Zahran Al Abr - PDO's ICV Development Manager
As we continue our journey towards ICV, PDO has worked to support the government’s vision to boost manufacturing industries as a part of Oman’s economic diversification programme, and in line with PDO’s
vision of creating value “for Oman and all our stakeholders.” The ICV Blueprint Strategy unveiled in 2013, included 53-investment opportunities pan Oman, of which, PDO led on 43. To date, we have realised 33 opportunities, which are predominantly the establishment of local manufacturing facilities. These provide oil and gas products and services to support businesses in Oman, in the region and
internationally.
In addition, PDO operationalised 48 internal opportunities in different categories with SMEs and national registered suppliers through the ring-fencing of scope for local companies, development of local suppliers, qualifying local suppliers by providing technical support, unbundling services and goods, providing training to SMEs through the Tazeez programme, and exercising preferences for local goods and services. The success story of manufacturing has led to a mindset change and renewed confidence among local and foreign investors to set up manufacturing plants in Oman.
PDO managed to establish 5 SLCCs: Al Baraka, Al Haditha, Al Shawamikh, Al Sahari and Sakan with a direct spend reaching US$819 million in 2020. Recently PDO extended the SLCC contracts for the duration of another 10 years across different categories, such as flowline construction and well services. Through its National Objectives programme, the Company was able to support the Sultanate by securing tens of thousand of jobs for Omanis, with many more in the pipeline.
This unique initiative is different from other local content development programmes worldwide, as it is a structured approach that consists of analysing the forecasted demand (goods, services and associated workforce) of all spend categories and assessing the local market capability and capacity to identify the main constraints and opportunities for ICV development.
1. Collaborating and co-ordinating with strategy, contacts and spend value.
2. Generating cross-industry and country-wide opportunities across the value chain.
3. Identifying opportunities to be operationalised with contract or ring-fenced to local companies.
4. Developing vendors and awarding long-term contracts to local manufacturers or suppliers through local vendor development programme.
About PDO
Petroleum Development Oman (PDO) is the leading exploration and production company in the Sultanate of Oman. We deliver the majority of the country’s crude oil production and natural gas supply, but above all, we focus on delivering excellence, growth and sustainable value creation within and well beyond our industry. The Company is owned by the Government of Oman (which has a 60% shareholdings), the Shell Group (34% ), Total (4% ) and PTTEP (2% ). Gas fields and processing plants are operated by PDO exclusively on behalf of the Government. PDO operates in a concession area of about 90 thousand km2 (one third of Oman’s geographical area), It has around 192 producing oil fields, 52 natural gas fields, 29 production stations, around 9,000 active wells, It has got a diverse workforce of more than 8,900 employees, and over 70 thousand contracting employees, a combined workforce made up of over 60 nationalities
Business Activities
It is the leading exploration and production company in the Sultanate of Oman.
ExplorationProductionManagementInfrastructureHSEPeopleCommunity
ICV ACHIVEMENTS
Fixed Asset Investments
PDO has realised 81 opportunities during the last 10 years with a more than 70 contractors and awarded contracts with a value of US$2.4 billion. These opportunities created a total of 2,844 jobs for Omanis in more than 67 facilities operationalised in different parts of the Sultanate, with more than US$360 million value invested in fixed assets across the Sultanate.
Human Resources Recruitment
PDO continues to support the job creation drive for Omani jobseekers and beyond to boost Omani employment and economic diversification. We secured more than 50 thousand job including direct hires. In other areas, such as re-deployment, transferability and on-job training, a total of 14 thousand opportunities were realised with our contracting community, in addition to other schemes of training without employment like local community scholarships and the Eidaad training programme.
Local Goods and Services Procurement
Increase the utilisation of local manufactured goods through the award of direct contract or utilisation through main contractors. PDO mandated the 10% preference for goods made in Oman as per the Royal Decree 1/79.
Direct contracts from PDO towards local manufacturers approx. US$1.75 billion for the last 4 years. Through main contractors:
- 2018 : 130US$ Millions
- 2019 : 174 US$ Millions
- 2020: 237 US$ Millions
Training and Qualification
PDO managed to secure several training programmes from international accredited bodies, to be qualified and delivered through local institutes such as engineering operations. The second level is in the drilling rigs, mechanical maintenance and lifting operations. rigging, mechanical maintenance and lifting. The training programmes were certified by the Ministry of Labour, which assisted in creating new job opportunities and helped in fill the gaps within the market. In addition to the above, a total of US$51million was spent during the last three years via main contractors to train approximately 18,000 Omanis in several courses and training disciplines, such as HSE, human resources, finance, and in Technical and Development programmes, including scholarships and internships.
Fixed Asset
Investment
2.4
USD Billions
Human Resource Recuirment
50
Thousands
Local Goods and Services Procurement
1.75
USD Billions
Training and Qualification
18
Thousands