Bharat Heavy Electricals Wins ONGC Supply Contract

In the face of stiff competition from American, Japanese, Russian, Chinese and Romanian manufacturers, Bharat Heavy Electricals Limited (BHEL) has been awarded its single largest contract from ONGC for the supply of wellhead assemblies, Christmas-tree valves, gate valves.

ONGC's projected off take from BHEL for this vital equipment is about Rs.1600 Million for the next three years for their onshore and offshore projects. Almost half of these orders will have deemed export status. The award of such a long-term contract on BHEL is a testimony to the customer's confidence in the company's capabilities.

BHEL's scope of work envisages manufacture and supply of 350 sets of wellheads and 390 sets of Christmas-trees per annum. ONGC's concerned regional offices, located all over the country, will compile their requirement and place orders directly on BHEL, as per the agreed rates, terms and conditions of the contract.

The company has so far manufactured and supplied over 3,500 sets of wellhead assemblies and Christmas-trees to ONGC and Oil India Ltd., for various applications. Significantly, with an over 90% share, BHEL is the market leader in wellhead and Christmas-tree equipment in the country.

Outside India, BHEL has already exported valves to a number of countries including USA, Japan, Malta, Singapore, Indonesia, Kuwait, Taiwan, Syria, Cyprus, Egypt, Bangladesh and Philippines. Significantly, a number of multinational companies like Toa Valve Co. of Japan, Kvaerner Oilfield Products, Singapore and Dresser Industries, USA are regularly sourcing their requirement of valves from BHEL.

Notably, BHEL's Trichy plant has the largest valve manufacturing facility in India, manufacturing valves ranging from 3 mm to 900 mm in size from carbon steel, low alloy steel and stainless steel. For enhancing its competitive edge and raising its facilities/processes to the state-of-the-art, BHEL has completed modernization of its valves plant at Trichy at a cost of Rs.360 Million.

For ONGC, BHEL is also executing a contract for refurbishment and up-gradation of 12 nos. onshore oilrigs to enhance their efficiency and capability. ONGC and BHEL have earlier signed an MoU for supply, up-gradation and refurbishment of oilfield equipment, used by the latter for onshore and offshore applications.