Carillion wins five-year, £240 million extension to Petroleum Development Oman maintenance contract

The UK contractor Carillion has announced that it has won a five-year, £240 million (Dh1.1bn) extension to a facilities management contract being carried out for Petroleum Development Oman (PDO). The company, which operates as Carillion Alawi in Oman, has been working for PDO for three years, providing facilities management services to an estate of 2,000 […]

The UK contractor Carillion has announced that it has won a five-year, £240 million (Dh1.1bn) extension to a facilities management contract being carried out for Petroleum Development Oman (PDO).

The company, which operates as Carillion Alawi in Oman, has been working for PDO for three years, providing facilities management services to an estate of 2,000 buildings over a 100,000 square kilometre area. Its contract covers engineering maintenance, cleaning and the upkeep of accommodation of non-process buildings, such as accommodation blocks. It also provides catering for up to 3,000 employees, as well as landscaping, linen and laundry services.

The company said that the new award had helped take the total amount of new and probable orders secured this year to £2.5bn (Dh11.9bn). It reported revenue of £4.6bn last year, 16 per cent of which was generated in the Middle East.

The company said that revenue and profit for its Middle East business for the first six months of this year is broadly in line with expectations. It said that its strategy for the region is to be strict over contract selection and to target work where it can support contracts with financing through the UK export finance scheme – a credit agency that helps support UK companies’ work overseas.

“Over the medium term, we are also pursuing public-private partnership opportunities, notably in Oman, where we have signed a memorandum of understanding with the Oman Investment Fund to develop a PPP programme in the health sector,” it said. That deal was first announced in March.

Richard Howson, the chief executive of Carillion, said the deal “reinforces our commitment to supporting PDO through the efficient management and operation of its critical infrastructure”.

Meanwhile, the Italian construction company Salini Impregilo has held a signing ceremony in Kuwait to mark the award of a US$955m contract with the country’s Public Authority for Housing Welfare to deliver the South Al Mutlaa project north-west of Kuwait City.

The company, alongside its Turkish joint venture partner, Kolin, is set to build the infrastructure for what should become the largest city in Kuwait, expected to cost about $20bn to develop and serve a population of 400,000.

The Salini/Kolin contract involves building 150km of roads as well as utilities infrastructure, including water and sewage systems, electricity, lighting and telephone networks.

“Though big, the project to develop the infrastructure of the city is expected to be implemented in record time,” said Yasser Abel, Kuwait’s housing minister.

Hill International was appointed to manage the development of South Al Mutlaa City in May under a five-year, 23.8 million dinar (Dh286m) contract.

mfahy@thenational.ae

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Source: Business

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