India’s state run Bharat Heavy Electricals Limited has announced that it was won a contract to supply gas turbine generators worth over USD 400 million for various projects of Petroleum Development Oman.

BHEL said in a statement that it was awarded a rate contract for the supply of 126MW rating gas turbine generator packages against stiff international competition. The rate contract envisages supply, supervision, erection and commissioning of several 126MW units for various power projects planned by PDO.

This rate contract will initially be valid for 6 years with a provision for further extension by another 3 years by mutual agreement, during which PDO can buy additional units from BHEL. The value of business is expected to be of the order of INR 20,000 million over the next 6 to 7 years. This rate contract will further strengthen BHEL’s presence in the Sultanate of Oman, with an anticipated continuous flow of business for large rating gas turbines for nearly a decade from PDO.

The statement added that “With this rate contract, PDO continues to repose its 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 is expected to pave the way for similar opportunities from the hydrocarbon exploration and production majors worldwide.”