Creating local value
Our model of local execution to global standards sets us apart. In-country value (ICV) allows us to create local supply chains that allow small and medium-sized enterprises (SMEs) to flourish, upskill and train local workforces, and implement community programmes that leave a positive and lasting impact beyond the assets we build and operate.
Our competitive advantage
As well as being the right thing to do, we see the creation of in-country value as a source of competitive advantage. It helps us operate globally and bid on challenging projects, while benefiting from the economies of delivering locally.
Our approach to ICV
As well as being the right thing to do, we see the creation of in-country value (ICV) as a source of competitive advantage. It enables our local delivery model, helping us to bid on challenging projects, keep costs down, improve the quality and capability of local vendors and supply chains, and build stronger and enduring relationships with local stakeholders.
The creation of ICV has always been a hallmark of our approach. We have enhanced and extended our commitment with a formal ICV strategy based on four levers:
Strengthening our local teams, making them more representative of communities they work in, and enhancing our in-country delivery capabilities.
Understanding the capabilities of local supply chains, supporting skills development, and promoting technology transfers.
Reducing our reliance on international supply chains, matching local suppliers with project opportunities, and improving our efficiencies.
Ensuring that our community engagement initiatives support our local operations, and are closely aligned with our strategic priorities.
Building on strong ICV foundations
Proud of the work that we have done so far, we will continue to strengthen our ICV programmes, extending our collaboration with local communities, supply chains and governments to nurture and grow sustainable economies and create shared value.
These are the ICV goals we set ourselves over the coming period:
- Enhance the Group ICV strategy, plan and process of assessment, promoting better alignment with evolving national objectives
- Enhance consistent integration of ICV into business development, contract strategy/ delivery and external communications
- Establish a ‘community of practice’ to develop ICV good practice notes, implementation guidance, and tools
- Continue to support local SMEs and facilitate their engagement with main sub-contractors
- Maintain focus on expanding our ICV in core countries
In-country value: support of local economies a priority for Petrofac
Nasma Telecommunications is a technology, IT and communications solutions provider and systems integrator. They started collaborating with Petrofac in 2015 when they worked on their first oil and gas project, diversifying and developing their capabilities. Ahmed Abou Draz, an IT engineer who worked on the project outlines how Petrofac’s knowledge sharing approach has made a difference to their business.
Oman Gulf Company is a transportation and engineering civil works company involved in construction and infrastructure development. Oman Gulf, also located in Salalah, has been collaborating with Petrofac since 2017 providing excavation, filling and concrete works for Petrofac’s project in the region. Mazin Al Raisi, a site engineer at OGC talks about the journey to diversification that began when they started working with Petrofac.
Dhofar Structures and Iron Industries is a state-of-the-art structural steel fabrication company specialising in hot rolled structural steel fabrication. The company originated in Salalah in the Dhofar region of Oman and has been collaborating with Petrofac since 2015. Amer Al Kathiri, an Omani welder explains the good things that have happened since Petrofac recognised their potential.