Exel and Bahwan CyberTek (BCT) have marked the implementation of a five-year plus contract with Petroleum Development Oman LLC (PDO) spanning PDO Primary, Secondary and in due course 3rd party clients. The contract, initially announced last year, is the largest-ever logistics contract awarded in the country.
Called Bahwan Exel the company is a joint venture between Exel and Bahwan CyberTek (BCT), the global system integration, software products and services company, part of the billion dollar conglomerate Suhail Bahwan Group. As PDO's logistics provider, Bahwan Exel will be responsible for managing all logistics operations, cargo handling and suppliers on behalf of the customer.
PDO is the leading exploration and production company in the Sultanate and accounts for more than 90% of Oman's crude oil production which generates 40% of the country's GDP. PDO is jointly owned by the Government of Oman (60%), the Royal Dutch/Shell Group (34%), Total (4%) and Partex (2%).
The contract is groundbreaking for PDO which set out four years ago to create a partnership with a leading international logistics company, principally to improve service levels to its interior drilling and engineering operations and maximise its fleet to cut truck kilometres between 10% and 20%, thereby helping to improve road safety.
The new contract involves the transport management of all PDO's goods and materials ranging from the distribution of catering supplies to moving complete oil drilling rigs. Some 60% of transport expenditure relates to rig movements, with an average of over one rig move every day. Other cargo transported includes pipes, equipment, food, water and crude diesel. There are typically around 50,000 similar movements a year.
At an official ceremony on 26 June 2005 attended by Leigh Pomlett, Exel's Chief Executive for its contract logistics business in the Middle East and Africa, and PDO's Managing Director, John Malcolm, formally launched the contract.
The development represents Exel's entry into the Oman logistics market and the joint venture complements existing operations in the Middle East. Within the joint venture Exel is responsible for general management, the implementation of software, provision of logistics management services, health and safety and environmental operations. BCT will provide IT infrastructure, accountancy and treasury services.
Leigh Pomlett, said, "With this collaboration, PDO is set to change the way the industry operates in Oman and creates a solid platform from which Exel will develop national and regional logistics management activities towards governmental and private business. This contract is a clear example of the Group's ability to add value by drawing on relevant experience from the Exel business to provide solutions to support global supply chain operations."
Warith Kharusi, PDO's Logistics Manager, added, "This is a pioneering innovation for PDO which provides a highly intellectual operation to improve safety and efficiency in the very complex petroleum industry in Oman.
Through this contact we hope to further develop the already proven third-party logistics suppliers and, in accordance with the Omani Government's aspirations, enhance the skills of future generations. This is a very positive development for PDO and the Sultanate of Oman in general."
"Winning this multimillion pound contract was a moment of pride for the joint venture as apart from this being the largest 'Business Transformation Management' contract in the region this also provides an opportunity for the country to take a lead in this space . Bahwan Cybertek is proud to be the technology partner in the evolution of the solution and the implementation of this mission critical application,"said Ms.Hind Bahwan,Chairperson, Bahwan CyberTek Group & Bahwan Exel.