Business


In-country value strategy for Oman’s oil and gas sector soon


Nasser bin Khamis al Jashmi. Photo — Times of Oman files

Muscat: Oman government is planning to introduce an in-country value (ICV) strategy for companies operating in the oil and gas sector, especially for contracting firms, before the end of the year.

The Ministry of Oil and Gas will have a dedicated office to look into the issue of ICV soon, Nasser bin Khamis al Jashmi, Undersecretary at the Ministry of Oil and Gas, told Times of Oman. ICV is the total spend retained in the country that benefits business development, contributes to human capability development and stimulates productivity of the economy.

"We are planning to organise a conference on ICV before the year-end and we will announce the results of a study on ICV as well as the strategy at the conference," he said, adding; "ICV plan has already been introduced by some companies like PDO. These companies have already added a new chapter in the tender document for ICV element. (Contracting) companies are asked to submit an ICV plan. These are initiatives from individual companies and it is not yet introduced as a policy by the government." According to ministry sources, an international consultancy agency — Accenture Management Consulting — has been assigned to prepare a blueprint for an ICV for Oman. This is in close coordination with the Ministry of Oil and Gas and Oman Society for Petroleum Services (Opal).

The objective of the study is to develop the in-country value for oil and gas sector. This will be achieved by carrying out a consolidated demand and supply gap analysis of goods, services and skills required till 2020. The results of this study will focus on converging in-country value expectations, initiatives and investments among oil and gas players in order to maximise benefits for the country while optimising their efforts. The assessment of the supply market is one of the two main streams of this study. Suppliers will be approached to help consolidating the future market capacity and capability through a structured dedicated survey. All data gathered will be used in order to drive local supply market development initiatives.

The policies on ICV will be directed towards maximising employment of Omanis and placements on vocational/professional training and to attract Omani graduates and technical school leavers. Maximise expenditure on goods and services by Omanis in Oman and maximise and develop locally produced materials, products and equipment are other objectives.  

Made in Oman Index
The major oil companies in Oman are also set to incorporate joint qualification system and made in Oman index while tendering projects and services in a move to strengthen in country value. The made in Oman index is aimed at enhancing use of Omani products and professionals services while implementing projects

Oil blocks pact
Al Jashmi also said that the government is now evaluating proposals from international oil companies for developing six oil blocks on production sharing basis. These blocks were tendered in the latest bid round.

"We are now evaluating the proposals and hope that some of the concession agreements will be signed before the end of the year," noted Al Jashmi. 

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