Abla Al Riyami has served Petroleum Development Oman for more than a decade, and recently took over as the organisation’s In-Country Value Director, having previously served as Gas Director.
Oil & Gas Middle East sat down to talk about building a local knowledge base, working with private enterprise, and being a leading woman in the oil and gas industry
Oil & Gas Middle East: PDO signed a deal towards the end of last year to assist Omani SMEs and entrepreneurs. What are the main goals for the project and how successful has the programme been so far?
The agreement between PDO and the Public Authority for Small and Medium Enterprises Development (PASMED) is aimed at strengthening co-operation and collaboration between the two sides on training, business advice and knowledge exchange to help small and medium-sized enterprises (SMEs) operate more successfully. We are currently in the process of assessing and collecting the training needs from SMEs.
These needs will be further analysed and this will help PDO understand and direct SMEs to relevant training programmes.
One of the criticisms of NOCs is that they don’t engage enough with private enterprise. How far will this programme go towards bridging the gap between a state-run business and private companies?
PDO has engaged with private enterprises on many different occasions. For instance, in June 2014, the In-Country Value (ICV) team conducted half-day SME business awareness sessions.
These sessions were aimed at increasing the level of awareness of important aspects of doing business with the oil and gas sector, such as the vendor registration process, contracting and procurement procedures and health, safety and environment (HSE) standards. Having signed the Memorandum of Understanding with PASMED, we would like to encourage similar engagements to take place.
What, in particular, can SMEs and entrepreneurs add to PDO; where do you think they can add value to the organisation?
The oil and gas industry is highly specialised. However, it provides indirect business opportunities for SMEs to participate in the value chain and they can add value in many ways.
For example, some of the opportunities they could explore include: the provision of office supplies, catering services, communication and technology services, construction, transportation, fabrication and welding services. Moreover, SMEs could add value by bringing new technologies and innovative solutions to address key challenges in the industry, as well as introduce efficiencies in operational activities.
To facilitate this process PDO has developed a new tool called the “Technology Providers Hub” which is a platform for externalising PDO challenges and sharing them with the world. Through this system, PDO receives proposals for advanced technologies, new ideas, improved tools and optimised processes from many companies.
It is also accessible to SMEs, enabling them to possibly add value by working in collaboration with large companies on projects. This offers them opportunities to increase their knowledge and experience, and build their technical and administrative know-how.
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The project is part of PDO’s wider in-country value programme (ICV), which you have recently taken the role of director for. What are your personal targets in your new position?
There are many but here the main ones: to deliver the opportunities that the ICV blueprint (developed for Oman’s oil and gas industry) has identified to ensure we maximise the value retained within Oman; to work with all key stakeholders to ensure that our companies are sustainable and competitive now and in the future; to encourage companies to propose truly innovative solutions for the Oman oil and gas sector and support these companies to ensure they commercialise any such opportunities and become part of Oman’s sustainable industry base.
We need to ensure that all our ICV activities are executed with total transparency and 100% integrity and that we build an ICV capability in PDO so that we can be recognised as a true centre of excellence for our industry and beyond.
In addition, we are seriously addressing how we can best support the introduction of new SMEs and help existing ones to ensure they are given the best opportunity to become commercial successes both locally and internationally.
Last but not least, we will work very closely with our colleagues in our National Objectives team to ensure that we maximise all training and employment opportunities for Omanis. Since 2011, we have created more than 12,000 positions for Omani jobseekers with our contractors.
How important is it to attract nationals to the oil and gas industry, especially at a time when the sector faces severe talent shortages?
It is very important as every year, thousands of youngsters come on to the jobs market seeking work. If we look at the core strategic opportunity in ICV, it is to create jobs for skilled and unskilled Omanis.
Much of our immediate focus is on delivering skilled Omanis to our contractor workforce and we are also investing time, money and effort in upskilling existing unskilled members of the Omani workforce. I would like to make it very clear that this is not PDO working in isolation; we rely on the ongoing collaboration and excellent co-operation with other oil and gas companies, and the support of the Ministry of Manpower, Ministry of Higher education and Ministry of Oil and Gas.
We are gratified and proud that Oman is being singled out for praise although I will be much more happy when we can truly demonstrate consistent and widespread delivery of all the opportunities identified and yet to be identified.
We want Omanis trained to international standards which will enable Omanis to work not only in the Sultanate’s oil and gas industry but also within the GCC/International industry.
The successful countries are those which have created sustainable industries, and therefore sustainable jobs, principally in the SME sector. We all know that a strong SME sector is the backbone to every successful economy, and so we need to invest and support our Omani companies to ensure they are sustainable and competitive locally and regionally/globally.
How important have the major operators been in supporting Oman’s vision for ICV?
What makes the Oman approach unique is that our strategy is based on close collaboration between Government and industry.
Our strategy is led by the Ministry of Oil and Gas and supported by all the major up, mid and downstream oil and gas Companies with co-operation with all other relevant Government ministries and our private sector contractors and suppliers.
ICV is driven through the MOG ICV Committee led by His Excellency Salim Al Aufy, Undersecretary at the Ministry of Oil and Gas, and this is supported by a Contracting and Procurement/ICV Managers Forum to drive goods and services ICV opportunities and an HR Managers ICV Forum to drive all HR opportunities, including our Workforce Development Programme.
How much of a challenge is it to ensure that PDO gets the balance right between implementing ICV initiatives that make financial sense?
This is particularly challenging. We have said from the outset that ICV in certain circumstances will mean paying a premium and that this may have to continue in the short to intermediate term. We have also said it is not ICV at any cost and we look at this on a case-by-case basis and in certain instances we may have to award not to the lowest bidder, but based on tenderers’ ICV plans, to the one that has offered the highest ICV over the contract period.
Naturally, we will monitor closely all such cases to ensure ICV is delivered.
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When we look to the countries leading in what is commonly called ‘local content’, such as Norway, we see that they now have exceptionally robust local supply chains and a world-class oil and gas workforce, which are both being exported globally. This is our objective: to build a sustainable industrial/private sector base.
We have cases within PDO where we paid a premium, but we are already seeing items manufactured in Oman and supplied to us now at significantly lower cost.
PDO established four Super Local Community Contractors (SLCCs) in recent years as part of its ICV initiative. Has that proved a successful decision?
Yes, it has. The SLCCs, which carry out essential oilfield services, have provided an opportunity to spread the benefits of our industry to local communities in terms of job, training and investment opportunities. Their combined capital value now stands at more than $64.9mn and they have more than 8,000 shareholders.
During 2014, $233.8mn worth of work was executed by SLCCs and other Local Community Contractors. We cannot rest on laurels and we must sustain this success and I’m happy to say that a fifth SLCC is now being created for locals residing in the wilayats of Haima and Al Jazir.
You are from a highly technical background, what do you think makes this an advantage to leading ICV?
I was the PDO Gas Director for ten years and, prior to that, held various technical managerial positions. If I look from an external perspective first, being from a technical background, I can readily understand the technical challenges in introducing certain technologies into Oman, and ensure we are realistic when we suggest that there is an opportunity in manufacturing a highly complex item of equipment in-country.
Equally, I can share my business experience with existing and emerging Omani companies.
What prompted the role change?
A new opportunity emerged as PDO wanted to co-ordinate its ICV drive and support the development of new competitive and sustainable local supply chain companies across a broad spectrum of business categories.
The decision to set up a new ICV Directorate was key to this, so we could build on our momentum and raise the bar of achievement even higher. I am delighted to have been given that opportunity to lead such as important aspect of our business.
As a highly successful female in the oil and gas industry, what would be your message to young females looking to working in the sector, and is enough being done to attract them?
Follow your dreams, follow your instincts. Everything is possible so long as you are willing to put the effort and focus into it.
When you are starting, don’t just think: ‘Promotion, promotion, promotion,’ develop your skills because it is based on those that your career will progress. It is an exciting industry and there are many challenges all of the time – you will never get bored if you like challenges.
PDO is a regional leader on workplace diversity. For example, five of our directors are female and we have women field operations staff. Women make up half of the population so why shouldn’t we play more of a role in the industry?
Women can also help each other in the workplace and I’m particularly proud to be chairperson of the PDO’s women’s network, HAWA, which offers a mutually supportive environment.
