Greetings!
I am happy to present to you this inaugural edition of our Group’s very own online newsletter, aptly titled ‘Musharaka’ (meaning ‘partnership’ in Arabic).
Indeed, partnership and collaboration are the defining characteristics of Oman Oil Group’s growth strategy in the post-restructuring phase. Whether in our domestic and overseas investment, our funding requirements, the sourcing of technology and expertise, our human capital training and development strategies, our ICV and CSR programmes, you name it, we intend to join forces with industry leaders in the delivery of our strategic and corporate goals.
As you are aware, the reorganization of Oman Oil Group was necessitated by the downturn unleashed by the slump in international oil prices in 2014. In the upshot, we have inherited a well-streamlined organizational structure infused by a common mission – to maximize value generation from our natural resources in support of the nation’s socioeconomic development.
Oman Oil Group is presently organized into three distinct business streams: (i) the Upstream segment groups all of our Oil & Gas exploration and production assets located within and outside Oman, (ii) the Midstream segment, led by Oman Gas Company, groups our current and future investments in gas transmission and processing capacity, pipelines and storage infrastructure, and conventional and renewable power generation; (iii) Falling within the Downstream segment are the Group’s refining and petrochemicals businesses, including the Duqm Refinery and Petrochemicals Complex.
Our investments are not only distributed across the hydrocarbon value chain, but geographically as well along the length and breadth of Oman. Today, we have projects as far afield as Musandam in the far north of the country, and stretching all the way to Salalah in the south. Indeed, the Group’s countrywide presence is a subject of great pride for us. Around 70 percent of our portfolio has been invested in Oman – a testament to our commitment to creating employment opportunities for nationals and fuelling economic growth around the country. Our investments in Sohar, Sur, Duqm and Salalah have anchored the growth of industrial and economic hubs.
Going forward, we see ourselves catalysing inward investment through potential partnerships with major international players. The goal is to attract leading players who will help in maximising value creation all along the hydrocarbon value chain.
At the same time, we intend to intensify our efforts in developing the skills and capabilities of Omani nationals and prepare them for employment either within our businesses or elsewhere within Oman’s energy sector. Our human capital development arm, Takatuf, has already delivered a unique oil and gas training facility, known as instOG, in partnership with a leading oilfield service provider. A second institution, known as ‘TPO’, will be launched soon – again the product of collaboration with a prominent oilfield services contractor. Both facilities demonstrate what can be achieved via collaboration with industry leaders.
Along with human capital development, we wish to unlock business opportunities for Omani SMEs, and explore initiatives that will spur the inflow of capital and investment into the local economy. A remarkable 37 per cent of our total spend in 2017 was captured and retained in-country. Likewise, our very busy CSR programmes have benefited around 88,000 people via the implementation of 106 initiatives and projects.
The ongoing downturn notwithstanding, we envision a promising future as we commence a new phase in our journey as an integrated energy company. I invite every one of you to play an enthusiastic and energetic part in this challenging, yet exciting, chapter in our growth.
Isam Al Zadjali