Four major oil and gas companies in Oman join hands for ICV

September 03, 2019

Four major oil and gas companies in Oman have joined forces to boost the level of Omanisation in key maintenance work on their facilities.

Petroleum Development Oman (PDO), Oman Shell, Oman LNG and the Oman Oil-Orpic Group signed a memorandum of understanding (MoU) on Monday committing the operators to collaborate on developing a self-sustaining business model for the turnaround activities of oil and gas installations.

The five-year MoU was signed during the World Heavy Oil Congress & Exhibition held under the auspices of H E Salim bin Nasser al Aufi, Undersecretary of the Ministry of Oil and Gas, at the Oman Convention and Exhibition Centre.

PDO managing director Raoul Restucci said, “The Turnaround project is a great example of key operators, covering the full spectrum of up/mid and downstream operations in Oman’s oil and gas industry, working collaboratively together to deliver In-Country Value (ICV).”

“The project will deliver key and fundamental skills and services in Oman by Omanis. By integrating and synchronising our major facility shutdown and maintenance plans, we have secured the scale, scope and continuity of work that will enable us all to develop and deploy Omani talent in a cost-effective and sustainable manner within and beyond our industry.”

A turnaround entails the shutdown of a plant for a period of time for maintenance, refitting and inspection purposes before it is brought back on stream.

The total workforce for a 20-day turnaround can reach up to 800-900 people with major shutdowns involving 1,200 or more depending on the size and complexity of a plant.

However, it is believed that aggregating the demand from the four oil and gas companies and providing consistent and continuous work will encourage the localisation of turnaround services and increase Omanisation levels.

A joint working group and a taskforce have been established to build alignment, develop its scope and set future actions. The ultimate goal is to increase Omanisation in the Turnaround Execution Workforce (TEW), with potential for future expansion in other activities based upon the success of the new initiative.

Walid Hadi, vice president of Oman Shell said, “We are honoured to collaborate with PDO, Oman Oil - Orpic Group, Oman LNG and the local turnaround companies in the creation of a turnaround business model with a significantly Omanised workforce.”

Head of procurement contracts and inventory at the Oman Oil and Orpic Group, Ahmed al Azkawi said, “Demand aggregation among operators marks the beginning of strong collaboration in the oil and gas sector to create sustainable opportunities for contractors to increase their Omanisation rates and ICV content. Through this collaboration, we also hope to replicate demand aggregation in other areas to create more ICV opportunities.”

Harib al Kitani, CEO Oman LNG, said, “We are delighted to partner with our industry peers for the benefit of our country. Such synergy in turnaround activities does not only supports the national economy by sustaining this service in country, but also develops Omani talent to deliver very specialised and complex jobs in this vibrant industry.”