Muscat – Petroleum Development Oman (PDO) announced during its bi-annual In-Country Value (ICV) Day, marking the 12th anniversary of its programme, that its ICV in Oman amounted to $2.5 billion in 2023, constituting 40% of the total expenditure on goods and services. Notably, $900 million was allocated for Small and Medium-sized Enterprises (SMEs), while national industries were allocated $422 million, benefiting 30 companies and factories in Oman. The event, organized under the auspices of H.E. Eng. Salem bin Nasser Al Aufi, Minister of Energy and Minerals, took place at the JW Marriott Hotel, with the presence of several officials from both the public and private sectors. This aligns with its efforts to support economic diversification policies, enrich local markets, empower SMEs, and strengthen national industries, while PDO recognized five companies with awards for their contributions to ICV. The outstanding commitment of multiple stakeholders from His Majesty’s Government, suppliers’ community, training institutes, academia, Local Community Contractors, and SMEs further underscored the significance of this ceremony.

In line with its commitment to excellence and responsible business conduct, PDO has demonstrated financial stewardship in 2023, the contributions have been fostered across four key pillars, with goods amounting to $492.8 million, workforce amounting to $869 million, investment totalling $52 million, and services amounting to $1,059.5 million.

By fostering community partnerships and empowering public contribution companies to operate within concession areas, PDO emphasizes the significance of local franchise companies, allocating a total expenditure of $687 million, benefiting 410 contractors and suppliers.

H.E Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, commended the efforts exerted by PDO in enhancing ICV, said: “We are pleased with the efforts demonstrated by PDO in achieving In-Country Value across various sectors, including the accomplishments attained in 2023, reflecting its national and social role in the country, which embodies the objectives of Oman Vision 2040 aimed at enhancing economic diversification policies, empowering entrepreneurship, and supporting Omani industries,” noting that “PDO possesses extensive experience in In-Country Value in the Sultanate of Oman, encompassing all legislative, regulatory, and executive aspects that have evolved over the past years.”

In addition to the EMDAD program, a platform is being launched for the reintegration and recycling of the national workforce. The platform is the first of its kind in this field and utilizes digital and artificial intelligence solutions.

Providing 1830 Opportunities in Contracted Companies

Amidst its pursuit of enhancing local content value, PDO marked numerous achievements in 2023, including the 28 KAFA’A training programs, benefiting 1000 engineers. Additionally, PDO awarded $3 billion value to 27 local companies and achieved a 62% Omanisation rate in its contractor workforce. PDO sought 11 opportunities in manufacturing, construction, and renewable energy, and created 1830 job opportunities for engineers, planners, and technicians. The substantial spends included $422 million on goods from 30 local manufacturers, and $900 million with over 400 SMEs.

Dr Aflah Al Hadhrami, PDO’s Managing Director, said: “Our celebration of In-Country Value Day serves as a milestone for evaluating past achievements. This day also marks a launch into broader horizons through intensified efforts – with various partners and entities – to enrich areas of In-Country Value, achieving the targets of Oman Vision 2040. It also aims to increase the energy sector’s contribution to the gross domestic product, meet the needs of local energy markets, and achieve sustainability in all its aspects. Furthermore, prioritizing In-Country Value is a translation of the company’s strategy and its national and social role, strengthening its partnerships with local communities.

Dr Aflah added: “2023 was a banner year for PDO and its valued partners across the full spectrum of the energy sector. For the first time in its history, PDO retained 40% of its total supply chain spend, an amount equal to $2.5 billion, of which nearly 20% or $900 million was channelled to SMEs and LCCs”.

First Master Program

With collaborative efforts, PDO cultivates ICV in the Sultanate of Oman by launching the first-ever master’s program in Business Administration for ICV in 2023, developed in partnership with SQU.

First Locally Manufactured Drilling Rig in Oman

In 2023, in collaboration with KCA Deutag, PDO inaugurated the first locally manufactured drilling rig in the Sultanate of Oman, highlighting the importance of strengthening and localizing domestic industries, particularly those supporting critical sectors such as oil and gas.

Announcement of the Five Winning Companies

As the main theme of ICV Day, PDO announced the five winners of its ICV Awards, honouring exceptional performance among PDO’s contractors and subcontractors across five award categories. The winners are: Cameron Services Middle East LLC (Best Local Manufacturing Facility); Oman Fiber Optic S.A.O.C (Best National Objectives Employer); Al Haditha Petroleum Services (Best Contractor in ICV Delivery); DOHAT AL KHALEEJ LLC (Best Performing Local Community Contractor); Rihal – Data Migration and Services LLC (Best Performing SME).

ICV Enabling ECO-System Initiative

During ICV Day, PDO signed a Memorandum of Collaboration (MoC) with several government and private entities to develop and implement the ICV enabling ECO-System initiative. The initiative, named the “MoC Agreement for ECO-System,” aims to address the key challenges facing local companies interested in investing in ICV, such as access to demand, infrastructure, finance, technology, and an enabling legislative framework. The system is designed to strengthen relationships aligned with public interest principles and foster collaboration between the public and private sectors.

The MoC was signed by Dr Aflah Al Hadhrami, PDO’s Managing Director, HH Sayyid Dr Fahd bin Al Julanda Al Said, Vice-Chancellor of Sultan Qaboos University, H.E. Abdullah bin Salem Al Salmi. Executive President of the Capital Market Authority, Eng. Ahmed bin Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones, Hamad bin Salem al Harthy, Acting CEO of Oman Development Bank, Dr Hamdan bin Sulaiman Al Fazari, Vice Chancellor of Sohar University, Majid Al Hinai, General Manager of Intaj Sohar, and Haitham Al Yaqoubi.

Employment Continues for Omanis with Expired Contracts

PDO announced two new initiatives aimed at ensuring the continued employment of Omanis whose employment contracts expire in the newly contracted companies.

It is worth noting that the company’s celebration of the ICV Day was a practical application of environmentally sustainable practices; it was the first event in the company that focused on environmentally friendly materials and products, embodying sustainability in all logistical aspects including venue selection, lighting quality, energy-efficient equipment, and waste management. Through these initiatives, the company aims to raise awareness of the importance of sustainable practices in society and provide simplified models for what can be followed in our daily lives; all while committing to achieve net-zero carbon emissions by 2050.