Petroleum Development Oman (PDO) has awarded it largest-ever service contracts for the installation and maintenance of its flowlines in the north and south of Oman. The multi-million rial contracts were awarded to Galfar in the north and Al Turki in the south following competitive bidding involving a number of bidders.
The two new contracts replace a myriad of contracts that were in place earlier, making it much easier for PDO to manage its business. The new contracting strategy is also expected to deliver savings and benefits to PDO worth around R.O. 30 million.
PDO spends between $100-$200 million on flowlines each year. Flowlines carry the oil from the individual producing wells – of which there are thousands in PDO - to the production stations, and onward into the Main Oil Line through which the oil is pumped to the coast for export.
Abdullah Shuely, PDO’s Engineering Manager for the North, explained why the new contracting strategy for flowlines had been put in place: “The new strategy will deliver improved productivity and standardisation across PDO. We think this new approach to contracting will make a significant contribution to helping PDO meet its business-improvement targets.” Shuely continued: “The award of these contracts is a great step forward for PDO and shows that when we say we will change the way in which we and our contractors work we mean it.”
