BHEL bags largest long-term contract from ONGC worth Rs 200 cr

New Delhi, Feb 14: Bharat Heavy Electricals Limited (BHEL) has won the largest long-term contract from ONGC for the supply of oil exploration equipment worth Rs 200 crore. ONGC's projected off-take from BHEL for this vital equipment is about Rs 200 crore for the next three years for their onshore as well as offshore projects, a BHEL spokesman told the sources today.

Nearly 65 per cent of the orders will have deemed export status, he said. BHEL's scope of work envisages manufacture and supply of more than 500 sets of well head assemblies and 350 sets of X-mas tree valves per annum. ONGC's regional offices located across the country will compile their requirement and place orders directly on BHEL, as per the agreed rates, terms and conditions of the contract.

BHEL has so far manufactured and supplied more than 4,000 sets of well head assemblies and X-mas tree valves of up to 10,000 psi rating for various applications to ONGC, Oil India Ltd. and private drilling companies in India and overseas.

This is the second time BHEL has received such a contract from ONGC. It received a similar long term contract in February 2004, which expired in February last year.

UNI