Bharat Heavy Electricals Limited has achieved yet another milestone in the Middle East region with a prestigious export order for 2 Gas Turbine Generating Units of 126 MW each from the Sultanate of Oman.
Valued at INR 3,750 million, the order envisages supply and supervision of erection and commissioning of 2 numbers state of the art Gas turbine generating units of 126 MW each for a power project being set up by Petroleum Development Oman at Amal, nearly 700 kilometers from Muscat.
This is the first order secured by BHEL as part of the prestigious 6 year ‘Price Agreement for 126 MW rating Gas Turbine Generator packages’ with PDO, signed in January 2009. Secured in the face of stiff international competition, the rate contract is initially valid for 6 years with a provision for further extension by another 3 years.
The Sultanate of Oman is BHEL’s key export market and has been a springboard for entry in the Middle East region with benchmark references established in Oman. With the present order, BHEL will have the unique distinction of having 15 Gas Turbine sets installed in Oman alone.
PDO, a company, majority owned by the Government of Oman with the balance shareholding by Royal Dutch Shell, Partex and Total is BHEL’s most important customer in the Sultanate, for whom it has successfully executed four power projects on EPC basis. Notably, BHEL-supplied sets today account for over 50% of PDO’s installed generating capacity. In addition, BHEL has executed three orders for compressor packages for PDO.
This order demonstrates PDO’s continued confidence in BHEL’s capabilities and competitiveness. This contract will further enhance BHEL’s long term visibility in the overseas Petroleum Sector for Power Plant equipment, which may pave the way for similar opportunities from the hydrocarbon exploration and production majors worldwide.
Significantly, BHEL has earlier secured and executed 14 major contracts in the past 14 years in Oman. These contracts include 7 Power Projects on EPC basis from diverse Sectors viz. Petroleum Sector; Utility and Industry which are testimony to BHEL’s strong presence and acceptability in the Oman market.
For the contract, the Gas Turbines and associated equipment will be manufactured and supplied by BHEL’s Hyderabad plant and the state of the art Control System will be manufactured and supplied by BHEL’s Electronics Division, Bangalore.
