Times of Oman, June 28, 2005

MUSCAT — Petroleum Development Oman (PDO) has held a ceremony to mark the signing of a major contract for the provision of fourth-party logistics services by Exel and BahwanCybertek.

The contract, which was put in place over the past three years, will let the Exel/BahwanCybertek joint venture manage all cargo operations, including drilling-rig moves, on behalf of PDO. In addition, the joint venture will integrate its logistics system nationally and regionally so that other companies and governmental agencies can take advantage of it.

The ceremony, which marked the end of the process to put the contract in place, was attended by PDO Managing Director John Malcolm, Deputy Managing Director Abdulla Al Lamki and representatives of the PDO’s logistics department led by the Logistics Manager Warith Al Kharusi.

Representing Exel at the signing ceremony on Sunday, were its CEO for contract logistics in mainland Europe, Middle East and Africa, Leigh Pomlett, and its Middle East Regional Director Colin Wain. Representing BahwanCybertek were Hind Bahwan, its chairperson, and S. Durgaprasad, CEO.

The contract’s advent promises to increase the utilisation of truck capacities by some 10-20 per cent. The subsequent reduction in kilometres driven will result in savings as well as reduced exposure to traffic accidents.

The application of a new transport management system with track and trace capabilities will result in a step-change improvement of the service level offered to the primary customers, namely PDO’s interior-based drilling and engineering operations.

The contract will unify the system so that everyone — not just PDO-related companies — can take advantage of it. The scope of cargo haulage that will come under the system’s umbrella will include, amongst other things, loads from ports to the coast and interior, rig moves, loading and unloading operations, crude-oil and water haulage, and clearing and forwarding.

Kharusi said: “This type of fourth-party logistics contract is the first in the Middle Eastern exploration and production industry. It will not only result in an improved service but will also help local businesses to grow. The execution of all activities will be subcontracted to established local trucking companies. Logistics integration on this scale is a perfect example of sustainable development in practice: it makes optimum use of resources; it improves the safety of our operations; and it stimulates the growth of local businesses.”

“What we will end up with is a unified system of logistics that spans the whole country and that links with other transport systems, including passenger transport. This is a very positive development for PDO and the Sultanate in general,” Kharusi concluded.