Oman energy sector’s ICV spend balloons in 2017

Examples include rig construction, drilling and stimulation, road laying, construction of work camp facilities and pipelines.

In the second half of 2017, local companies were awarded contracts totalling around $170 million in value. Third party ICV spend in 2017 grew to over 40 per cent, up from 35 per cent in 2016.

“Omani companies will continue to be involved as the Khazzan development progresses and a Vendor Development Programme is in place the aid the process of tendering,” the company said.

Occidental Oman said the ICV spend by contractors was 35 per cent in 2017, compared to 31 per cent in 2015. As part of its ICV strategy, the company is supporting the growth of Omani SMES that demonstrate high potential for maximising ICV and job creation, it said.

Oxy’s SME Development Programme, launched in 2013, has supported the growth of a number of SMES specialising in the manufacture and supply of oilfield equipment and services. As of Q3 2017, the programme included 150 Omani participants.

“Overall, the participants achieved up to a 277 per cent total increase in contract value, reaching a comprehensive total increase of $132 million,” the company stated. It is also supporting the development of a fifth Super Local Community Contractor (SLCC), named Al Khazain, with 1200 shareholders from its Mukhaizna concession.