BHEL achieves path breaking success in the Middle East region with the award of 'rate contract' for Gas Turbine Generator packages from Oman

Bucking the global recessionary trend, Bharat Heavy Electricals Limited (BHEL) has achieved yet another ground breaking success by securing a prestigious contract for 'Price Agreement' (rate contract) for 126 MW rating Gas Turbine Generator packages from the Sultanate of Oman. This rate contract has been secured in the face of stiff international competition.

The rate contract envisages supply and supervision of erection and commissioning of several 126 MW units for various power projects planned by Petroleum Development Oman (PDO). This rate contract will initially be valid for six years with a provision for further extension by another 3 years with mutual agreement, during which PDO can buy additional units from BHEL. The value of business is expected to be of the order of Rs.20,000 Million, over the next 6-7 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.

PDO is BHEL's most important customer in the Sultanate, for whom it has successfully executed four power projects on EPC basis. Significantly, BHEL supplied sets today account for over 50 per cent of PDO's installed generating capacity. In addition, BHEL has executed three orders for compressor packages for PDO.

The Sultanate of Oman is BHEL's most important market and has been a springboard for entry in the Middle East region with key references established in Oman. BHEL has secured and executed 12 major contracts in the past 12 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 and water Oman) and Industry (Oman Cement Company), which are testimony to BHEL's strong presence and acceptability in the Oman market.

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.

For the contract, the Gas Turbines and associated equipment will be manufactured and supplied by BHELs Hyderabad plant and the state-of-the-art Control Systems will be manufactured and supplied by BHEL's Electronics Division, Bangalore.