ICV share of Oil & Gas contracts to be increased to 36pc

Significant contribution: Since the launch of the ICV programme in 2013, more than RO 2 billion in value has accrued to the local economy, while over 18,000 jobs have been created for Omani nationals

BUSINESS REPORTER

MUSCAT, Oct 17

The value of contracts retained in-country in line with the government’s In-Country Value (ICV) development programme has climbed to 28.7 per cent of total contracts in 2020, up from 18 per cent in 2018 Value retained in-country of projects. The target is to raise the ICV component to 36 per cent in the next phase of its implementation, according to the CEO of Oman Society for Petroleum Services (OPAL).

Abdulrahman al Yahyaei was speaking at the launch of a new book documenting the ICV contribution of companies operating in the energy and minerals sectors in the Sultanate. The launch was held at the Grand Millennium Muscat Hotel under the auspices of Nasser bin Khamis al Jashmi, Secretary-General of the Ministry of Finance. Also in attendance Eng Salim bin Nasser al Aufi, Under-Secretary of the Ministry of Energy and Minerals.

“Foreign investments inflows into the oil and gas sector are a clear demonstration of our industry’s ability to adapt to changes, while also underscoring investor confidence in the attractiveness and stability of the business environment surrounding the oil and gas sector in Oman,” said Al Yahyaei.

“The oil and gas sector continues its efforts to enhance in-country value creation while continuing to achieve its operational and financial objectives and maintain its competitiveness, flexibility and business continuity notwithstanding the perils posed by the coronavirus pandemic. These efforts are in line with Oman’s Vision 2040 to promote the growth of the national economy through local value-added programmes,” he further noted.

In 2013, the Ministry of Energy and Minerals launched Oman’s first ICV programme, which seeks to ensure that a sizable portion of all contracts — procurement or services — are retained within the country. A special ICV committee was also set up at the Ministry to oversee this strategy,” the CEO said.

Since the launch of this programme, more than RO 2 billion in value has accrued to the local economy, while over 18,000 jobs have been created for Omani nationals.

A copy of the book on ICV was unveiled by Al Jashmi at the event.

(With inputs from ONA)