OPAL Issue 2 by Oman Establishment for Press, Publishing & Advertising (OEPPA), Business Development Department

No.2 November 2016

THE VOICE OF THE OIL & GAS INDUSTRY

www.opaloman.org

Turning challenges into opportunities MARKET

PLUS

ANALYSIS

ARTICLES

INTERVIEWS

VIEWPOINT

PROJECTS

Redeployment strategy redefined

The government’s ‘Redeployment Strategy’ has been suitably tweaked to head off an anticipated second wave of potential redundancies as the protracted downturn threatens to cause more pain for the oil and gas industry.

Improvising a successful pathway

Cost optimization efforts aside, PDO is also experimenting with novel technologies for enhanced oil recovery (EOR), revolutionising seismic acquisition, exploring new research partnerships, and supporting groundbreaking initiatives to deliver maximum value for the Sultanate.

Oilfield industry’s rising stars

Fascinating account of the first Omani woman to venture into what has long been an exclusively male preserve.

EDITOR'S WORD

Contributing to the Economy of the Nation Daleel Petroleum L L C is one of the leading oil producing companies in the Sultanate of Oman. It is engaged in the exploration, appraisal and production of hydrocarbon reserves located onshore Oman in Al Dhahira Region, North West of Muscat . www.daleelpetroleum.com Website : www.daleelpetroleum.com P.O. Box 543, Postal Code 112, Ruwi, Sultanate of Oman, Tel: 24394200 968+

68+

November 2016

CONTENTS

Issue No. 2 November 2016

QUARTERLY NEWS JOURNAL OF OMAN'S OIL AND GAS SECTOR

4 Editor's word

52 Getting Omani engineers ready

8 Market Highlights

54 How a female Omani engineer broke into a male bastion

Snapshot of events, trends and developments in Oman's Oil and Gas sector

18 Turning challenges into opportunities HE Salim bin Nasser al Aufy, Under-Secretary of the Ministry of Oil & Gas on the downturn ignited by the oil price slump

23 Crafting a viable safety net for the oilfield industry The Omani government’s ‘Redeployment Strategy’ has been suitably tweaked to head off an anticipated second wave of redundancies

26 Human capability development ICV is about providing the right training to Omanis, creating the right jobs for Omanis, and supporting SMEs and entrepreneurs

32 Improvising a successful pathway through the downturn Interview with with Mr. Amran Al Marhubi, PDO’s Technical Director

36 All in hands of OPAL Oman Society for Petroleum Services (OPAL) is stepping up to the plate in helping its members build resilience and professionalism in the face of a punishing industry downturn

40 Working towards win-win outcomes BP has embraced a robust local content development strategy

44 Creating sustainability through shared value Orpic is outperforming many of its peers in the Oil & Gas industry in delivering on its In-Country Value (ICV) targets

49 Aligning Oman’s Industry-Academia to Deliver an Enhanced R&D Ecosystem

Overcoming cultural barriers and gender stereotypes Ahlam al Tauqi

60 Tackling the Skills Mismatch As the major contributor to Oman’s national GDP, the Oil and Gas industry and the energy sector in general are uniquely placed to drive innovation in the Sultanate’s economy

64 Preparing next generation’s leaders 66 Al Jifnain: Oman’s new high-tech hub for transportation fuels Fuel distribution efficiency is set to soar to new heights when Orpic’s Muscat Sohar Product Pipeline (MSPP) project and its centerpiece

72 Technology: The Next Oil Superpower 77 Oxy Oman PG Student Awards presented to four Omanis 78 Semta helps to energise Omani skills 80 Make your new employees ready to contribute from day one 82 Sustainable waste water management The Nimr project is an important development that contributes to waste reduction while also reducing the carbon footprint of PDO

87 Managed Services: Omani IT firm GLOBCOM is looking to replicate successful cooperation with PDO elsewhere across the industry

90 Recruiting during a downturn 94 OPAL’s growing family 98 Upcoming events

Impressum

Chief Executive Officer Communication Executive Manager (Magazine Executive Editor) Design and Marketing Specialist Communication & Event Officer

Musallam bin Rashid Al Mandhry Abdullah bin Salim Al Harthy

P. O. Box 493 / Postal Code 133 Sultanate of Oman Tel. (968) 24 605 700 Fax. (968) 24 604 255

www.opaloman.org info@opaloman.org opalmag@opaloman.org

Nenad Valentik Azza bint Hamad Al Hilaliya

Acting CEO - OEPPA and Editor in Chief (Oman Arabic Daily) Editor in Chief (Oman Daily Observer) Magazine Editor HoD Business Development Department Business Development Department

Saif bin Saud Al Mahrouqi Abdullah bin Salim Al Shueili Conrad Prabhu Fatima bint Mohammed Al Gheilaniya Prem Varghese Karen Jane Stephen Abdulaziz bin Shehab Al Shukaili

EDITOR'S WORD

Dear Readers,

❱❱ Mr. Abdullah Al Harthy, Communication Executive Manager and Magazine Executive Editor

We bring you the second edition of OPAL Oil & Gas magazine, which primarily focuses on the many successes – and some shortcomings too – of the industry’s In-Country Value (ICV) delivery strategy. While some of the operators have made laudable headway in the delivery of their ICV programmes, others are still working to get their act together. OPAL has taken upon itself the task of ensuring that its members’ ICV commitments are in lock-step with the underlying principles and objectives of this strategic national initiative. After all, as has been forcefully emphasized by HE Salim Al Aufi, Under-Secretary of the Ministry of Oil & Gas, in an exclusive interview, the current downturn impacting our industry should, if anything, give stronger impetus to the implementation of ICV. ICV is the dominant theme of this issue, but we also delve into a broad array of initiatives designed to develop our human capital. We look at ICV initiatives that translate into, among other things, training and employment opportunities for Omanis, promoting the procurement of local products and services, nurturing entrepreneurship and SME development, and fuelling the growth of manufacturing and localisation opportunities all along the value chain. By working collaboratively and dedicatedly, the industry has demonstrated an early commitment to ICV development, which is heartening in the prevailing difficult economic circumstances. On a general note, we are delighted to see a growing number of our members contributing columns and articles of interest to the wider fraternity. This is in line with our pledge to position the magazine as a platform for discussion and engagement with the wider industry. OPAL welcomes your inputs and feedback on issues of concern and interest to our industry. Write in with your thoughts on the topics discussed in this issue, and those you wish to see highlighted in the next. We look forward to working with our members to further develop OPAL Oil & Gas as the Voice of Oman’s Energy Industry. Abdullah Al Harthy Executive Editor

Orp gro So So to int pro Re Co Oil

November 2016

Investing in

our future

Orpic is one of Oman’s largest companies and one of the most rapidly growing businesses in the Middle East oil industry. Orpic’s Refineries in Sohar and Muscat, as well as the Aromatics and Polypropylene Plants in Sohar, provide fuel, chemicals, plastics, and other petroleum products, to Oman and to the world. To continue to meet the needs of Oman, and international markets, Orpic is undertaking three strategic growth projects known as [Muscat Sohar Product Pipeline (MSPP), Sohar Refinery Improvement Project (SRIP) and Liwa Plastics Industries Complex (LPIC)], in line with the company’s strategy to add value to the Oil and Gas molecules of Oman.

www.orpic.om

Rukun Al Yaqeen International L.L.C PO Box 203, PC 134, Jawaharat Al Shatie, Muscat, Sultanate of Oman Phone: +968 2 460 0420 Fax: +968 2 460 1794 Email: sales@rayoman.com

Rukun AI Yaqeen International Group of Companies LLC a wholly In Country Value Group of Companies, specializes in the following areas of business:

ENERGY

ENGINEERING

OIL & GAS

CONSTRUCTION & LOGISTICS

LEARNING & DEVELOPMENT

AUTOMOTIVE

ENVIRONMENT SOLUTIONS

PRECISION CNC FABRICATION & CONCRETE POLES

We stand proudly by our products and services as they provide innovative solutions to growing industry demands. An ISO 9001:2008 Accredited Company we maintain only the highest in International Standards and quality, yet remain local and loyal Oman Company. We are located in the Sultanate of Oman, but also have outlets in the United Kingdom, Kingdom of Bahrain, Qatar, United Arab Emirates, Saudi Arabia and Brunei. RAY International aspirers to deliver unsurpassed quality in service and products through technologically advanced and innovative solutions, thus enhancing its presence as a professional services provider in the Sultanate of Oman, the Gulf region and across the globe. At RAY we have robust policies and procedures relating to Health Safety and Environment that ensures no compromise or short cuts with respect to HSE and the well-being of the employees at the workplace.

The core businesses under the RAY Group umbrella are:

RAY International L.L.C which is more commonly known as RAY Energy. This is the flagship Company which provides energy solutions with multidiscipline in Electrical, Mechanical, Civil, Control, Automation, Facility Management and Lab Service and leading EPC contractor in Oman region. It also hosts a range of state of the art of engineering product lines that caters to the requirements of companies in the Oil and Gas, Utility, Power Plant and Infrastructure segments. RAY International Oil and Gas provides services and products Oil and Gas sector. This includes specialization in work-over Rigs, Wire-line and extensive range of Well Services to the Oil and a Gas industry. With an innovative mind, the young professionals unlock new areas for exploration and maximize the potential to tap all Oil and Gas opportunities.

RAY Skills, with prime focus on enhancing In-Country Value by building the future of Oman through training and developing young aspiring Omani professionals. In line with the vision of the Country, the Learning and Development facility is fully equipped to develop the national work force with the view to highly competent professionals within their own trades. RAY Skills renders unsurpassed quality in Learning and Development training. Coverages includes training in the fields of Welding, Drilling, High Voltage Electrical, Rigs, Soft Skills, Health, Safety Environment including IOSH, NEBOSH certified programmes, Well Servicing and Wireline. These programmes are complemented by Competency Consultancy Services delivered via innovative and unique solutions.

• B A H R A I N

• B R U N E I

• O M A N

• S A U D I

A R A B I A

• U A E

• U N I T E D

K I N G D O M

Construction & Logistics Oil & Gas Precision CNC Fabrication & Concrete Poles

Energy

Automotive

Learning & Development

Environment Solutions Engineering

EUROPOLES Middle East is the joint venture business interest of the Group with well-known German Company Europoles GmbH & Co.KG. A manufacturing facility is located in Nizwa where spun concrete poles are produced to meet the requirements of the Oil and Gas, infrastructure and utility sectors. In addition, the business adds In Country Value for all local companies in manufacturing electricity concrete poles can be used not only in manufacturing electricity distribution, but also in telecommunication and municipality applications. Also under the umbrella of the RAY Group are: • RAY Ecologic • RAY Precision Engineering • Ray Automotive • Seven Points International

www.rayoman.com

NEWS

Market highlights Snapshot of events, trends and developments chacterising the ebb and flow of activities across Oman’s pivotal oil and gas industry:

Thai’s PTTEP to sell Oman 44 project Thailand’s largest oil and gas explorer, PTT Exploration and Production Pcl announced it will sell its Oman 44 natural gas project to ARA Petroleum LLC in a shift in investments in the Middle Eastern country. PTTEP, the upstream flagship of state-controlled PTT Pcl, Thailand’s largest energy company, will sell its wholly-owned unit PTTEP Oman Co Ltd, which holds 100 per cent of the Oman 44 onshore project, to ARA Petroleum, the company said in a statement to the Stock Exchange of Thailand. The deal is expected to close in early Q4 2016. The Oman 44 Project is an onshore natural gas and condensate field located west of the capital Muscat with area of 1,162 sq km (449 sq miles). It has been in commercial production since 2007 with an average output of 19 million cubic feet per day of natural gas and 904 barrels per day of condensate in the second quarter of 2016. (Reuters 22nd Aug ’16)

Omanoil marks 24 years without LTI

SQU SIGNS DEAL WITH HYDROCARBON FINDER

Oman Oil Marketing Company (Omanoil) surpassed yet another safety milestone when it celebrated 24 years without lost time injury at the Mina al Fahal Distribution and Storage Terminal, a joint venture with Al Maha Petroleum. The achievement reiterates not only the company’s commitment to creating a corporate culture that is intolerant to risk but also the employees dedication to nurturing a Zero Harm work environment. Hamed Al Barwani, JV Terminal Manager, “From the outset, omanoil has worked tirelessly to provide its team with the highest levels of safety and security at work always assessing risks and instituting best practices. For us, our employees are our family and you can never be too safe nor too dedicated to preserving their lives and the environment that surrounds them. That has been our ethos from the beginning and it will continue to guide us as we look ahead towards achieving even greater safety milestones in the future.” (22nd Aug ’16)

The Sultan Qaboos University (SQU), represented by its Oil and Gas Research Centre, signed a contract with Hydrocarbon Finder to support oil and gas research. The contract will continue in the first phase for a period of three years, with a total value of nearly $1 million. Under the contract, the SQU Oil and Gas Research Centre will provide technical advice and scientific research for the company to develop oilfields in the area No 7 and No 15. The agreement was signed by Dr Ali bin Saud al Bimani, SQU Vice-Chancellor, and Mohammed bin Ahmed al Jahwari, CEO of the company, in the presence of Dr Rahma bint Ibrahim al Mahrouqiyah, Deputy Vice-Chancellor for SQU Postgraduate Studies and Scientific Research, and Dr Yahya bin Mansour al Wahaibi, Director of the SQU Oil and Gas Research Centre, as well as Saif bin Nasser al Bahri, Professor of Biology Department at the College of Science. From the company’s side Ali bin Said al Batrani, Executive Manager of the Company, attended the ceremony. (4th July ’16)

November 2016

NEWS

PDO voted most popular employer A research study released by online recruitment firm GulfTalent confirms Petroleum Development Oman (PDO) as the number one career choice for top Omani graduates. Gulf Talent’s study was based on a survey of 370 Omani youth who are recent graduates or final-year students at the country’s prestigious Sultan Qaboos University, based in Muscat. The study found that, despite the recent plunge in oil prices and widespread hiring freeze across the sector, oil and gas firms remain among the most popular employers in the country for graduates, occupying one-third of the top-30 rankings, including all of the top 5 spots. Top 30 Most Popular Employers for Omani Graduates: 1. PDO, 2. Occidental Petroleum, 3. Orpic, 4. Schlumberger, 5. BP, 6. Haya Water, 7. Omantel, 8. Oman Airports (OAMC) , 9. Omran, 10. Ernst & Young, 11. Shell, 12. Xi Architects, 13. Daleel Petroleum, 14. Royal Army of Oman, 15. Ooredoo, 16. Sohar Aluminium, 17. Royal Court Affairs, 18. Information Technology Authority, 19. Petrofac, 20. Ministry of Education, 21. Deloitte, 22. Halliburton, 23. Ministry of Housing, 24. Oman Air, 25. Oman LNG, 26. STOMO, 27. Royal Air Force of Oman, 28. Ministry of Social Development, 29. Oman Electricity Transmission Company, and 30. Ministry of Tourism (26th July ’16)

OOCEP, PTTEP SIGN COOPERATION PACT

OMAN OIL COMPANY EXPLORATION AND PRODUCTION (OOCEP), A SUBSIDIARY OF OMAN OIL COMPANY (OOC), AND PTT EXPLORATION AND PRODUCTION PUBLIC COMPANY LIMITED (PTTEP), HAVE AGREED TO EXPLORE THE POTENTIAL FOR COOPERATION IN A NUMBER OF OIL AND GAS RELATED AREAS. A MEMORANDUM OF UNDERSTANDING WAS INKED TO THIS EFFECT BY TOP OFFICIALS REPRESENTING THE TWO ORGANISATIONS. THE AGREEMENT WAS SIGNED BY ENG ISAM BIN SAUD AL ZADJALI, CHIEF EXECUTIVE OFFICER OF OMAN OIL COMPANY SAOC, AND SOMPORN VONGVUTHIPORNCHAI, CHIEF EXECUTIVE OFFICER OF PTTEP. UNDER THE TERMS OF THE MOU, BOTH PARTIES WILL SHARE INFORMATION AND EXPERIENCE IN THE RELEVANT AREAS AND ALSO EXCHANGE TECHNICAL INFORMATION AND DATA TO IDENTIFY AND PROGRESS AREAS OF MUTUAL INTERESTS. COMMENTING ON THIS AGREEMENT, ENG ISAM AL ZADJALI SAID: “BY WAY OF THIS MOU, OOCEP AND PTTEP WILL EXPLORE POTENTIAL COOPERATION OPPORTUNITIES BETWEEN THE TWO PARTIES TO ACHIEVE SYNERGY IN OIL AND GAS UPSTREAM SECTOR. BOTH PARTIES WILL DISCUSS AREAS OF MUTUAL INTERESTS TO IDENTIFY BUSINESS INITIATIVES AND INVESTMENT AREAS.” (10th July ’16)

November 2016

NEWS

PDO AWARDS $330M CONTRACTS TO OMANI FIRMS Petroleum Development Oman (PDO) has awarded three key contracts valued at $330 million to Omani businesses for work in the north of its operations. The Company said the agreements were further evidence of the success of its In-Country Value (ICV) strategy to build a thriving small and medium enterprise (SME) sector and retain more of the oil and gas industry’s wealth in the Sultanate. Under the terms of the deals, earthworks will be carried out by Local Community Contractor (LCC) Najed Al Ahliya at PDO fields at Fahud, Lekhwair and Yibal and by Sarooj Construction Company at Qarn Alam and Saih Rawl. Additionally, Rukun Al Yaqeen (RAY) International will conduct electrical work across the entire north of the PDO concession area. The contracts, which were signed at an official ceremony at PDO’s Mina Al Fahal headquarters in Muscat, will run for four years with options to extend into the future. The three companies have all pledged to uphold PDO’s rigorous standards on safety, quality project delivery and ICV, including the development and Omanisation of other LCCs and SMEs. PDO Managing Director Mr. Raoul Restucci said: “This is a truly special day for us, as these contracts are testimony to the trust that PDO is placing in local companies to deliver high-calibre work in our fields, safely, responsibly and efficiently. “This is about realising our ICV ambitions to work with top-quality Omani SMEs which are staffed with committed and dedicated professionals. At the same time, we expect them as contractors to work with, and assist, other Omani businesses to help build a robust local supply chain for our industry. We are passionate supporters of building SMEs which are capable of competing locally, regionally and internationally and which are vital to diversifying the Omani economy.” (12th October 2016)

DME concludes latest auction of Oman crude oil The Dubai Mercantile Exchange (DME) announced the success of its latest auction with major global players participating in a bid to buy 1,000,000 barrels of Oman crude oil. The auction was conducted on July 1 through the DME Auction platform, the first spot commodity auction system in the Middle East. Oman’s Ministry of Oil and Gas has included DME Auctions in their available options to sell spot cargos of Oman Blend. This move maintains a high level of transparency in the marketing of Oman’s crude oil exports and offers customers a fair and equal opportunity to access the Sultanate’s spot exports. Owain Johnson, Managing Director, DME said: “The Oman government believes in transparency as a key factor for a successful and healthy relationship with its oil customers. Oman has adopted exchange-based pricing since 2007 and selected DME Auctions for its spot exports in 2015. Today’s auction was another success and justifies the trust given to the platform by the government and industry participants.” (4th July ’16)

CARILLION SECURES $310M PDO CONTRACT Well-known engineering contractor Carillion Alawi announced that it has signed a contract extension with Petroleum Development Oman (PDO) for the continued provision of facilities management (FM) services. Estimated at $310million, the contract extension involves the provision of integrated FM services at 12 locations across the Sultanate over the next 54 months. Carillion Alawi began working in partnership with PDO in July 2013 to deliver a service across the PDO estate, which covers an area of some 100,000 square kilometres. The range of services being delivered includes engineering maintenance, projects, catering and environmental services. (6th July ’16)

November 2016

A BENCHMARK IN EVERYTHING WE DO

An Advanced & Comprehensive set-up that offers a “ONE STOP SHOP” for Design, Manufacturing, Repair, and Refurbishment of products and services of all mechanical and processing equipment mainly for Oil & Gas and Petro Chemical Industries. In-house Design & Process Engineering – Fabrication – Machining – Valve Testing & Repair – Rig Maintenance – Special Coating – Welding – Man-Power Supply.

NEWS

BP Oman sponsored event focuses on sustainability

Following the announcement that BP Oman is supporting the Innovation Cup, hosted by the Academic Innovation Assistance Programme (AIAP) at Sultan Qaboos University (SQU), the competition received a significant amount of interest, as demonstrated by the number of applications submitted. The submissions have now undergone rigorous assessment and have been shortlisted to 25 inspiring projects. In its collaboration with BP Oman, the AIAP programme also recently saw a state-of-the-art research project break ground. Featuring Dr. Myo Tay Zar Myint’s laboratory experiments, SQU is exploring a new approach to oil-water separation using nanotechnology. The objective is to create more efficient solutions for the energy industry. “Enhancing the skills of young people as drivers of economic progress is essential. Through this collaboration with BP Oman we have harnessed the innovation of students and academics, two vital groups which remain central to Oman’s socio-economic and industrial progress”, said Dr. Salim Al Harthi, AIAP Co Director at SQU. (16th Aug ’16)

ORPIC CONDUCTS FIRST IN-COUNTRY VALUE ROADSHOW As part of its commitment to support the Sultanate’s localization plan and offer opportunities to Omani Small & Medium Enterprises (SMEs), Orpic conducted its first In-Country Value (ICV) roadshow in Sohar under the patronage of Eng. Ahmed bin Hassan al Dheeb, Under-Secretary of the Ministry of Commerce and Industry. The event was organized in association with CB&I and CTCI Corporation, who have been awarded the engineering, procurement and construction (EPC) award covering the Steam Cracker and Utilities package for Orpic’s Liwa plastics industries Complex (LPIC). The day-long event discussed Orpic as well as CB&I and CTCI Corporation’s investment impact on Oman’s economy through the LPIC project. Speaking at the event, Dr Hilal al Hinai, General Manager – Corporate Support Services, Orpic, said, “As one of the transformational projects being undertaken by Orpic, we are committed to serving Oman with pride. At Orpic, we support SME’s directly via business operations, ring fence certain tenders specifically for Omani SMEs, which in turn will impact Oman’s GDP through the payment of profits and salaries, and employment opportunities for individuals.” (16th Aug ’16)

Government team visits CLH facility in Spain Key government officials from Oman visited CLH in Spain – Orpic’s partner in the joint venture for the Muscat Sohar Product Pipeline (MSPP) project. The joint venture, Orpic Logistics, is building a new storage and distribution terminal in Al Jifnain (Oman), which will incorporate state-of-the-art equipment and systems in terms of automation and safety, taking the logistics operations to a next level of efficiency. The purpose of the visit was to show Public Authority for Civil Defense and Ambulance (PACDA) how the operations of the new Al Jifnain Terminal will look upon completion. The senior officials visited a few terminals in Spain to better comprehend how they work and also inspect safety aspects. Additionally, they wanted to understand how the target operational model sought a high level of efficiency which in turn reduced manual intervention and increased operational safety. During the visit, Orpic and PACDA representatives met with senior officials from CLH, who introduced the operations and policies of the company. Additionally, two site visits to terminals in Madrid and the central dispatching center of CLH, from where the 4,000 kms multiproduct pipeline network is operated, were arranged. (15th Aug ’16)

Salalah Me

Salalah Methanol Company

In view of the government plans to develop the Omani economy and industrial sectors at both local and international levels, Salalah Methanol Company LLC (SMC) was established in 2006 to build a state-ofthe art methanol production facility in Salalah Free Zone. The plant is a standalone plant designed to produce 3000 Metric Tons of methanol per day. The Company is one of Oman Oil Company (OOC) downstream investments, and the Company significantly contributes to the ongoing development of the national economy. Furthermore SMC has been internationally recognized for its exceptional track record in the production of methanol and adhering to the stringent Health, Safety & Environment (HSE) standards. Salalah Methanolâ&#x20AC;&#x2122;s achievements speak for themselves as it produced and marketed more than 252 cargos of liquid methanol since May 2010, and achieved an outstanding run of 3 million working hours without Lost Time Injury (LTI). In addition the Company achieved 64% Omanization level with a recognized achievement towards corporate social responsibility by funding more than 133 CSR initiatives during the period of 2012-2016.

Salalah Methanol Company L.L.C

Phone: +968 23218800 Fax: +968 23218880 P.O. Box: 316, P.C. 217, Al Awqdain, Salalah, Sultanate of Oman

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LEAD STORY

Photo: Ahmed AlToqi

November 2016

Turning challenges into opportunities With the downturn ignited by the oil price slump continuing to weigh down the industry, operators, contractors and national workers alike should be girding up for tougher challenges anticipated ahead, says HE Salim Al Aufy, Under-Secretary, Ministry of Oil & Gas

n interesting paradox is at play in Oman’s oil and gas industry. Amid a punishing downturn that has slashed corporate bottom-lines and imperiled thousands of jobs, the Sultanate’s pivotal economic sector continues to perform commendably virtually month after month – delivering in excess of one million barrels per day of oil for the first time in the nation’s history. It is an irony that has HE Salim Al Aufy, Under-Secretary of the Ministry of Oil & Gas, elated on the one hand by the industry’s success in raising the bar on production in the face of the tough fiscal environment, but fretful on the other hand, about whether the current status quo can be sustained. “From the production point from view, the first half of this year has been extremely good, We averaged one million barrels per day (bpd) every month, save for March when output was negatively impacted because of rain-related issues. Still, the average for the first six months of the year was above one million bpd for the first time. This has been good news,” HE Al Aufy said. On the flip side, it’s unlikely the status quo at current prices can be sustained for too long, the Under-Secretary warned. “I’ve said all along we can sustain this current activity level, spend, and so on, for about a year or maybe two years at best, but if the current downturn is prolonged, then a lot of companies will be really challenged to continue operating at the present pace.” In an exclusive interview to OPAL Oil & Gas, the Under-Secretary offered his take on an array of challenges posed by low oil prices on the domestic hydrocarbon industry, the resulting implications for ongoing efforts to avert job losses, enhancing business and operational efficiency, the pursuit of In-Country Value (ICV) development, promoting training and upskilling, and so on.

Down to the wire

At current prices, some operators and contractors are barely able to recoup their costs, according to the Under-Secretary. In the circumstances,

LEAD STORY

ther cost reduction and savings. A lot of work has already been done in terms of the retendering of old contracts, renegotiation of existing contracts, and so on.”

Staying the course

Strategic importance is the need to constantly upgrade and up-skill Omanis to help support the development of a dynamic, professional and efficient national workforce for the industry, says HE Salim Al Aufy.

they are likely to continue loading up on debt until either the market rebounds or when debt finance proves unsustainable for them, whichever comes first. Either way, they find themselves in largely uncharted territory. “If the current situation continues for a while, then the companies and operators are likely to run up too much unrecovered costs to the point they will be likely have to reduce their activity levels significantly in order to generate enough cash to cover the accumulated costs,” the Under-Secretary said. Contracts renegotiated by operators, and main contractors on their behalf, have begun to squeeze many companies, according to the official. “I have had companies coming in to my office pleading that this squeeze is starting to make them bleed. Apparently, on the one hand, they complain that their margins are shrinking, while on the other activity levels in some instances have dropped to levels that hurt their viability of operating commercially.” On the upside, the crisis has helped focus attention on the need for greater fiscal discipline, business efficiency and waste elimination. “Everyone is careful how every dollar and cent is being spent, although I think there is still room for fur-

Despite the challenges, operators continue to stay the course in order to sustain output as mandated by the government. Around 108 rigs remain in operation, while the number of hoists in service is being maintained at near peak levels. Seismic crews, however, are down to one – from two crews previously – simply because there is no requirement to shoulder a second crew. “Service levels are being maintained, although there is a slight reduction in fraccing which is driven more by commercial factors than oil prices. So, on the whole, we are doing okay production-wise. Unfortunately, on the safety front, we did have one or two fatalities this year, but otherwise I think the industry has been in relative good shape.” The Under-Secretary is urging operators and contractors to embrace the crisis as an opportunity to improve operational efficiencies and reduce costs. Companies capitalizing on successive years of runaway growth spurred by sky-high oil prices have inevitably inherited “a lot of baggage” that needs to be suitably pruned, he said. “This crisis is an opportunity to step back and review the way how we operate; it’s an opportunity to eliminate waste, improve standards, and make a course correction if necessary, and hopefully safeguard these gains when the market eventually turns around.” While individual operators have made commendable progress in running leaner and more efficient operations, collaboration among operators have contributed to further cost-savings, according to the Under-Secretary. He noted in particular the potential for greater collaboration in harmonizing industry standards and specifications in areas such as transportation and logistics, vehicle inspections, contractor accommodation, tool rentals, and health, safety and environment (HSE) services. Different standards applied by different operators not only impose a burden on contractors and service providers, but

November 2016

also inflict an additional cost on the parties concerned as well as the wider energy industry as a whole, he warned. Most operators, including Petroleum Development Oman, BP, Occidental of Oman, Daleel Petroleum, and so on, each stipulate different standards and specs when procuring certain services. This requires service providers to comply with different sets of standards and specs when servicing contracts. Giving an example to illustrate the challenges faced by service providers who must comply with this multiplicity of specs, the Under-Secretary explained: Say a transport services provider sets out to deliver supplies to multiple operators on a trip from Sohar to Fahud. En route, he traverses the concessions of different operators, each of which enforces different standards and specs applicable to, among other things, speed limits, driving safety, vehicle integrity, and so on. Consequently, the vehicle and its driver are required to meet a different set of standards and criteria when the vehicle crosses from once concession to the next. Compliance is verified by means of a sticker, licenses and other documentation – a burdensome exercise that also adds to the overall cost of the service.

Collaboration is key

Appealing for industry-wide collaboration in addressing this unnecessary duplication, the Under-Secretary said: “Can we not work together on a unified contract that covers all of these services instead of doing it individually? There are many areas on which we can collaborate, HSE standards, for example! There is no reason why every operator should mandate its own driving license, its own vehicle inspection system standards, its own In-Vehicle Monitoring System (IVMS), its own certifications, and so on. There needs to be a single industry standard. It costs less; it’s less of a headache to maintain, and it’s more transparent. And it will save costs to the operator as well.” Another challenge that needs to be similarly addressed concerns contractor accommodation in the oilfield areas, said HE Al Aufi. “If a drilling contractor is operating in a particular area, why can’t they continue to use the same accommodation even if they are serving another contrac-

tor or a different operator? There is no reason why the operator or main contractor should mandate their own accommodation for their own contracts. They can actually collaborate on this issue by standardizing their accommodation requirements.” Similar restrictive conditions, the Under-Secretary pointed out, are also to blame for cost-inefficiencies in the transportation of people and goods into the oilfield areas. “If a transport company ferries equipment from Sohar to Fahud, for instance,

THIS CRISIS IS AN OPPORTUNITY TO STEP BACK AND REVIEW THE WAY HOW WE OPERATE; IT’S AN OPPORTUNITY TO ELIMINATE WASTE, IMPROVE STANDARDS, AND MAKE A COURSE CORRECTION IF NECESSARY, AND HOPEFULLY SAFEGUARD THESE GAINS EVEN WHEN THE MARKET EVENTUALLY TURNS AROUND it should be able to carry goods for multiple operators and contractors on the same trip and in the same vehicle. This would also support the creation of a storage and distribution hub in Fahud, from where onward deliveries can be made. Instead, (because of present standards and specs), vehicles tend to go half-loaded (which is not cost-effective). Thus, this is another opportunity for collaboration, leading perhaps to the creation of transport and storage hubs (where necessary),” HE Al Aufi remarked. Reemphasizing the importance of collaboration in the face of current slump, the Under-Secretary stressed: “I’m looking for the operators to say, let us start cooperating with each other, and with the contractors, without infringing on any competitiveness issues. There is no reason why they cannot collaborate on issues like accommodation, vehicle inspection, tool rentals, transportation of people and goods, and so on.”

In-Country Value

While cost-cutting is the accepted norm across the industry, one area that the government has no plans to ease up on is In-Country Value (ICV) development, the Under-secretary made strenuously clear

WE HAVE ALWAYS SAID THAT ICV PAYS BACK IN THE LONG TERM,” HE AL AUFY SAID. “IF WE REPLACE SOME OF THE IMPORTED GOODS AND SERVICES WITH LOCALLY PROCURED SUBSTITUTES, THEN BY DEFINITION, IT SHOULD BE CHEAPER. THIS IS BECAUSE LABOUR IS SLIGHTLY LESS EXPENSIVE, WHILE YOU ALSO SAVE ON TRANSPORTATION, TURNAROUND AND SO ON in the interview. ICV, the official argues, has strategically important socioeconomic implications. “We have always said that ICV pays back in the long term,” HE Al Aufy said. “If we replace some of the imported goods and services with locally procured substitutes, then by definition, it should be cheaper. This is because labour is slightly less expensive, while you also save on transportation, turnaround and so on. So

ICV can be a good investment in the long term, although the pace of ICV implementation may slow down a little bit in the current circumstances. At least, the operators seem to be determined to stay the course for now.” Also of strategic importance is the need to constantly upgrade and up-skill Omanis to help support the development of a dynamic, professional and efficient national workforce for the industry, he stressed. Re-skilling, for example, will help prepare Omanis facing retrenchment on account of a crisis such as the one weighing down the industry, to secure employment elsewhere within or outside the oil and gas sector. The combination of upskilling, together with the redeployment strategy for averting job losses of nationals in the industry, will go a long way in alleviating potential impacts to employment in a downturn, he added.

Photo: Ahmed AlToqi

LEAD STORY

November 2016

Crafting a viable safety net for the oilfield industry The Omani government’s ‘Redeployment Strategy’, unveiled around a year ago, has been suitably tweaked to head off an anticipated second wave of potential redundancies as the protracted downturn threatens to cause more pain for the oil and gas industry

s a safety net that helped stave off large-scale job losses at the outset of the crisis in mid 2015, the Redeployment Strategy is once again being held up as a powerful bulwark in holding back a fresh wave of anticipated cuts in the employment of Omanis in the industry. Crafted in collaboration with key stakeholders in the industry, the blueprint is credited with salvaging several thousand jobs of nationals as companies scrambled to cut costs and downsize their operations in the wake of the downturn. And with the outlook for a rebound in oil prices still gloomy, the authorities are moving proactively to forestall further redundancies that are widely predicted as the crisis squeezes employers further. Of particular concern for the Ministry of Oil & Gas and Ministry of Manpower, as well as Oman Society for Petroleum Services (OPAL), are anticipated cutbacks in drilling and related services. Constrained cash flows mean that operators are likely to ease up on certain types of drilling activities, such as exploratory drilling, which do not generate revenue upfront. This approach could result in entire rigs being idled, along with their respective crews. Also likely to be impacted as a result are crews handling workover services

and other related activities – a ripple effect that can imperil the jobs of potentials hundreds of Omanis. In fact, efforts are already underway to secure the livelihoods workers well before the threat materializes, according to HE Al Aufy. “I have already had separate meetings, with executives of the drilling community as well as with the operators, so that the redeployment process is activated and implemented to allow for solutions to be found.” The strategy spells out a clearly articulated set of steps that contractors must adhere to when contemplating layoffs of any Omani workers on account of the constrained fiscal environment. “The methodology for terminating of modifying the employment contract of an Omani worker is very clearly set out in the strategy. The employer can either invoke Article 48 of the Labour Law for transferring an employee, or applies the Redeployment Strategy if it concerns staff redeployment,” the Under-Secretary stressed. “Redeployment starts with the contractor themselves trying to redeploy any surplus staff internally within their operations. When they exhaust all their efforts and they still have Omanis in hand to be redeployed, they need to formally write to

REDEPLOYMENT

the contract owner, who could either be another contractor or an operator. The latter then quality checks the efforts done by the employer, making sure the employer was diligent in following redeployment guidelines. At this stage, the contract owner needs to repeat the process of redeploying surplus nationals at their level through their contractors and so on. When they have exhausted this process, and if they still have surplus Omanis in hand, they then write to the (specially constituted) Technical Committee (comprising high level officials of the Ministry of Oil & Gas, Ministry of Manpower and operators). The Technical Committee needs to be given a minimum of two months from the time this written communication is received before it can evaluate and make its recommendations on any nationals surplus at that point.”

Half-hearted response

But despite multiple reminders and reaffirmations of this methodology, not everyone among the contracting community have taken the redeployment strategy to heart in its entirety, laments the Under-Secretary. “When I met with contractors recently, some of them said the process was news to them. There are occasions when I heard from Omani workers themselves that they had received termination letters without recourse to the redeployment strategy, which is in violation of the process. So I had to spend some time to go over the process again with the contractors. There can be no excuse that we didn’t know about this system in place.” In some instances, contractors are resorting to the practice of asking their surplus staff to remain at home against the guarantee of full pay – a phenomenon HE Al Aufy strongly deplores. “I’ve told them many times that I do not approve of individuals staying at home and doing nothing, just because it buys the contractor some peace of mind. Employers need to go through the process, even if it ends up terminating some individuals. It’s not illegal, but we need to follow the process that the Council of Ministers signed off on.” Other key objectives set out in the strategy are also being short shift by the industry, bemoaned HE Al Aufy. Calls for

upgrading the skills of Omani workers or seeking their redeployment outside of the oil & gas industry are among a number of goals enshrined in the strategy. “There are a lot of objectives spelt out in the process that are not being followed. We have not redeployed a single surplus staffer outside oil & gas. Even if the contractor has operations outside oil & gas, redeployment is being limited to the industry, which is not acceptable. We have always said that if there is a job within the same contractor’s operations outside oil & gas, then the contractor has the right to move his surplus staff out. If the workers do not want to move where the work opportunities are, they are – by definition – resigning.” HE Al Aufy went on to cite the following scenario to illustrate the point. “Let’s say an operator decides to relocate some of its staff from the oilfields to Muscat. As per the contract, the employees in question are obligated to move, so long as the new assignment matches their skills and expertise, their qualifications, and so on. They have no justifiable reason to refuse to relocate just because it may cost them their desert allowance. And if they refuse to move where their employer has redeployed them to, they are in effect resigning. In the event, the employer is not obligated to find alternative placements for these workers. But there is a process set out in the redeployment strategy that must be followed for these resignations to take effect. Unfortunately, these steps are not being followed.”

Rejigged strategy

Significantly, the Redeployment Strategy has been slightly modified to address inherent flaws in the compensation allowance guidelines prescribed for surplus workers redeployed against lower earnings or terminated altogether. Under the original guidelines, an individual was paid four months wages as compensation if they received less than 70 per cent of the previous package. In effect, a worker getting even 95 per cent of his previous package was still entitled to four months compensation. In the next compensation slab, a compensation payout of six months was stipulated where the employee’s wages upon redeployment dropped to between 50 – 70 per cent of the previous

November 2016

Photo: Ahmed AlToqi

pay. Finally, for the small number of surplus workers where termination was the only option, the compensation allowance was fixed at 10 months. However, when the compensation amounts were actually paid out, it was found on the one hand, to place a hefty burden on some employers. On the other, it awarded virtually the same compensation to those losing out by small margins on their earnings and those having suffering a roughly 30 per cent cut. Concerned that the compensation process was not entirely equitable, the Main Committee decided to rejig the compensation terms in the interest of fairness, said HE Al Aufy. The new compensation terms have been agreed as follows: Redeployed staff will not receive any compensation if the new salary package is not less than 75 per cent of the previous earnings (not including desert and overtime allowances). For example, if an employer on a monthly pay of RO 1000 per month (excluding desert and overtime allowances) is redeployed against a reduced pay of RO 750 per month, they will not be entitled to any compensation under the revised guidelines. Allowances at the new placement may be paid only if the job entitles the employee to such payments. The reduced pay sans compensation is deemed as “acceptable” in the current circumstances, according to the Under-Secretary. However, if the pay cut is more than 25 per cent of the previous pay, then the surplus employee in question will receive a monthly compensation package equating to 75 per cent of his previous earnings (excluding desert and overtime allowances) for a period of six months. This measure is designed to help the individual manage his financials. After the passage of six months, the employee receives his new salary stipulated at the time of his redeployment. If the employee is not secured alternative employment under the redeployment process, then he will receive a termination allowance equating to 75 per cent of his previous earnings (excluding desert and overtime allowances) for six months. Actual payouts will also take into account the number of years in service. Asked if the oil and gas workers are generally amenable to pay reductions in light

I’VE TOLD THEM MANY TIMES THAT I DO NOT APPROVE OF INDIVIDUALS STAYING AT HOME AND DOING NOTHING, JUST BECAUSE IT BUYS THE CONTRACTOR SOME PEACE OF MIND. EMPLOYERS NEED TO GO THROUGH THE PROCESS, EVEN IF IT ENDS UP TERMINATING SOME INDIVIDUALS. IT’S NOT ILLEGAL, BUT WE NEED TO FOLLOW THE PROCESS THAT THE COUNCIL OF MINISTERS SIGNED OFF ON of the severe fiscal challenges unleashed by the downturn upon employers, HE Al Aufy remarked: “As far as I see it, the workers still believe that it’s business as usual. They still expect bonuses and all the goodies they were getting prior to the crisis. None appear to be willing to take a pay reduction to make sure that their employer does not go bust. They still expect the three per cent minimum increase mandated each year by the Manpower Minister, even though under the current circumstances, there is really no justification for this increase. Unfortunately, there is no change in attitudes,” he lamented. By Conrad Prabhu

HUMAN CAPITAL

In-Country Value

Human capability

development When it comes to Human Capital, ICV is about providing the right training to Omanis, creating the right jobs for Omanis, and supporting SMEs and entrepreneurs. It is about offering the youth the opportunity to do the work they dream of doing. The Ministry of Oil and Gas is committed to working closely with all stakeholders to achieve this national objective, says Shaikh Khalid Al Hinai, Advisor to the Minister of Oil and Gas on Human Resources, and Head of the ICV Committee (HR)

rom the very outset of the formation of the In-Country Value (ICV) Programme and its various initiatives, the Ministry of Oil & Gas has placed significant emphasis on the need for a collaborative and unified approach among oil & gas producers and contractors to effectively and successfully achieve their ICV aspirations. ICV is defined as the total spend retained in-country that can benefit business development, contribute to human capability development and stimulate productivity in the Omani economy. In the spirit of this objective, the industry has launched the ambitious ICV blueprint strategy with clearly defined short-term and long-term goals as well as measurable objectives aimed at increasing the ICV from 18% to 32% by 2020, by tapping into billions of potential dollars throughout the value chain across oil & gas producers and contractors. In this exclusive Q&A, Shaikh Khalid traces the important strides achieved by the oil and gas sector in delivering on its ICV commitments, with emphasis on HR, over the past year:

November 2016

In the Ministry’s view, why is ICV still relevant and important today amid the current economic downturn as it was when oil prices were high? ICV is extremely crucial to the national economy due to its positive and substantial impact on various aspects of economic and social developments in the country. Moreover, ICV serves to retain part of the value that is currently imported and accordingly, promote a sustainable and balanced growth through the expansion and the launch of new industries, products and services as well as creation of new jobs. Furthermore, the ICV represents an important mechanism that will help facilitate and support the diversification of the economy and mitigate the dependency on oil and gas resources. For these underlying reasons, ICV acts as a proactive catalyst that helps to minimize the impact of economic downturn. Is the industry delivering on these expectations? The Ministry is pleased to acknowledge that since the inception of the ICV Blueprint Strategy in December 2013, several initiatives have been implemented and achieved for the benefit of supporting the development of ICV, whether through the oil & gas producers or contractors. These achievements and milestones have yielded a positive impact and encouraging results in different aspects of ICV, which would have not been possible without the continuous support and coordinated efforts between the Ministry, Oil & Gas producers and contractors. The ICV Strategy Team, chaired by His Excellency the Undersecretary of Oil and Gas, consists of all Oil and Gas producers in Oman which are represented by the highest level and meets quarterly to closely monitor the status of each ICV Project, provides steer to taskforces and sub-committees, and discusses challenges and provides solutions. Additionally, the Ministry of Oil and Gas has established an ICV Program Management Office (PMO) to further support all current and future projects. In your view, is the industry fully committed to delivering on mandated ICV targets?

ICV SERVES TO RETAIN PART OF THE VALUE THAT IS CURRENTLY IMPORTED AND ACCORDINGLY, PROMOTE A SUSTAINABLE AND BALANCED GROWTH THROUGH THE EXPANSION AND THE LAUNCH OF NEW INDUSTRIES, PRODUCTS AND SERVICES AS WELL AS CREATION OF NEW JOBS In recognition of the efforts and deliverables that have been achieved so far in a relatively short span of time, it is evident that the industry is fully committed towards the delivery of the ICV targets, or even exceed them. As a testimony and reflection of the industry’s commitment, a majority number of oil & gas producers as well as increasing number of contractors have introduced and incorporated several measures in order to embed and integrate ICV as an integral part of the organisations’ policy and internal day to day processes. Data submitted by oil and gas

HUMAN CAPITAL

O&G Maintenance Technician Higher ‘Apprenticeship’ Pathway

VTC Diploma Year 1 and Certificate To include

minimum industry safety training (MIST) engineering skills, Soft skills, engineering drawings, introduction to maintenance

12 months

VTC Diploma Year 2 Mechanical

VTC Diploma Year 2 Instrumentation

Work experience

Unit for O&G Technicians

Diesel engines, Pumps, Piping, gearboxes, HVAC, Bearings, transmission

VTC Diploma Year 2 Electrical

Distribution systems, electrical protection, power generation and rotating equipment

Measurement systems, protection/detection systems, control systems, valves

The aim of this initiative is to have a robust, progressive program of learning, that fully meets international Oil and Gas sector expectations, in Oman.

24 months

Petroleum Process Technology

12 months

companies reveal that many of them have already achieved high ICV percentages, even higher than the planned targets for 2020. Kindly share some examples of ICV development successfully delivered by local companies. There are some great examples of the ICV projects undertaken and successfully executed by local companies after the launch of the ICV Blueprint Strategy. For instance, consistent with the industry’s ICV strategy and national objective to support and develop local companies, our very first ICV project regarding the establishment of the Joint Supplier Registration System (JSRS) was assigned to a local SME, which was delivered ably and successfully. Other ICV projects include a number of newly established manufacturing facilities and specialized services, which were previously exclusively provided by international companies. For example, these new projects includes, among others, in-county manufacturing facilities and products such as Shale shaker, scaffolding, Wireline Units, tools associated

OJL Workplace assessment Occupational Qualification Mechanical Technician OJL Workplace assessment Occupational Qualification Electrical Technician OJL Workplace assessment Occupational Qualification Instrument Technician Part time at TC for HND

with pigging, casing and cementing Accessories. In addition, other projects are currently in the pipeline and will materialize in the near future such as but not limited to manufacturing facilities for Electrical Submersible Pump, Valves and high purity salt. In addition, The ICV HR committee, which I proudly chair, is currently embarking on the following four major initiatives:

Local Workforce Development:

The aim of this initiative is to have a robust, progressive program of learning, that fully meets international Oil and Gas sector expectations, in Oman. It will also ensures a common standard for training and development across the sector and establish centralized program management that ‘trains for employment’. This initiative will bring business to existing as well as future private institutes which can offer programs that meet these standards. The ICV Team is working closely with the Ministry of Manpower towards achieving this goal. The following slide shows the proposed apprenticeship program for the first skillset (i.e. Mechanical, Instrument, Electrical):

November 2016

Oil & Gas Learning Hub:

What To develop a sustainable central govern� ing body that ensures all skilled and semiskilled Omani professionals will meet international standards relating to educational qualifications and vocational competency through promotion of training excellence. Also, the aim of this initiative is to create a means by which the total oil and gas skills training standards assurance, training delivery and overall governance will be networked across the Sultanate wherein training can be delivered in Public, and Operator training institutes or centers by means of establishing a Learning Academy/Hub. Why ■ Maintain the latest data of all available training programs/institutes in Oman. ■ Provide advices to Omani citizens on career development and accredited qualifications on completion of training frameworks. ■ Align technical training provision to industry requirements ■ Maintain occupational standards and training frameworks. How Through strong working partnerships, we will endeavor to build a lasting culture of excellence in the training and development of Omani citizens. The scope of the project has been defined and the project has entered the planning phase. Career Guidance: The aim of this initiative is to establish, articulate, and publicize employee value proposition for oil and gas industry skills and other disciplines to increase awareness and attractiveness of the industry in all levels, ages, and areas. It will include videos, leaflets, CDs, presentations, Job Fairs, brochures, booklets, and many more. The scope of the project has been defined and awarded to Local SMEs.

Game:

Interactive games, 5-30 minutes in duration, related to Oil and Gas industry such as Exploration activities, Drilling rigs, production and dehydration, refinery, transportation of Crude, storage, etc, wherein it could be also downloadable in Android or Apple store.

Video

State of the art videos developed by local Omani companies - SMEs- featuring the oil and gas business in a very attractive manner and emphasizing the importance of certain jobs over the others and publicizing the employee value proposition of the industry.

Booklets and Brushers

Educational brochures and small hand books containing information about Oman’s oil & gas industry specifically aimed to target school students and available educational institutes, and also create a level playing ground between the employers and students. The objectives included in the brochures/booklets shall: ■ Contribute to ensuring the availability of the technical related skill set for the industry by attracting the new generations and providing sustainable pipeline of talented pool of locals. ■ Attract local talents to supply the O&G and associated services industry. ■ Promote the industry and the associated services as an employer of choice for recent graduates and students for the long term. ■ Provide educational opportunities for the school students and educational institutes to know more about the industry career opportunities and also to link between the employers and students on the same platform. Joint Recruitment Portal: As part of improving the consistency, integrity and transparency of the recruitment process across all Oil & Gas operators, it was agreed to establish a joint recruitment portal for the operators. The portal is currently at its final stage and will be first piloted among 3-4 operators. Have all of the major oil and gas producers, as well as service providers, instituted full-fledged departments headed by ICV Managers, to oversee their respective ICV strategies? A majority number of oil and gas producers have established dedicated ICV departments with their respective ICV Managers, which varies in terms of size

HUMAN CAPITAL

Social Media Responsive

Different Platform

Shareable data

Statistics

JRP Features

Transparent

One stop Shop

Alerting Job seekers

and resources between operators. While this trend is also witnessing an increase on the part of the service providers with an appointment of dedicated ICV Managers. Kindly list any initiatives that took place in the current and previous year in the form of forums / workshops seminars - to drive home the

importance of ICV? In an effort to underscore and effectively enhance the impact of ICV in the industry, a series of training programs has been organized on ICV for contract professionals open to oil & gas operators as well as contractors. The objectives of the training program is to provide an overview of ICV and help acquire knowledge and skills needed to integrate

November 2016

and evaluate ICV in contract tenders in an appropriate and effective manner., In another event, the oil & gas industry showcased its projects and efforts including ICV initiatives at Omanâ&#x20AC;&#x2122;s Oil & Gas Exhibition & Conference OGWA held in Muscat in March 2016, which was held under the auspicious of the MOG We aim to continue with this endeavor on the following years to come.

Is there any change in the targeted spend of the industry on ICV in the year 2020? Our aim is to sustain our momentum towards the enhancement of ICV in the industry and surpass our targets. We will continue to be a model when it comes to embedding ICV in the industry.

INTERVIEW

Petroleum Development Oman:

IMPROVISING a successful pathway through the downturn Petroleum Development Oman’s (PDO) overarching mission to sustain hydrocarbon output in the face of sharp spending cuts necessitated by the slump in global oil prices, is an inspirational story that goes beyond buzzwords like LEAN, Cost Optimisation, Operational Reliability, Every Rial Counts, and so on., says Mr. Amran Al Marhubi, PDO’s Technical Director

November 2016

he overarching mission of Petroleum Development Oman (Oman) is to sustain hydrocarbon output safely, responsibly and efficiently in the face of deep spending cuts necessitated by the slump in global oil prices. The efforts the company has taken to achieve that goal combine to make an inspirational story that encompasses all aspects of the company’s business. Cost optimization is now more important than ever and is underpinned by strategies such as Lean continuous business improvement, closer contractor collaboration and root-and-branch initiatives such as an “Every Rial Counts” campaign which encourages staff and contractors to leave no stone unturned in identifying savings no matter how small they are. At the same time, PDO is also experimenting with novel technologies for enhanced oil recovery (EOR), pursuing the development of complex mega projects, revolutionising seismic acquisition, exploring new research partnerships, and supporting groundbreaking initiatives like the Miraah solar project to deliver maximum value for the Sultanate, says Mr. Amran Al Marhubi, PDO’s Technical Director. In this exclusive Q&A, Mr. Al Marhubi offers his perspective on how PDO has carefully calibrated its response to a host of challenges thrown up by the oil price downturn, while staying true to its core mandate of sustaining oil and gas production, so critical to supporting the national economy. Given the recessionary pressures that operators like PDO find themselves subject to, what gives you confidence that the company will deliver on its commitment to boosting crude output to 600,000 barrels per day (bpd) from 2019? For the past 10 years, PDO has been actually producing sustainably at the rate of 550,000 bpd - plus. And with the resource base that we have now, I be-

INTERVIEW

There is a whole area of technology that does not get talked about much and it pertains to Enhanced Oil Recovery (EOR), which is probably the biggest game changer in our business, said Mr. Amran Al Marhubi.

lieve we can put together a programme that can deliver the committed 600,000 bpd for 10 years by 2019. We have reached our targets in the past, and we will continue to be able to do so. In fact, every year we try to find resources that help extend our production plateau for another year. We will add resources from new exploration finds and critically we will add resources from the application of technology in particular from enhanced oil recovery (EOR). We are very active in researching and applying new recovery techniques and are acknowledged leaders in the region as well as to the forefront internationally. Moreover, there has been a revolution in our ability to acquire seismic data, and in our ability to interpret and get the maximum information from this resource. With this new capability, it’s like we are viewing a whole new basin. And that’s where I draw my confidence that we will be able to continuously stand up and say: “Our new production plateau target will be sustainable for many more years to come!” How is PDO leveraging technology to enhance oil recovery? The challenge for PDO hasn’t changed - add to the discovered oil in place and increase our ultimate recover. For many years now our forecast ultimate recovery has remained at around 28 percent. This is as a

result of increases in recovery keeping pace with our additions to the oil in place. Twenty eight percent is simply not good enough and our challenge has always been: what do we need to do to get closer to 50 per cent? Ultimately this has to be about the application of technology. We already apply all three common types of EOR technology, thermal, chemical and miscible injection. We will need to continue to trial and apply other emerging technologies. For example, we have just embarked on the trial of an alkaline surfactant flood (which is a step-up from polymer flooding) in Marmul. We believe this will increase recovery by a further 10 per cent in the fields that we apply it to, but we will wait for the results of the pilot. Likewise, in other areas we will be looking at novel solvents for EOR. This approach is not only about finding the right solvents, but also getting the economics right. When you inject anything into the reservoir, it will end up becoming a product together with the oil. So you need to make sure whatever you inject you can be separated from the oil and ideally can be reused. Is PDO working in partnership with local institutions, say Sultan Qaboos University (SQU), for instances, in researching these new technologies? We will work with anybody that has got good ideas. We have partnered extensively with SQU on a number of technologies in the past, and we are quite happy to work with SQU or other research centres now and in the future, as it not only helps us address our needs but also assists in building their own research and development expertise. As executors of new technology, PDO is always on the look-out for people and organisations to come up with ideas as potential solutions to our various challenges. Whatever is promising, safe and commercially viable we will investigate, test and deploy, if deemed appropriate to our needs. Whether it’s SQU, the University of Nizwa, or the University of Sohar, etc – any provider is welcome to approach PDO with their suggestions and solutions. Will EOR remain a key weapon in your production arsenal for the foreseeable future? Although we are pursuing early monetization and accelerating lower-cost opportunities, EOR remains a central pillar of our production portfolio. A number of EOR projects are in place, and we are continuously trying to optimize them to ensure we ex-

November 2016

tract maximum value. In polymer injection, for example, we are trying to make sure we are injecting the right concentration; while in thermal our focus is on more efficient generation of steam. Every 12 months we produce a five-year plan that aims to constantly improve the return on investment for our shareholders, be it primary, secondary (water flood) or tertiary (EOR). At present, we believe EOR will account for 25% of our oil production by 2025. How has the low oil price environment changed PDO’s approach to executing the mega projects at Rabab Harweel and Yibal Khuff? Rabab Harweel is well into construction, and I’ve every confidence it will meet the 2019 planned start-up date. It’s an interesting project in the sense we have taken lessons on board from the previous Harweel 2AB phase. This has caused us to re-evaluate how we work with our contractors. We have transitioned from the traditional Engineering, Procurement, Construction (EPC) contract approach, which can lead to adversarial relationships, to a contract strategy that demands and fosters a much more collaborative relationship. To me, the most important thing that will affect the future of PDO is how well we can make the transition to greater partnership with our contractors. We need to move from the ‘you-shoulddo-what-we say’ approach we have had in the past to one where we respect and act on the expertise that our contractors have and we listen. This to me will make a big difference in our ability to continue to deliver projects that work as intended, are on schedule and on budget. For the Yibal Khuff project, we are making sure every ounce of learning from Rabab Harweel is being taken on board. Mindset changes haven’t been easy either from our side or from that of the contractor but we are working well together to ensure the project is a resounding success. On the gas front, what are the challenges that focus minds at PDO? There are a number of challenges we face on the gas production front. One major problem we face is that when pressure falls in a field, we get a lot of liquid which effectively kills the wells. Dewatering wells can be quite expensive. The other challenge is that much of the remaining supply in Oman is in very tight reservoirs, which are near unconventional but not quite. That presents a whole new challenge in how to increase pro-

ductivity from such wells. Again, technology is coming into play here. We will in the near future be utilizing multilateral drainhole technology – which is a step up from the technology first deployed in the 1990s – to go down to depths of up to 4,500 metres. It’s an upgrade of technology that will help us access gas in more difficult, deeper environments. Your final thoughts on the tumult of the past 12 months! We had a good 2015 and have had a very good 2016 so far! Our target this year is 600,000 bpd and we are very close to that. In terms of performance, we can be very pleased. This has been achieved on the back of a good safety record combined with a ma-

NOT ALL OF WHAT WE’RE DOING IS GOING TO BE EASY, AND NOT ALL OF IT IS GOING TO BE LOW COST. BUT IT HOLDS PROMISE, AND SUPPORTS ANOTHER PHASE OF EXPLORATION IN OIL BOTH AND GAS

jor turnaround in the way we manage asset integrity and a significant intake of new graduates. PDO is the training ground for Oman’s oil workers, so we have increased our recruitment of nationals. For two years running we have taken on 400 graduates and against the backdrop of the changes and challenges in the external environment, we are heavily involved in supporting contractors in creating thousands of jobs, training and redeployment opportunities for Omanis. We recognize our role in the country as a centre of excellence, and we are still delivering and – in fact, over-delivering – on our commitments in this respect. We’re very proud that in even these testing times we have been able to achieve this and much more for the nation.

In Numbers We had a good 2015 and a very good 2016 so far! Our target this year is

600,000 bpd,

we are very close to that.

SPOTLIGHT

November 2016

All in hands of OPAL From redeployment and human capital management to in-country value development and industry best practice, Oman Society for Petroleum Services (OPAL) is stepping up to the plate in helping its members build resilience and professionalism in the face of a punishing industry downturn

he mood at the smartly appointed offices of the Oman Society for Petroleum Services (OPAL) in Al Khuwair, Muscat, is decidedly urgent and businesslike, not unlike a command centre where contingency planning and trouble-shooting is the order of the day. After all, the Society’s offices are now the de facto headquarters of a concerted and vigorous industry-wide effort to stave off the worst effects of the ongoing downturn unleashed by the collapse in global oil prices. It’s been all-hands-on-deck ever since the crisis broke in mid2014, according to CEO Musallam al Mandhari, who has overseen OPAL’s transition from a quiet, behind-the-scenes player into a dynamic, proactive and goal-oriented organization committed to helping the Oil & Gas industry weather the downturn. This new perspective and energy is evident in the industry’s continuing success in salvaging oilfield jobs made redundant by the slump. Through a groundbreaking ‘Redeployment Strategy’, formulated with the backing of the Ministry of Oil and Gas and Ministry of Manpower, OPAL has helped secure alternative employment for several thousand Omanis let go by companies in the face of dwindling oilfield investments. “Our Redeployment Strategy has worked wonders,” exulted Mr. Al Mandhari. “Over 3,000 Omanis have been redeployed as a result of the strategy, while the numbers awaiting resolution are hardly 10 per cent of this figure. OPAL has been instrumental in driving this discussion and also playing a key player in the implementation of the strategy.” But the CEO acknowledges that the going may get even more challenging if the low oil price environment continues to persist. That’s because the great majority of redeployments to date involved redundancies for which alternative placements could be found elsewhere within or outside the industry. These placements were made possible by Omanising positions held by expatriate workers. But given the likelihood that the upcoming lot of redundancies will involve oilfield trades that are almost 100 per cent Omanised,

❱❱ Mr. Musallam Al Mandhry, OPAL CEO

SPOTLIGHT

bers of rigs and hoists to be released over the next 6 to 9 months. Even if a conservative 10 per cent of workers operating rigs and hoists are laid off, this would be equivalent to around 700 jobs. Potentially this scenario would involve laying off roustabouts, floormen, derrick men, tool-pushers and drivers – trades that are predominantly Omanised and well-remunerated. Introducing them to new skill-sets will also prove a challenge,” Mr. Al Mandhari explained. The same goes for the position of Assistant Driller, which is heavily Omanised. Placements for Drillers, however, are still possible, given the presence of some expatriates in this category.

Energised mandate

AS A FOUNDATIONAL SUPPORT TO THE INDUSTRY, OPAL HOSTS A VARIETY OF FORUMS THAT BRINGS TOGETHER MEMBERS FOR DELIBERATIONS ON A HOST OF ISSUES OF CONCERN TO THE INDUSTRY finding alternative placements suited to the skill-sets and remuneration packages of those being laid off will prove challenging, according to Mr. Al Mandhari. “Requests for redeployment are increasingly coming from companies that are idling their rigs and hoists as oil and gas companies downsize budgets and curtail costs. At the moment, the industry has 110 rigs and 46 hoists in operation – assets that were created when oil prices were north of $100 per barrel. With the slump in oil prices, the chickens are coming home to roost, so to speak! With staffing of rigs and hoists almost 100 per cent Omani, there is hardly any room for us to redeploy those being laid off to other drilling companies. So we have to think of upskilling and reskilling redundant workers in order for them to be ready to take up employment in related trades.” Towards this end, OPAL is moving proactively to find suitable solutions and placements for Omani workers likely to be laid off over the near future. “We had a meeting with operators and their well engineering managers on their prediction on the num-

The redeployment portfolio, while substantive and weighty, is among a raft of objectives that the Society has identified for implementation as part of its energized mandate. “We agreed a mandate with our stakeholders, ranging from contractors to operators – and endorsed by the Ministry of Oil and Gas as well – to concentrate on three key themes: Serving as the Voice of the Industry; Supporting Human Capital Management; and Driving Best Practice and Standards,” the CEO said. Voice of the Industry: As a foundational support to the industry, OPAL hosts a variety of forums that brings together members for deliberations on a host of issues of concern to the industry. One such initiative is the Annual Oil and Gas Forum at the inaugural instalment of which the first edition of the OPAL Oil & Gas magazine was also launched. OPAL has also initiated a quarterly Contractor Forum which serves as a platform for discussing common issues and concerns. “We also held several meetings with the Oil & Gas Union aimed at discussing a framework for joint discussions encompassing the quartet of the government, employers and employee representatives. This is in the works! One stumbling block that we have been struggling to tackle for the past three years concerns the issue of adding an Oil & Gas Chapter in the Omani Labour Law. This Chapter should spell out the work conditions specific to our industry. The current Labour Law makes no reference to the Oil & Gas industry. We will continue discussions on this issue over the next quarter,” the CEO said.

November 2016

Human Capital Development: OPAL is actively working with representatives of oil and gas operators to develop National Occupation Standards (NOS) in conjunction with the Ministry of Manpower. The initiative is being pursued under the aegis of the In-Country Value (ICV) programme spearheaded by the Ministry of Oil & Gas. Under a pilot that was successfully concluded recently, seven National Occupational Standards have been developed for Welding and Fabrication technicians. Efforts are also underway to draft standards for Mechanical, Electrical and Instrumentation Maintenance technicians, as well as Safety Practitioners. “An MOU will be signed shortly to cement the relationship and work the process towards achieving common goals in this area, which will include piloting the NOS in one of the Vocational Training Centres in the Muscat region,” the CEO said. Best Practice and Standards: Building on the successful hosting of the 1st OPAL Best Practice Awards in Human Capital Development, HSE and Operational Excellence last year, the Society is preparing to stage another instalment of this series in 2016. The objective is to recognize and share best practice among members in the Oil and Gas industry. Indeed, the current downturn is bringing out the best in people and organizations as they come together towards a common cause in creating common standards that will help save money and resources for organizations amid today’s challenging fiscal environment. A case is in point is the success achieved thus far in revisiting OPAL Road Safety standards to be applied the industry. At present, each Operator applies its own standards in its respective concession – a system that causes confusion, consternation, additional cost and inefficiency for contractors traversing multiple concessions. “A driver, for instance, not only encounters different speed limits as he crosses one concession to the next, but also differing vehicle standards and norms. Maintaining these disparate standards inflicts a cost not only on the operator, but on the contractors as well. OPAL is stepping in with its own harmonized road safety standards that are endorsed by all of the operators. We already have the green-light of the Ministry in implementing this new system, which should happen before the end of this year,” Mr. Al

Mandhari explained. Summer Mitigation measures: Equally notable has been OPAL’s success in bringing together all of the operators to agree a framework of measures for meeting their obligations set out under the Manpower Ministry’s summer mitigation requirements. Just as construction workers are entitled to a three-hour mid-afternoon break from 12.30pm to 3.30pm for the June – August

A DRIVER, FOR INSTANCE, NOT ONLY ENCOUNTERS DIFFERENT SPEED LIMITS AS HE CROSSES ONE CONCESSION TO THE NEXT, BUT ALSO DIFFERING VEHICLE STANDARDS AND NORMS. MAINTAINING THESE DISPARATE STANDARDS INFLICTS A COST NOT ONLY ON THE OPERATOR, BUT ON THE CONTRACTORS AS WELL period, so are rig workers exposed to the summer heat. But unlike civil construction work that can be temporarily halted, rig operates round the clock and cannot be paused – a scenario that has confounded the quest for a solution ever since the midday restrictions were enforced by the Manpower Ministry past three years, according to the CEO. “Thanks to goodwill on all sides, we were able to reach a consensus on this vexing issue. The operators agreed to install air-conditioned cabins to allow workers to take a break after half hour during the mid-afternoon. Additional mitigation efforts are planned next summer, such as the installation of misting fans close to the rig aimed at alleviating proximity temperatures for the comfort of the workers. This is a major milestone in bringing an intractable problem to resolution,” Mr. Al Mandhari said. Learning Hub: Conceived as part of OPAL’s In-Country Value (ICV) initiative, the Learning Hub will facilitate the provision of optimal learning solutions across the industry, pitting all the training providers and the operators’ programmes in the online system and ensuring maximum usage of training spaces and leveraging cost effectiveness. An Omani business start-up is being primed to operate and manage this online system, the CEO stated.

IN-COUNTRY VALUE

BP Oman:

Working towards win-win outcomes Energy major BP has embraced a robust local content development strategy that will see upwards of 35 per cent of procurements sourced locally in the implementation of Phase 1 of its signature Khazzan tight gas development

n-Country Value (ICV) – the all-encompassing catchphase for driving local content development in Oman’s oil and gas industry – lies at the heart of BP’s operations in the Sultanate, says Deputy General Manager and ICV Manager Khalid Al Kindi. “It’s embedded in our business philosophy,” explains the industry executive. “As an all-inclusive strategy, it embraces not only the ICV obligations set out by the Ministry of Oil & Gas, but also combines the philosophy of local sustainability underpinning BP’s operations globally.” Tasked by the organization to maximize local value development, Mr. Al Kindi’s remit is to work with BP’s Leadership Team; Technical and Supply Chain Management teams to fully align BP Oman’s contracting and procurement activities with the principles and goals of Oman ICV development within its Khazzan Development Supply Chain. Also integral to this mandate are employment generation, Omanisation and training, small business mentorship and community development, among other related objectives. Accordingly, ICV development at BP Oman is not merely the responsibility of those running the ICV Department, stresses Al Kindi. “It’s a collective responsibility shared by every employee of the organization. In fact, every one of us is called upon to make a personal commitment towards delivering on ICV. This commitment is enshrined in ‘My Plan for

November 2016

IN-COUNTRY VALUE

the Year’, an initiative that requires each of us to spell out one of more objectives and could take the form of pledges to support, say, Omanisation and training, SME mentorship, community development, and so on.”

BP Oman’s ICV programme has also helped stimulate investment in local manufacturing, repair and maintenance, and vendor support capabilities.

drilling company Abraj Energy Services, which successfully competed with international drilling firms to win a contract to deliver and operate three rigs for the Khazzan Project. Other notable successes include local firms whom contracted directly or as subcontractors are United Engineering Services , MBPS, Composite Pipe Industries (CPI), AL Sarooj, Arabian Industries, Al Eaz, Sino-Gulf, Oman Fiber OPTIC, STS, Al Hassan, Dhofar Structural Steel Fabrication, which were awarded contracts as well.” Local Community Contractors (LCCs) are also among the beneficiaries of the company’s ICV programme, according to Mr. Al Kindi. Contracts for support services at the Khazzan site, such as equipment rental, potable water supply, diesel supply, transport and logistics, have been typically channeled to these LCCs.

Helping drive the ICV programme into BP’s sourcing and supplier development programme are BP’s Technical Leads, whose primary brief is to evaluate supplier development and localization opportunities across the supply chain from a technical perspective. Similar PSCM ICV Leads have also been appointed and with the help from other functions will support localization in human resources, training development, Omanisation, capacity building, social investment, and community development.

Delivering value

Given this far-reaching emphasis on ICV generation, BP Oman has succeeded in delivering significant value in the form of local content development. “Right from the outset of implementation of Phase 1 of the Khazzan tight gas development, we looked at harnessing opportunities for local sourcing of goods and services. And the results are demonstrably satisfying. Take, for example, local Omani

Contributors Khalid Al Kindi Deputy General Manager and ICV Manager BP Oman

Importantly, BP Oman’s ICV programme has also helped stimulate investment in local manufacturing, repair and maintenance, and vendor support capabilities. “For instance, we worked with our supplier to localize the production of well test skid for our operations. As a result of this innovative approach, well test skid for the first 50 wells will now be manufactured and assembled for the first time by local company at facility in Nizwa. Other operators that have a similar requirement have been invited to be part of this initiative as well,” Mr. Al Kindi said. Also in line with the company’s ICV strategy, priority is given to locally sourced goods and services across its supply chain. All of its requirement of GRE pipes, for exam-

November 2016

ple, are being procured from Sohar-based manufacturer Composite Pipe Industries(Oman) (CPI) , while the installation is carried out by local contractor GPS.

Capacity-building

As part of its commitment to fueling local content development, BP is helping assess domestic and regional demand for the supply of frac tanks with the goal of supporting their fabrication in the Sultanate. “As part of the process of fraccing and stimulating wells in the production of oil and gas, we envisage a significant need for frac tanks along with skids. To this end, we are working, on the one hand, to evaluate the demand for frac tanks, and on the other, to evaluate local vendor capabilities in the manufacture of these tanks in the Sultanate. Interest in the development of this capability in Oman is significant, and we are working with our main suppliers to help take this through to fruition,” said Mr. Al Kindi. Also promising is the potential to assemble and future manufacture rigs for the domestic oil and gas market, according to the executive. He explained: “When we first floated a tender for rigs, we had a proviso requiring the rigs to the assembled within Oman. Building on this initiative, Companies are now need to exploring the potential for manufacturing these rigs entirely in the Sultanate for our future market needs. Of course, all of the operators would need to work together to support this initiative collectively.” Given the strident and comprehensive pace of BP Oman’s ICV programme, local content delivery reached as much as 26 per cent of the aggregate value of contracts awarded in 2015. During 2016, this figure is expected to increase to well over 35 per cent, surpassing industry benchmarks for ICV generation. To aid the accurate and qualitative assessment of local content development, BP Oman has taken a leading part in rolling out an ICV reporting tool that benchmarks ICV deliverables against seven distinct criteria. They include Omanisation, local procurement of goods and services, patronization of local manufacturing capacity, and so on. As an extra mile, BP has implemented a leading ICV supplier verification pro-

gramme to demonstrate under process that its contractors are delivering what they promised to deliver on ICV deliverables. This will enable BP to ensure the submitted ICV data is in line with the ICV plan and embedded in each contract.

Community focus

Social investment, which has long defined BP’s commitment to the local community, has been dovetailed into the company’s wider ICV programme. Focusing on three main platforms – education, entrepreneurship, and energy sustainability – its vibrant social investment programme has so far benefited over 30,000 Omanis (mostly youth). Initiatives funded by BP Oman, and delivered through partnerships with organizations like Injaz Oman, Sharakah and Oman Sail, continue to empower students, job-seekers, entrepreneurs, SMEs and start-ups, according to Mr. Al Kindi. Examples abound of individuals, start-

AS AN EXTRA MILE, BP HAS IMPLEMENTED A LEADING ICV SUPPLIER VERIFICATION PROGRAMME TO DEMONSTRATE UNDER PROCESS THAT ITS CONTRACTORS ARE DELIVERING WHAT THEY PROMISED TO DELIVER ON ICV DELIVERABLES. THIS WILL ENABLE BP TO ENSURE THE SUBMITTED ICV DATA IS IN LINE WITH THE ICV PLAN AND EMBEDDED IN EACH CONTRACT ups and SMEs that have benefited directly from BP Oman’s social investment funding. “There are programmes, for example, that sign up homemakers, train them in a specific skill and help them get started as entrepreneurs. Likewise, through Sharakah, existing and new SMEs are suitably mentored until they have the confidence and training to strike it out on their own. Indeed, as many as 50 startups that were backed by strong business ideas were selected for special mentorship by Sharakah over the past two years, with funding support from BP. The startups also received a grant of RO 5000 each to help them get started with their businesses, the Deputy General Manager and ICV Manager added.

In Numbers Given the strident and comprehensive pace of BP Oman’s ICV programme, local content delivery reached as much as

per cent of the aggregate value of contracts awarded in 2015. During 2016, this figure is expected to increase to well

over per cent, surpassing industry benchmarks for ICV generation.

IN-COUNTRY VALUE

Orpic

Creating sustainability through shared value

November 2016

Orpic – the nation’s refining and petrochemicals flagship – is outperforming many of its peers over many of its peers in the Oil & Gas industry in delivering on its In-Country Value (ICV) targets which currently exceed an admirable 30 per cent of the contract value for its strategic growth projects

IN-COUNTRY VALUE

rpic actions demonstrably exemplify what the petrochemicals industry can achieve in the form of In-Country Value

(ICV). Take the example of two of its high-profile investments: The total ICV spend retained locally in the case of the Sohar Refinery Improvement Project (SRIP) has soared to an impressive USD 539 million year-todate, representing 31.2 per cent of the contract value. For the Muscat-Sohar Product Pipeline (MSPP), the total proportion retained as local spend year-to-date is USD 42.2 million, representing 33.2 per cent of the contract value. Affirming the state-owned entity’s commitment to this strategic national goal, Ibrahim Al Maamari, Manager – In Country Value, Orpic, said, “As a leading performer, Orpic fully supports the national ICV program and our plan is maximize our ICV contribution within the USD 9 billion capital projects planned across our operational units over the next four years. Ibrahim Al Kalbani, Manager – Procurement, Contracting & Inventory (PCI), Orpic, added, “Orpic’s ICV agenda corresponds with that of the Oil & Gas industry and as such we fully support the national ICV program and the Ministry of Oil and Gas’ (MOG) formation of an ICV Committee. The company has embedded ICV into its own business model, with particular reference to its strategic growth projects over the next four years.”

Leading ICV performer

Eager to emerge as a leading ICV performer, Orpic established a dedicated In-Country Value department in 2013. Its 10 team members are assigned to the following areas: (1) Operations (2) Strategy & Planning (3) Policy & Procedures, and (4) Projects (Sohar Refinery Improvement Project (SRIP) - 2016, Muscat Sohar Product Pipeline (MSPP) - 2017, Liwa Plastics Industries Complex (LPIC) - 2020). According to Mr. Ibrahim Al Maamari,

Orpic has identified five business opportunities for ICV development as part of its Blueprint Strategy Book. “Orpic actively supports SME development related engineering design for the manufacturing industry, detailed engineering design, develop an engineering services hub, tank maintenance and cleaning and purchasing of commodity chemicals. Developmental strategies for each of these opportunities are in various stages of progress.” His colleague, Mr. Ibrahim Al Kalbani, explains that Orpic is implementing an ICV approach through their tendering system by ensuring that all tenders equal or greater than USD 1 million have ICV as a mandatory requirement. Linked to technical and commercial evaluation, this process not only supports ICV through plans submitted by the contractors but also includes all the main elements including fixed assets, Omanization and local sourcing of goods and services. “Orpic’s ICV strategy is to support business development, human capability development, and productivity stimulation in the Omani economy through the retention of maximum value in-country,” Mr. Al Kalbani said. Guiding the ICV department in the achievement of these goals are the following criteria: ■ Authentication (made in Oman) of the materials procured by Orpic ■ Development of human capital in all Orpic’s projects by ensuring at least 30% Omanization across all categories and levels. ■ Sustainable development of Omani Small and Medium Enterprises (SMEs) through the support of the ones directly linked to Orpic’s business. ■ Communication of ICV achievements through dashboards to all key stakeholders. “In support of this objective, the ICV and procurement teams have started a new

Focal Points Ibrahim Al Maamari

Ibrahim Al Kalbani

Manager – In Country Value, Orpic

Manager – Procurement, Contracting & Inventory (PCI), Orpic

November 2016

practice to ring-fence a number of tenders which are suitable to SMEs in terms of their capabilities in order to ensure the 10% allocation to local businesses. We have allocated a certain scope for either SMEs or local suppliers for those scopes which are currently being undertaken by international suppliers. Additionally, the ICV team works with all functions and departments to study tenders to identify any ICV opportunities through Omanization or local sourcing in an effort to include them in the tender document,” Mr. Al Kalbani further explained.

Maximizing local spend

A comprehensive and multifaceted ICV strategy is helping ensure that local spend is being maximized across all three mega investments across Orpic’s current portfolio. “Through the Muscat Sohar Product Pipeline (MSPP), we have procured 230 kms of 18” line pipes X-65 grade, and 69 kms of 10” line pipe X-65 grade from Gulf International Pipe Industry (GIPI), a local Sohar-based pipe manufacturer. Likewise, for the Sohar Refinery Improvement Project (SRIP), an estimated USD 60 million has been spent through local manufacturers for the supply of materials such as cementing, pipelines, cables and others,” the ICV Manager said. Also underscoring the company’s commitment to supporting SME’s is its recent decision to award a tender for the construction of Temporary Site Office Facilities in Sohar to two local companies. Al Qafila Wood House and Horizon (JV), which are Omani owned SME’s based in North Al Batinah Governorate. The JV constructed port cabins customized to Orpic requirements on an area of approximately 4000 sqm. Another local company, Gulf Triangle, was awarded a contract to provide various services linked to quality / HSE and fabrication for the MSPP project. In addition, the company received approval to supply four underground double wall vessels of 50 m3 each for the Al Jifnain Terminal. Significantly, local higher learning institutions are also benefiting from Orpic’s ICV and localization initiatives. Earlier this year, the company joined forces with chemicals conglomerate W R Grace to fund the establishment of a state-of-theart R&D facility at Sohar University at an

THE ICV TEAM WORKS WITH ALL FUNCTIONS AND DEPARTMENTS TO STUDY TENDERS TO IDENTIFY ANY ICV OPPORTUNITIES THROUGH OMANIZATION OR LOCAL SOURCING IN AN EFFORT TO INCLUDE THEM IN THE TENDER DOCUMENT estimated cost of over USD 3.5 million. The R&D facility will be equipped with the latest catalyst testing technology and will employ highly-skilled Omani scientists. The advanced catalyst testing techniques utilized in the laboratory will result in a high-quality service with rapid response time for many of the technical requirements across Orpic Refineries. W R Grace & Co will provide technical support in the training of personnel and, as the world’s leading supplier of Fluid catalytic cracking (FCC) catalysts, they will assist in knowledge transfer to support Sohar University’s research programs. The agreement is a result of on-going discussions between Orpic and W R Grace & Co. Indeed, ICV is embedded in all contracts awarded as part of the implementation of Orpic’s big ticket ventures – SRIP, LPIC and MSPP, according to the ICV Manager. “The ICV mechanism is in place to perform site visits to audit and monitor each ICV component provided by the contractors to ensure the desired ICV outcome is generated, and meetings are held with

In Numbers Through the Muscat Sohar Product Pipeline (MSPP), we have

230 grade, and 69 kms of procured kms of 18” line pipes X-65

10” line pipe X-65 grade from Gulf International Pipe Industry (GIPI), a local Sohar-based pipe manufacturer.

IN-COUNTRY VALUE

contractors to communicate and understand the challenges faced,” said Ibrahim Al Maamari. “These are strategic growth projects designed to generate additional jobs for Omanis as well as business opportunities for SMEs,” Mr. Al Maamari said. “For example SRIP will generate 300 direct, permanent jobs, as well as around 2,400 Omani contract roles over the project lifetime. In the region, about 900 indirect jobs will be generated by the multiplier effect SRIP will have on the local economy. In addition once the other projects are completed, it is anticipated that 350 operators will be required to manage the facilities, as well as 150 technicians. The project’s indirect employment potential is estimated in excess of 1,200 jobs in the local area,” he added.

Orpic’s ICV objectives: Procurement of local Omani goods and services Orpic is committed to support In-Country Value (ICV) initiative which has been mandated by the Ministry of Oil and Gas. As a responsible corporate, Orpic believes in promoting SME opportunities by ring-fencing which identify opportunities and tenders specific for local Omani suppliers and SMEs, hence increasing number of tenders awarded. There is an increase of 5% in the purchase orders value which have been issued to local Omani suppliers. The Procurement, Contracting and Inventory (PCI) team have created a special platform on Orpic website (Tawreed) which embraces the ring fence opportunities for local Omani SME’s only. Promoting investment in manufacturing and service industries oriented towards Orpic operations in the Sultanate To promote investment in manufacturing and service industries, Orpic has initiated supplier development program to develop local SME manufacturing and service companies. The development plan was launched earlier this year by the PCI team, ICV team and Orpic operations team. This initiative which identifies a product or service currently provided by international suppliers will allow local SME’s to participate in development program. This will help to study their capabilities and identify suppliers that can provide this product or service but require support to be qualified to participate in future Orpic tenders. It also will provide local SME’s with the international standards required for selected products and services.

Eager to emerge as a leading ICV performer, Orpic established a dedicated In-Country Value department in 2013.

Promoting Omanization and skills development not only within Orpic assets, but also within contractors and service providers: Orpic core value is to serve Oman with pride and bring the potential of its people alive. Orpic’s ICV team has implemented a number of initiatives such as an agreement with Engineering, Procurement & Contracting (EPC1) - Steam Cracker & Utilities through Liwa Plastics Industries Complex (LPIC) Project to send 4 students on an internship program to CB&l, The Netherlands. The training program is for approximately 8 weeks at the Hague office in The Netherlands, with the main contractor CB&l incurring all costs. The training will cover how to carry out engineering and design of process items in accordance with the approved and accepted codes, standards, laws, and regulations applicable to CB&I work, as well as with standard company procedures. The main training method will be on-the-job training under the guidance of mentors from CB&I.

November 2016

Aligning Omanâ&#x20AC;&#x2122;s INDUSTRY-ACADEMIA to Deliver an Enhanced R&D Ecosystem A mix of three fact ors will determine the success of the relationship between Omanâ&#x20AC;&#x2122;s industry and academia as they push independently to establish the country as a world renowned R&D hub: transparency and communication, research clusters and keeping Omani PhD students in Oman

TAKATUF

ith this in mind, Oman could establish a ‘Ministry of Science, Research and Technology’ that oversees indigenous technology development, promotes and markets innovations and supports the immediate implementation and transfer of the best ideas. The ministry could also investigate ways to decentralize research, reduce bureaucracy and give researchers more freedom to manage and fund their projects. There are also multiple benefits to developing regulations for effective intellectual property (IP) and technology transfer management; notably the speed of transforming theoretical knowledge into practical value. Clearer processes could also improve how Oman’s innovative research and spinoff investments are funded and commercialized, both domestically and globally. Much more should be done to raise the global awareness of Oman’s leading research and enhanced oil recovery (EOR) technological developments, for example. Oman is amongst the world’s top innovators in EOR, with many homegrown technologies designed and tested by Omani engineers and researchers. Yet, none of these technologies is currently owned by

OMAN IS AMONGST THE WORLD’S TOP INNOVATORS IN EOR, WITH MANY HOMEGROWN TECHNOLOGIES DESIGNED AND TESTED BY OMANI ENGINEERS AND RESEARCHERS. YET, NONE OF THESE TECHNOLOGIES IS CURRENTLY OWNED BY AN OMANI INSTITUTION, OR COMPANY an Omani institution, or company. This highlights a big waste of effort and resources. Establishing more knowledge-based companies within Oman could help. Innovation Park Muscat is making headway in its aim to provide an enabling environment for researchers, scientists, start-ups, small and medium-sized enterprises (SMEs) and multinationals. Its work could provide a blueprint for other companies and official bodies in Oman. Another way of realigning the disjointed worlds of industry and academia is by setting up a ‘Chair in Enhanced Oil Recovery’, which would require a holistic view

of Oman’s energy innovation. Single research projects may not yield specific answers to long lasting problems within the field of EOR and heavy-oil recovery, which means researchers have to seek industry insight to tackle the problem from multiple angles. A ‘Chair in EOR’ could promote a collaborative learning and practical environment, creating cohesion between the country’s research bodies and strengthening the existing collaboration with national and international institutions. Oman’s R&D ecosystem would also benefit from clarifying and loosening import regulations for research tools. Waiting for approval for the import of R&D infrastructure causes big delays to research projects.

❱❱ NARROW THE GAP BETWEEN INDUSTRY AND ACADEMIA TO ESTABLISH EFFICIENT R&D PARTNERSHIPS.

The alignment between Oman’s industry and academia must be urgently improved in order for Oman to deliver an enhanced R&D ecosystem that fosters efficient private-partner partnerships. Academia cannot do research for research sake; efforts have to be focused in order to deliver results that are useful to the industry and to Oman as a whole. Academia needs to fully understand the challenges that the industry faces – legislative and economic hurdles, for example – and work with private and public companies to find solutions. Equally, the industry needs to appreciate the capacity and limits of local universities and research institutions. Industry must also be ready to come to the aid of institutions to help propel their learning and research capabilities to ensure that Oman’s academia has the tools it needs to facilitate world class R&D. The benefits of such academic growth will feed back into the industry and Oman’s economic growth. Regular workshops held by an overarching body, such as the Research Council, could nurture the relationship and help create a joint roadmap that sets clear and measurable targets.

❱❱ ESTABLISH RESEARCH CLUSTERS AND INCUBATORS WITH UNIVERSITIES ACROSS OMAN THAT ARE LINKED WITH PROMOTIONAL ENTITIES.

The establishment of research clusters and incubators across the country will aim to promote R&D in all parts of Oman, bringing together the various stakeholders and facilities across the country. Their goal will

November 2016

If more Omani PhD students can be persuaded to stay, then more may focus their research on issues that fall within Oman’s energy sector.

be to foster collaboration and to leverage knowledge of the local, regional and global market. The establishment of research clusters will also help facilitate more private sector funding, which in turn will produce a highly qualified and skilled local workforce of engineers, technicians, scientists and researchers that Oman desperately needs.

to practically apply their newfound knowvledge and innovative thinking. Students’ inventions, if any, would be the property of Oman and not a foreign uni-

ENCOURAGING A HIGHER NUMBER OF PHD STUDENTS TO STUDY AND WORK IN OMAN IS VITAL - THEY REPRESENT THE INTELLECTUAL VALUE ❱❱ MORE OMANI STUDENTS NEED TO GET THEIR AND HOME-GROWN DRIVING FORCE BEHIND TOPPHDs IN OMAN. Encouraging a higher number of PhD stu- LEVEL RESEARCH dents to study and work in Oman is vital - they represent the intellectual value and home-grown driving force behind top-level research. However, two main challenges mean that much of Oman’s research does not currently get the attention it deserves. Firstly, the majority of Omani graduates move abroad to complete their PhDs, with many studying topics that have no relevance to Oman’s research needs, or key industries. Secondly, foreigners studying for their PhDs in Oman usually move abroad following graduation. If more Omani PhD students can be persuaded to stay, then more may focus their research on issues that fall within Oman’s energy sector. Oman could also develop learning platforms for students

versity, while more academic publications will boost the country’s university ranking on regional and global listings. Oman’s PhD students could carry out short-term internships abroad to gain international exposure, but they must return to Oman to defend their thesis. Plus, employees of Oman’s energy companies should be allowed access to parttime PhD studies. Special Report Academia cannot do research for research sake; efforts have to be focused in order to deliver results that are useful to the industry and to Oman as a whole.” (Reproduced with permission from A Gulf Intelligence Special Report 2016)

TAKATUF

Getting Omani engineers ready Currently Oman faces a gap to meet the Omanisation quotes of the Oil & Gas (O&G) industry, and this gap is going to increase with the growing requirements from upcoming mega projects

f we zoom into upstream engineers’ category, in 2020 the gap will range between 35% and 60% in specific disciplines, according to an Accenture study on Oman’s in-country value (ICV). The solution is to build the capabilities within Oman to increase its ICV results. To fill the gap of competent Petro-Technical Professionals in the sector, Takatuf, the Human Capital Solutions provider, partnered with Schlumberger to build a first-of-its-kind training institute in Oman. instOG - the Oman Institute for Oil & Gas - specialized in training and developing of petro technical professionals for Oman’s oil and gas industry. Commenting on this innovative and demanding project, Ibrahim al Harthi, acting CEO of Takatuf, said “The establishment of instOG builds on the Sultanate of Oman’s focus to invest in Omani Human Capital. Raising the technical skills of Omani nationals in the upstream oil and gas sector will further enable Oman to continue to increase its competitiveness regionally and globally. Takatuf’s core business and main goal is to help companies across the Sultanate to develop their Human Capital and achieve even greater results”. While developing the programme, several operators were invited to parTHE INSTITUTE WILL BE STRATEGICALLY LOCATED ticipate in workshops to capture their IN THE INNOVATION PARK MUSCAT (IPM), NEXT TO requirements and allow instOG’s team to understand the market needs. As a SULTAN QABOOS UNIVERSITY (SQU) WITH OPERATIONS result of this work, future trends and extensive research, an innovative acPLANNED TO BEGIN BY END 2017 celerated training programme was developed, where the main goal is to get professional autonomy of the participants. Usually it takes more than 6 years for an engineer to be able to work independently and the programme will reduce this to just 3 years, i.e. half the time.

November 2016

The programme will focus on six disciplines: Reservoir Engineering, Production Technology, Drilling & Well Site Supervision, Geology, Geophysics and Petrophysics run by world class trainers.

The programme will focus on six disciplines: Reservoir Engineering, Production Technology, Drilling & Well Site Supervision, Geology, Geophysics and Petrophysics run by world class trainers. The institute will be supported by competent expertise from all over the world, through recognized worldwide training providers. At the same time, a plan is in place to qualify and certify Omani trainers to run selected modules in the future, addressing ICV from an additional perspective. Schlumberger has an established track record in delivering world-class training to the industry for more than 70 years. “Our organization is committed to educational enrichment and raising the technical skills of Omani nationals in the upstream Oil & Gas sector,” said Marwan Moufarrej, President of Schlumberger Middle East “This unique project will create an Insti-

tute of Excellence in Oman for the Oil & Gas industry that solely focuses on developing human capital for a vital part of the economy. Having the right competency and skills to manage petroleum assets are of paramount importance.” The Institute will be strategically located in the Innovation Park Muscat (IPM), next to Sultan Qaboos University (SQU) with operations planned to begin by end 2017. This location places instOG in an excellent position to support SQU students’ learning and development, as well as benefit from SQU Academic’s expertize to enhance the learning deliverables of the Institute. These state of the art facilities are designed to accommodate 300 students and will be offering Interactive Classrooms, Drilling /Coil-tubing/ Driving simulators and there are future expansion plans, such as introducing a rig in the centre.

In Numbers The programme will focus on

six disciplines:

Reservoir Engineering, Production Technology, Drilling & Well Site Supervision, Geology, Geophysics and Petrophysics run by world class trainers.

HUMAN STORIES

Rising stars of Omanâ&#x20AC;&#x2122;s oilfield firmament

How a female Omani engineer broke into a male bastion Overcoming cultural barriers and gender stereotypes, Ahlam al Tauqi donned a hard hat and overalls to work on a rig in the harsh desert settings of central Oman, thereby becoming the first Omani woman to venture into what has long been an exclusively male preserve

November 2016

HUMAN STORIES

November 2016

etite, mild-mannered and soft-spoken, Ahlam al Tauqi is a far cry from the image of the typical oilfield worker: muscular male roughnecks labouring away in their grease-stained overalls in a remote oil camp. But two years ago, the 32-year-old oilfield engineer from Muscat stunned the domestic hydrocarbon industry when she was officially recognized as the first Omani woman to take up a yearlong posting on a workover rig. Ahlam became an instant sensation, having accomplished what no other female dare venture before her. To her peers, she became an icon as well, while also galvanizing oilfield companies into rolling out for the first time programmes designed to prepare young Omani women for technical careers in the desert oil camps of the Sultanate. Hailing from a family of oilfield professionals, Ahlam says she was drawn to her eventual calling when she was a teenager. “It all began at home!” she recalls. “Most of my brothers work in the oilfields, and whenever they got home after a two-week shift, the talk was generally about life in the oilfields, the happenings, the excitement, and so on. Since then I’ve always felt drawn towards an oilfield job.” Enrolling at the International College of Engineering and Management (ICEM), Muscat, Ahlam did her Bachelor of Science programme in Well Engineering, a degree that landed her a job at RAY International, a prominent Omani oilfield services group. She joined as a Service Engineer in 2010, but grabbed the opportunity to move into the Group’s Oil & Gas Division when it launched in 2012. It was at this juncture that Ahlam’s keenly-held career aspirations began to gain traction. “At the time, RAY International had a contract – which it still does – to manage the oil facilities of Occidental of Oman in Mukhaizna in Block 53. Spotting the chance to relocate to an oilfield area, I applied for an opening on a workover rig managed by RAY International. The management, as supportive as they have always been, quickly accepted my request.”

Oilfield bound

It was history in the making when Ahlam flew into blistering, windswept Mukhaizna

in the desert heartland of Oman to become the first Omani woman to work on a rig in 2013. Life as a rig worker began, as it does for anyone starting out on a workover rig, as a roustabout. “Starting as a roustabout and then as a floor-man, you are expected to do all manner of physical tasks, such measuring pipe lengths, doing the house-keeping, keeping the area clean, and so. You wield the hammer to break the pipes, ensure surfaces are free from grease, and so on. This is physically hard work.” Ahlam’s rig-mates were at first wary of the presence of a young woman in their midst. “At first, their body language appeared to signal to me that a woman shouldn’t be out here in the desert doing a man’s job. They thought I was a green-horn, someone who didn’t have a clue about the job. But when they discovered that I was up to the task technically, they were indeed surprised.” Determined to learn the ropes, Ahlam urged her fellow crew mates not to cut her any slack – something they would do in consideration of her gender. “When I insisted on doing all of my assigned responsibilities myself, they began to give me my space. I kept reminding them that as a rig worker I had to learn to do the tasks myself, which was also necessary in helping understand and appreciate the arduous nature of a rig worker’s responsibilities.” But it was not only old-fashioned workplace mindsets that young Ahlam had to contend with. As she prepared to take up her desert posting, she found herself facing resistance from relatives and friends. “I kept being reminded that as a woman I could only consider jobs in office settings and not in professions dominated by men. But I stuck to my conviction and eventually overcame this opposition.”

Turf lines

A month into the job, Ahlam found herself not only welcomed as a fellow crew member, but also treated with professional courtesy and respect. “They found me as technically capable as anyone on the team, and never shy of doing any of the chores that came with the job description. Having proved myself in their eyes, my fellow crews were increasingly proud and protective of me. Life thereafter, de-

Enrolling at the International College of Engineering and Management (ICEM), Muscat, Ahlam did her Bachelor of Science programme in Well Engineering, a degree that landed her a job at RAY International, a prominent Omani oilfield services group.

HUMAN STORIES

So what has life been for Ahlam during her year-long history-making stint in Mukhaizna? As can be expected of the harsh conditions characteristic of Oman’s central deserts, nights can be biting cold with temperatures dropping to 3 – 4 degrees centigrade, she says. Summertime temperatures soar to 50-plus degrees, alleviated somewhat by Mukhaizna’s windswept conditions. On the upside, however, the rewards have been plentiful, the plucky professional points out. First and foremost is the supreme satisfaction that she has proved wrong scores of her detractors, who wagered she would not survive a rig job. “’It’s a man job’, I was told by friends and relatives then. But I’ve proven that even women can pursue such opportunities. There is no law that restricts certain types of professions to men or women. I think we are all equal before the law. Ultimately, it’s all about working together as a team, regardless of gender.” Also, the two-week on – two-week off shift system has its own reward, she adds. After a fortnight’s work in the desert, Ahlam says she has a full two weeks on her hands to do whatever she wishes. This allows her to plan ahead, pursue long-aspired hobbies, and work on her personal goals.

’IT’S A MAN JOB’, I WAS TOLD BY FRIENDS AND RELATIVES THEN. BUT I’VE PROVEN THAT EVEN WOMEN CAN PURSUE SUCH OPPORTUNITIES. THERE IS NO LAW THAT RESTRICTS CERTAIN TYPES OF PROFESSIONS TO MEN OR WOMEN. I THINK WE ARE ALL EQUAL BEFORE THE LAW. ULTIMATELY, IT’S ALL ABOUT WORKING TOGETHER AS A TEAM, REGARDLESS OF GENDER spite the obvious hardship in the desert, was fun.” Also helping make a difference, given the unprecedented nature of this posting, was the extremely supportive stance adopted by RAY International in ensuring that Ahlam was safe and secure in the desert camp, she recalls. “Everyone was cooperative once it was apparent that the management was fully supportive of my professional aspirations. And, of course, this entire endeavour wouldn’t have been possible without the steadfast support of my parents and siblings.”

New horizons

Looking forward, Ahlam has her sights on another desert stint as a driller, a responsibility that is significantly more challenging that her role as a rig worker, she says. It’s a dream that’s of apiece with her trailblazing role as Oman’s first female rig worker. Longer term, Ahlam envisions herself heading up an oil company as its Chief Executive Officer. Alternatively, she would love to be an entrepreneur and master of her destiny as a successful businessperson, she adds. Emboldened by Ahlam’s admirable example, a number of oil companies are working with the Ministry of Oil and Gas to equip Omani women for roles that would see more of them working in the oilfield areas. Ahlam is optimistic that this vision will come to pass. “I’m pretty confident that Omani women will take on more challenging jobs once there is a realization that no jobs are gender-restricted. Just as a male chef may be good in his work, so will a female engineer excel in hers!” she adds. By Conrad Prabhu

November 2016

FEATURE

Tackling the Skills MISMATCH â&#x20AC;&#x153;There is very little discussion, if any, taking place between what the industry really needs today and over the next two decades and what academic institutes are capable of producing. We seem to be working in completely different universes and government and industry end up wasting a lot of resources.â&#x20AC;? By H.E. Salim Al Aufi, Under-Secretary, Ministry of Oil & Gas

November 2016

Photo: Ahmed AlToqi

s the major contributor to Oman’s national GDP, the oil and gas industry and the energy sector in general are uniquely placed to drive innovation in the Sultanate’s economy. To achieve this, there will have to be a much greater focus on producing an indigenous skilled and expert work force that can drive and sustain an expanding private sector. As the world makes advancements in areas like technology and science, new jobs are continually materializing. Yet, they are proving difficult to fill as they require particular skills that academic institutions and potential employees have not yet developed. It can be difficult for academia to focus their programmes on developing all the skills one could need in the future if they do not even know what all of those skills will be. But, even for today’s jobs university graduates are not necessarily equipped with the skills and degrees that employers in Oman’s energy sector need. One of the biggest challenges is to ensure a steady flow of students into science-related subjects, so that they are well-placed to choose careers as petroleum engineers and researchers, for example. The challenge is becoming even more pressing in today’s interconnected and technology driven world, where companies want graduates to have both the right knowledge base as well as 21st century accomplishments – critical thinking, communication, collaboration and creativity. Firstly, we need to identify the caliber of skills we need and how to recruit the right people. Secondly, we need to retain good quality individuals and keep them incentivized by continuously developing and expanding their skills, knowledge and expertise inside an organization. Thirdly, in the event that employees are let go, how do we redirect them into areas that they are not necessarily qualified for in an immediate sense? All of these questions and many others require a significant interface between industry and academia to ensure that we actually match supply with demand. But, there is very little discussion, if any, taking place between what the industry really needs today and over the next two decades and what academic institutes are capable of producing. We seem to be working in completely different universes and government and industry end up wasting a lot of resources. Individual companies have specific requirements and sometimes they develop their own training programmes to ensure that their staff are qualified to do the job well, but these courses tend to be ad hoc and on a small scale. I think there is still an element of mistrust between the industry and the training bodies that exist and that could be because they are not very well governed. Companies may not be sure if the programmes that the institutes are running are accredited, or whether its instructors are actually qualified. So instead, they find a solution in house – that is what has been happening. PDO set up its welding programme to create skills instead of going to an educational institute and asking it to train its employees to the standards it needed. Similarly, BP is setting up its own training institute for its 2018

❱❱ H.E. Salim Al Aufi, Under-Secretary, Ministry of Oil & Gas

FEATURE

I BELIEVE THE PRIORITY THROUGH TO 2040 SHOULD BE TO IMPROVE THE QUALITY OF EDUCATION IN GENERAL. IF THIS IS NOT ADDRESSED PROPERLY, THE ENERGY SECTOR AND OTHER KEY SECTORS FOR OMAN’S ECONOMY, LIKE MANUFACTURING AND TOURISM, WILL NOT WITNESS AN IMPROVEMENT IN THE LABOR POOL Individual companies have specific requirements and sometimes they develop their own training programmes to ensure that their staff are qualified to do the job well, but these courses tend to be ad hoc and on a small scale.

operational programme, as opposed to going to an existing training institute. In order for this existing dynamic to change, Oman’s industry needs to work on communicating and defining very specifically what it needs from academia. We need to get much better at researching and identifying the skill sets that our staff need to develop. Only then can we go to academia with a case for them to invest and develop new programmes. From academia’s standpoint, it also does not always make economic

sense for schools and universities to invest in developing and teaching a particular course if it only applies to a select few. From a government policy point of view, I believe the priority through to 2040 should be to improve the quality of education in general. If this is not addressed properly, the energy sector and other key sectors for Oman’s economy, like manufacturing and tourism, will not witness an improvement in the labor pool. As part of this initiative, the government should continue to be the regulator of education and ensure that no school, university, or vocational institute is set up unless it meets certain criteria and standards. Equally, government should not act as the service provider; this should be left to the institutions themselves, to develop curricula and courses – in conjunction with industry when appropriate – that will equip people with the required knowledge and skills for the 21st century.

November 2016

OPAL BEST PRACTICE AWARDS 2016 7th December 2016 7 pm, Crowne Plaza Hotel, Muscat

BEST PRACTICE IN SMALL BUSINESS DEVELOPMENT

Most successful business model which contributes to development of local SMEâ&#x20AC;&#x2122;s through implementation of ICV, inclusive and shared economic growth and job creation through public and private sector procurement.

BEST PRACTICE

IN HUMAN CAPITAL DEVELOPMENT PRACTICES Most successful program with a proven track record that has enhanced performance, staff motivation, Talent retention or introduced positive behavioral change.

BEST PRACTICE

IN TECHNICAL AND OPERATIONAL EXCELLENCE Technically recognized as best practice in the industry, using innovative approaches and saved money for the customer or substantially increased profits.

BEST PRACTICE

IN HEALTH SAFETY AND ENVIRONMENT PRACTICE Most successful HSE practice that has saved lives, money or changed behavior.

TAKATUF

Preparing NEXT generation’s leaders In a global knowledge economy, investing in a scholarship is creating ICV on many levels - investing in our students allows them to gain knowledge, networks and skills from all over the world and bring them all back to add value to Oman

akatuf believes people are the Sultanate’s greatest asset and investing in them is the best way to create in-country value (ICV). The Global Competitiveness Report produced every year by The World Economic Forum does a survey of employers who identify the inadequately educated workforce as the second most problematic factor for doing business in Oman in addition to the need for properly groomed leaders to advance the development of many organizations in the future. To bridge this gap and contribute to the nurturing of young Omani leaders, Takatuf has developed the Takatuf Scholars Programme (TSP). Designed to prepare Oman’s most talented young people for personal and professional success, the programme introduces them to the tools and equips them with the skills needed to adapt to an ever-changing global environment, for the good of Oman. Students from all over the Sultanate are selected while attending Grade 10 and are enrolled in the Enrichment Programme. Their development continues beyond through their graduation from university, when they join the Takatuf Scholars Alumni group. Commenting on the topic, Ibrahim Al Harthy acting CEO of Takatuf said, “In a global knowledge economy, investing in a scholarship is creating ICV on many levels - investing in our students allows them to gain knowledge, networks and skills from all over the world and bring them all back to add value to Oman - so it is ICV with many dimensions. Also TSP is an Omani programme designed to support the success of Omanis and to help them become lifelong learners, innovators, and globally educated citizens - they in return will continue to develop ICV.” Since 2012 over 2,800 Omani students have applied and been tested for admission; 333 have engaged in an enrichment programme concurrent with attending high school in Oman; and 82 have been awarded international scholarships to attend some of the best preparatory school and

November 2016

Since 2012 over 2,800 Omani students have applied and been tested for admission; 333 have engaged in an enrichment programme concurrent with attending high school in Oman; and 82 have been awarded international scholarships.

universities abroad, such as MIT, NYU in New York City, Imperial College and UCL, both in London. Over the past five years, since its inception, the programme has proven to be very successful. What makes it so distinct are the rigorous selection, monitoring and mentoring for students at all levels, which support the commitment to success for all of the scholars. Commenting on the success of the Programme, Prof Kathryn Bindon, director of the programme, said: â&#x20AC;&#x153;every year the Takatuf Scholars Programme evolves to keep pace with developments in teaching and learning for the 21st century. Our global network of professional educators has grown, which enhanced the experience

and value of the enrichment programme. The Programme is increasingly more effective in preparing Takatuf Scholars for success in international study and beyond.â&#x20AC;? Takatuf fully owns and manages the Programme keeping the entire process independent. Nevertheless, sponsors also play a vital role as they bring it to life by enabling students to attend it. Takatuf Scholars are sponsored by companies that believe in tapping into the potential of talented young Omanis to contribute the Sultanateâ&#x20AC;&#x2122;s future. The growing network of sponsors currently includes Oman Oil Company (OOC), Oman Trading International (OTI), Orpic, Salalah Methanol Company (SMC), Mitsui & Co., Ltd. (Mitsui) and Occidental of Oman (Oxy).

LIQUID STORAGE

Orpic Logistics

Al Jifnain: Oman’s new high-tech hub for transportation fuels Fuel distribution efficiency is set to soar to new heights when Orpic’s Muscat Sohar Product Pipeline (MSPP) project and its centerpiece Al Jifnain Terminal come into operation by around mid-2017

November 2016

LIQUID STORAGE

uel storage and distribution infrastructure, the likes of which only advanced countries can boast of, is rapidly falling into place in the Sultanate thanks to a groundbreaking project currently under implementation by Orpic, the nation’s preeminent refining and petrochemicals flagship. The so-called Muscat-Sohar Product Pipeline (MSPP) promises to be a truly transformational initiative because it not only creates a strategic fuel reserve for the nation, but crucially, it also entrenches the concept of fuel logistics in the way how transportation fuels are supplied nationally. Together with Orpic’s other signature investments – the Sohar Refinery Improvement Project (SRIP) and Liwa Plastics Industries Complex (LPIC) – the Muscat-Sohar Product Pipeline (MSPP) will help maximize the value obtained from Oman’s hydrocarbon resources. All three schemes, which together cost around $12 billion in investment, will also enable Orpic to fulfill its vision of building an Omani integrated refining and petrochemical business.

Robust partnership

Helping take fuel distribution efficiency in the Sultanate to the next level is Orpic Logistics, a joint venture partnership between Orpic and Spanish firm Compañía Logística de Hidrocarburos (CLH). The latter has a formidable reputation in the European energy logistics industry going back 90 years. CLH operates 4,000 kilometres of pipelines, 40 storage depots with more than 8 million m3 of capacity and 29 airport fuel facilities in Spain as well as 2,000 kilometres of pipelines and 16 storage depots in the United Kingdom. Additionally, the company has been awarded the construction and operation of the expansion of the Dublin airport fuel facility, including a hydrant system. Orpic Logistics is investing USD 320 million in the MSPP project, of which around USD 100 million will go into the establishment of the state-ofthe-art Al Jifnain Terminal. The project is fully commercial with returns depending only on the revenues generated from the services rendered to customers, according to Mr. Andre Suarez, General Manager – Orpic Logistics. “Orpic and CLH have a long term agreement for the construction and operation of the logistics assets of Muscat-Sohar Product Pipeline. This agreement includes the secondment of experienced personnel from Spain to Oman. All of us are part of the newly created logistics function within Orpic and we have been tasked with the responsibility of efficiently operating the Al Jifnain Terminal and MSPP pipelines as well as support Omani employees develop their capabilities in the oil products logistics industry,” Mr. Suarez explained. According to the official, the MSPP and its centerpiece Al Jifnain Terminal project represent Orpic’s response to the following strategic objectives set by the government for developing oil products logistics activities in the Sultanate: ■ To build additional facilities to meet the rapidly growing demand for fuels. In the last 10 years, the demand has grown at rates above 10% per annum and, despite low crude oil prices and the increase in the prices of refined products in Oman since January 2016, it is expected that this level of growth will be maintained in the coming years. ■ To facilitate the distribution of additional production available once the Sohar Refinery Improvement Project (SRIP) enters into commercial operations later this year. The new 18” pipeline between Sohar Refinery and Al Jifnain Terminal will ease the distribution of oil products along the North coast, which accounts for over 50% of total domestic demand.

November 2016

■ To increase safety on roads in the

capital area. The terminals located in Mina Al Fahal (Muscat) supply above 65% of the country´s demand for oil products. Once MSPP is completed most of these supplies will be shifted to Al Jifnain Terminal, reducing the heavy tanker traffic in the capital area. ■ To support the expansion of Muscat International Airport. The MSPP pipelines will directly connect Al Jifnain Terminal with the new storage depot at Muscat Airport, meaning that jet fuel will be pumped directly from Al Jifnain without requiring tanker trucks and increasing the safety of jet fuel supply to the airport.

Asset consolidation

In addition to the construction of the MSPP pipelines and Al Jifnain terminal, Orpic has the vision to consolidate all logistics assets in order to significantly increase the efficiency of operations, as well as safety, Mr. Suarez stressed. “The MSPP project has been designed to optimize the global costs of transport and distribution of oil products in Oman, in-

cluding vessels, tankers and power used in the pipelines. The location of the new terminal in Al Jifnain will optimize the logistics system by 24%. This consolidation would also help to develop new competencies that would offer attractive jobs to talented Omanis. Orpic is fully committed to support the development of the country and its people, as well as bring value to its shareholders,” he stated. Accentuating the strategic importance of the project is the high-tech terminal at Jifnain, which will serve as the nerve centre of the venture. Commenting on the significance of the terminal, the General Manager said: “With 172,000 m3 of storage capacity, the new terminal will increase the nation’s storage capacity for refined products by 70%. This additional capacity will enhance the alternatives for not disrupting fuel supply to the population in case of disruption.” Additionally, the new terminal will be equipped with 16 loading bays with capacity to load more than 600 - 700 trucks per day with products to be transported across petrol stations. Furthermore, the new terminal will be supplied by two multiproduct and bidirectional pipelines

Construction work on the MSPP and Al Jifnain Terminal is well underway via an Engineering, Procurement, and Construction & Commissioning (EPCC) contract.

LIQUID STORAGE

connected to Orpic’s Sohar and Muscat Refineries, which are the safest and most efficient transport media for oil products for medium distances, he stressed. Importantly, the Al Jifnain terminal will be connected with the three sections of the pipeline network that is also part of the MSPP project. The details of the network are: ■ Muscat Refinery to Al Jifnain Terminal: 10” multi-product pipeline of 45 kms length. ■ Sohar Refinery to Al Jifnain Terminal: 18” multi-product pipeline of 220 kms length. ■ Al Jifnain Terminal to Muscat International Airport: 10” dedicated pipeline for jet fuel of 25-km length. The configuration of the system, according to Mr. Suarez, allows the Al Jifnain Terminal to receive oil products from both refineries to facilitate their distribution to Orpic customers. “It is expected that the Al Jifnain Terminal will supply all oil products produced in the Muscat Refinery as well as a significant amount that will come from Sohar Refinery. Also the direct pipeline connection with the Muscat International Airport will enable the removal of truck transportation from Muscat Refinery, in

The new pipeline system will help do away with the current practice of shipping oil products consumed in the capital area by tanker vessels from Sohar Refinery to Muscat Refinery.

Key features of Al Jifnain Terminal: ● 12 tanks for Gasoline M95 (3), Gasoline M90 (3), Diesel (3) and Jet Fuel (3) with a storage capacity of 172,000 m3. All tanks are equipped with fixed roofs and the gasoline ones incorporate internal floating roofs to avoid vapor to escape into the atmosphere. ● 2 slop tanks to isolate the pipeline interphases when receiving product in Al Jifnain from the Refineries (Sohar & Muscat). ● 16 loading bays for tanker trucks, all products available across all bays. ● Vapor Recovery Unit to be used during the truck loading process to avoid vapor to escape into the atmosphere and increase operational safety. ● Three main pumps to transfer oil products from Al Jifnain to the Refineries using the reversible pipeline network. ● Two pumps to transfer jet fuel to the Airport via bidirectional pipeline. ● Administration building that will allocate Al Jifnain Terminal control room and the pipeline network dispatching center. ● Oily Water Treatment Unit to process the minimal oily water produced and avoid contamination of soil and aquifers. ● Firefighting system comprising fire water and foam rings, 2 water tanks with 7,000 m3 of capacity, foam chambers and refrigerating water rings in all oil products tanks. ● Firefighting station fully equipped with fire truck, monitor, rapid intervention vehicle and ambulance.

November 2016

the heart of the city, improving therefore the safety on the roads in the capital area.”

Strategic advantages

Among the many strategic beneficiaries of the project will be Muscat International Airport, which is already being expanded to handle 12 million passengers per annum in the first phase, rising to 24 million, 36 million and 48 million passengers in subsequent phases. This significant expansion includes the construction of a new tank farm and hydrant system for the distribution of jet fuel to airlines. Connecting Al Jifnain Terminal with Muscat Airport will be a new direct pipeline that will tap into 33,000 m3 of jet fuel storage at the terminal – which is enough to secure 20 days of the airport’s requirements at current trends. The pipeline connection will also eliminate the need for fuel trucks circulating inside the airport. In another notable feature of the project, the Jifnain Terminal is equipped with significant pumping capacity to facilitate reversal pumping of oil products to the Sohar and Muscat Refineries. This functionality of the system would be crucial in case there is product shortage in Sohar or Muscat Refineries and oil products volumes need to be pumped back to the refineries. “It provides significant flexibility to the system, allowing the transportation of oil products in any direction. This reversibility would be particularly relevant once the strategic reserves are built in Al Jifnain as it will facilitate a rapid movement of fuel from Al Jifnain in case of product shortage,” Mr. Suarez pointed out. Additionally, the new pipeline system will help do away with the current practice of shipping oil products consumed in the capital area by tanker vessels from Sohar Refinery to Muscat Refinery, the official said. Pipeline transportation will substitute sea transportation, and thereby contribute to safer and more efficient fuel supply, he noted. In Phase 2 of the project, Orpic Logistics is weighing the construction of 1,000,000 m3 of additional storage capacity at Jifnain as part of the development of national strategic reserves. This volume is equivalent to more than 30 days of oil products consumption and will further

JIFNAIN TERMINAL PROVIDES SIGNIFICANT FLEXIBILITY TO THE SYSTEM, ALLOWING THE TRANSPORTATION OF OIL PRODUCTS IN ANY DIRECTION. THIS REVERSIBILITY WOULD BE PARTICULARLY RELEVANT ONCE THE STRATEGIC RESERVES ARE BUILT IN AL JIFNAIN AS IT WILL FACILITATE A RAPID MOVEMENT OF FUEL FROM AL JIFNAIN IN CASE OF PRODUCT SHORTAGE increase the security of supply to the population, Mr. Suarez stated. Meanwhile, construction work on the MSPP and Al Jifnain Terminal is well underway via an Engineering, Procurement, and Construction & Commissioning (EPCC) contract, according to the General Manager. “The project is progressing as expected thanks to the effort and professionalism of both the Orpic Logistics and contractor teams, as well as to the philosophy of working as a single team towards the same goal. The project is progressing well and is scheduled to be completed on time, on budget as promised. It is expected to be fully operational by mid-2017.” “The entire organization is also getting ready to operate and maintain the MSPP assets. This preparation is crucial to ensure that the strategic benefits associated with the project are appreciated by our customers and stakeholders,” Mr. Suarez added in conclusion.

In Numbers The new terminal will be equipped with

loading bays with capacity to load more than

600 - 700

trucks per day. Muscat International Airport, which is already being expanded to handle

million passengers per annum in the first phase, rising

24 million, 36 million and 48 million

passengers in subsequent phases.

INNOVATION

Technology: The Next Oil Superpower By Omar Mawji

alling oil prices which started in late 2014 have highlighted an increased emphasis on the cost to produce oil, particularly from shale oil formations in the U.S. With 50% of US oil production coming from US shale, analysts initially estimated breakeven prices for shale oil operations to be at $75 per barrel, then lowering those estimates to $50 per barrel, and now, in some core regions, breakeven prices are as low as $30-$35 per barrel. The reason US shale continues to see lower breakeven prices is because companies in the U.S. continue to innovate shale drilling techniques and technology. Similarly, Canadian shale drilling continues to improve on par with the U.S., and Canada has implemented similar technological progress towards the extraction and refining of oil from its oil sands. This continuous shift and improvement in oil and gas drilling, extraction, and refining technology provides for the hypothesis that such cutting-edge and unrivaled capability has the effect of anointing a qualification to those within the industry as â&#x20AC;&#x153;the technological superpowers of oil.â&#x20AC;?

Declining Production, Desperation, and Technological Adoption

For some time, oil & gas producing countries as well as those countries that depend on energy imports have been experiencing a decline in domestic production, forcing these countries to increasingly turn to technology for oil & gas drilling, extraction, and production. The technology they turn to has principally been developed by experts in the US and Canadian oil & gas markets, which is now being earnestly adopted by countries around the world.

November 2016

INNOVATION

2. Egypt and Apache: Horizontal Drilling

Million of Barrels per Day of Oil & Liquids Production

Growth Oil Production — Around the World 16

Canada

United States

12 10 8 6 4 2

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1. Oman & Occidental: Enhanced Oil

In Numbers In January 2014 Apache released results of a horizontal well drilled in Egypt’s Western Desert. The horizontal well, which was drilled at a cost of

6.5$ million and to a lateral length of 1,970 feet, produced

2,181 barrels of oil equivalent per day (77% oil)

One of the first examples of the adoption of such technological innovation was during the declining oil production period in Oman from 2000-2005. Oman’s economy is heavily dependent on oil exports and, thus, declining oil production was problematic. That problem was solved by enhanced oil recovery innovations first developed and used on mature oil fields in the U.S. and Canada. As Oman realized that extraction and oil production from mature fields like the south-central Mukhaizna field needed to improve recovery and operations, the Sultanate of Oman turned to companies like Occidental Petroleum (OXY) to take over operations. Occidental’s 30 years of experience in Oman and its enhanced oil recovery techniques used in its operations in the US Permian Basin Central platform allowed Occidental to help boost Oman oil production from the Mukhaizna field by 15 times 2005 levels. Occidental would use flooding technology and techniques improved upon in the Permian Basin Central platform to begin a steam flooding operations in Oman. Steam flooding technology is used in Canada’s oil sands since the 1980s and is referred to as steam assisted gravity drainage (SAGD). Since oil production collapsed in Oman from 2000-2005, companies like Occidental have leveraged technology and helped the country set all-time record oil production of 1 million barrels per day in 2015.

Egypt is another example of a country that needed to adopt technology and innovation. As a major exporter of natural gas, Egyptian gas production fell from 2009 highs and by 2013, while natural gas production met domestic consumption, Egypt was no longer an exporter of gas. Currently, Egypt is in need of natural gas to meet domestic demand and export obligations to certain countries, LNG terminals, and pipeline facilities. Fortunately, in 2015, Eni Spa (E) discovered one of the largest gas finds off the Egyptian coast in the Mediterranean: the Zohr field. While Eni’s discovery will likely increase Egypt’s gas production by 33% into 2019, Egypt had encouraged the use of new technologies to discover gas onshore before the Zohr discovery. One of Egypt’s largest onshore oil & gas producers, Apache Corp. (APA), had begun using US technologies to increase the production of oil & gas from 2013/2014. Apache discovered the usefulness of horizontal drilling and fracturing as it noted the layered formation in Egypt’s Western Desert is similar to the layered formations in its operating acreage of the Permian Basin. In January 2014 Apache released results of a horizontal well drilled in Egypt’s Western Desert. The horizontal well, which was drilled at a cost of $6.5 million and to a lateral length of 1,970 feet, produced 2,181 barrels of oil equivalent per day (77% oil). To put that into perspective, Apache drilled a horizontal well in the Midland Basin of the Permian Basin for $4.5 million with a lateral of 5,054 feet which produced 1,372 barrels of oil equivalent per day (69% oil). With the success of Apache, Royal Dutch Shell (RDS-A) has partnered with Apache to drill for unconventional gas in Egypt and Dana Gas will test horizontal wells in the Nile Delta.

3. Turkey: Tight Gas

Finally, Turkey is completely dependent on oil & gas imports with 98% of gas imported from other countries. The Turkish natural gas market trades at a premium to its US and European counterparts and has been a coveted market for Russia, Iran, and Azerbaijan, who supplies Turkey with 87% of its total natural gas imports. Turkey has one other main domestic

November 2016

gas producer aside from Turkey’s state-owned Turkish Petroleum. A small Canadian gas producer, Valeura Energy (VLE.TO), has begun testing and producing from horizontal wells that have been fractured to access tight gas deposits in Northwest Turkey’s Thrace Basin. With royalty rates of 12.5%, a low tax rate of 20%, and a premium gas market, investment in Turkey’s domestic natural gas industry has become very attractive. In May 2015, Statoil (STO) had taken notice of Valeura Energy and the company bought a stake in Valeura’s Thrace Basin operations for a total value of $36 million. As Valeura tests horizontal drilling and fracturing in the Thrace Basin, its well economics show per well payouts of less than one year at current gas prices.

Technology’s Role in Oil & Gas Going Forward

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By no means has US and Canadian technology in shale and heavy oil been wholly adopted around the world as the de facto standard. This may, in fact, be a good thing because the technologies used by US and Canadian companies give them a distinct competitive advantage that helped shift the dynamics of the global oil industry. The implementation, development, and innovation of US shale drilling, enhanced oil recovery, and Canadian heavy oil extraction has been proven over decades and it gives the world an insight into how new technologies can re-invigorate oil & gas production. Recently, Mexico opened several bidding rounds on oil & gas exploration and production blocks to foreign companies and it plans to develop its oil & gas deposits with technologies from the US and Canada. Mexico has noted the prolific Eagle Ford shale formation in the US extends southward and Mexico hopes to tap into the extended unconventional resource with the help of US shale technology and investment in energy infrastructure. Additionally, Latin American heavy oil producers, Mexico and Venezu-

INNOVATION

ela, are facing technological issues in the blending and refining of its extra heavy oil. Similar to Canada, Mexico and Venezuela must import ultra-light oil from the US, referred to as condensates, in order to blend with its heavy oil. The blending allows heavy oil producing Mexico and Venezuela to flow its oil through export facilities and domestically refine its oil production with dated refining technology. The importing of condensates from the US is costly and takes away from a country’s oil producing independence. Canada has countered some of its reliance on importing US condensates by both producing its own condensate and building complex refining infrastructure. Currently 42% of condensates used to blend into Canada’s oil sands production are produced domestically and 37% of Canada’s oil sands production is upgraded into lighter oil by projects like Canada’s Syncrude partnership. All this lessens Canada’s dependence on US condensates and makes Canada’s heavy oil cheaper and more competitive in the US’ largest heavy oil refining market: the US Gulf Coast. While the Canadian model for heavy oil is something Mexico and Venezuela are both looking to replicate in the future, both countries are going to need to attract stable in-

AS TECHNOLOGY PLAYS A LARGER ROLE IN THE NEXT PHASE OF GROWTH IN THE WORLD ECONOMY WE ARE SEEING TRADITIONAL MARKETS BEING ALTERED BY THIS “THIRD INDUSTRIAL REVOLUTION” Mukhaizna Field — Oman 160,000

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vestment and technology. Mexico has begun capitalizing on foreign investment, but Venezuela may need to push for further capital reform and solve deeply entrenched political issues in order to attract large investments.

Technology’s Role in Oil & Gas

The world no longer operates under the “he who has all the gold makes all the rules” paradigm. In fact, that paradigm has shifted. In the new age of technology, those who can innovate and adapt are able to control and influence part of the market. While the most efficient and largest oil markets in the world: the U.S., Saudi Arabia, and Russia are all testing and using horizontal drilling and fracturing as the technology of the future – it’s just that the US is the most advanced of the three regions. Saudi Aramco, the state-owned oil producer of Saudi Arabia, has established the Aramco Research Center in Houston to research and explore the usage of unconventional oil & gas production. Additionally, Saudi Aramco has been attempting to acquire US drilling technology through recruitment targeting shale workers. Russia’s Lukoil is also using horizontal drilling and fracturing to increase production in some of its Siberian oil fields, but it has yet to reach anywhere close to the size and scale of US shale oil & gas production. As technology plays a larger role in the next phase of growth in the world economy we are seeing traditional markets being altered by this “third industrial revolution.” In the US, Amazon dominates the retail industry, Facebook dominates the way we communicate, and YouTube has changed the landscape of entertainment. The new technology and innovations developed and improved by the US and Canada’s oil & gas industry may soon dominate the global oil & gas industry as these technologies and techniques further make their way into global markets. The next major oil superpower may not necessarily be a country with vast resources but rather the technology and innovation created by countries and companies that adapt to the changing dynamic of the new oil & gas order and that foster investment and competition within the industry. [Reproduced with permission from Geopolitical Monitor]

November 2016

Oxy Oman PG Student Awards presented to four Omanis

is Excellency Salim al Aufi, Under-Secretary, Ministry of Oil & Gas, and Mr. Steve Kelly, President & General Manager, Occidental of Oman presented the four esteemed winners of the Inaugural Occidental Oman Student Awards for the Advancement of Post-Graduate Education at a ceremony at The Gulf Intelligence Oman Energy Industry-Academia R&D Summit. Dr. Hilal al Hinai, Secretary General of The Research Council, and Dr Rahma Ibrahim al Mahrooqi, Deputy Vice-Chancellor of Post-Graduate Studies & Research, SQU were among the guests who attended the Occidental Oman Student Awards ceremony to recognize the country’s best post-graduate talent in the community of Masters and PhDs students. The Awards highlight the importance of continually enhancing post-graduate education to support Oman’s capacity in research and development (R&D) in the field of energy, which sits at the heart of the country’s economy. Oil and gas accounted for nearly 80 per cent of government revenues in 2015. “We are pleased to support the acknowledgement of the winners of the first Occidental Oman Student Awards for the Advancement of Post-Graduate Education. Oman is home to many innovative and critical thinkers, who are dedicated to using their talent and knowledge to support the country’s National Vision 2020 and National Vision 2040 - with such dedication, Oman will have a thriving future,” said Mr. Steve Kelly, President & General Manager, Occidental of Oman. The winners of the Occidental Oman Student Awards 2016 for the Advancement of Post-Graduate Education are: Ms. Lamya Adnan al Haj, PhD in Structural & Molecular Biology, University College London; Mr. Omar Said al Abri, PhD in Mechanical Engineering. Sultan Qaboos University; Mr. Mahir Mansour al Wahaibi, Masters in Environmental Engineering and Projects Management, University of Leeds; and Mr.

Mohammed Salim al Shuaili, Masters in Mechanical Engineering, Sultan Qaboos University. “Recognizing the achievements of Oman’s Masters and PhD students will spark the imagination of a new generation of thought leaders. The winners of the 2016 Occidental Oman Student Awards for the Advancement of Post-Graduate Education will become positive role models to a new generation of young Omanis seeking careers in the energy sector, which will give some of the brightest minds in the country a head start in what is a highly competitive industry,” said Salim al Aufi, Under-Secretary, Ministry of Oil & Gas. The Selection Review Committee for the Occidental Oman Student Awards for the Advancement of Post-Graduate Education were: Prof Saif al Bahry, Director Oil & Gas Research Center, Sultan Qaboos University; Dr Michael Georg Modigell, Rector, GUTech; Dr Khalil al Riyami, Vice President Exploration, Occidental Oman; Dr Abdullah al Abri, Technical Lead, Petroleum Development Oman; and Dr Rahma al Mahrouqi, Deputy Vice-Chancellor of Postgraduate Studies and Research, Sultan Qaboos University.

OCCUPATIONAL STANDARDS

Semta helps to ENERGISE Omani skills The UK based not for profit employer led Sector Skills Council (Semta) and Awarding Organisation (EAL) is working with the In – Country Development Programme (ICV), OPAL and the Ministry of Manpower in Oman to build a robust and sustainable skills pipeline for the energy sector

he Semta Group, one of the UK’s most eminent skills entities, is about to launch a significant phase in its long-term project to ‘energise’ Oman. An ‘apprenticeship’ model and process, similar to that in the UK, is being introduced to fast-track home grown talent and boost the country’s economy. The UK based not for profit employer led Sector Skills Council (Semta) and Awarding Organisation (EAL) is working with the In – Country Development Programme (ICV), OPAL and the Ministry of Manpower in Oman to build a robust and sustainable skills pipeline for the energy sector. Over the past six months, Semta and its partners have worked collaboratively with Ministry of Manpower, OPAL and members of the ICV team and industry experts to successfully deliver the initial pilot project. A full suite of National Occupation Standards, Qualification Structure, Assessment Strategy and a qualification were developed for the Welding and Fabrication industry at Level 3. This next stage of this Oman Workforce Development Project is to move forward and assist key stakeholders with all stages of the development and implementation of the framework, systems and processes to ensure the success of a vocational education and training strategy in Oman.The project is a major building block in the Sultanate’s stated aim to take necessary measures to reduce the reliance on foreign workers and create an educational system, working with industry, to ensure Omanis are equipped to provide home grown skills across a variety of sectors. Semta’s International Business Development Consultant Dean Fox, who is working closely with Oman said; “Semta was developing a very close and rewarding relationship with government and industry in Oman. “Our whole ethos from the beginning is to build a vocational skills system that works in Oman – and not just impose one which happens to work elsewhere.

November 2016

OPAL been assigned through MOG ICV main committee to lead the development of the National Occupation Standards in partnership with SEMTA

“Our hosts have given us the warmest of welcomes – there is a real desire to ensure that the partnership flourishes.” said Dean. ‘We developed a comprehensive strategy and programme of everything that Oman might need in the next three to five years. “The pilot project has been very successful – and helped all parties understand each other’s needs and ways of working. “Working closely with Omani industry experts we developed a whole suite of National Occupational Standards and a competency qualification Level 3 as required. “The bespoke suite is totally tailored to their needs, aims and aspirations.” The success of the pilot is due to trigger an expansion of the project to other specialist areas such as lifting, health and safety, engineering maintenance, design, electrical engineering and engineering manufacture. ‘During the next two years we will get them to a position where they have a process and a model similar to the UK’s apprentice training. “Our longer term strategy is to help Oman do what we do! In ten years time we hope to have a system and process in place that they can run independently in country. “There will always be a connection – we must ensure that Omani skills are interchangeable with those of other countries too.” Ann Watson, CEO of Semta, which represents 150,000 engineering and advanced manufacturing companies in the UK, said: “The Semta Group has so much to offer Oman and the rest of the region. Our combined strengths in terms of expertise and understanding of the sector in standards, training requirements and qualifications is unsurpassed. “We always ensure that we fully engage with clients and partners on the ground to ensure that their needs are met to the highest specification.” “It is important for any country to be able to access a talent pool of its own nationals. Key to the success of this project is to ensure employers have the necessary supply of skilled

IT IS IMPORTANT FOR ANY COUNTRY TO BE ABLE TO ACCESS A TALENT POOL OF ITS OWN NATIONALS. KEY TO THE SUCCESS OF THIS PROJECT IS TO ENSURE EMPLOYERS HAVE THE NECESSARY SUPPLY OF SKILLED WORKERS THEY NEED workers they need. We are confident that this project will make a vital contribution to Oman’s In-Country Value National Objective. “Together, we will develop a vital infrastructure to serve the dynamic oil and gas industry, through the enhancement not only of the quantity, but the quality of engineering skills in Oman, which will in turn benefit the Oman economy. There is much work to be done – and many other sectors that can benefit from our expertise, aptitude and understanding of the region.” Any organisations wishing to find out more about the initiative or explore ways in which they might benefit should contact dean.fox@ semta.org.uk www.semta.org.uk

In Numbers Semta is the Sector Skills Council for the advanced manufacturing and engineering (AME) sector. There are

145,800

advanced manufacturing and engineering establishments across the UK which

£110bn employ 1.7m people…

FEATURE

Make your new employees ready to contribute FROM DAY ONE TPO was established to set a world-class training benchmark for the Omani energy sector

everal leading organisations in Oman have largescale projects planned for the near future and are worried that when the time comes, there will not be enough qualified Omani professionals to employ. Based on this observation, and concerned with the impact that all these vacant job placements would have on in-country value, Takatuf, the Human Capital solutions provider, commissioned a detailed feasibility study. The results supported the need for a world-class technical vocational training institute for national diploma graduates and technical diploma graduates in the energy sector. Eager to start developing the concept, Takatuf recognised the strategic importance to partner with an international organisation with expertise in delivering

world-class technical vocational training programmes. As a result, a joint venture was signed in 2014 between Takatuf and Petrofac (60%-40%). Combining the strength and experience of these two market-leading organisations with recognised industry knowledge, TPO (Takatuf Petrofac Oman LLC) was established to set a world-class training benchmark for the Omani energy sector with the flexibility to quickly react and adapt to meet the needs of industry and providing training for beginner, intermediate and advanced students.

Big advantage

Commenting on the project Ibrahim Al Harthi, acting CEO of Takatuf, said â&#x20AC;&#x153;This is a big advantage because TPO programmes were developed to equip students with the

November 2016

necessary skills and internationally awarded qualifications to make an immediate and valuable contribution in the workplace once they finish their training programmes, and a wider contribution to the in-country value of the Sultanate of Oman”. TPO was developed to be a state of the art training institute, where underpinning knowledge is facilitated in a classroom environment and then tested and applied through hands-on practical learning on unique training plants and dedicated workshops. In fact, the institute will offer four largescale training plants: Oil Separation Plant (OSP), Gas Sweetening Plant (GSP), Crude Distillation Plant (CDP) and Utilities Plant (UTP) and each of these will have a dedicated control room housing the latest distributed control systems (DCS).

Modern training environment

Karim Osseiran, Vice President Petrofac Training Services, added: “The design of the four bespoke training plants will draw upon Petrofac’s extensive experience in combining Engineering, Operations and Maintenance services with Training capabilities to deliver a differentiated training solution. As a result we will design and build a ‘reality without

TPO WAS DEVELOPED TO BE A STATE OF THE ART TRAINING INSTITUTE, WHERE UNDERPINNING KNOWLEDGE IS FACILITATED IN A CLASSROOM ENVIRONMENT AND THEN TESTED AND APPLIED THROUGH HANDS-ON PRACTICAL LEARNING ON UNIQUE TRAINING PLANTS AND DEDICATED WORKSHOPS risk’ training environment that will replicate a ‘live’ hydrocarbon plant. This safe approach provides a unique and rich experience for trainees that will accelerate their development”. TPO will deliver comprehensive training solutions and offer a variety of entry level streams, including two year diploma programs for high-school leavers, 18-month fast-track programmes for diploma holders and employees, short course programmes for domestic and international markets and professional development leadership and management training. The TPO Technical Vocational Training Institute will be located in Muscat and will accommodate 300 students and is expected to be operational by the end of 2017.

The two year TPO training programme includes: Year One Academic Foundation: English Language, Technical Mathematics, Level 1 NVQ Health & Safety and Employability Skills. Year Two Technical Programme: General engineering tuition and specialised skills development leading to the award of a Level 2 IVQ/NVQ as well as a Level 3 IVQ/NVQ Diploma in the following pathways include: Electrical, Mechanical, Process Operations and Instrumentation.

PRODUCTION

BAUER Nimr LLC

Sustainable waste water management The Nimr project is an important development that contributes to waste reduction while also reducing the carbon footprint of PDO By Ernst Grisseman and Geraint Richards

hile oil and gas production has become more efficient in recent years and the overall output has risen, increased production has been achieved with a hidden cost. On average, for every one barrel of oil produced in Oman, nine barrels of water accompany the product to the surface. Such an amount of contaminated water is a heavy burden, especially so in a region where useable water resources are scarce. It is commonly predicted, indeed accepted, that the ratio of produced water to oil will increase as oil wells age. Some predictions put the produced water rate in Oman at twelve barrels per one barrel of oil by the year 2025. With each passing year, the population of Oman is increasing with a forecast four percent rise during this year alone. With the continued increase in Omanâ&#x20AC;&#x2122;s population there is also the increased development of the industrial sector, both key drivers for an increase in water consumption and waste generation. Today, Oman is reusing forty to forty five percent of its produced water. However the bulk of this volume is being used at source for water injection to increase the production rate of the older oil fields. Beyond the limited reuse for production activities, produced water is commonly disposed of as a waste byproduct. In Oman, the primary disposal methods for produced water are; deep well disposal and evaporation, both expensive and wasteful options that can be improved upon. BAUER Nimr LLC is a pioneer in Oman for the provision of sustainable produced and waste water treatment solutions based upon the Constructed Wetlands principle. BAUER began its operations in Oman during 2010 through the establishment of a

November 2016

PRODUCTION

Overview of wetlands sewage treatment facility in the desert, shows well the establishment of growth in arid conditions.

long term contract with Petroleum Development Oman (PDO) for the treatment of produced water within the Southern sector of Block 6. BAUER established the Nimr Water Treatment Plant (NWTP) in the Nimr region of Block Six. This is the largest and the first of its kind in the world, utilizing reed bed technology for the separation of oil from produced water. The NWTP is an important development in Oman that contributes to waste reduction and reduces the carbon footprint of PDO. The solution is cost effective, contributing to the reduction of the countryâ&#x20AC;&#x2122;s oil production cost in addition to being environmentally friendly. Treating up to 115,000mÂł of produced water per day, the NWTP separates and recovers 90 per cent of the hydrocarbon content, which is dissolved in the incoming produced water. After separation of the hydrocarbons, the produced water is directed through the Constructed Wetlands which carry out the final polishing of the water leading to an effluent standard with less than 0.5mg/L of oil and grease content. The amount of recovered hydrocarbon is determined by the efficiency of the oil and water separation stage, which is located upstream of the NWTP. Currently, NWTP is producing three hundred barrels of oil per day from the received

produced water, which is returned to PDO as produced product rather than disposed of as waste.

Bio-saline agriculture

BAUER is currently working on the possibility of reusing the treated water by investigating the effect of treated water on vegetation growth through a Bio-saline Agriculture Research Project. The project encompasses 22 hectares where 13 different plant species have been planted. Each species has been selected for its productive value and resistance to the negative effects of saline water as they will be irrigated using the treated water from the NWTP which has a relatively high TDS count. The development of Bio-saline Agriculture is focused on creating a use for the treated water that does not involve human consumption so any risk of residual contamination such as heavy metals is avoided. In addition to transforming a cost negative method of treating the produced water, the process pioneered by BAUER at the NWTP also generates new opportunities for local employment, which in turn increases the In-Country Value of the project. Of course the waste streams generated within the oil and gas sector are not confined to produced water, industrial and

November 2016

domestic garbage or hazardous waste. The production process often generates oil contaminated sand and soil, drill cuttings, drilling mud and sludge. In remote locations, oil companies face challenges in dealing with the most basic of waste management issues, the treatment and disposal of facility camp sewage. Trucking of sewage off block is quite often the only solution available, this is both expensive and risk prone, when a sewage treatment plant is available, the operation of this is often compromised by the harsh conditions of the local environment. Turning to natural processes, BAUER has developed a sustainable solution to the challenges presented by sewage treatment in remote, arid locations. By establishing a constructed wetland for sewage treatment, the need for transportation and / or mechanical treatment of camp generated sewage is completely eliminated. Establishment of a wetland based sewage treatment facility close to the camp has the added benefit of creating a carbon sink and (depending upon the design and surface area) green belt in a once parched environment. Typically, the constructed wetland is designed and constructed in such a way that no mechanical components are used, all flow control is achieved through the nat-

DIVERSIFICATION CAN BE CONSIDERED AS ONE OF THE BEST APPROACHES TO A CHALLENGE, AND THE VALUE OF SEEKING OUT MORE DIVERSE SOLUTIONS TO WASTE MANAGEMENT SHOULD NOT BE UNDER ESTIMATED ural hydraulics of gravity. Eliminating the requirement to truck sewage waste over large distances, and taking away the need for power consumption lead to both an environmental as well as a commercial net gain. Diversification can be considered as one of the best approaches to a challenge, and the value of seeking out more diverse solutions to waste management should not be under-estimated. Like the rest of the world and in particular those counties that are going through a period of development, Oman faces some challenges when it comes to waste management. Now is the time to discard cost intensive and non-productive methods of waste management in exchange for reducing, reusing and recycling. Many available methods of waste treatment (liquid and solid) rely on outdated technology and processes, examples being the deep water disposal of produced water and burying solid waste in landfills. In addition to the successful introduction

PRODUCTION

of a sustainable process for produced water treatment in Block 6, BAUER is at the forefront when it comes to the design and construction of waste management facilities for the Oil & Gas industry. Geraint Richards (left) and Ernst Grissemann are Business Development Manager and Managing Director respectively of Bauer Nimr LLC

ardous and non-hazardous waste streams, the provision of plant and equipment, design, engineering and construction of waste collection cells. BAUER is proud to prove that it is feasible to recycle resources such as paper, plastic and metals for commercial returns as well as managing hazardous waste streams in a sustainable way.

Reuse and recycling

INNOVATION AND SUSTAINABILITY ARE KEY REQUIREMENTS IN IMPROVING PROCESSES AND ULTIMATELY THE ENVIRONMENT WE LIVE IN. CHANGING THE WAY WE VIEW WASTE IS GOING TO BE A KEY DRIVER FOR FUTURE GENERATIONS TO CONSERVE RESOURCES, PREVENT POLLUTION AND SAVE MONEY Drawing on extensive experience from its global operations, BAUER has executed several oilfield based waste management projects within the Sultanate. These projects have included the implementation of state-of-the-art waste management systems that include segregation at source and recycling as the key processes. One particular project entails the management of haz-

Innovation and Sustainability are key requirements in improving processes and ultimately the environment we live in. Changing the way we view waste is going to be a key driver for future generations to conserve resources, prevent pollution and save money, in simple terms, by reducing waste we save in reducing the handling costs, by reusing or recycling waste, we can reduce our costs and generate revenue from what was once throw-away waste. BAUER Nimr LLC sees value in everything it does and the recent signing of the agreement that introduces Oman National Investments Development Company SAOC (TANMIA) as an equity partner in BAUER Nimr LLC underscores this. The partnership is considered as a constructive step towards the expansion of BAUER’s contribution to Oman and provides augmented resources and experience. Investment in the Sultanate has been a successful experience, which is encouraging BAUER to expand its operations through different projects in waste management and water treatment. Working in close collaboration with the Omani partners’ assistance, BAUER Nimr LLC looks forward to a very active future in the produced and waste water treatment sector here in the Sultanate of Oman. It is evident that BAUER is aligned with the government through our efforts in protecting the environment while using progressive and sustainable processes. This confirms BAUER’s commitment to harnessing its capabilities towards the Blessed Renaissance which was established by His Majesty Sultan Qaboos bin Said Al Said. BAUER is committed to supporting the Sultanate of Oman through a progressive policy of investment and local engagement. BAUER environmental solutions are efficient and sustainable, ensuring benefits to the environment backed up by the participation of the local stakeholders in its projects.

November 2016

Global Computer Services LLC (GLOBCOM)

Managed Services: An innovative offering whose time has come Having pioneered the introduction of managed services in the Sultanate through its groundbreaking agreement with Petroleum Development Oman (PDO), Omani IT firm GLOBCOM is looking to replicate this success elsewhere across the industry

s the nation’s sole managed services provider (MSP), Muscat-based Global Computer Services (GLOBCOM) sets itself apart from its peers in the way how its service contracts with clients are modelled. While conventional IT services providers typically price their services on a time-and-materials basis, managed services providers lend their expertise under service-level agreements underpinned by performance and quality metrics. “As a managed services provider, GLOBCOM assumes responsibility for providing a defined set of services to a client such as Petroleum Development Oman (PDO),” explained Hilal Nasser al Habsy, Executive Director. “This allows the client to focus on its core activities, while outsourcing the business of maintaining and troubleshooting problems with its IT networks to a specialist managed services provider.” Established in 1998 initially with a focus on IT hardware supply and maintenance services, GLOBCOM decided to up its game in 2001 when it was awarded a major contract by PDO to provide fully managed IT services. “This was a turning point not only for GLOBCOM but for the IT services industry as a whole,” Mr. Al Habsy remarked. “For the first time, a major energy player in the GCC had decided to outsource the maintenance of its IT services to a third party. PDO itself was going through a learning curve – having taken the unprecedented step of contracting a managed services provider for part of its IT networks. It was a learning curve for us too; as we had to put in place not only the required Omani resources, but also procedures and incentivised mechanisms for staff to work in the new performance culture. How-

TECHNOLOGY

ever, a lot of credit should go to PDO for driving such best practices for service providers like us. In fact, we felt like they not only threw us in at the deep end, but they stayed around and ensured we could swim.”

Quality benchmarks

At the heart of the contract with PDO was a Service Level Agreement (SLA) stipulating the kind of support services required to be provided by GLOBCOM and benchmarked against stringent key performance indicators (KPI). “For example, if a user at the client’s end has a problem with his computer device and calls us for assistance, that call also generates an automatic survey report that evaluates, among other factors, response times, efficacy of the solution, the courtesy and professionalism shown by our staff and in general the overall user experience,– metrics that are measured against performance benchmarks.” Under the SLA model governing the re-

Focal Point Hilal Nasser al Habsy Executive Director Global Computer Services LLC (GLOBCOM)

lationship between customer and service provider, GLOBCOM gets extra incentive payments when they exceed a certain minimum score in the monthly evaluation of services provided to PDO, while conversely, attracting a penalty as well if the service provider falls below the minimum threshold. “This, in essence, is the managed services model – an arrangement that requires us to be at the top of our game, on the ball, and technologically adept,” Mr. Al Habsy stressed.

Growth ambitions

As the only company in the trade, and with performance standards that have continued to surpass client expectations, GLOBCOM has remained the unchallenged frontrunner in the IT managed services space in Oman. The company won three tenders in a row for the provision of managed services from PDO – a trend that has whetted its appetite to grow its presence in the market. “We have mastered the game by understanding the needs of a customer like PDO with regard to managed services. And we have demonstrated that we can still deliver on this model despite the strict stipulations on Omanisation. For instance, we met PDO’s requirement that our Call Centre be 100 per cent Omanised, which we have achieved while at the same time, maintaining our

November 2016

high performance scores.” The Executive Director attributes his company’s pioneering success in the managed services space to two key factors: The first relates to GLOBCOM’s philosophy of recruiting young, promising Omanis with good IT skills and then training and mentoring them for jobs in the company. “As it’s impossible to find qualified Omanis ‘off the shelf’, we recruit college graduates and sponsor their training in technical and soft skills. Aside from an aptitude for IT, we also seek out recruits with the right attitude, which is our number one requirement. After all, we are a customer-facing industry, and attitude does count!” Secondly, in its quest to keep its customer-facing employees well-motivated, GLOBCOM has a policy of distributing bonus payments received from PDO among its staff. Consequently, staffers can earn an average additional amount ranging between RO 50 – 150 per month in incentive payouts disbursed from PDO bonus payments – an initiative that Mr. Al Habsy describes as a key differentiator in the managed services business. Over the years, GLOBCOM has seen the scope of its agreement with PDO expand to include other areas of the majority government-owned operator’s IT activities. This in turn has led to a sizable

enlargement of GLOBCOM’s workforce, which now has ballooned to around 350 professionals, with Omanisation at an impressive 52 per cent. Emboldened by the success of its ongoing relationship with PDO, the IT services firm has been keenly exploring opportunities to offer its expertise as a managed services provider to other op-

FOR PROFESSIONAL AND TECHNICAL RECRUITING, AN INDUSTRY DOWNTURN LIKE THE ONE CURRENTLY UNDERWAY CREATES A WEALTH OF OPPORTUNITY — IN LARGE PART BECAUSE WORKFORCE REDUCTIONS PRODUCE A HUGE POOL OF AVAILABLE TALENT erators in the oil & gas industry. Potential customers also include government ministries, public sector undertakings, and large corporations. Mr. Al Habsy argues that the Service-Level Agreement (SLA) based model for managed services is a win-win for client and service provider alike. “Customers save not only on the cost of employing IT staff, but also the necessity to train and upgrade them in step with technological advancements. But by outsourcing its IT services, the client pays only a fixed fee to the service provider measured against tough performance criteria.”

OPPORTUNITIES

Recruiting during

A DOWNTURN It may seem counterintuitive, but oil and gas companies can’t afford to close the talent pipeline when prices are low. Identifying and hiring skilled people, and focusing on retention, provide a competitive advantage that will pay off, says global professional services firm EY

hen oil prices slumped in the mid-1980s, energy companies eliminated thousands of jobs, and talent recruiting slowed to a crawl. The downturn pressured college students to avoid relevant degrees such as petroleum engineering, and skilled professionals in support functions such as finance and human resources looked to other industries for career stability. Eventually, the oil and gas industry recovered, and recruiting and hiring picked up. But the scars remained long after the price of oil rose. Those lean years led to an acknowledged “workforce gap” in the 2000s, when oil and gas companies lacked sufficient numbers of experienced, skilled managers and professionals in their 30s and 40s to take leadership roles and oversee large, capital-intensive projects or functions. Today, approximately 21% of the oil and gas workforce is aged 55 or older. Replacing those workers — often referred to as “The Great Crew Change” — will not be easy in an extended down market, and losing their knowledge and experience is an issue at many companies. While it’s possible to get by now, during a period of reduced activity, what will happen when oil prices rebound? Smart companies are recognizing that their long-term competitiveness depends upon their ability to attract good talent today. The challenge for companies is balancing investment in identifying and recruiting talent with the business need to keep headcounts and compensation costs low.

Strength through recruiting

Talent recruiting in oil and gas covers many types of jobs and experience levels. But most companies focus on two main areas — professional with technical expertise and professional recruiting, to fill specific roles within the organization; and college recruiting, to bring in a base of new talent each year. Many companies do not build a methodical recruiting strat-

November 2016

egy tied to their organizational strategy. The use of data modeling and statistical predictions around talent demand and supply has been lacking in the oil and gas industry despite the numerical approach the industry takes to running its business. For professional and technical recruiting, an industry downturn like the one currently underway creates a wealth of opportunity â&#x20AC;&#x201D; in large part because workforce reductions produce a huge pool of available talent. Companies looking to strengthen particular functions can find ideal candidates easily, even positions with unique needs can often be filled without much difficulty. Downturns also create an ideal environment for recruiting professionals and executives at competing firms. The turmoil and uncertainty that accompany layoffs and financial cutbacks create a fertile

FOR PROFESSIONAL AND TECHNICAL RECRUITING, AN INDUSTRY DOWNTURN LIKE THE ONE CURRENTLY UNDERWAY CREATES A WEALTH OF OPPORTUNITY â&#x20AC;&#x201D; IN LARGE PART BECAUSE WORKFORCE REDUCTIONS PRODUCE A HUGE POOL OF AVAILABLE TALENT ground for attracting new talent. Companies looking to strengthen their bench or fill key positions should be aggressive during this period. Working with senior leadership to identify future areas of business focus or functions in need of new talent can lead to strategic hires who deliver significant value over the long term. This becomes even more important as oil and gas companies use the downturn to adjust their business models. A change in geographic concentration or a shift to

OPPORTUNITIES

In Numbers Today, approximately

21%

of the oil and gas workforce is

aged or older. Replacing those workers — often referred to as “The Great Crew Change” — will not be easy in an extended down market, and losing their knowledge and experience is an issue at many companies.

a different approach — for example, trimming exploration activities to focus on enhancing existing fields — can require different skill sets and experiences that may not currently reside within the organization. Identifying and recruiting that talent today can make a big difference in the success of the organization as it pursues its new strategy.

a general shift in attitude about the industry among college students and new or young graduates. For example, some millennials have concerns about working in the industry for environmental reasons; others view oil and gas companies as too old-fashioned or hierarchical. Engineers want a sense of accuracy and precision that the commodity markets are not able

Millennials: what do they want?

to provide. Creating an organizational and cultural construct that addresses these concerns is critical. Those two issues are critical because millennials view a sense of purpose and job flexibility as key elements of their desired career path. They want more than a job — even a job with high pay. They want to feel good about what they do and have a degree of control over their work life. Millennials’ career interests can no longer be overlooked by employers, since members of that generation already represent more than a third of the overall US workforce, surpassing baby boomers and Generation X in 2015. And the percentage of millennials in the workforce is expected

Maintaining some semblance of college recruiting is just as critical. Bringing in new talent helps you have the staff on hand to replace retiring employees. And it continuously infuses the organization with energy, enthusiasm and fresh ideas. These employees want to work for purposeful companies and are less interested in a paycheck and far more interested in creating an impact in their day-to-day work life. Whether your company currently recruits 100 college graduates annually, or just one, suspending that effort for a year or more can be damaging in the years ahead. These days, college recruiting is more challenging than ever, in part because of

November 2016

to grow significantly in the years to come, especially since a large number of millennials are still in high school and college. There are several other challenges involved in attracting millennials. One is that oil and gas is not viewed as particularly technology-focused compared with other industries. Of course, people who work in oil and gas recognize that technology plays a critical — and expanding — role in energy exploration and production. But millennials tend to view technology through a personal lens — technology isn’t just something you use for work; it’s embedded into every aspect of daily life. For many millennials, working for a company that develops technology to make life easier for individuals is considered ideal; developing industrial-based technology is less so. That’s why more young people strive to work in tech centers like Silicon Valley or even Austin, rather than seek opportunities to develop technology for the oilfield. Finally, the industry’s up-and-down cycle is a big concern for young people. Oil and gas is not viewed as a stable, long-term environment with opportunities for rapid growth. This is especially problematic for support functions such as accounting, finance, law, human resources, supply management or public affairs, because individuals in those professions can choose to work in a variety of industries. What all this means is that the oil and gas industry will increasingly find itself in a tooth-and-nail struggle for talent, competing against industries that — rightly or

wrongly — are seen by many young workers as offering better opportunities. Cultural leadership that includes inspiration, talent development and expanding opportunities can help overcome these challenges. To be successful, the industry will need to work hard to reshape how it is viewed by millennials. That means communicating its relevant strengths in ways that are meaningful to young people. For example, many

THESE DAYS, COLLEGE RECRUITING IS MORE CHALLENGING THAN EVER, IN PART BECAUSE OF A GENERAL SHIFT IN ATTITUDE ABOUT THE INDUSTRY AMONG COLLEGE STUDENTS AND NEW OR YOUNG GRADUATES oil and gas companies offer significant opportunities for international assignments, which are important to millennials. Showcasing industry technology — and how the industry contributes to modern society — is another key element that can change perceptions. Most importantly, oil and gas companies must seek input from their young employees and identify ways they can improve their work environments to fit the interests and needs of millennials. That means reviewing everything — culture, benefits, training, career planning, the physical workspace — and identifying the proper mix of old and new so that everyone feels valued. [Courtesy: EY – a global leader in assurance, tax, transaction and advisory services.]

Thinking differently about talent Finally, in the years to come, the contingent workforce — part-time employees, consultants and contractors — will become increasingly important to the industry. For decades, oil and gas companies have relied on contract labor for construction, plant maintenance and other field-oriented work. But a broader use of contractors and consultants can help companies achieve cost-cutting objectives while allowing for maximum flexibility as needs change. Smart companies will view their contingent workforce as part of the organization’s overall talent pool and will manage those relationships accordingly. Shared services and outsourcing can also be important tools to help companies manage costs while maintaining a high level of service. Across the board — from experienced professionals to college graduates to contingent workers — the competition for talent has never been more critical, and it will become even more so in the years to come. Maintaining a thorough and strategic recruiting program can help companies strengthen their competitive advantage through market highs and lows.

OPAL FRATERNITY

OPAL'S growing family Be a proud member of the OPAL fraternity! If you are vendor of products and services catering to the oil and gas sector, join OPAL and benefit from the Societyâ&#x20AC;&#x2122;s expertise and reach to achieve your strategic and business growth objectives. Register now! Company Name 17 Al Hajiry Trading LLC 18 Al Harsoosy Trading & Cont. Co 19 Al Hassan Engineering Co. SAOG 20 Al Katheery Trading & Cont. EST 21 Al Khalij Heavy Equipment & Engineering LLC 22 Al Khatma Transport & Trading Co. 23 Al Madina Logistics Services Co. SAOC 24 Al Maha Petroleum Products Marketing Co. SAOG 25 Al Muhra Al Aseela Trading & Contracting. 26 Al Naba Supplies & Catering Services LLC 27 AL Ramooz National LLC 28 Al Safa Environmental & Technical Services LLC 29 Al Sahari Oil Services Co. SAOC 30 Al Saj Al Abiyad Trading & CONT CO 31 Al Shawamikh Oil Services S.A.O.C 32 Al Sumri Trad. & Cont. Est. 33 Al Tasnim Enterprises LLC Company Name

Company Name

34 Al Turki Enterprises LLC 35 Al Watanyiah Oil & Gas LLC

A' Sharqiya Energy Service LLC

Abraj Energy Services S.A.O.C

10 Al Athnain Co. LLC

36 Al Watanyiah United Engineering & Contracting Co. LLC

Advanced United Technical Services LLC

37 Ali Al-Aufy Trading Company LLC

Advanced Oilfield Technology Co. LLC

12 Al EZ Trading,Transport & Contracting Co. LLC

38 ALEMCO Zawawi LLC

AIB Vincotte International & Partners LLC

13 Ali Al-Aufy Trading Company LLC

39 Amal Petroleum Services Co.

Airmech Oman LLC

14 Al Fajer Al Arabiya LLC

40 Amlaak Asharqyya LLC

Ajib Trading LLC

15 Al Ghalbi International Engineering & Contracting LLC

41 Amran Establishment LLC

Akzo Nobel Oman SAOC

16 Al Haditha Petroleum Services S.A.O.C

42 Anwar Fahud Trading Co.

Al Amjad Trading Company LLC

Al Berwaz Trading

November 2016

Company Name

43 Arab Center for Engineering Science LLC

84 Cape East & Partners LLC

125 Fast Track Services

44 Arab Sand Oasis Trading & Cont. Est.

85 Carillion Alawi LLC

126 Fire & Safety Equipment Trading Co. LLC

45 Arab Sea Line Trading & Contracting

86 Catering & Supplies Co. LLC

127 First Filter LLC

46 Arabian Drilling Services LLC

87 CC Energy Development S.A.L (Oman)

128 Fishing Remedial Experts Enterprises Co. LLC

47 Arabian Industries Manufacturing LLC

88 CEVA Logistics LLC

129 Fleet Management Systems International LLC

48 Arabian Industries Projects LLC

89 Citrine Trading & Services LLC

130 FOS Energy LLC

49 Arabian Industries Technical Support LLC

90 C&J Muscat Energy Services LLC

131 Fugro Middle East & Partners LLC

50 Arabian Oil & Gas field Services LLC

91 CGG Services (Oman)

132 Future Pipe Industries LLC

51 Arabian Training & Safety Co.

92 Challenges Oilfield Services LLC

133 Galfar Engineering & Contracting SAOG

52 Arabian Training Center LLC

93 Crimosn Petroleum Services LLC

134 Gas Way LLC

53 Ardiseis -Oman Branch

94 Compass Oil Services LLC

135 Gemini Energy LLC

54 Asali Oil & Gas Services

95 Consolidated Contractors Co. Oman LLC

136 General Electric International LLC

55 Asha Enterprises LLC

96 Dalma Energy & Co. LLC

137 Geo Chem Middle East LLC

56 Axis Engineering

97 Daleel Petroleum LLC

138 Geo-Resources Consultancy

57 AWS Engineering LLC

98 Dar Al Ataa Trading & Services

139 GeoMax Energy Systems LLC

58 Azhar Afar Trading

99 Dar AL Sahra Energy Services

140 Germanischer Lloyd Muscat LLC

59 Baker Hughes LLC

100 Dawood Contracting LLC

141 Glass Point Solar Muscat LLC

60 Ba Omar Oil Field Services Co.

101 Dawood Engineering Consultancy

142 Global Computer Services LLC

61 Bahwan Engineering Co. LLC

102 Descon Engineering Oman LLC

143 Global Industrial Services LLC

62 Bahwan Exel LLC

103 Delta International Projects & Engineering LLC

144 Global Institute for Management & Technology LLC

63 Bahwan IT LLC

104 Desert Byrne Drilling LLC

145 Golden Global Logistics LLC

64 Bahwan Lamnalco SAOC

105 Desert Shield Co LLC

146 Great Wall Drilling Co.

65 Bahwan Logistics LLC

106 Dekra Oman LLC

147 Greenfield Solutions

66 Bahwan Projects & Telecom LLC

107 Det Norske Veritas

148 Gulf Agency Company (Oman) LLC

67 Bauer Nimr LLC

108 DODSAL Engineering & Construction LLC

149 Gulf Beijing Hengju LLC

68 Berba

109 Douglas OHI LLC

150 Gulf Business Machines Co. LLC

69 Benon Oil Services LLC

110 Dover Middle East LLC

151 Gulf Drilling LLC

70 Best Oil & Gas Solution LLC

111 Draieh Catering & Services LLC

152 Gulf Development & Exploration LLC

71 BGP Oil & Gas Services LLC

112 Drake&Scull International

153 Gulf Energy SAOC

72 Bin Muqadam Engineering LLC

113 Electroman LLC

154 Gulf Petrochemical Services & Trd. LLC

73 Bishara Establishment LLC

114 Emaar Al Kauther LLC

155 Gulf Polymer Technology LLC

74 BP Exploration (Epsilon) LTD. Oman Branch

115 Ensign International Energy Services LLC

156 Hasan Juma Backer Trading & Contracting Co. LLC

75 Brothers Gas Bottling & Distribution Co. LLC

116 Enerflex Middle East LLC

157 Haimo Technologies & Co. LLC

76 Bureau Veritas Middle East Co. LLC

117 EPPM Gulf LLC

158 Hal Services LLC

77 Business Gateways International LLC

118 Europoles Middle East LLC

159 Halliburton WorldWide LTD

78 Cactus Premier Drilling Services

119 Exceed IT Services

160 Hatat Polyclinic LLC

79 Cameron Services Middle East LLC

120 Exova Limited LLC

161 Hema Oil and Gas LLC

80 CC Energy Development S.A.L (Oman)

121 Exterran Middle East LLC

162 Hanoon Energy Projects LLC

81 Cadres Oil Tools And Services

122 Fahud Desert Trading Co. LLC

163 Heavy Equipment Maintenance & Trading LLC

82 China Petroleum Pipeline Bureau

123 Fairdeal Trad. & Cont. Est. LLC

164 Hitech Inspection Services LLC

83 China Third Chemical Construction Co. LLC

124 Falcon Oilfield Services LLC

165 Hofincons & Company LLC

OPAL FRATERNITY

Company Name

166 Honeywell & Co.Oman LLC

207 Majan Shipping & Transport Co. LLC

248 Oilfield Inspection Services LLC

167 Hydrocarbon Finder E&P LLC

208 Majees Technical Services LLC

249 Oman KCA Deutag Drilling Company

168 Ibhar Integrated LLC

209 Maqshan Oil & Gas Services SAOC

250 Oman Air (Oman Aviation Services Co.) (SAOG)

169 IMTAC LLC

210 Marine Technology Co. LLC

251 Oman Cables Industry S.A.O.G

170 Indian Oiltanking Engineering & Construction Services LLC

211 Marmul Falcon Trading & Contracting Co. LLC

252 Oman Computer Services LLC

171 Industrial Quality Services LLC

212 Mazoun Establishment for Gen. Trdg. & Contg

253 Oman Drilling Systems LLC

172 Industrial X-Ray & Allied Radiographers LLC

213 MB Petroleum Services LLC

254 Oman Drilling Mud Products Co. LLC

173 Inma Technologies LLC

214 Medco LLC

255 Oman Fiber Optic Co. S.A.O.G

174 Intaj LLC

215 Mideast Data Systems LLC

256 Oman Gas Company S. A.O.C

175 Integrated Manufacturing & Oil Services Co. LLC

216 Middle East Bridge LLC

257 Oman Gulf Company S.A.O.C

176 Intelligent Drilling Services LLC

217 Middle East Consulting & Engineering LLC

258 Oman Industrial Coating Centre LLC

177 Integrated Drilling Fluids Solutions LLC

218 Mideast Integrated Drilling & Well Services Co. LLC(MIDWESCO)

259 Oman International Group (OIG) LLC

178 Integrated Petroleum Services Company LLC

219 Midwest Oilfield Services LLC

260 Oman LNG LLC

179 International Business Development Co. LLC (IBD)

220 MHD Training institute LLC

261 Oman Mechanical Services Company Ltd. LLC

180 International College of Engineering & Management

221 Modern Arab Laboratories LLC

262 Oman Metal Industries & Contracting Co. LLC

181 International Desalination & Water Treatment LLC

222 Modern Salt Industries & Trading Co. LLC

263 Oman National Engineering & Investment Co.(SAOG)

182 International Drilling Services LLC

223 Mohsin Haider Darwish LLC

264 Oman Oil Company Exploration & Production LLC

183 Insight for Financial & Busines Consulting LLC

224 Mott MacDonald & Co. LLC

265 Oman Oil Industry Supplies & Services Co. LLC

184 International Information Technology Co. LLC

225 Mud Industries LLC

266 Oman Oil Marketing Co.

185 ION Exchange & Company LLC

226 Mustafa Sultan Security and Communication Co LLC

267 Oman Pumps Mfg.& Engineering Services Co.SAOC

186 Jalmood National

227 Nadhira Enterprises LLC

268 Oman Sea PetroServices LLC OSPS

187 Jahanpars International LLC

228 Nafal Contg. & Tradg. Co. LLC

269 Oman Shapoorji Company LLC

188 Joannou & Paraskevaides (Oman) LLC

229 Naseem Al Salam Trad& Cont Est

270 Oman Telecommunication Company S.A.O.G

189 Jotun Paints Co. LLC

230 National Automotive Higher Institute

271 Oman TradaNet LLC

190 Joint Effort Projects LLC

231 National Gas Company SAOG

272 Operation Excellence LLC

191 Khatib & Alami and Partners

232 National Drilling & Services Co. LLC

273 Orbital Projects & Services LLC

192 Khazan Logistics LLC

233 National Hospitality Institute SAOG

274 Oryx Oil & Gas Services LLC

193 Knowledge Grid LLC

234 National Oilfield Supply Co. LLC

275 Overseas Projects & Equipment Co. LLC

194 KPMG

235 National Oilwell Varco Muscat LLC

276 Overseas Technical Inspection Services LLC

195 Lamor Middle East LLC

236 National Petroleum Construction Co.

277 Parsons International & Co. LLC

196 Larsen & Toubro (Oman) LLC

237 National Training Institute LLC

278 PCM Muscat LLC

197 Larsen & Toubro Electromech LLC

238 Nimr Contracting Company LLC

279 Peace Land LLC

198 Larsen & Toubro Limited Hydrocarbon (Oman Branch)

239 Nanjing Construction

280 Pentagon Oman LLC

199 L&T Modular Fabrication Yard LLC

240 Norris Production Solutions Middle East LLC

281 Petrofac E & C Oman LLC

200 Legend Worldwide LLC

241 Nous Trading & Cont. EST

282 Petrogas Rima LLC

201 Lin Scan Nationl Pipe Line Services LLC

242 Oasis Trading & Equipment Co. LLC

283 Petroleum Development Oman LLC

202 Loay International LLC

243 Occupational Training Institute

284 Petro Kerui LLC

203 Maha Jedat Al Harasis Trading & Contracting Co.

244 OFSAT Limited Co. LLC

285 Petroleum Polymer Co. LLC

204 Maktoom Trading & Contracting Co. LLC

245 OHI Petroleum & Energy Services LLC

286 Petron Gulf LLC

205 Manadher Al Sahra Trading LLC

246 OHI Telecommunication Co. LLC

287 Petrospec Engineering LLC

206 Maskn Construction & Development LLC

247 OHL Industrial and Partners LLC

288 PIH Services ME LLC

November 2016

Company Name

289 Pioneers Petroleum Services

330 Shaleem Petroleum Co. SAOC

371 Trowers & Hamlin

290 Polyglot Institute Oman LLC

331 Sheida International Co. LLC

372 TruckOman LLC

291 Precision Engineering & Consultancy

332 Shell Development Oman LLC

373 TruckOman North

292 Prime Teknica LLC

333 Shell Oman Marketing SAOG

374 Tuboscope & Co. LLC

293 Process Instruments LLC

334 Shiv-vani Oil & Gas Co. LLC

375 TUV SUD Middle East LLC

294 Proscape LLC

335 Shoaa Oil Field Services LLC

376 TUV Middle East

295 PSA Marine Qalhat SAOC

336 Shuram Oil & Gas

377 TUV Rheinland LLC

296 Qalhat Real Estate Investment & Services LLC

337 Sievert Technical Inspection LLC

378 Unigaz LLC

297 Qarn Muscat LLC

338 Sino Gulf Energy Enterprises Co. LLC

379 Unique Energy LLC

298 Ras Al Hamra LLC

339 Sinopec Petroleum Services Co. LLC

380 United Engineering Projects Co. LLC

299 Reem Scientific and Energy Technology and Trade LLC

340 S.J Abed & AL Sulaimi Catering Group LLC

381 United Engineering Services LLC

300 Rees Oil & Gas Services LLC

341 Smith International Oman LLC

382 United Facilities Managements Services LLC (COMO)

301 Resource Allocation LLC

342 SNF Oman LLC

383 United Gulf Shadows LLC

302 Riyam Engineering & Services LLC

343 Socat LLC

384 United Media Services LLC

303 Rukun Al Yamaani Environmental Services LLC

344 Sohar Ashapura Chemicals LLC

385 United Systems

304 Rukun AL Yaqeen International LLC

345 Sohar International Institute LLC

386 Unity Fire & Safety Services LLC

305 Rukun Al Yaqeen International Oil & Gas LLC

346 Space-Tech Trading Est.

387 Value Engineering Center LLC

306 Rukun AL Yaqeen Skills Development

347 Special Oilfield Services Co. LLC

388 Vanguard Engineering & Oilfield Services Co. LLC

307 Rusayl Institute LLC

348 Special Technical Services LLC

389 Vanguard Oil Tools Services LLC

308 Ryboa Haima Trading Co. LLC

349 Speed House Building Construction Asso

390 Vanguard Reservoir Surveillance Services LLC

309 Saeed Bin Masoud International

350 Steamtech & Co. LLC

391 Vanguard System & Services International LLC

310 Safety Technical Services Co. Ltd

351 STEP Oiltools Services LLC

392 Velosi LLC

311 Sahil Martoub Trading LLC

352 Sultan Bin Soud Bin Ahmed AL-Shedhany Trading LLC

393 Vijay Tanks & Company LLC

312 Saih Al Nihaidha Trading & Cont. (SANTCO)

353 Svitzer Sohar LLC

394 Vision Advanced Petroleum Solutions LLC

313 Safeway Engineering Services LLC

354 Tamkeen Fracking LLC

395 Wamar International LLC

314 Saih Al Rawl Gas Co. LLC

355 Tarban Trad.& Services LLC

396 Waleed Associates LLC

315 Samara United

356 Target LLC

397 Waleed Catering & Services Company

316 Sana'a Desert Trading LLC

357 Tawoos Industrial Services Co. SAOC

398 WDS Middle East LLC

317 Sarooj Construction Company LLC

358 Technical & Administrative Training Institute LLC

399 Weatherford Drilling International (Oman) LLC

318 Saud Bahwan Automotive LLC

359 Technical Trading Co. LLC

400 Weatherford Oil Tool Middle East Ltd

319 Schenker Khimjis LLC

360 The Oman Construction Co. LLC (TOCO)

401 Well Maintenance Servies LLC

320 Scomi Oiltools Oman LLC

361 The Petroleum Projects (Petrojet & Partners LLC)

402 Well Solution Services LLC

321 Schlumberger Oman & Co. LLC

362 Thomassen Services & Contracting Co. LLC

403 Western Atlas International Inc.

322 Sea and Land Drilling Contractors INC.

363 TMK/Gulf International Pipe Industry LLC

404 Western Gulf Deserts LLC

323 Seeh Al-Sarya Engineering LCC

364 TMTEC Trad & Technical Services LLC

405 Weir Solution FZE-Oman Branch

324 Sener Ingenieria Y Sistemas

365 Torque Trade & Control Systems LLC

406 Wipro Gulf LLC

325 Seven Points International LLC

366 Taylor Woodrow Oman LLC

407 Worley Parsons Oman Engineering LLC

326 SGS Gulf Limited

367 TR Engineering Consultancy LLC

408 Writer Relocations & Partners LLC

327 Seven Seas Petroleum LLC

368 Training & Development Institute (TDI) LLC

409 Zawawi Business Development LLC

328 Shaher United Trading & Cont. Co.

369 Travel City LLC

410 Zawawi Powertech Engineering LLC

329 Shaleem International LLC

370 TRC Engineering LLC

411 Zubair Oil & Gas (ZOGAS)

CALENDAR

WHAT NOT TO MISS

UPCOMING EVENTS ■ ANNOUNCEMENTS ■ UPCOMING EVENTS ■ ANNOUNCEMENTS ■ UPCOMING EVENTS ■ ANNOUNCEMENTS ■ UPCOMING EVENTS ■ ANNOUNCEMENTS

7 December 2016 OPAL Best Practice Awards It’s been almost a year since the OPAL Best Practice Awards 2015 event was held. Preparations are now under way in earnest for the upcoming 2016 event. Once again Oman Society for Petroleum Services (OPAL) invites members to make make the most of this opportunity to share their their best practices with the wider fraternity at this keenly awaited annual event.

7-10 November 2016

14-16 November 2016

Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) 2016 Organized by Dmg Events Middle East Venue: Abu Dhabi - United Arab Emirates

11th LPG Trade Summit Organized by Centre for Management Technology (CMT) Venue: Dubai - United Arab Emirates

5-7 December 2016

22-23 November 2016

OpEx MENA 2016 - Operational Excellence in Oil, Gas & Petrochemicals Organized by Euro Petroleum Consultants Ltd (EPC) Venue: Abu Dhabi - United Arab Emirates

Iran Refining and Petrochemical Summit & Exhibition 2016 Organized by PEAK Events Co., Ltd Venue: Tehran - Iran

6-8 December 2016

16-19 Januray 2017

22-24 January 2017

Getenergy VTEC MENA Organized by Getenergy Events Limited Venue: Abu Dhabi - United Arab Emirates

World Future Energy Summit 2017 Organized by Reed Exhibitions Limited Venue: Abu Dhabi - United Arab Emirates

Middle East Refining Technology Conference 2017 (MERTC) Organized by The World Refining Association Venue: Manama - Bahrain

November 2016

At Gulf Energy we combine the experience of personnel, first class equipment with cutting edge technology and a strong emphasis on innovation, reliability, quality, integrity and customer service. This orientation towards customer needs and expectations is our means to position Gulf Energy as one of the most dynamic and fast growing innovative solutions provider in the Energy industry in the Middle East and North Africa (MENA) region. At Gulf Energy, we believe in developing the local capabilities with our local partners. Our In Country Value initiative does not stop at employing nationals, but involve formation of real partnerships through Joint Ventures and collaborations with top class international institutions to enrich and localize the know how and expertise. People are our main asset. Motivation and training are the main elements to promote Gulf Energy to be a leader in providing its Services, Technology and Solutions at highest standard of quality. Gulf Energy currently works with almost all of the major operators in Oman including Petroleum Development of Oman (PDO), Occidental Oman (OXY), PTT Exploration and Production Plc (PTTEP), MEDCO, Petrogas E & P and Daleel Petroleum.

www.gulfenergy-int.com

Petroleum Development Oman (PDO) is the leading oil & gas exploration and production company in the Sultanate of Oman. It accounts for around 70% of the country's crude oil production and nearly all its natural gas supply. We operate some of the most technically challenging ďŹ elds in the world, and have pioneered a range of Enhanced Oil Recovery (EOR) techniques. Our approach to business is based on the concept of good corporate citizenship. We operate in an environmentally responsible and sustainable fashion; we deal transparently and ethically with contractors and partners; and we invest and participate meaningfully in social initiatives. We endeavour to be renowned and respected for the excellence of our people and the value we create for our nation and our stakeholders.