BHEL bags largest long-term contract for oilfield equipment from ONGC

In the face of stiff competition under International Competitive Bidding ICB, Bharat Heavy Electricals Limited BHEL has won the single largest long term rate contract from ONGC for the supply of Well Head assemblies, Xmas Tree Valves and other critical spares, accessories used in oil exploration.

ONGCs projected offtake from BHEL for this vital equipment is about Rs.2,000 Million for the next three years for their onshore as well as offshore projects. Around 65 per cent of these orders will have deemed export status.

This is the second time BHEL has received such a contract from ONGC and reflects the customers confidence in the companys capabilities. BHEL had earlier received a similar long term contract from ONGC in February, 2004 for Well Head assemblies and Xmas Tree Valves, which expired in February, 2007.

BHELs scope of work in the present contract envisages manufacture and supply of Over 500 sets of Well Head assemblies and 350 sets of Xmas Tree Valves per annum. ONGCs concerned regional offices located across the country, will compile their requirement and place orders directly on BHEL, as per the agreed rates, terms and conditions of the contract.

BHEL has so far manufactured and supplied over 4,000 sets of Well Head assemblies and Xmas Tree Valves of up to 10,000 psi rating for various applications, to ONGC, Oil India Ltd. and Private Drilling Companies in India and overseas.

Significantly, with an over 90 per cent share, BHEL is the market leader in Well Heads and Xmas Tree equipment in the country.

Outside India, BHEL has exported valves to a number of countries including Oman, USA, Japan, Malta, Singapore, Indonesia, Kuwait, Taiwan, Syria, Cyprus, Egypt, Bangladesh and Philippines. A number of multinational companies like Toa Valve Co. of Japan, Kvaerner Oilfield Products, Singapore and Dresser Industries, USA have also sourced their requirement of valves from BHEL.

Notably, BHELs Trichy plant has the largest valve manufacturing facility in India, manufacturing valves ranging from 3 mm to 900 mm in size from carbon steel, low alloy steel and stainless steel.

In addition, BHELs contribution to ONGC includes refurbishment and upgradation of onshore oil rigs, supplied earlier.