We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 19 Dec 2013 01:36 PM

Font Size

- Aa +

Oman set for $64bn windfall from oil and gas sector

New study shows sector to contribute $64bn in additional in-country value over next seven years

Oman set for $64bn windfall from oil and gas sector
offshore oil rig

Oman’s oil and gas sector is set to contribute $64bn in additional in-country value (ICV) in the next seven years, it was reported.

The ICV Committee, which was formed by the Ministry of Oil and Gas, carried out a comprehensive study to review the Sultanate’s ICV blueprint strategy.

The study indicates that, down the value chain, an additional ICV opportunity of $64bn existed between 2013 and 2020 “excluding the ICV generated by the multiplier effect”, the Muscat Daily reported.

Speaking at a seminar on business opportunities in the oil and gas industry, Irshad al Lawati, CEO of OPAL and secretary of the ICV Committee, said that of the $64bn ICV opportunity $51.5bn was to be dedicated to local sourcing with the remaining $12.5bn towards employment of Omanis.

Nearly 22,000 Omanis currently work in the oil and gas industry, out of a total workforce of 55,000.

“By 2020, the number would cross 72,000, which forms a significant opportunity for Omani employment,” Lawati said.

He said more than 80 percent of direct expenditure from oil and gas companies went to local suppliers.

“The mission of the ICV blueprint strategy is to develop a competitive and sustainable local supply market of goods, services and skills,” he said.

Speaking to reporters on the sidelines of the event, H E Nasser Al Jashmi, Undersecretary of MOG, said that under the ICV blueprint, 53 supply chain opportunities had been identified as high potential.

 “It has become a national priority to implement the strategy in order to retain these investments in the country and to create jobs and add value to the economy,” he said.

“There are certain ICV conditions that have to be monitored and implemented in a way that most of the investments will be retained within the country. The whole idea is to generate local industries that can provide goods and services which is currently being imported.”

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.