The oil and gas sector in Oman has higher added value for the economy of the country. It is a major source of national income with 74 per cent of the revenue coming to the state coffers through this source. This is as stated in the state budget for the fiscal year 2019. This volume is more than 37 per cent of the GDP. It contributes 40 per cent of the local value addition of the markets by its investments at various levels and of multiple types. This is the best economic sector of the country in terms of attracting national work force.
Some companies in this sector are aggressively involved in works as part of their social responsibility. These oil and gas companies must educate the public of the social services done by them. This is very important to dispel misunderstanding among people about their contribution to the society. These companies are doing vital job for the social development of the local population.
The oil and gas sector is crucial for the national economy as it touches all aspects of life in the country through its achievements. All efforts are being made to keep this sector vibrant. To achieve this objective, there are investments from local and foreign companies as well as public and private sectors. All this is done so that the aspirations of the country are addressed and achieved.
The total oil reserves of 4,791 million barrels in 2017 has increased by around 51 million barrels in 2018. Similarly, the gas reserves has also gone up to approximately 24.65 trillion cubic feet.
There is also increase in spending on exploration, production and improvement of oil and gas to $11.75 billion, of which 69 per cent is capital expenditure on drilling and 31 per cent is the continuous operational cost. All these figures prove that the efforts made to make this sector vibrant were successful. This is because this sector is important in the short-term as well as long-term. This sector which helps in meeting the costs of government plans for diversification of the sources of national income. This will continue to support the national treasury.
The oil and gas sector has always felt its responsibility to employ Omanis. This is the best sector in terms of employment of the national workforce. It abides by all rules and regulations of employment. This has become an example for skill development of Omanis as well as for the implementation of Omanisation policy.
Despite the nature of work in this sector and the skills and accuracy required for it, this sector has achieved 82 per cent Omanisation. This is a clear indication, that this sector gives priority to national commitments above any other consideration. This spirit is also visible when it deals with contractors and sub-contractors.
In terms of social corporate responsibility, the oil and gas sector is on the top. It is supporting the social development causes and is providing investments for sustainable projects at all levels. There are two pioneering companies in the sector which are also leaders in social corporate responsibility. They are Petroleum Development Oman and Oman LNG. These two have achieved international acclaim for their contribution to the society. They have got international awards also in the area.
This oil and gas sector has also taken care of health and safety of its workers and implemented all norms. According to the assessment results, the volume of work reached 316 million working hours in 2018, which was 14 million hours less than in 2017. The sector is very transparent and does not hide cases of deaths during working hours. There were three deaths due to failure in the occupational safety norms in 2018, as well as there were 30 road accidents in the year, compared with 57 road accidents of 2017.
In view of all these achievements made by this sector, the next stage demands that its added value is strengthened and highlighted. It will create a balance in public opinion and remove misunderstandings. The focus on creating awareness about this aspect of the services of the oil and gas sector is equally important as its and
revenue. There are wonderful examples set by this sector.
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