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PDO to boost Omani engineering with OmEPC US$25mn contract

Industry

Petroleum Development Oman (PDO) has signed a new contract with the Oman Engineering Procurement & Construction (OmEPC), a joint partnership between four Omani SMEs; Value Engineering Centre (VEC), Hamad Engineering Services (HES), Precision Engineering Consultancy (PEC) and Rock International

The phased contract is the latest development in the oil and gas industry’s In-Country Value (ICV) Blueprint Strategy launched in December 2013 in which PDO is supporting efforts in job creation and training as well as providing commercial and investment opportunities for local businesses.

The contract valued at around US$25mn for the first phase was signed on 13 February at PDO’s Knowledge World centre in Muscat by the Company’s Managing Director Raoul Restucci and OmEPC Chairman Mohammed Al Said, representing the four-company partnership.

The engineering, procurement and construction (EPC) contract is structured in three phases. The first is for three years and covers engineering services. Upon successful delivery, it will then be expanded to cover both engineering and procurement for a further three years and construction management will then be added at the end of year six.

“This is an important EPC contract for PDO as it will provide services for our business in key areas, utilising a skilled Omani workforce and providing opportunities for emerging local businesses in supporting their development,” said Restucci.

“It is a further example of our long-term contribution and commitment to ICV in the Sultanate, creating jobs for Omani people by localising the supply chain,” he added.

The contract includes a broad range of technical services including production systems optimisation, small project design, asset verification, process engineering flow scheme (PEFS) conversion works and front end engineering design (FEED) for smaller and less complex projects.

There is also the opportunity to extend the scope of work to include additional opportunities, e.g. maintenance and service activities, shutdown management, construction project management and EPC contracting capability for medium-sized projects.