MUSCAT, DEC 25 - Oman’s Ministry of Oil and Gas has urged operators and contractors to continue their successful collaboration in the coming year, reprising a partnership that has helped the industry collectively overcome multifaceted challenges during 2018 — a legacy of the global oil price downturn that began in 2014. The Ministry’s Under-Secretary Salim bin Nasser al Aufi lavished praise on the industry for pulling together on key issues of national and strategic interest despite the intense competition and pain inflicted by the tough fiscal environment on individual players and stakeholders.
He paid tribute to local and international players alike, applauding them for surmounting their corporate self-interests when called upon to join hands and strengthen the overall well-being of the industry — a trait that sets Oman’s oil and gas sector from its GCC peers, he noted.
“What makes the business environment here different — at least from the rest of the GCC countries — is the fact we have a very strong contribution from internationals, as well as from local companies,” said Al Aufi. “The wealth of experience and exchange is making this industry completely different. While companies may compete with each other on manpower and so on, when it comes to addressing a specific challenge, it’s all hands on deck — whether it’s In-Country Value (ICV), safety, or any other standard, everybody is aligned. We don’t let our differences get in the way, and I think that’s an extremely strong selling point in this industry.”
The official made the comments during a recent panel discussion featuring CEOs of a number of oil and gas producers operating in the Sultanate. The event was hosted by the Oman Society for Petroleum Services (OPAL).
The prevailing spirit of cooperation that has underpinned the oil and gas industry despite the economic challenges has earned it the respect of other economic sectors, said the under-secretary.
“We are seen by our peers here in Oman that we are a leading industry,” he remarked. “We were able to stand against a very low oil price, which was impacting us directly. That’s because we worked very well with the contracting community. Everybody understands and appreciates that in difficult times we work together, and when things are good we share whatever is good. But when it’s really difficult, we drop the competition and our differences and work together. At the ministry, we are extremely privileged; it makes our life in the ministry extremely easy. I would really like to see this spirit, this work environment, continue!”
The official warned that 2019 was unlikely to be “less challenging” than the current year. Among the challenges that the industry would have to continue to shoulder is the national objective of employment generation for Omani cadres. Much of the job creation, he said, would have to come from contractors and service providers, as well as the downstream industry, where the more meaningful jobs are expected to originate.
In this regard, he called on individual companies to plan and prepare for their new Omani hires by scouting for the talent they want. For its part, the authorities would support this effort with funding support for training.
The impact of technological advancements on the workplace is another challenge that the oil and gas sector will have to countenance, said the under-secretary.
“The drive for efficiency in a $40/barrel world is not impacting the workforce, rather it’s driving the embrace of the 4th Industrial Revolution and digitalisation, and with them the question of what new skills will be required, what skills are becoming redundant, how do we upskill and train the newcomers, and so on,” he added.
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