MUSCAT, Oman, June 27 /PRNewswire/ -- Exel and Bahwan CyberTek (BCT) have marked the implementation of a five-year plus contract with Petroleum Development Oman LLC (PDO) spanning PDO Primary, Secondary and in due course 3rd party clients. The contract, initially announced last year, is the largest-ever logistics contract awarded in the country.

Called Bahwan Exel the company is a joint venture between Exel and Bahwan CyberTek (BCT), the global system integration, software products and services company, part of the billion dollar conglomerate Suhail Bahwan Group. As PDO's logistics provider, Bahwan Exel will be responsible for managing all logistics operations, cargo handling and suppliers on behalf of the customer.

PDO is the leading exploration and production company in the Sultanate and accounts for more than 90% of Oman's crude oil production which generates 40% of the country's GDP. PDO is jointly owned by the Government of Oman (60%), the Royal Dutch/Shell Group (34%), Total (4%) and Partex (2%).

The contract is groundbreaking for PDO which set out four years ago to create a partnership with a leading international logistics company, principally to improve service levels to its interior drilling and engineering operations and maximise its fleet to cut truck kilometres between 10% and 20%, thereby helping to improve road safety.

The new contract involves the transport management of all PDO's goods and materials - ranging from the distribution of catering supplies to moving complete oil drilling rigs. Some 60% of transport expenditure relates to rig movements, with an average of over one rig move every day. Other cargo transported includes pipes, equipment, food, water and crude diesel. There are typically around 50,000 similar movements a year.

At an official ceremony on 26 June 2005 attended by Leigh Pomlett, Exel's Chief Executive for its contract logistics business in the Middle East and Africa, and PDO's Managing Director, John Malcolm, formally launched the contract.

The development represents Exel's entry into the Oman logistics market and the joint venture complements existing operations in the Middle East. Within the joint venture Exel is responsible for general management, the implementation of software, provision of logistics management services, health and safety and environmental operations. BCT will provide IT infrastructure, accountancy and treasury services.

Leigh Pomlett, said, "With this collaboration, PDO is set to change the way the industry operates in Oman and creates a solid platform from which Exel will develop national and regional logistics management activities towards governmental and private business. This contract is a clear example of the Group's ability to add value by drawing on relevant experience from the Exel business to provide solutions to support global supply chain operations."

Warith Kharusi, PDO's Logistics Manager, added, "This is a pioneering innovation for PDO which provides a highly intellectual operation to improve safety and efficiency in the very complex petroleum industry in Oman.

Through this contact we hope to further develop the already proven third-party logistics suppliers and, in accordance with the Omani Government's aspirations, enhance the skills of future generations. This is a very positive development for PDO and the Sultanate of Oman in general."

"Winning this multimillion pound contract was a moment of pride for the joint venture as apart from this being the largest 'Business Transformation Management' contract in the region this also provides an opportunity for the country to take a lead in this space . Bahwan Cybertek is proud to be the technology partner in the evolution of the solution and the implementation of this mission critical application," said Ms.Hind Bahwan,Chairperson, Bahwan CyberTek group & Bahwan Exel.

Notes to Editors - about Exel

Exel is the world leader in supply chain management, providing customer-focused solutions to a wide range of industries including retail, consumer, technology, automotive, healthcare, chemical and industrial.

Exel's innovative supply chain solutions, skilled people and regional coverage, bring together all aspects of freight management and contract logistics in addition to a wide range of integrated, value-added and specialist services. These include supply chain design, consulting, warehousing, distribution, after-sales services and IT support, ensuring that we deliver our customers' products when and where they need them.

Exel is a UK listed, FTSE 100 company, with a turnover of GBP6.3 billion, and employs over 111,000 people in 2,000 locations in over 135 countries worldwide. Exel's customers include over 75% of the world's largest, quoted non-financial companies.

For further information visit www.exel.com.

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Notes to Editors - about Bahwan CyberTek

Bahwan CyberTek (BCT) which was established in 1999, Bahwan CyberTek LLC, is a SEI-CMM level 4 company and is being currently assessed for CMMI Level 5, has now emerged as a world-class IT , products, services , consultancy and business transformation organisation with clientele spread across various Geographies.

BCT has close to 500 professionals worldwide and operations well spread in US, India, Oman and Dubai. Bahwan CyberTek , in its mission to offer Quality solutions at a competitive price, have its state-of-the-art, SEI CMM level 4 assessed Offshore Development Center (ODC) located in Chennai, India and satellite offices in Mumbai, Hyderabad and Bangalore.

For more information, please contact: Sarah Jones, Exel Press Office, +44(0)1908-244306, sarah.jones@exel.com