BHEL achieves another success in the Middle East region with an order for a 126 MW Gas Turbine Generating Unit from Oman

Riding on a string of noteworthy successes in overseas business, Bharat Heavy Electricals Limited (BHEL) has achieved yet another milestone in the Middle East region with a prestigious export order for a Gas Turbine Generating Unit of 126 MW each from the Sultanate of Oman.

Valued at Rs.2,050 Million, the order envisages supply and supervision of erection and commissioning of one number state-of-the-art 126 MW Gas Turbine generating unit for a power project being set up by Petroleum Development Oman (PDO) at Qarn Alam, nearly 400 kms. from Muscat.

Following the receipt of an order in May ’09 for supply of 2x126 MW Gas Turbine generating units for Amal Power Station, this is the second order secured by BHEL as part of the six-year ‘Price Agreement (Rate Contract) for 126 MW rating Gas Turbine Generator packages’ with PDO, signed in January ’09.

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 16 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 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 seven Power Projects on EPC basis from diverse Sectors viz. Petroleum Sector (Petroleum Development Oman); Utility (Ministry of Housing, Electricity & Water, Oman) and Industry (Oman Cement Company), 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.