The local contractors will also be trained on the numerous elements of RRP assembly. The engagement of the LCCs and the sub-contracting of work to the LCCs is crucial to the success of the regional skill development and local economy for the people of South Oman.

A PDO representative said: "Historically, we have sourced individual RRP elements from individual makers and had to rely on various specialists for its setup and upkeep. This agreement marks the first-ever integrated strategy in the setup and service of RRP systems, which will contribute substantially in attending to all associated logistical difficulties and enhance our operational effectiveness. 'In Country Value' was an essential function of the settlements and this agreement is more evidence of our dedication to protect long-term sustainable financial advantages for the Sultanate.

Rami Qasem, President & CEO, GE Oil & Gas for Middle East, North Africa and Turkey, stated: "The agreement builds on our long-term collaboration with PDO and highlights our commitment to buying Oman and supporting PDO to attain their long-lasting objectives. The arrangement of innovative equipment and services will help in meeting and exceeding the typical run-life of the rod pump devices, a crucial component in PDO's operations.".

As part of the deal, GE Oil & Gas will provide a large range of specialist devices consisting of Lufkin C912, C1280 Beam Pumps, and Lufkin Automation Products. GE Oil & Gas will also supply preventive and corrective upkeep for a number of acquired RRP systems; monitor their usage in well interventions and offer technical training to the worried group.

GE Oil & Gas supports its partners in Oman with a wide range of products and services consisting of Artificial Lift items 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 because 1975 and an installed base of 430 RRP devices throughout the country including 235 RRP devices for PDO, GE is an essential 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 important gas turbines driving the trains and six gas turbines creating power.

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