1. Oman Economic Forum In-Country Value Ministry of Oil and Gas
ICV Development in the Oil and Gas Industry
Oman Economic Forum
23rd March 2016

2. Agenda ICV Mission and Strategy Statement
ICV Achievement example from Operators
Industry support to SMEs/Local Companies
Strategies under assessment
Q & A

3. 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”

4. Developing a competitive and sustainable
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.
As the O & G Industry , we committed to develop an Oil and Gas ICV Blueprint Strategy and we appointed a major International Management Consultancy to do this for us
Our Mission and Strategy require no further explanation and believe me we are working towards these.
Yes we do have issue which we come across along the way, but in the vast majority of cases , these are resolved in the true collaborative spirit of our unique ICV approach and on the odd occasion that something cannot be resolved there is an escalation process to ensure the issue is resolved forth with
Omanisation of skilled workforce
Increasing In-Country spend on goods and services

5. ICV Road map 2020
The ICV development blueprint strategy takes the form of a 4-stage roadmap with specific targets for ICV retention, job creation and local workforce development.

6. The 7 ICV Elements with their sub-elements that makes the overall ICV
Contract Related ICV
Non-Contract related, long term

7. Example 1: Using 60% of company spent in 2014 the ICV before and after adjustment using assumptions

8. Example 2 : ICV Retained per category: Higher ICV on the Labor intensive categories compared to the capital intensive categories

9. Example 2 continued: ICV Breakdown per Category, the more labor intensive category is the higher the ICV

10. 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.

11. Omani companies effectively diversifying into Oil & Gas Operating Companies by competitively and successfully acquiring concession blocks within the Sultanate.
OOCEP Block 42, 60
Daleel Petroleum Block 5
Petrogas Block 55
Intaj LLC Block 56
Hydrocarbon Finder LLC Block 7

12. Strategies under assessment
Local Business Development
Introducing Ring-Fencing Concept
Vender Development Program
Short 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.
Long Term Objectives:
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:
Definition of Local Vendors.
Ownership / Equity Percentage.
Nature of Business.
Market Share.
Techno-commercial Evaluation.
ICV Potential.

13. Thank you
Thank You

14. Backup Slides

15. 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.

16. 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.