Business


$64bn in-country value business opportunities for local firms between 2013-2020: study


Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas, addressing the in-country value conference. Photo - Times of Oman

Muscat: According to a study conducted for preparing an in-country value (ICV) blueprint strategy for the country, as much as $64 billion additional ICV opportunities exist down the value chain of oil and gas sector between 2013 and 2020. In-country value is the total spend retained in the country that benefits business development, contributes to human capability development and stimulates productivity in Oman's economy.

"They are 53 investment opportunities worth of $64 billion," said Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas.

Addressing the in-country value conference, Al Jashmi said there are 15 real investment opportunities in oil and gas field for the private sector. These opportunities represent the first stage of a series of investment opportunities that will be unveiled in the coming months. 

He also noted that the preparing for the ICV strategy in oil and gas sector started in 2012 by forming a committee chaired by the Ministry of Oil and Gas and the membership of a number of stakeholders, as well as oil and gas companies. The committee appointed Accenture Consultancy to prepare a study that diagnose the current situation and identify the gap between supply and demand in the sector.  

The strategy aims at increasing the contribution of the sector from 18 to 32 per cent by 2020.  

Initial analysis shows that thanks to the on-going and completed ICV development initiatives, a significant portion (more than 80 per cent) of the direct expenditure of the oil and gas companies goes to local suppliers. 

The ICV development strategy was announced at the conference, which was organised under the auspices of Eng. Ali bin Masoud Al Sunaidy, minister of commerce and industry.  

The initiatives have managed to constantly increase the employment of Omanis, especially within oil and gas companies and major service providers. The ICV blueprint strategy has been defined to address this opportunity progressively. A dedicated local workforce development programme has been defined based on the analysis of the industry demand. The programme's main objective is to develop the specialised workforce required by the industry for the period from 2013 to 2020. 

Jobs for Omanis
The programme, which was developed based on the analysis of 228 skills, will attend the short-term needs as well as preparing the future generation. 

Currently, the number of Omanis working for the oil and gas industry topped approximately 22,000 out of the total of 55,000. By 2020, the number of jobs required by the oil and gas industry will reach 72,704, which forms a significant opportunity for Omani employment.  

The analysis shows that the direct workforce of the oil and gas companies has the highest Omanisation levels, where 5,629 professionals out of 8,991 are Omanis. It is followed by the service provider workforce, where Omanis represent 59 per cent of the total service provider workforce. The construction sector is constrained by business challenges.

Beyond the analysis of the Omanisation levels, the study demonstrated that 82 per cent of oil and gas industry jobs are provided by service providers and the construction sector. 

Acknowledging the importance of expatriates in businesses, especially with regard to the technology transfer and business viability, the programme suggests educating and training 36,020 Omanis, representing mainly the semi-skilled and medium to high-end positions to fulfill the oil and gas industry demand.   

Also, analysis of the demand forecast of priority categories and the associated capacity and capability of the local supply market allowed the identification of 53 supply chain development opportunities, which are currently imported and identified as high potential to be carried out in Oman. They range from the creation, expansion or enhancement of industries, products or activities.


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