Localisation is an outdated word in the Middle East oil & gas industry; instead we should all be talking about in-country value. Where the concept of localisation hints at inserting nationals into a company’s employee infrastructure with little effort at finding a qualified employee, but rather just a local employee, in-country value is something that is much, much broader.
In-country value promotion is usually a government-driven initiative that is designed to include locals at all ends of the oil & gas value chain, from the company that makes nuts and bolts, to the percentage of local companies an EPC contractor employs, and to the support that an IOC provides for oil & gas supplier SMEs in-country.
Where Saudi Arabia has stuck to the employment quota option, where a percentage of every company’s employees must be Saudis, Oman has taken the in-country value approach and is reaping far larger and further reaching rewards. For example, a local Omani contractor that builds offshore rig platforms has just delivered five platforms to Abu Dhabi’s Adma Opco, and Schlumberger is looking at exporting Omani oil & gas products to its operations in Yemen.
Oman has actively encouraged local SMEs, providing them with funds and training to bring their business up to an acceptable international level that is able to supply the international oil & gas industry. At a roundtable led by consulting firm EY and Oil & Gas Middle East, PDO’s in-country value manager Mohammed Al-Ghareebi revealed that Oman is looking at further developing its training schemes for nationals, tailoring the courses both to international standards and to the jobs that are available, or areas where there are skills shortages.
This holistic approach seems to be paying off for Oman, which has one of the better in-country value success rates in the Middle East region. Let me know your thoughts on georgina.enzer@itp.com
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