Case study: investing in Oman

The principle of In-Country Value (ICV) is all about local delivery for Oman. It means retaining spend within the sultanate, through the employment and training of local people, the use of local suppliers and the procurement of local goods.

The Omani government actively advocates the concept of ICV, which is also part of a wider Omanisation agenda. The agenda seeks to:

  • Reduce jobseeker unemployment by increasing the proportion of Omanis working in the private sector
  • Promote expatriate replacement through succession and Omani upskilling programmes
  • Impose Omanisation quotas that companies must meet through employing Omani nationals

With deep roots in Oman and a rapidly growing local presence, Petrofac is well equipped to live up to this ICV vision.

The idea behind ICV is to measure the precise contribution we make to the Omani economy, in terms of the total spend that remains right here in the country. If we can measure it, we can manage it, which means we can set targets and aim for continual improvements.

Faisal Al-Gheilani, ICV Manager, Yibal Khuff project

 

Setting the standard for ICV in Oman

In Oman, where our IVC programmes are most mature, in 2018 we established a central ICV management team, and continued to increase and quantify our impact.

For example, the new Takatuf Petrofac Oman training centre received its first cadre of students. This US$30 million facility is intended to accelerate the training of young Omanis and provide the country’s oil and gas operators with a ready supply of qualified, job-ready.

Meanwhile, to support the development of a world-class local workforce, Petrofac signed a postgraduate scholarship agreement with the Sultan Qaboos University. For the 2018-2019 academic year, this will support three Omani students pursuing MSc programmes in mechanical, chemical and process, and civil engineering.

To reflect the Omani government’s emphasis on the small and medium enterprises, we also launched a programme of technical support for smaller suppliers. Initially targeting around 30 companies, the aim is to build local capacity by matching qualified suppliers with project opportunities.

Meanwhile, around 245 Omani nationals (32% of our direct workforce) were employed across our operations. With the start-up of major projects in Salalah and Duqm, we are providing further employment opportunities. Reflecting our achievements, we were awarded “2018 Best ICV Contractor” by Petroleum Development Oman (PDO).

We have a strong commitment to Oman and are developing our Muscat office’s in-country engineering capabilities to ensure we are part of the fabric of Oman for many more years to come.

A few years ago the contracting community had little choice but to look outside of Oman for goods, services and skills. That is changing quickly. There is now a much wider variety and availability of local services and, for our part, we have actively worked with several key suppliers to help them improve and scale up their local operations. With greater capacity, capability and competition available right here in Oman, everyone benefits.

Ray Richardson, Oman Country Manager

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