Oman inks $172.5 million in contracts to boost local content
Published: 02:09 PM,Sep 22,2024 | EDITED : 06:09 PM,Sep 22,2024
The agreements cover a range of fields including construction, services, and manufacturing, with mandatory provisions for spending with local SMEs and commitments to Omanisation.
MUSCAT: The Ministry of Energy and Minerals has signed contracts worth over $172.5 million as part of the newly launched 'Majd' programme. The agreements, inked during the programme’s launch ceremony, cover a range of fields including construction, services, and manufacturing, with mandatory provisions for spending with local small and medium-sized enterprises (SMEs) and commitments to Omanisation.
These contracts reflect Oman’s strategic commitment to boosting local capabilities, reducing reliance on imports, and supporting economic diversification. Nama Services Dhofar signed a major contract with Galfar Engineering and Construction Services to develop a water treatment plant, marking a crucial step in enhancing local manufacturing and service capabilities.
OQ Exploration and Production also signed an agreement with Jalmood National Company for integrated drilling and development services, further underscoring efforts to localise the energy sector’s supply chain.
Petroleum Development Oman sealed three supply agreements with local manufacturers, including Spira Sealants Factory and Gulf Sealants Factory, alongside a contract to supply industrial stabilisers from Gulf Stabilisers and Steel Industries Company.
These deals highlight ongoing efforts to develop industries that produce essential products for oil and gas operations, aligning with Oman’s broader strategy to enhance local content.
Occidental Oman also signed a contract to source reinforced thermoplastic pipes from Duqm Hong Tong Factory, demonstrating the success of local manufacturing initiatives. This agreement showcases the sector’s commitment to localising industries and reflects the alignment with the Majd programme’s goals.
Other notable agreements include Daleel Petroleum’s well lifting services contract with Al-Nujum Professional Energy Services Company, a firm staffed entirely by local competencies, highlighting the tangible development of local technical capabilities.
Nama Water Services Company signed a wide-ranging maintenance contract with Al Ansi Trading and Contracting Company to manage water networks across multiple governorates. This contract includes construction, rehabilitation, and fault repair services, demonstrating the government’s focus on enhancing local capabilities through strategic partnerships with local firms.
Additionally, Occidental Oman signed a contract with Al Aman Al Awal Company to monitor and treat leaks in treatment and collection facilities, reflecting the commitment to developing local service providers.
The agreements also extend to training and employment initiatives, with Petroleum Development Oman and the Oman Energy Association (OPAL) signing contracts expected to provide at least 380 job and training opportunities for Omani graduates. These programmes aim to build a national workforce equipped with the skills needed to meet the demands of the energy sector. BP Oman also renewed its commitment to the Ruwad Programme, in collaboration with multiple energy companies, to further prepare graduates for the labor market.
These agreements are part of Oman’s broader efforts to localise industries, develop national talent, and support economic diversification in line with Vision 2040. The contracts signed under the Majd programme underscore the emphasis on enhancing local content, fostering innovation, and building a sustainable and competitive economy. By prioritising local SMEs and Omanisation, these contracts aim to create a robust economic environment that supports national growth and reduces dependency on foreign imports.
The Majd Awards were also announced during the ceremony to honour contributions to enhancing local content, further motivating companies and individuals to contribute to Oman’s economic goals. These awards are part of the programme’s comprehensive approach to not only developing local products, services, and competencies but also upholding the professional values and ethics that define Oman’s commitment to quality, innovation, and sustainability in the energy and minerals sectors.
These contracts reflect Oman’s strategic commitment to boosting local capabilities, reducing reliance on imports, and supporting economic diversification. Nama Services Dhofar signed a major contract with Galfar Engineering and Construction Services to develop a water treatment plant, marking a crucial step in enhancing local manufacturing and service capabilities.
OQ Exploration and Production also signed an agreement with Jalmood National Company for integrated drilling and development services, further underscoring efforts to localise the energy sector’s supply chain.
Petroleum Development Oman sealed three supply agreements with local manufacturers, including Spira Sealants Factory and Gulf Sealants Factory, alongside a contract to supply industrial stabilisers from Gulf Stabilisers and Steel Industries Company.
These deals highlight ongoing efforts to develop industries that produce essential products for oil and gas operations, aligning with Oman’s broader strategy to enhance local content.
Occidental Oman also signed a contract to source reinforced thermoplastic pipes from Duqm Hong Tong Factory, demonstrating the success of local manufacturing initiatives. This agreement showcases the sector’s commitment to localising industries and reflects the alignment with the Majd programme’s goals.
Other notable agreements include Daleel Petroleum’s well lifting services contract with Al-Nujum Professional Energy Services Company, a firm staffed entirely by local competencies, highlighting the tangible development of local technical capabilities.
Nama Water Services Company signed a wide-ranging maintenance contract with Al Ansi Trading and Contracting Company to manage water networks across multiple governorates. This contract includes construction, rehabilitation, and fault repair services, demonstrating the government’s focus on enhancing local capabilities through strategic partnerships with local firms.
Additionally, Occidental Oman signed a contract with Al Aman Al Awal Company to monitor and treat leaks in treatment and collection facilities, reflecting the commitment to developing local service providers.
The agreements also extend to training and employment initiatives, with Petroleum Development Oman and the Oman Energy Association (OPAL) signing contracts expected to provide at least 380 job and training opportunities for Omani graduates. These programmes aim to build a national workforce equipped with the skills needed to meet the demands of the energy sector. BP Oman also renewed its commitment to the Ruwad Programme, in collaboration with multiple energy companies, to further prepare graduates for the labor market.
These agreements are part of Oman’s broader efforts to localise industries, develop national talent, and support economic diversification in line with Vision 2040. The contracts signed under the Majd programme underscore the emphasis on enhancing local content, fostering innovation, and building a sustainable and competitive economy. By prioritising local SMEs and Omanisation, these contracts aim to create a robust economic environment that supports national growth and reduces dependency on foreign imports.
The Majd Awards were also announced during the ceremony to honour contributions to enhancing local content, further motivating companies and individuals to contribute to Oman’s economic goals. These awards are part of the programme’s comprehensive approach to not only developing local products, services, and competencies but also upholding the professional values and ethics that define Oman’s commitment to quality, innovation, and sustainability in the energy and minerals sectors.