Muscat: Local SMEs supported by PDO executed work valued at $336.4 million in 2016, a report by the energy producer highlighted. The figure represents a 23 per cent increase in work of local SMEs carried out during 2015.
According to a PDO factfile, 4,000 Omanis currently work with Super Local Community Contractors (SLCCs) and Local Community Contractors (LCCs) in different disciplines.
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Local Community Contractors (LCC) are local companies owned by tribal communities or individuals who live in PDO’s concession area. These companies provide various services in oil and gas operations, such as well services, electrical, mechanical, civil engineering, logistics, manpower supply and equipment hiring. In 2016, the total value of work executed by LCCs was USD 234 million."
"PDO engages LCCs by reserving a scope in its major awarded contracts for them, and they are allowed to bid fairly and compete for this work. The LCC scheme has successfully created more than 3,000 jobs for locals and helped to raise the local standard of living in the concession area," Khalfan Al Busaidy, Community Development Manager at PDO said.
PDO has supported the next phase of LCC development through the establishment of closed shareholding companies owned by individuals residing in the concession area. These companies are known as Super Local Community Contractors (SLCCs). Currently, there are five super local companies established across the oil and gas concession area.
PDO created 7,787 job opportunities for Omanis bringing the total opportunities to 30,000 since 2011 and awarded contracts worth more than US$5.03 billion to nationally registered firms.
PDO has provided the additional support to LCCs by appointment of a business consultant to help to guide SLCCs to develop their business plans, setting up HSE guidelines and management systems that meet oil and gas industry standards, purchasing all the necessary initial equipment to execute the assigned works and coaching SLCCs Boards on governance and other related topics and supporting moves for them to diversify beyond oil and gas into other sectors such as mining, logistics, manufacturing, tourism and renewable energy among others.