The Economics Times, October 12, 2004

CHENNAI: IT services firm Bahwan CyberTek said on Monday its joint venture with UK-based logistics service provider, Tibett & Briton Group, has won a $500-million deal for fourth-party logistics management from oil exploration and production firm Petroleum Development Oman (PDO).

The deal is to provide total supply chain management system, involving real-time data tracking, IT system integration, multi-customer relationship and procurement service for PDO's operations across Oman, said S Durgaprasad, director & CEO of Bahwan CyberTek Group.

The contract is for a five-year period.

Bahwan CyberTek holds 51 stake in the joint venture Bahwan Tibett & Briton.

"We have started the migration process in July and we hope to go live by January 2005," he told reporters, here adding that PDO could also monitor and assist all its 6000 oil trucks in the desert through the fourth-party logistics pact.

PDO, a joint venture between Government of Oman (60 per cent stake) and Royal Dutch/Shell Group (34 per cent), will make savings of about $21 million per annum through the project, Durgaprasad said.

Bahwan Exel would be responsible for general management and the provision of logistics management services while Bahwan CyberTek would provide IT infrastructure, along with accountancy and treasury services for this project.

Bahwan CyberTek, an associate company of $1 billion Suhail Bahwan Group of the Middle East, has its biggest offshore software development centre in Chennai.