OMAN : Petroleum Development Oman inks deal with LCC.
Al Haditha Oilfield Services Company has inked a deal to offer flowline replacement services.
The five super LCCs (four of which are assigned to PDO) were approved by a ministerial committee established in 2006 under the efforts to develop the local communities in PDO s concession area by offering business opportunities to them. Before forming these super LCCS, the share of PDO s business to local community contractors has progressively been rising in the period 2008-2011 and has surpassed $100 million in 2011.
Raoul Restucci, Managing Director of PDO, said, From a humble beginning in 1998, these local community contractors have grown, with increasing efficiency and competitive mindset and, in many cases, have become fully-fledged and experienced contractors competing in the local market. These established entities are merging to form super (shareholder) local community contractors so that they can benefit a wider sector of Omani society and secure increasing expertise across a broader value chain of services that will ensure even greater participation in PDO projects and the oil industry in general.
The ministerial committee has assigned the two super LCCs, Al Haditha and Al Shawamikh, with respective shareholders of 2,507 and 1,150, for northern part of PDO s concession area. It has also assigned Al Baraka and Al Sahari, with respective shareholders of 523 and 1,368, for the southern concession area. The total worth of the deal is $35 million. The deal will be effective from June 1, for 5-year.
Raoul said, The value of the contract will increase according to the scope of work Al Haditha can cover. This contract comes as part of our In Country Value strategy, that aims to support SLCC companies, and grow and develop products and services by Omani companies.
2012 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
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|Title Annotation:||Local Community Contractors|
|Date:||Feb 22, 2012|
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