Petroleum Development Oman Signed Contract With
GE Oil & Gas on Technical Services Support
The situation in the oil market is never stable and depends upon a number of economic, political and social factors. Although, the prognoses are made on a regular basis, it is still impossible to tell whether they will pan out or not. Anyway, it always makes sense to analyze the current situation in the oil industry to be able to draw the conclusions and make the predictions.
As of today, there is the tendency for oil prices to go down. According to the recent reviews of the experts, the crude oil prices struggle to exceed to $30 mark nowadays, while the leading oil companies keep reporting poor profits and don’t have any other way out but to wait for the stabilization of the situation. Meanwhile, the oil prices went down 4,1% as compared to the previous months. One of the main reasons for that is the lack of progress between the non-OPEC and OPEC countries to control the global oil production market. While the experts continue making their prognoses for the future, the crude oil prices are rapidly falling and the prevailing amount of oil companies are facing financial problems. Some of them, however, still manage to sign profitable contracts that may help improve the situation.
Thus, the GE Oil and Gas has announced the signing of a profitable long-term contract with Petroleum Development Oman (also known as PDO), the terms of which involve the provision of the high quality RRP (reciprocating rod pump) equipment and delivery of other industry services in the second quarter of the year 2016.
This is the first contract signed between the companies, which comes with the “In Country Value” project provided by the Petroleum Development Oman. The basic objective of the project is to improve the local oil manufacture, fortify the Omani oil industry development and contribute to the advancement of local community contractors through the implementation of training and educational programs.
According to the contract, GE Oil and Gas is obliged to ensure the production of the structural parts of the reciprocating rod pumps in Oman. They should also construct the chosen Lufkin Automation units inside the country. This process is expected to be held out at the local companies. The PDO, in its turn, will be responsible for teaching the local contractors the basics and the nuances of the reciprocating rod pump assembly.
The PDO representatives believe that this contact will signify the innovative approach to the assembly, installation and servicing of the reciprocating rod pump systems. They underlined that, earlier, these processes were managed by the individual producers, so they did not have any other chance, but to rely on other contractors. Now that the contract has been signed, they expect that the situation will change for the better, improving the overall operational efficacy of the company.
Under the terms and conditions of a contract, GE Oil & Gas is obliged to provide a rich supply of high quality equipment. This involves the Lufkin Automation products, C1280 Beam Pumps as well as Lufkin C912. Apart from that, the company is assigned to take care of proper maintenance and storage of the delivered equipment. It is responsible for the supervision of their application and the provision of technical education and training services.
The managers of GE Oil & Gas confirm their commitment to support their partner in helping the company achieve their long-term goals by investing in the development of the Oman oil industry. They have also implemented advanced training projects in the Florence Oil & Gas University to help the local Oman specialists acquire new knowledge and the required skills.
GE Oil & Gas positions itself as one of the leading providers of services and equipment for the oil and gas industry. The company has over 20 years of experience in the business and is ready to provide a wide range of services – from gas and oil subsea systems and drilling equipment and up to downstream processing solutions.
Speaking about Petroleum Development Oman, it is the most renowned manufacturer of crude oil in the Sultanate of Oman. It is reported to produce over 70% of the overall amount of crude oil in the country, not to mention the supply of natural gas. The Company is owned and controlled by the Government of Oman, the Shell Group, Total and Partex.
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