PDO boosts in-country value with $2.5 billion investment in 2023

Muscat: Petroleum Development Oman (PDO) celebrated a significant milestone in its commitment to In-Country Value (ICV) during its bi-annual ICV Day, which has gone the extra mile to contribute to Oman’s economic development.

The event marked the 12th anniversary of the programme and highlighted PDO's impressive achievement of $2.5 billion of retained value in 2023, which is equivalent to 40 per cent of its total supply chain spend. Notably, $900 million was allocated for Small and Medium-sized Enterprises (SMEs), while national industries were allocated $422 million, benefiting 30 manufacturers in Oman. PDO realised 11 opportunities in manufacturing, construction, and renewable energy.

The event, organised under the auspices of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, took place at the JW Marriott Hotel, with the presence of several officials from both the public and private sectors.

Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, praised the company's efforts to enhance ICV, stating: "I commend the diligent work undertaken by PDO across its business to elevate ICV. The achievements made in 2023 exemplify its pivotal national role in supporting the objectives of Oman Vision 2040, which aims to foster economic diversification, encourage entrepreneurship, and bolster Omani industries within the Sultanate." He added, "PDO possesses a pioneering expertise in the realm of ICV, encompassing legislative, regulatory, and executive dimensions that have evolved over the years."

It is worth noting that ICV Day marked PDO's inaugural low-carbon event, embodying a practical application of environmentally sustainable practices. The event incorporated eco-friendly materials throughout, from venue selection to energy-efficient lighting and equipment and responsible waste management. This initiative aims to raise societal awareness and provide practical models for everyday sustainability practices, aligning with PDO's 2050 net zero emissions goal.

On his turn, Dr Aflah Said Al Hadhrami, PDO’s Managing Director, said: “The celebration of ICV Day serves as a moment to reflect on past achievements and heralds a new chapter aimed at enhancing ICV. This initiative aligns with Oman Vision 2040 objectives to enhance the energy sector’s contribution to the Gross Domestic Product (GDP), meet local energy demands, and promote sustainability in all its facets.

The focus on ICV not only echoes the company’s strategy and its national and social responsibilities but also fortifies its partnerships with local communities. Efforts to boost ICV include increasing local expenditures, supporting (SMEs), empowering entrepreneurs, and encouraging the procurement of local goods and services.”

As the main theme of ICV Day, PDO announced the five recipients of its ICV Awards, honouring exceptional performance among PDO's contractors and subcontractors across five award categories, namely the Best Local Manufacturing Facility, the Best National Objectives Employer, the Best Contractor in ICV Delivery, the Best Performing Local Community Contractor and the Best Performing SME.

During ICV Day, PDO signed a Memorandum of Collaboration (MoC) with several government and private entities to develop and implement the ICV enabling ecosystem initiative. The initiative aims to address the key challenges faced by local companies interested in investing in ICV, such as access to demand, infrastructure, finance, technology, and an enabling legislative framework. The system is designed to strengthen relationships aligned with public interest principles and foster collaboration between the public and private sectors.