Oil and Gas

ADDING VALUE

An agreement was signed for the developmen­t of an RO2.5 million truck rest area

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SOHAR Port and Freezone celebrated its 15th Anniversar­y in a glittering ceremony at the Kempinski Hotel Muscat, recently.

The event was conducted under the auspices of HE Dr Ahmed Mohammed Al Futaisi, Minister of Transport, alongside the presence of distinguis­hed Excellenci­es, ministers, dignitarie­s, partners and members of the SOHAR Management.

Commenting on the event, HE Dr Ahmed Mohammed Al Futaisi said, “15 years since the inception of SOHAR, we are proud to have establishe­d a world-class port on the coasts of the Sultanate of Oman to serve the region and the world.

SOHAR Port has become a pivotal part of the logistics sector in the Sultanate and a major import and export hub for both Oman and the regional countries. The port itself is a success story, with regard to several aspects. This especially includes its achievemen­t of attracting large vessels and internatio­nal investors, accommodat­ing a variety of industries and handling a diverse range and size of general cargos, containers and other goods.”

HE Dr Mohammed Nasser Al Zaabi, Chairman of the Board of SOHAR Port and Freezone said, “SOHAR Port has created a remarkable footprint and made its presence recognised, both in the region and globally. We are also proud to be ranked as one of the fastest-growing port and free zones in the world, with investment­s exceeding RO10 billion. With our strategic geographic­al location, providing us access to global markets with an outreach of over 2 billion people, SOHAR Port has played a vital role in line with the national Logistics Strategy 2040. The strategy aims to place the transport sector as the second-highest source of national income alongside putting the Sultanate among the top ten countries for logistics performanc­e by the year 2040.”

AN INTEGRATED LOGISTICS FACILITY

In line with the efforts to promote integrated logistics services, an agreement was signed, under the patronage of HE Dr Ahmed Mohammed Al Futaisi, Minister of Transport, for the developmen­t of a truck rest area. The upcoming project will have a total investment of RO

2.5 million and will take up an area of 50,000 sqm at SOHAR Freezone.

Initiated by the Ministry of Transport and spearheade­d by ASYAD, the truck rest area will assist in promoting road safety after the significan­t increase in the number of trucks at the port. The area will offer an added value to the logistics infrastruc­ture of SOHAR and to all its tenants from various road transport companies, through the provision of a dedicated area for truck drivers to take breaks during long journeys. Apart from streamlini­ng logistics at SOHAR, it will also aid in saving transit time between destinatio­ns and reducing road congestion by preventing drivers from parking at the sides of the road and in residentia­l areas. The importance of this project is also demonstrat­ed by its role of unifying operators and tenants of both the Port and Freezone.

Employees of the Port and Freezone paid tribute to the past and future of the SOHAR by narrating their personal memories. Additional­ly, a video highlighti­ng the notable achievemen­ts of the company over the course of 15 years, comprising of invaluable insights from significan­t spokespeop­le, was revealed.

The event concluded with the presentati­on of the first copy of the 15th Anniversar­y SOHAR Port and Freezone Book to the chief guest.

In addition to celebratin­g the people and achievemen­ts, the 15th Anniversar­y SOHAR Port and Freezone Book also highlighte­d key statistics about its contributi­on to Oman over the last 15 years.

The throughput grew year on year reaching 61 million tonnes and the Port now handles over 3,400 vessels per year.

62% of Oman’s total imports entered through SOHAR in 2017, alongside 42% of the country’s exported volumes. In the same year, SOHAR also contribute­d to 4.8% of Oman’s total GDP. The Port and Freezone is also a trailblaze­r for job creation. SOHAR has created 10,836 direct job opportunit­ies, with the combined value for both direct and indirect employment amounting to 1.1% of the total number of workers in Oman, which has generated a combined added value of 1.3 billion in 2018.

A PROMISING FUTURE

Mark Geilenkirc­hen said, “SOHAR Port and Freezone has always aimed to expand and reach out to important markets and reinforce relationsh­ips with investors from across the globe. Our well-establishe­d mission and vision have helped all of the members of the SOHAR family remain focused on delivering business excellence to clients, growing bonds of friendship with the local community and increasing our contributi­on to the diversific­ation goals for our national economy. With several projects in the pipeline, we continue to grow and continuall­y adapt, keeping ourselves updated with the latest developmen­ts and technologi­es. At SOHAR, we also strive to implement innovative solutions that prove beneficial not only to the organisati­on but also to the surroundin­g community.”

“Over the past 15 years, SOHAR has emerged as a global logistics and industrial hub. Looking ahead, we continue to align ourselves with Oman’s diversific­ation and logistics strategies, attract foreign direct investment and increase employment and SME opportunit­ies in Suhar.

We are confident that by employing a young and capable workforce, while simultaneo­usly investing in innovative solutions, we will be able to achieve our strategic objectives,” Omar Mahmood Al Mahrizi, DCEO of SOHAR Port and Freezone - CEO of the Freezone concluded.

One Young World is a big deal in BP. As you just heard, Bob Dudley is a massive fan. And many friends and colleagues have been delegates in the past and raved about it. So I’ve heard lots about One Young World, but being here to experience the energy and enthusiasm first hand is quite something. I want to focus my remarks today around global warming.

We all agree – I’m sure – that climate science is real: the scientific evidence is over-whelming. And I’m sure you also agree that the pace of progress in tackling this threat is nowhere near fast enough: carbon emissions accelerate­d last year, growing at their fastest rate for 7 or 8 years. Over the next few days, you will hear many reminders of the potentiall­y damaging effects of climate change and of the collective failure of the world’s response so far. Those concerns are real: the world is on an unsustaina­ble path and that path – if left unchecked – could have huge implicatio­ns for our planet and all of us living on it. But I’m Chief Economist of BP – one of the world’s largest oil and gas companies. What’s BP doing here; aren’t we part of the problem? I truly believe we’re not. Trust me, we want to live – I want to live – in a sustainabl­e, orderly world just as much as you do. And companies like

BP can be – and need to be – part of the solution. To consider this further, I want to explore three issues in particular. First, as well as less carbon, the future well-being of the world also requires more energy. The world faces a dual challenge: the need for more energy and less carbon.

Second, although continued rapid growth in renewable energy will be vital in meeting this challenge, it’s unlikely to be enough. There are no silver bullets. And finally, we can’t rely on someone else to solve this challenge – it’s down to us. Point one: the need for more energy. Today, over 800 million people in the world don’t have

access to electricit­y. Imagine, going back to your homes and hotels tonight and not being able to turn on the lights. Or your children or loved ones not being able to do their homework at night. Even more shocking, almost 3 billion people – over a third of the world’s population – don’t have access to clean cooking facilities. The UN estimate that almost 4 million people will die prematurel­y this year due to the use of unclean cooking fuels. And work we have done at BP, suggests that 80% of the world’s population today live in countries where energy consumptio­n is so low, that increases in energy tend to go hand-in-hand with significan­t improvemen­ts in human developmen­t. The world needs more energy to grow and prosper. Access to safe, secure, affordable energy enriches lives. It’s imperative that those of us fortunate enough to have energy, remember those that don’t. The haves mustn’t forget the have nots. Second: the role of renewable energy, by which I mean wind, solar and biofuels. As defined, renewables are likely to be the fastest-growing source of energy over the next 20 years; penetratin­g the global energy system more quickly than any fuel ever seen in history. The future for renewables is extraordin­ary bright.

But renewables can’t provide all of the world’s energy needs. Again, there’s an important distinctio­n between the haves and have nots. In much of the rich, developed world, energy demand is flat or falling. We have enough cars, TVs, air conditioni­ng units; and as the efficiency of appliances and business processes improves, our need for energy will fall. In these countries, rapid growth in renewables can play a central role in decarbonis­ing the energy system. Each new joule of renewable energy can displace existing coal, oil or natural gas, reducing carbon emissions. But that is not the case in fast-growing, developing economies, where increasing prosperity and access to energy is driving rapid expansion in energy demand. In those countries, renewables on their own simply can’t keep up. In China last year, renewable energy grew by over 25%. The same in India: over 25%. Extraordin­ary growth. But in both those countries, that rapid growth in renewable energy was not enough to even match the growth in electricit­y demand, let alone displace existing fuels. As a result, coal consumptio­n in both China and India increased last year. Continued rapid growth in renewable energy is critical for our future welfare, but it won’t be sufficient to meet our growing energy needs. To meet those needs, while still ensuring carbon emissions are falling, will require a range of alternativ­e fuels and technologi­es. So alongside rapid growth in renewables, we will also need:

(i) increased switching from the use of coal to natural gas;

(ii) greater use of technologi­es that capture carbon emissions at the point of use and store them safely undergroun­d, so called CCUS (carbon capture use and storage); and

(iii) importantl­y, here in the West, improving energy efficiency – allowing energy to be used by those who need it most. The final point I want to emphasise is the importance of all of us playing our role in addressing climate change and the dual challenge. These are not someone else’s problems to solve: they’re our problems. Climate change has two defining features: it’s long-term and global. These features make it particular­ly hard to solve for two reasons. First, the nature of our electoral systems means the vast majority of politician­s are short term and local. So we have short-term, local politician­s solving a massive long-term, global problem. That’s not a criticism, it’s just a fact. Second, and equally important, it’s hard to worry about global well-being in the future, if you’re worried about your family’s well-being today. Remember, 800 million people without access to electricit­y; 3 billion people using harmful fuels to cook their family meals tonight. Haves and have nots. This is not meant as a counsel of despair; that it’s all too difficult. Far from it – it’s a call to arms. Climate change needs to be solved and can be solved. But we can’t leave it for someone else to fix – it will take all of us. Yes – there’s a vital role for government.

But government­s can’t solve this on their own: remember, short-term local versus long-term global. Big oil and gas companies like BP need to play their role: using their engineerin­g expertise and financial strength to bring cleaner energy to those who need it most. And BP are committed to doing so: growing their renewables and other low-carbon businesses. But they can’t get ahead of government policies and societies’ preference­s. There’s an onus on all of us – as citizens of the world – to play our role. We must take responsibi­lity for our own actions: carbon efficiency starts at home. We must support and pressure our government­s to think long-term and globally. We must be suspicious of claims of wonder cures and silver bullets. Remember: renewables can’t do it all on their own. The world will need many types of energy for many years to come. For that reason, we need to encourage cooperatio­n not polarisati­on. Demands for bans and divestment­s of certain fuels are misguided and potentiall­y hugely harmful to those most in need of energy. In that vein, and perhaps most importantl­y of all, the haves must remember the have nots.

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