In-Country Value
Ministry of Oil and Gas
ICV Development in the Oil and Gas Industry
Oman Economic Forum
23rd March 2016
Agenda
1. ICV Mission and Strategy Statement
2. ICV Achievement example from Operators
3. Industry support to SMEs/Local Companies
4. Strategies under assessment
5. Q & A
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In Country Value is simply putting HM’s words into action
In Country Value (ICV)
Simply: “Products made and services
provided by Omani in Oman”
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An oil and gas industry ICV mission and strategy
To coordinate oil and gas industry ICV agenda
Oman Oil and Gas ICV Mission:
Developing a competitive and sustainable
local supply market: goods, services and skills...
TOGETHER!
Oman Oil and Gas ICV Strategy:
Leveraging the oil and gas industry collaborative efforts
to progressively and effectively develop the Omani
supply market and enhance the ICV development
environment.
•Omanisation of skilled workforce
•Increasing In-Country spend on goods and services
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ICV
map 2020 blueprint strategy takes the form of a 4-stage roadmap
TheRoad
ICV development
with specific targets for ICV retention, job creation and local workforce
development.
Think ICV ……… Think Oman
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The 7 ICV Elements with their sub-elements that makes the overall ICV
Contract Related ICV
Non-Contract related, long
term
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Example 1: Using 60% of company spent in 2014 the ICV before and after
adjustment using assumptions
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Example 2 : ICV Retained per category: Higher ICV on the Labor intensive
categories compared to the capital intensive categories
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Example 2 continued: ICV Breakdown per Category, the more labor intensive
category is the higher the ICV
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Industry support to SMEs/Local Companies
Many of the local companies that has been developed by the industry are now
working across many sectors in Oman and competing regionally and internationally.
The Hormuz 45 and Hormuz 5,
representing Made in Oman
Wireline units manufactured by
RAY International Oil & Gas
Drilformance, the first Omani
Drill Bit Manufacturing Company
located in Al Jifnain, which was
established in 2013.
Locally manufactured skids by
STS via its manufacturing facility
located in Nizwa.
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Omani companies effectively diversifying into Oil & Gas Operating Companies by
competitively and successfully acquiring concession blocks within the Sultanate.
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OOCEP Block 42, 60
Daleel Petroleum Block 5
Petrogas Block 55
Intaj LLC Block 56
Hydrocarbon Finder LLC Block 7
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Strategies under assessment
Local Business Development
Introducing Ring-Fencing Concept
Vender Development Program
Short Term Objectives:
Long Term Objectives:
• Supporting under utilized existing local vendors based on
Identified Categories.
• Sustainable and competitive local market capable of
supplying quality Goods and delivering of professional
services to local, regional, and international markets.
• Establishing a unified approach for the industry in terms of
processes and procedures to develop local vendors for the
industry.
• Continuing business improvement.
• Enhancing and Introducing New Technologies.
Key Drivers and Target Criteria Analysis Includes:
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Definition of Local Vendors.
Ownership / Equity Percentage.
Nature of Business.
Market Share.
Techno-commercial Evaluation.
ICV Potential.
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Thank you
Thank You
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Backup Slides
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Monitoring & reporting System / MOG Dashboard
A standardised and industry-wide ICV Monitoring and Reporting System to be
deployed by all Oil & Gas Operators.
This system will provide an effective support in assessing the ICV performance
throughout the value chain, while identifying specific areas of strengths and
shortcomings leading to pragmatic and coordinated efforts aimed at retaining
and enhancing the ICV in the industry.
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• Unified registration system for oil & Gas sector Operators / suppliers
• A Single Window Registration System for both Local & International Suppliers
• The National objective of bringing all Omani Companies (SMEs and Large)
onboard one common B2B Platform.
• Drives the In-Country Value initiatives of Oman’s Oil & Gas Industry.
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