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Petroleum Development Oman (PDO) has agreed two deals worth US$253.1 million to Omanise the provision of vital equipment for the oil and gas industry.

The Company has signed contracts for the local manufacture and supply of transformers and valves which will be used in its operations and beyond.

The deals represent further evidence of PDO’s In-Country Value (ICV) programme to retain more of the wealth of the oil and gas sector in the Sultanate and develop domestic supply chains.

PDO Managing Director Raoul Restucci said: “We are working hard with our partners to ensure that Oman builds its capacity and capability to competitively and professionally service both the nation’s oil and gas industry but also that beyond our borders.

“ICV not only shortens our supply lines and reduces our delivery times and transport costs, but also provides more vocational training and employment opportunities for Omanis while boosting the Sultanate’s economy.

“We are delighted to sign these contracts for the provision of important equipment and parts for the oil and gas sector. Beyond the local supply of goods and services to the requisite technical level, they provide the further demonstration of how our contractors and suppliers are playing a greater role in embedding ICV in their operations.”

PDO has struck deals with Rusayl-based Voltamp Transformers Oman for the supply of power transformers and with Al Jizzi Transformers and Switchgears, located in Ma’abella, for the supply of well head transformers. The companies employ almost 100 Omanis in total.

It also penned agreements with Muscat-based Techno Fit Trading: one with Chinese concern Wuzhou Valve Company for the manufacture of ball valves, and one with Indian firm Gene-tech Controls for the manufacture of mono-flange valves. After the first three years of these deals, both of the foreign companies have agreed to establish production facilities in the Sultanate to make the key components.

The product range covers thousands of valve items from half-inch to 24-inch in size in various material grades, covering the majority of PDO operations, as well as potentially the wider petro-chemical industry in Oman and beyond.

The supply and maintenance of valves is the 17th opportunity to be realised by PDO since the ICV Strategy Blueprint for the Sultanate’s oil and gas operators was unveiled in 2013 to boost local business participation in the nation’s hydrocarbon exploration and production sector.

So far, the Company has localised the supply and manufacture of goods and services in a number of key areas, such as scaffolding, carbon steel pipes, well engineering equipment and the provision of polymer for enhanced oil recovery.

Approximately 41% of PDO’s overall contracts are now placed with local businesses, and as much as 53% of its well engineering contracts are awarded to Local Community Contractors, amongst the highest in the region.