PDO’s local business development mission is to improve the capacity and capability of the local companies with which we engage, in order to achieve cost reductions, continuous business improvement in PDO’s operations and contribute to Omani economic growth and job creation for Omanis.
Local business development has been identified as one of the key enablers to support the success of the ICV journey.
Small & Medium Enterprises (SMEs)
PDO supports the developments of SMEs through multiple programs and initiatives to deliver the below:
- Provide support for the development of local companies
- Enhance the creation of SMEs and spin-off companies
- Enhance attraction of international suppliers
- Establish long-term relationships
- Support SME who dealing with Procurement sector
- Increase the showcase of SME mandated value for next 5 years
- Trained through Ta'zeez programme since July 2017 as a comprehensive programme empowering them and enhancing their capabilities in doing business with PDO and improving their entrepreneurship skills
- Programme runs by internal PDO expert and local SME training Providers
- Create Opportunities by Mapping relatives projects / contracts to SME scope
- In terms of Ring-Fence Scopes, we support SME through:
- Identify Scopes that can executed only by SMEs & LCCs
- Tender for restricted bidder list (only SMEs & LCCs)
Local Community Contractors and Super Local Community Contractors (LCCs & SLCCs)
PDO has been careful to ensure local communities benefit from our activities. Therefore, in 1998, PDO has launched the Local Community Contractor (LCC) initiative; to give people living in the concession area opportunities to establish their own companies. These companies would provide services to PDO and bid for supply contracts. PDO has reserved an LCC scope in main contracts and offered guidance and support. There are now specialised LCCs in maintenance, logistics, electronics, civil engineering, manpower supply, and well services.
This story has evolved into an exciting new phase. PDO has also established four Super Local Community Contractors (SLCCs) – larger-scale operations generating new employment avenues and entrepreneurship opportunities for thousands more Omanis. The SLCCs are businesses working on hoists, well interventions and flow line replacement, which collectively have around 9,300 shareholders, all from within the PDO concession area.
PDO has established a dedicated team helping SLCCs to identify and develop business opportunities. These opportunities include specially ring-fenced work in contracts assigned to each of the four SLCCs covering PDO’s core business. In addition to the allocation of these contracts, PDO has provided dedicated support to the SLCCs, including:
- Appointing a business consultant to help them establish corporate governance through selecting and training Board members and key executives
- Developing business plans, setting up HSE and management systems to industry standards and providing dedicated technical support in whatever work scope the SLCC is executing
- Seconding PDO’s experienced staff members to each of the four companies to better understand oil and gas operations
- Training Omanis living in the concession area so that they are suitably skilled for employment by SLCCs
- Allocating industrial plots and workshops at PDO-owned locations
- Purchasing necessary equipment to execute the assigned work
Overall, the four SLCCs progressed very well, focusing on business growth efficiency and ramping up Omanisation. From the outset, the SLCCs have prioritised recruiting, developing, and retaining an Omani workforce, especially from the concession area.
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