BHEL achieved another order in the Middle East region for two Gas Turbine Generating Units of 126 MW each from Oman .

In the backdrop of a subdued trend in international trade, Bharat Heavy Electricals Limited (BHEL) has achieved yet another milestone in the Middle East region with a prestigious export order for two Gas Turbine Generating Units of 126 MW each from the Sultanate of Oman.

Valued at Rs.3.75bn, the order envisages supply and supervision of erection and commissioning of two numbers state-of-the-art Gas turbine generating units of 126 MW each for a power project being set up by Petroleum Development Oman (PDO) at Amal, nearly 700 kms. from Muscat .

This is the first order secured by BHEL as part of the prestigious six-year ‘Price Agreement (Rate Contract) for 126 MW rating Gas Turbine Generator packages' with PDO, signed in January '09. Secured in the face of stiff international competition, the rate contract is initially valid for six years with a provision for further extension by another 3 years.

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 15 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 order demonstrates PDO's continued 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 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 .