Latest news with #MinistryofEnergyandMinerals'
Observer
3 days ago
- Business
- Observer
ICV strategy unlocks $1.8 billion in energy sector contracts for Omani SMEs
MUSCAT: Oman's In-Country Value (ICV) strategy delivered strong results in 2024, driving job creation and deepening economic localisation across the energy and mining sectors, according to the Ministry of Energy and Minerals' annual report. The Ministry confirmed that spending on small and medium enterprises (SMEs) reached $1.8 billion last year—accounting for 17.2% of total procurement in the energy sector. The overall ICV rate across the sector stood at 31.9%, underscoring efforts to retain more value within Oman's economy and promote domestic supply chains. Employment growth was a key outcome. The oil and gas sector achieved a national Omanisation rate of 89%, employing over 17,900 Omanis in 2024. Leading operators such as Petroleum Development Oman (PDO) and Daleel Petroleum surpassed the 90% mark, collectively hiring more than 1,400 nationals during the year. The mining sector also expanded its local workforce, reaching a 23% Omanisation rate, with approximately 900 Omani employees across its activities. Strategic projects such as the Al-Ghuzayn and Al Wash-hi copper developments are contributing directly to employment, with the former alone committing to 50 Omani jobs in its first phase. 'These figures reflect a deliberate shift from extractive revenue to inclusive economic impact,' the report stated, noting that localisation targets are now embedded in major energy and mineral contracts. To formalise these gains, the Ministry launched the 'Majd' programme in 2024 as a unified platform for ICV across the energy and minerals value chain. It also introduced the ICV Certificate system—currently in pilot phase and set for full rollout in 2025—aimed at rewarding companies that demonstrate high local content performance with bidding privileges. As part of the broader strategy, 23 specialised service contracts—including leak detection, oil tank cleaning, and hydrogen sulfide handling—were awarded to local firms, boosting SME participation in technical and industrial services. Since the inception of Oman's ICV policy in 2013, over 100 local workshops and industrial facilities have been established, and more than $400 million in localisation opportunities have been implemented. The report concluded that the combination of targeted policies, procurement reform, and national workforce integration is positioning Oman to transition toward a more sustainable, diversified, and resilient energy economy—core pillars of Oman Vision 2040.
Observer
6 days ago
- Business
- Observer
PDO leads Oman's energy push with $1 bn gas project
MUSCAT: Petroleum Development Oman (PDO) is powering Oman's dual energy strategy with a $1-billion gas development project and major new investments in renewable energy, according to the Ministry of Energy and Minerals' 2024 Annual Report. The company's flagship gas initiative targets the Haima reservoirs — Amin, Miqrat and Barik — and brought 12 wells online last year. The project is expected to recover 2.22 billion cubic metres of gas and 0.34 million cubic metres of condensate, supporting domestic demand and securing future supply. 'In 2024, the Directorate of Project Delivery focused on the execution of a comprehensive portfolio of oil and gas extraction projects with a total value of $1 billion,' according to the Annual Report. The development comes at a critical time as Oman seeks to bridge projected gas gaps between 2024 and 2026, and again beyond 2031. PDO's production adds long-term stability to the country's energy mix. In parallel, PDO advanced into clean energy through three major renewable projects. In partnership with OQ Alternative Energy and TotalEnergies, the company is developing a 100 MW solar PV plant in north Oman and two wind farms totalling 200 MW in the south. The projects will come online in 2026 and are expected to generate over 1.4 terawatt-hours of electricity annually — reducing emissions by more than one million tonnes per year. The shift supports Oman's goal to reach Net-Zero emissions by 2050. PDO also remained Oman's leading exploration company in 2024, drilling 24 of the country's 54 oil wells and 9 of 19 gas wells. It accounted for 62% of the nation's total oil and condensate reserves.
