MAY 15, 2024

PDO invests $2.5 billion towards In-Country Value initiatives in 2023

MUSCAT: Petroleum Development Oman (PDO), the country's largest producer of oil and gas, stands out as a beacon of commitment to promoting In-Country Value (ICV) in the Sultanate of Oman. In 2023, PDO made a significant investment of $2.5 billion towards ICV initiatives, representing a substantial 40% of its total supply chain expenditure. This substantial investment was strategically allocated across various sectors to maximise its impact on the local economy.

One of the key focuses of PDO's ICV programme in 2023 was supporting Small and Medium-sized Enterprises (SMEs) in Oman. An impressive $900 million was earmarked for SMEs, reflecting PDO's commitment to fostering entrepreneurship and supporting local businesses. Furthermore, PDO directed $422 million towards goods sourced from 30 local manufacturers. By prioritising local procurement, PDO contributes to the growth and sustainability of Omani industries, ensuring a vibrant and competitive market for domestic manufacturers. This approach not only enhances the resilience of local supply chains but also strengthens the overall economic landscape of Oman.

In its quest to empower communities and promote inclusive growth, PDO allocated $687 million towards supporting 410 Super Local Community Contractors (SLCCs) and Local Community Contractors (LCCs). By engaging with these local contractors, PDO not only stimulates economic activity in various regions but also fosters a sense of ownership and pride among community members.

The efforts of PDO in driving ICV were celebrated during the bi-annual ICV Day, a testament to the company's dedication to elevating Oman's economic landscape. The event, marking the 12th anniversary of the programme, was held at the JW Marriott Hotel under the auspices of Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals.

At the core of PDO's ICV strategy is a commitment to excellence and responsible business practices. The company's investments in goods, the workforce, infrastructure, and services reflect a holistic approach to value creation that goes beyond monetary figures. By nurturing a culture of transparency, accountability, and ethical conduct, PDO sets a benchmark for corporate stewardship in Oman's business landscape.

Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, lauded PDO's efforts in enhancing ICV and its alignment with Oman Vision 2040. The Minister emphasised the importance of PDO's contributions to economic diversification, entrepreneurship, and industry development within the Sultanate. PDO's holistic approach to ICV encompasses legislative, regulatory, and executive dimensions, reflecting a comprehensive strategy for sustainable growth.

In addition to its financial investments, PDO places a strong emphasis on community partnerships and capacity building. The company created 1830 job opportunities for Omani engineers, planners, and technicians in 2023, underscoring its commitment to nurturing local talent and fostering skills development. By launching 28 KAFA'A training programmes benefiting 1000 engineers, PDO not only invests in the present workforce but also in the future leaders of Oman's energy sector.

Dr Aflah al Hadhrami, PDO’s Managing Director, emphasised the alignment of ICV initiatives with Oman Vision 2040 goals. These efforts not only enhance the energy sector’s contribution to the GDP but also promote sustainability and support local communities.

Taking its commitment to excellence a step further, PDO introduced the first-ever Master's programme in Business Administration for ICV in collaboration with Sultan Qaboos University. This pioneering initiative aims to equip future leaders with the knowledge and skills needed to drive sustainable growth and innovation within the GCC region. By investing in human capital development, PDO cements its legacy as a champion of knowledge and expertise in the energy sector.

Moreover, PDO's collaboration with KCA Deutag to inaugurate the first locally manufactured drilling rig in Oman symbolises the company's dedication to localisation and industry development. By supporting local industries that cater to vital sectors such as oil and gas, PDO contributes to the long-term sustainability and competitiveness of Oman's economy. This milestone not only showcases the technical capabilities of local industries but also underscores the importance of fostering a self-reliant and resilient industrial base.

As the main highlight of ICV Day, PDO announced the winners of the ICV Awards, recognising exceptional performance among its contractors. The winners in various categories included Cameron Services Middle East LLC, Oman Fiber Optic SAOC, Al Haditha Petroleum Services, Dohat Al Khaleej LLC, and Rihal - Data Migration and Services LLC.

During ICV Day, PDO also signed a Memorandum of Collaboration with key government and private entities to develop the ICV enabling ecosystem initiative. This collaborative effort aims to address the challenges faced by local companies interested in investing in ICV, providing access to demand, infrastructure, finance, technology, and a supportive legislative framework. By strengthening relationships between the public and private sectors, PDO builds a foundation for sustainable growth and innovation within the Sultanate of Oman, fostering an ecosystem that nurtures innovation, entrepreneurship, and sustainable development.

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