Petroleum Development Oman (PDO) has signed a $200m pipe supply contract for four years with an Omani factory as part of its in-country value (ICV) strategy to retain more of the oil and gas industry’s wealth in the sultanate, Construction Week Online reported.
The Gulf International Pipe Industry (TMK-GIPI) mill based in the Sohar Industrial Estate will manufacture a variety of pipelines sized 6-24 inches in diameter for both PDO and other operators, informed Trade Arabia. Accordingly, the company will expand its current production range. It is expected to introduce a new manufacturing line for small pipeline categories to cater for high demand of such sizes from PDO and the rest of the oil and gas industry.
Furthermore, the agreement marks the successful implementation of one of the business opportunities launched by PDO for Omani businesses at the major ICV Blueprint Strategy Summit in Muscat in December 2013.
PDO’s Managing Director, Raoul Restucci, said that the agreement opens a fantastic opportunity for this state-of-the-art plant to supply its products and services across the region. In return, TMK-GIPI’s CEO, Vladimir Shcherbatykh, commented that the company is committed to developing investments in Oman and to support PDO to achieve its long-term goals.