1. SME Opportunities

2. Orpic’s achievements are a result of the efforts and commitment of our 2,000 employees, located across our four operational plants in the Sultanate.
We are working together to meet Oman’s needs for refined petroleum fuels:
Increasing the value that can be derived from Omani crude oil and natural gas, and
Subsequently improving Orpic’s product mix and business model.
Vision
Mission
Build an Omani integrated refining and petrochemical business we are proud of.
To meet Oman’s needs for refined petroleum fuels and maximize long term returns by processing hydrocarbons to high value petroleum and petrochemical product.

3. Core Values We put safety and the environment first
We bring the potential of our people alive
We aim for leading performance
We serve Oman with pride
Ladies and Gentlemen,
At Orpic, we have a unique way of working, with strong principles that guide us to achieve our targets. We refer to these as our core values.
These are the ways we choose to work, the ways we choose to achieve success.
Our Core Values support us in achieving our short and long term mission and vision - such as putting safety and environment first.
We harness the potential of our people – aiming for leading performance, and serving Oman with pride.
I will explain more in the coming slides

4. Orpic – The journey so far
Orpic was officially inaugurated by His Majesty Sultan Qaboos bin Said in
Today it is Oman’s largest and most rapidly growing businesses in the Middle East oil industry.
It has Refineries in Sohar and Muscat, as well as the aromatics and polypropylene production plants in Sohar, provide fuel, chemicals, plastics and other petroleum products, to Oman and the world.
- We truly believe in Serving Oman with pride.

5. LPG to fill in 33,000 cylinders Jet Fuel to fill in 125 planes
Orpic in a day
Petrochemicals
Fuels
LPG to fill in 33, cylinders
For more than 150 years, petroleum products have been transforming our way of life.
Orpic is working to deliver high value products – building a company which the nation is proud of.
2500 MT of
Paraxylene
Diesel to fill in 15,000
trucks
600 MT of
Benzene
Gasoline to fill in 160,000
cars
Oil is fundamental to almost every aspect of modern life.
In Oman, over the past 33 years, we have been unlocking value from crude oil locally through few key products.
In addition to producing gasoline and other transportation fuels, oil is used to make more than 2500 products essential to the way we live - everything from our life-saving medical equipment to the plastics used in computers and cell phones.
Oman Oil and condensate production just under 1mn bbls/day compared to global daily production of around 90 mn bbls/day.
Around 95% of global oil production gets converted to various types of fuels while only 5% is converted to petrochemical products.
1000 MT of
Polypropylene
Jet Fuel to fill in 125 planes

6. Creating Value
We want to effectively contribute to the development of the local communities by creating new jobs, growing perspectives to our employees and a set of new business opportunities that local companies can take positive advantage of it.
Job Generation
Up to 20,000 FTE’s during construction
750 Operators and Technicians required
12000 indirect jobs estimated through contractors and sub-contractors
In-Country Value
ICV is a cornerstone of the project
Generation of new opportunities for local companies in civil construction, engineering, fabrication, IT, transportation of heavy machinery, accomodation, catering, cleaning, etc.
Environmentally Clean Operations
Investment in our Environmental Improvement Plan and the best available technology to preserve the environment
We want to effectively contribute to the development of the local communities by looking after the environment, creating new jobs, and growing new business opportunities that local companies can take positive advantage of it.
We are committed to delivering Environmentally Clean Operations and our Environmental Improvement Plan – a framework for Orpic’s overriding commitment to environmental responsibility, which is supported by the Ministry of Environment and Climate Affairs and and Sohar Environmental Unit
We aspire to a sustainable future where we could expand our business to meet the growing needs of the region and sector, while improving the environmental performance of our operations.
Capability building is a challenge in any organization, however for us to grow our business and grow our capacity to meet the needs of Oman and international markets, we need to make sure we have competent and capable individuals and teams in place who have the right attitude, are accountable for their deliverables to work collaboratively and provide timely, quality services to their clients.
Our projects will result in significant Job Generation.
The construction phase of LPIC will require up to 20,000 Full Time Equivalents (FTEs).
The indirect employment effect is expected to create more than 1,200 jobs in the local area.
Orpic employs over 2000 staff of which 73% are Omanis. Omani staff occupy various operational, technical and support function positions, with varying seniority levels.
And finally, we are creating value through a very significant focus on ICV.

7. In Country Value
Clearly defined Front End targets based on Orpic long term business and growth strategy
Establishment of an internal ICV department
Gradual enforcement process
Actual economic value retained
Mandatory requirement > USD 1 Mn
Competitive and transparent bidding process
Agile and dynamic project management approach
Tailored metrics and back to back KPIs
In Country Value is an integral part of Orpic’s growth strategy and substantial local business participation has been written into the projects.
Orpic fully supports the national ICV program and our plan is to maximize our ICV contribution within the US$ 6.5 billion capital projects planned for our operational units in the next four years.
As part of the strategy, all the EPC packages shall have a minimum of 10% of the total value dedicated to in-country value development.
Orpic Growth Projects will have immediate commercial benefits brings to the business, it will have impact in other areas 300 direct, permanent jobs will be created by within the projects, as well as around 2,400 Omani contract roles over the project lifetime.
In the region of 900 indirect jobs will be generated by multiplier effects of LPIC, and SRIP will have on local economy.

8. In Country Value In-country value SME Opportunities
Orpic fully supports the national ICV program and our plan is maximize our ICV contribution within the USD 7 Bn capital projects planned to our operational units in the next four years.
As part of the strategy, all the EPC packages shall have a minimum of 25% of the total value dedicated to in-country value investments.
SME Opportunities
Civil construction materials: cement blocks,
reinforced steel
Electrical materials: cables, transformers,
switchgear panels
Mechanical equipment's
Lifting equipment rental: cranes, forklifts
Fabrication shops
Radiographic tests for piping
Soil Investigation
Catering/accommodation services for
contractor employees
Scaffolding
Orpic’s socio-economic impact has been notable. An independent socio economic impact study was commissioned by Orpic to ascertain Orpic’s current total impact across GDP, employment creation, and trade surplus, to identify opportunities for further improvement and forecast impact upon commissioning of strategic growth projects.
In terms of GDP, Orpic currently contributes on average USD4.2 billion per year to Oman’s GDP which is equivalent to ~5% of total annual GDP. Upon commissioning of all growth projects in 2018, this number is forecast to increase USD6.5 billion per year to Oman’s economy.
In terms of employment, Orpic currently employs around 2000 people. An estimated 1235 additional jobs will be of which 75% will be Omanised.
The growth projects will further promote opportunities for small to medium enterprises, which will also have a positive impact on the In-Country Value being generated by Orpic.
Orpic’s culture is built upon its commitments to serve Oman and be a socially responsible corporate citizen.
Orpic, through its strategic growth projects, will maximize added value to Oman’s economy through the monetization of streams previously unused or burnt as power – facilitating employment generation and enabling production of plastics.

9. SME support
To develop vendors in order to participate in the high value contracts
Manufacturing of wooden pallets
Guided in various quality / HSE and fabrication related areas for supplying underground double wall Vessels 50 m3 /each for the first time in Oman
Fabrication of structures and vessels
Support setting up quality manuals, procedures and obtaining approval for such engineering business
Fabrication , blasting and painting of structural steel items
Improvement on Orpic’s YTD target for awarding contracts to SMEs - achieved 14% out of 1,800 tenders
Promotion of Ring Fencing for SME’s, Local or Omani Companies within our pre-tender process
Ongoing assistance provided to Local suppliers to ensure positive experience with Orpic

10. Projects Orpic SRIP MSPP LPIC In progress Roadshows
One-to-one meetings
Business opportunities
USD 400 Mn for local suppliers
Orpic
2016 – 2020
Early involvement
Workshops
Inter-bidding
Planned for 25% min as ICV
maximizing SMEs shares
Corporate Planning

11. ICV Support SRIP MSPP CMEI/MEI Works
Supply of GRP Fittings, Flangers
CMEI/MEI Works
Civil & underground Piping Works, Site preparation & traffic diversion works
Supply of Cables
Fabrication of pressure vessels, fibre optical cable
SRIP
Engineering, Procurement & Construction of Muscat Sohar Product Pipeline
18” pipeline construction subcontract was awarded to local construction company
Porta cabins ordered to local port cabin manufacturing company
MSPP
Orpic has lent its support to several SME’s across its projects.
We firmly believe in the ICV proposition and have created a comprehensive process to mentor, support ands award contracts locally

12. Develop & Support Systems
ICV-The Orpic Way
Building SME Data Base
Ring Fence Tenders
Develop & Support Systems
Building SME Data Base: This is a key ingredient because it would be difficult to function without having a firm database of companies offering specialized services.
Develop & Support System: At Orpic, we not only support SME’s but also actively help in nurturing and developing their capabilities. The SME sector is fairly nascent in Oman and hence might currently not possess the expertise required. One of our endeavours is to work together and build a solid base of skilled expertise and capabilities.
Ring Fence Tenders: it is crucial to ring fence tenders so that SME’s can further enhance their own capabilities by competing with each other.

13. Transparent Procurement Process
Vendor Symposiums organized annually
Open tenders published on Orpic’s website
Annual Supplier Performance appraisal with feedback sessions
Development of Supplier Guidelines
Establishment of a supplier complaint mechanism to manage and treat any aberration that is not in accordance with Orpic standards
The socio economic impact has been notable:
Orpic’s investments impact Oman’s economy in various ways:
Directly, via business operations and strategic wth projects that impact GDP through the payment of profits and salaries, and employment opportunities for individuals.
Indirectly, via supply of goods and services such as raw materials, and employment of local vendors and suppliers.

14. Tenders Tenders Website (Transparency / equal opportunities)
Clarification & Feedback
SMEs Share targeting 10%
Ring Fencing: (Scope & Tenders)
ICV for all tenders ≥ USD 1 Mn
10% Price preference on Omani products

15. Key Important Messages
Entrepreneurship
Communication
Orpic website
Build technical skills
Projects
Opportunities
Manufacturing
Corporate Planning

16. We serve Oman with Pride
We serve Oman with pride. We recognise and respect our responsibilities to our nation, people and our communities. Our products keep Oman`s people and its industries moving.
At the same time, we aim to be a good neighbour, creating sustainable development in the communities in which we operate.
Everything we do, we do it proudly, and we aim to support local social and economic development initiatives through our CSR foundation known as Jusoor, and our External Relations Services department.
We are an ambitious company that aims for excellence in all aspects of our operations. We want to be a leading performer in Oman and in our industry, expanding our business into the future.

17. Shukran