al fahal-eng_jan2016v5

The monthly newsletter for Petroleum Development Oman staff and its contractors

Issue - 442 January 2016

MAKING A SPLASH ON EXPORTS04 Project Prism 07 Geologists In Dinosaur Find 12 Supporting SMEs

Go paperless and make a differenceقلل من طباعة ا�وراق وأحدث الفرق

First WordDear Colleagues,Welcome to the first edition of Al Fahal in 2016. Firstly, I’d like to wish everyone a Happy New Year and thank you for all your sterling work in 2015 and, no matter what this year has in store for us, I am confident we can all continue to deliver a high performance and meet the standards that internal and external stakeholders expect of us.

As you will be aware, the low oil price continues to dominate the thoughts and deeds of our industry and we will all have to intensify our efforts to create more value for Oman and our shareholders while vigorously pursuing cost control at all levels of our business.

One example of this can be seen in the Staff In The Spotlight feature where Exploration Execution Manager William Langin explains how his directorate is targeting low unit technical cost (UTC) projects on both oil and gas, while driving for early monetisation in as many projects as possible. To this end, he points out the importance of deepening the collaboration between Exploration and the clusters, something that PDO must replicate with all our contractors as we pursue greater efficiency and productivity.

That’s why Project Prism, also featured in these pages, is so important. Prism is a ground-breaking initiative for the global oil and gas sector focused on worker welfare, support and engagement with the aim of identifying and sharing best practice and raising standards.

Contractor personnel will be interviewed confidentially about a wide range of topics including safety, pay, training, medical care, food, accommodation and human resources provision in the field. We want to work with our contractors to help create a better working environment across our operations and beyond. We cannot expect people to give their best for PDO and their companies without demonstrating the equivalent commitment to them.

Of course, our approach is underpinned by our overarching commitment to safety and I urge you to read the interview with Corporate Health, Safety & Environment Manager Mohamed Al Salmani who talks of PDO’s initiatives to further improve our HSE performance. Mohamed is leading the drive to simplify our safety systems and procedures so that they work for those who are most at risk and the passion, commitment and energy shown by him and his team shines throughout the interview.

As part of this comprehensive focus on personal and process safety, the deployment of three brand new single buoy moorings at sea will help guarantee the safe and secure export of crude oil from Mina Al Fahal as well as reduce the maintenance cost and boost In-Country Value as their installation was carried out by a local company.

Regards,

Raoul RestucciManaging Director

Editor:David BrownTel: 24673977

Photographer:Mohammed Al Abri Tel: 24676648

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Initially, please contact the editor. Submission of written articles without prior discussion is not encouraged to avoid disappointment in cases where a story is not suitable for Al Fahal.

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PHOTOGRAPHY

Requests for photography should be directed to the photographer Mohammed Al Abri Tel 24676648. Please note that the photographer’s primary role is in providing a corporate, as opposed to departmental service. When a request for photographic services is judged unsuitable for Al Fahal, contacts for other photographers will be given.

COPYRIGHT

Please note that no part of Al Fahal may be reproduced without the written permission of PDO. Organisations wishing to reproduce articles contained within this issue should contact the editor.

Phone: 24673977Email: [email protected]

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Contents

01 - People Survey 201501 - Sun-Sational02- Sailing To The Top03- Golden Performance At Nimr03- Banat Oman Wins United

Nations Award04- Major Review Into Contractor

Welfare05- Engineering Office Established

In Oman06- Safety: Keep It Simple07- Staff In The Spotlight

08- US$650 Million Deals Boost ICV

09- All Systems Go For RABiTAH09- One Team, One Family10- PDO Geologists In Dinosaur

Find11- BAB-BMF Shuttle Launched11- PDO Launches Instagram

Page12- Supporting SMEs12- Helping SMEs Succeed13- Making Waves On Oil

Exports

Al Fahal | January 2016 11

PDO News

People Survey 2015

Staff sentiment on PDO and the way it operates has improved across the board from 2014, according to the latest People Survey.Almost nine out of 10 (88%) said they were proud to work for the Company, a 5% rise and 81% expressed overall satisfaction with PDO at the present time, a 6% increase.The most favourable score saw 92% of respondents expressing a clear link between their work and the organisation’s objectives and 90% said everybody takes responsibility for complying with safety rules.A total of 6,128 staff completed the questionnaire between August-September – a 75.6% participation which was 16% higher than 2014 when 3,942 took part, an improvement described as a “real step change” by Managing Director Raoul Restucci.The lowest scored categories related to pay with more than half 51% saying they were fairly paid for what they do – but even here, there was a 10% improvement on 2014. Across the entire survey, there were improvements in nine out of the 10 categories, or 47 out of the 54 questions.Raoul said: “Overall, the survey results indicate to me that we are on the right path.“Positive and encouraging results like these are found across the organisation. Over the coming weeks and months, we will be recognising and celebrating areas of excellence and showcasing best practices so that we can all learn from those business units among us that are excelling.“My initial focus, together with the extended PDO leadership team, will be on team and organisational leadership, and communication will be an important theme in our discussions.”The People Survey enables all employees to give their opinion on a series of issues, ranging from leadership, business direction, communication, inclusion, and living PDO core values to overall pride in the Company.Its purpose is to encourage an ongoing, constructive dialogue between leadership and employees about these and to focus attention on areas that need improvement.Raoul added: “I have asked all directorates to collect feedback from across their part of the organisation and

A PDO contractor has launched a solar pilot project to provide daytime electricity for its Permanent Accommodation for Contractors (PAC) at Fahud.Renaissance Services installed 4,000 polycrystalline solar panels that make up the roof of a car park covering 10,000 sq m. The novel concept saves on additional design and structural costs, while generating up to 2.2mn kWh of renewable energy annually and will result in 1,500MT of lower carbon emissions annually.The pilot was officially inaugurated by His Excellency Salim Al Aufi, Undersecretary of the Ministry of Oil and Gas, who was accompanied by His Highness Sayyid Tarik bin Shabib bin Tamur Al Said.His Excellency said: ”Presently, Oman is using quite a lot of gas to generate power and our consumption is going up by ten per cent on an annual basis. So we need to concentrate on renewable energy, not necessarily as a cost effective way of generating power but as a strategic way to develop technical knowhow and further develop it to make it more cost

effective in the future.”Managing Director Raoul Restucci paid tribute to Renaissance, and added: “The value of projects that generate alternative energy is huge for Oman. Installing this project is economically very important for the country.”Renaissance Managing Director Ananda Fernando said: “We ensure we carry out our business in a responsible and sustainable manner. And this solar project is the latest and most important statement of our stewardship of the environment.“This initiative meets our long-term strategy to enhance energy efficiency at our PAC and reduce our overall carbon footprint.”Renaissance operates PACs across Oman, with a total annual electricity requirement of around 40mn kWh. Mr Fernando said: “Based on the results of this pilot project, we plan to extend the solar solution to our other PACs around the country.”Work on building PDO’s Miraah solar energy project has begun and first steam to be used in thermal enhanced oil recovery is expected in 2017.

use this to identify the areas that require time in the spotlight.“I would like to encourage you to take part in the

engagements in your Directorate and offer your constructive feedback so that together we can capitalise on our newfound insights.”

Sun-Sational

Nusaiba Al Hakmani, who oversaw the 2015 survey, meets with colleagues

2014

6EMPLOYEE ENGAEMENT INDEX 81 14 6

14- Considering everything, how satis�ed are you with your job?

5

9

5

5

5

6

51- PDO as a company to work for, compared to other companies

52- Motivated to commit extra e�ort to help company succeed

53- Proud to work for PDO

54- I would recommend PDO as a good employer

55- Overall satisfaction with PDO at the present time

80 13 7

88 10 3

84 12 4

81 12 7

74 21 4

79 14 8

EMPLOYEE ENGAEMENT DASHBOARDFavourable Neutral Unfavourable

PD (Oman)(N=6128)

Al Fahal | January 2016 22Six staff are put through their paces by Daphne van der Vaart

PDO News

Two top sailors bidding for Olympic glory drew warm applause from a full conference room after entertaining and motivating staff in a Lunch and Learn session.

In their presentation, Maxime Jonker, 20, and Daphne van der Vaart, 21, stressed the importance of perseverance, focus, training, continuous improvement, resilience, and learning from mistakes in achieving success both in their sport and in the workplace.They drew comparisons with their approach to succeeding and PDO working practices and cited Lean as a way of improving gradually and focusing on fine margins to achieve better results.The Dutch duo, who have won medals at junior level internationally, are working towards representing their country at the Tokyo Olympics in 2020.They have both been sailing since childhood and are currently engaged in a tough training programme involving gym sessions six times a week and sailing four times a week – while at

Sailing To The Top

the same time pursuing their academic studies.Maxime, who won a world gold medal in the Under-21 Laser class earlier this year and recently finished ninth out of 100 competitors in the senior World Championships in Oman, said: “Dream big, work hard. It is all in your head.”The session. organised by Contracting and Procurement Business Improvement Lead David Boeiijinga in the Finance Directorate, heard how different people often responded to different levels and types of motivation to achieve their best. To inject some energy into the proceedings, six members of staff volunteered to take part in a physical endurance competition to discover what drives their motivation to win: avoiding punishment push-ups or going after the money reward?

The pair, who also gave a sailing clinic to the Ras Al Hamra Boat Section during their visit, were presented with two framed pieces of art crafted by women trained by PDO’s social enterprise Banat Oman.Business Finance Manager Jos van Cuijck explained how one of his directorate’s six priorities was “External Focus” and a number of outside speakers from Shell, GE and KPMG had been invited in former sessions to address staff on best practice. He said: “Maxime and Daphne shared their dedication and aspiration as top sailors to become world class and drew a lot of parallels with PDO and the Finance team in terms of leadership, pressure, teamwork, and realistic goal setting.”


PDO Projects

Golden Performance At Nimr

The Nimr Reeds Bed project team has won the gold award at the prestigious Emirates Energy Awards in Dubai in the “Large Energy Project” category with partners Bauer Nimr LLC.

The award ceremony took place under the patronage of His Highness Sheikh Ahmed Bin Said Al Maktoum, the Chairman of Dubai Supreme Council of Energy. The DSCE launched the competition to highlight the most important innovations and scientific research in the field of energy efficiency and management.

The award is the latest in a string of accolades for the Nimr Reed Beds project which is currently treating approximately 760,000 barrels of produced water a day at a fraction of the cost and energy intensity of conventional deep water disposal. In total, the project has now treated approximately 980 million barrels of produced water and recovered around 500,000 barrels of oil since operations began in October 2010.

It is now widely acknowledged as one of the most innovative environmentally friendly schemes in the global oil and gas sector and is considered to be the largest industrial constructed wetland system in the world, consisting of a series of sloping reed fields and evaporation ponds, in all the size of 640 football pitches.

Lead Project Engineer Ali Al Nasser said: “The project is a key component of PDO’s energy reduction strategy, with 10% of the Company’s energy needs attributed to deep water disposal in the Nimr Area.”

Among other prizes, the team has also won the Best MENA Oil & Gas HSE Project at ADIPEC 2012, GCC and was National Winner in the Sustainability Category at the MEED Quality Awards for Projects 2012 and the Global Water Award Winner in 2011.

PDO’s social enterprise Banat Oman has won a global seal of approval by scooping a United Nations award.The UN’s Food and Agriculture Organisation said the vocational training project for low-income women was best in its category after it was nominated by the Oman Ministry of Agriculture and Fisheries for its dairy products programme.The award was presented at an official ceremony held at the Ministry offices under the auspices of His Excellency Dr Ahmed Al Bakri, Undersecretary at the Ministry.The women have been trained on the scheme to make a variety of high-quality dairy products including yoghurt, cheese, butter, and cream. And Banat Oman has signed an agreement with the Lulu Hypermarket chain to sell a range of its locally made organic Omani cheese products, such as akawi, white cheese and labneh.

PDO Social Investment Adviser Hanan Al Rumhy said: “The women were delighted and excited to have received their award from such a revered global organisation as the United Nations.“Such recognition is a great morale boost for all the hard work they are doing in their communities to

learn new skills and produce excellent artisan products which businesses and people want to buy. It is also a tremendous incentive for them to keep progressing.”

Meanwhile, Banat Oman has also participated in the Rural and Coastal Women’s exhibition at Muscat Grand Mall for three days and sold a variety of products including soap, jam, sweets and dairy goods to the value of RO 1,500.

Banat Oman Wins United Nations Award

Hanan Al Rumhy receives the UN award

Ali Al Nasser with the gold trophy


PDO News

Major Review Into Contractor Welfare

POD has launched an industry-first investigation into the welfare of 30,000 employees in its contractor community.The three-year benchmarking programme, called Project Prism, is a ground-breaking initiative for the global oil and gas sector focused on worker welfare, support and engagement with the aim of identifying and sharing best practice and raising standards.Contractor personnel will be interviewed confidentially about a wide range of topics including safety, pay, training, medical care, food, accommodation and human resources provision in the field.At a special conference held at the Learning and Development Centre, senior representatives of around 200 of PDO’s main contractors and sub-contractors were invited to participate in the workforce welfare assessment programme, underpinned by the need to demonstrate “duty of care” to staff and ensure full compliance with Omani labour laws.Managing Director Raoul Restucci said: “Project Prism is about embedding effective and caring labour practices among our contractors and ensuring personnel at every level are engaged and supported well and in accordance with national legislation and best international standards.“We want to work with our contractors to help create a better work environment across our operations and beyond. We cannot

expect people to give their best for PDO and their companies without demonstrating the equivalent commitment to our respective staff.“The interviews, which will be carried out with contractor personnel, will be completely confidential and employees will be able to speak freely and honestly so that we can identify key issues, assess and raise operating standards and share best practice, and, not least, recognise top- performing companies.”

The 61-question survey, which will be conducted by independent consultants Inspirational Development Group on behalf of PDO, covers a wide range of topics including safety, pay, training, medical care, food, accommodation and human resources provision in the field.It will be carried out at PDO’s seven main Interior locations at Fahud, Lekhwair, Yibal, Qarn Alam, Marmul, Nimr and Bahja in one of six languages - Arabic, English, Urdu, Hindi, Malayalam and

Tagalog - and also cover 3,000 PDO staff.After rigorously assessing the data collected, the Company will give each contractor detailed feedback and offer high-level coaching and advice on best practice.The survey follows a pilot last year in which 1,500 contractor employees from 20 companies were surveyed to identify areas where improvements could be made to enhance performance and

productivity.Last January, PDO became the first national oil company in the Gulf to become a member of the United Nations Global Compact – the largest voluntary corporate social responsibility initiative in the world. Under the terms of the agreement, the Company is committed to supporting the UNGC’s 10 universal principles on human rights, labour, environment and anti-corruption.Industrial Relations Manager Saoud Al Jabri said: “Project Prism is about

giving those who work for us a voice so we can address problems and embed best practice. We must maintain the highest ethical standards and ensure that those who work for us, whether staff or contractors, are treated well and operate in a safe environment where their health, welfare and dignity are properly protected.“We take our responsibility as a member of the UNGC seriously and Project Prism will help us to meet our commitment as a signatory.”

Raoul Restucci addresses the Project Prism conference


PDO News

British company Petrofac has set up an engineering office in Muscat after co-ordinating with the Central Project Delivery team over PDO’s mega projects.CPD management have been at the forefront of rolling out In-Country Value in PDO and have been working with Engineering and Procurement (EP) contractors to establish bases in Oman which can develop local talent.And Petrofac established its engineering and consultancy office in Al Athaiba after signing EP contracts for the Rabab Harweel and Yibal Khuff projects.CPD ICV Lead Hussein Abdullatif said: “The idea was to gradually start carrying out part of the detailed engineering design work in Oman until we reach a stage where all the engineering work can be carried out in Oman by Omanis in the not too distant future.“This will bring benefits on many fronts. It will develop local human capital and retain knowledge in Oman. By developing local resources we will also resolve the aging workforce issue within the oil and gas industry and a gradual shrinking of the pool of technically capable and skilled resources. It will also retain expenditure in Oman and stimulate the local economy.“From the project prospective, having a local engineering office will cut the cost of travel and having a pool of engineers working abroad with contractor’s engineering team. It will also reduce the re-work by having a face-to-face

Engineering Office Established In Oman

communication and interface to finalise the design.“To be able to maximise ICV, we worked on two streams. One was to ensure that mature experienced Omani engineers are employed and the second was to employ new graduates and develop them into professional engineers through academic and on-the-job training.”Petrofac, which is a full service engineering, procurement and construction contractor, has also set up a Graduate Development Academy, boasting extensive training facilities, in its regional headquarters in Sharjah.Already, 21 Omani graduates have completed their first year of training. These graduates are involved in the engineering phase of the Yibal Khuff project in the United Arab Emirates as well as construction training at Petofac’s Oman-based construction sites. A further 30 Omani graduates have already been recruited and have arrived in Petrofac’s Academy recently to commence their first five months of business and technical training followed by 2.5 years of structured on-the-job business and technical experience.The central aim is for Omanis to build up more experience and capability and as more staff become professional engineers then more nationals can carry out design and engineering work on oil and gas facilities in the Sultanate.Ray Richardson, Petrofac Senior Vice President & Country Manager – Oman, said: “Seeking to create a sustainable legacy in the Sultanate

around its Engineering, Procurement and Construction (EPC) operations together with its developing engineering and consultancy business stream, recent PDO project awards have enabled Petrofac to create a long-term business plan with considerable investment in its in-country establishment along with its state-of- the- art training facilities.”

Young Omanis celebrate after graduating from the Petrofac Academy

The new Petrofac office in Oman


PDO News

PDO is simplifying its safety systems and procedures so that they work for those who are most at risk.In a new interview, Corporate Health, Safety & Environment Manager Mohamed Al Salmani, talks about the Company’s initiatives to further improve its HSE performance.What drives you every day in the field of health, safety and environment (HSE)? I see this as a vocation. It is more than a job for me. I am proud to manage a department, a team so dedicated to making a difference. There are not many opportunities that are presented in life where your career goal is to save people’s lives, save them pain and suffering, support people’s health and to protect the planet for our future generations. I feel blessed to have been given this opportunity to make a difference.What keeps you awake at night when thinking of HSE in PDO? The thought of failure. The consequences of getting it wrong are so devastating: people’s lives can be lost; people can be disabled so they will never work again; or our installations could catch fire meaning we cannot provide the necessary revenue for our glorious country. People sometimes say that PDO goes over the top when it comes to HSE but I say you can never go too far when people can die so easily in such a high-risk industry. For PDO, safety is the bedrock of everything we do, but our incidents, and what we identify from them, show that we still have a long way to go in fully protecting our people and preventing harm to

Safety: Keep It Simple

the environment from our business risks. The thought of those people who are no longer here and their families that have lost their loved ones, and often their bread winner: that is what drives me and causes me to lose sleep. If you could ask everyone reading this to make one change in their lives, what would it be? Only one? But there are so many! If you restrict me just to one, then it would have to be to ensure that you, and everyone who you are with whilst in a vehicle, always wear a seatbelt. It is the one device in modern society that has saved more lives than anything else, but it only works and helps in keeping you in this world and with your family if you choose to wear it. I know there are a multitude of reasons why people don’t want to wear a seatbelt but the one reason to wear it is so powerful that I still find it hard to see why we lose so many people on our roads. How has your previous experience within operations as a Delivery Team Leader helped you in being successful in your current role? It has been very useful as I view every issue from the perspective of our operations and of our contractors. It is important to be able to have empathy in identifying solutions to issues. It has also driven me to engage with our work colleagues and to ask their opinions and ideas, as they are often the ones with the best solutions. I have been told by some that I hold too many forums and working parties, but to my mind they are essential in giving everyone

at every level a voice, as is being in the Interior operations listening to what people have to say. What is the most important aspect of HSE in your opinion?Most believe that safety is the most important, and it is certainly an overarching priority for PDO, but personally I don’t believe it is useful to compare the priorities of health, safety and environment. Yes, fatalities are high profile and we read about them in the news; however, many people suffer from chronic ill health that may be attributed to their work. For example, a bad posture sitting at a desk can plague a person with backache for many years, particularly when they are older. Then we have to consider what life on Earth would be like if we did not look after our planet’s health and its resources. We have a moral responsibility to protect the planet as it’s the place that we all call ‘home’. That’s why I view our environmental projects with such enthusiasm as they all add so much value and focus our moral compass. The environment is probably the least well-known aspect of HSE, but definitely, its importance cannot be overstated.How would you describe PDO’s focus on HSE within its activities?I am proud to work in an organisation that has such a dedication to HSE. We are lucky to be led by a Managing Director, Raoul Restucci, with such a passion and a hands-on approach to HSE. He is my line manager and I have learnt so much from him and his philosophy of managing such a difficult subject.

Mohamed Al Salmani: “Safety is certainly an overarching priority for PDO”


Staff In The SpotlightWilliam Langin (Exploration Execution Manager)William Langin is a geophysicist by background, having earned a Bachelor’s degree in Geology from Princeton University and a PhD in Geophysics and Structural Geology from Cornell University, both in the United States.He began working for Shell in 2003 in New Orleans, focusing on Exploration projects in the Deepwater Gulf of Mexico before moving to the international sphere on the Brazil Pre-Salt team. After spending one year as the Business Adviser to the Executive Vice President, Exploration in the Americas, he moved to Shell’s Unconventionals group, where he worked first as Exploration Team Leader in Appalachia and later the Exploration Manager for the Onshore United States. He arrived at PDO in April 2014, assuming the role of Exploration Execution Manager (XEM).What does your job involve?There are currently four teams in the Exploration Execution organisation, including the Oil Exploration team (XEC), Gas Exploration team (XEG), New Opportunities team (XEO), and Business Planning and Support team (XEP). My role is to ensure that these teams deliver projects to our customers - PDO’s Oil North, Oil South, and Gas Directorates - that underpin the future corporate production aspirations. In particular, our XEG team is attempting to find new discoveries near existing infrastructure in North Oman that can be brought into production quickly in order to mitigate the growing gap between gas supplied from Oman and the combined domestic demand and LNG export plans. At the same time, the Gas team must continue to explore for opportunities that add meaningful longer-term potential volumes. The XEC team is committed to delivering projects that, if successful, have the potential to yield future production that has unit technical costs (UTCs) of less than US$25. These types of projects help to lower the overall average UTC in PDO and therefore improve our resilience to lower oil prices. The XEO team is charged with two key mandates. First, the team brings forward new concepts and ideas that could ultimately result in drill-worthy projects. Additionally, they are the owners of regional geologic excellence in PDO and they must ensure that specific opportunities are underpinned by strong foundational work. The XEP team is the crucial link between the largely technical work executed in the other teams and the economic and financial side of the business. It is also the interface between Exploration and other parts of PDO, including Corporate Planning and the other directorates.In my role, I focus on making sure that my teams’ activities and plans are aimed at delivering the corporate strategy and production aspirations. I try to maximise the alignment both among my teams and between Exploration and the PDO production clusters.How important is the role played by Exploration in the current environment?Oil and gas will continue to be the backbone of

Oman’s economy for the foreseeable future. In order to maintain the production levels that are needed to generate value for our shareholders, PDO needs to bring new projects on stream as well as produce hydrocarbons from the already discovered fields. In addition, the average UTC of PDO’s oil projects has been slowly increasing over the last few years due to the inclusion of additional volumes from enhanced oil recovery projects. As I mentioned earlier, Exploration is now specifically targeting projects that have the potential to deliver oil with less than $25 UTC per barrel. If successful, these projects can displace more costly barrels and make PDO more profitable for its shareholders. The gas exploration projects are largely aiming to use the ullage in the existing facilities in the northern part of Block 6 and create value for shareholders by increasing the amount of gas available for LNG export.What is Exploration’s strategy to deal with the difficult economic environment?In addition to targeting the low-UTC projects on both oil and gas, Exploration is driving for early monetisation in as many projects as possible. We are working with the Gas Directorate to accelerate the on-stream date of discoveries by executing early concept engineering, pre-ordering long-lead items, and deepening the fundamental understanding of key geologic plays, such as the Amin, that helps to place wells in optimal locations. For oil projects, we work with the clusters to bring successful wells and projects into production as quickly as possible. The production acceleration is achieved by close collaboration between Exploration and clusters on both planning and execution efforts. This collaboration has allowed Exploration to contribute approximately 2,500 barrels of oil per day in 2015. The revenue from that production offsets approximately half of the funds that Exploration spent on drilling and testing opportunities this year. Overall, the oil exploration programme will deliver commercial

projects with more than one hundred million barrels of additional volume for development in 2015 for a net expenditure of around US$45 million. The estimated future value of these projects is more than 10 times that amount, even at current oil prices.While the current environment requires that we strive for early value creation in our efforts, Exploration must also deliver projects that sustain PDO production aspirations both in the present and future. We typically classify our projects into one of three themes, which include (1) Unlocking Drill-to-Fill, (2) Mid-Term Growth, and Long-Term Growth. The projects in the unlocking drill-to-fill theme typically involve de-risking extensions of existing fields or deeper targets that have not yet been proven to have commercial production potential. If successful, these types of projects can be incorporated into the cluster field development plans in the next one to three years. The Mid-Term Growth projects involve either further step outs from existing fields or are aimed at delivering critical information for future decisions around constructing or upgrading facilities, pipelines, or other infrastructure. Production from these projects is typically expected to be on-stream in the five to 10-year time frame. The Long-Term Growth projects aim to deliver substantial volumes that will contribute to PDO’s production more than 10 years in the future.What are you key aims for 2016?I would like the collaboration between Exploration and the clusters to deepen even more so that PDO continues to drive early monetisation from our projects. Exploration is working with the Gas Directorate to identify high-potential areas where PDO can pre-invest in infrastructure that can accelerate new discovery into production. I would like to identify and commit to at least one project of this type by the end of 2016. On the oil side, Exploration will continue to plan for rapid hook-ups of the wells we drill and delivery of low UTC projects that enhance PDO’s profitability in these challenging times.One of the key enablers for recent Exploration success has been seismic data sets that result from the combination of the 3D wide-azimuth (WAz) seismic and pre-stack depth migration processing. The most recent data sets that have been delivered by the GeoSolutions team are likely the highest quality land seismic data sets in the world. In the past, it has taken from 12 to 18 months to deliver these products to the seismic interpreters after the completion of the seismic acquisition in the field. We are now working closely with both our GeoSolutions team and our contractors to deliver a step change in that delivery timing so that our seismic interpreters can have the best data to use in their projects as quickly as possible. Achieving this goal will further improve Exploration’s ability to deliver the best projects that create the most shareholder value.How do you relax away from work?My family and I enjoy taking weekend trips to see all of the natural beauty of Oman. We have taken several trips to the Wahiba Sands as well as both Jebel Akhdar and Jebel Shams. In addition, we travel frequently in the region to places like Egypt, Jordan, Thailand, Sri Lanka, and India. I also enjoy staying in good physical shape so I go the gym each morning before I come to the office.

PDO NewsIf you know of a good subject for Staff In the Spotlight, please contact [email protected]


PDO News

PDO has further enhanced Omani job and training opportunities by signing six contracts worth US$650 million over the next 10 years.The deals for the supply, installation and maintenance of 29 centrifugal compressors were signed with international engineering companies Siemens LLC, General Electric International LLC, and Omani firm OHI Petroleum & Energy Services LLC and its partners MAN Diesel & Turbo Schweiz AG.The contracts all contain In-Country Value (ICV) provisions to retain more of the oil and gas industry’s wealth in the Sultanate for the training of Omani engineers and the local manufacturing of components such as vessels, coolers and transformers.The signings took place at the third edition of the Business Opportunities Forum at the Oman International Exhibition Centre at Seeb under the auspices of His Highness Sayyid Haitham bin Tariq Al Said.

US$650 Million Deals Boost ICV

The event, organised by the Oman Chamber of Commerce and Industry (OCCI), aimed to create a platform for companies and institutions to expand business, build awareness and present investment opportunities from large firms and promote the efforts and programmes of private sector companies in the field of ICV.Managing Director Raoul Restucci said: “Despite the current difficult oil price environment, these

signings show that we are committed to staying the course and making significant investments which will directly increase Omani jobs and training opportunities and build a robust and sustainable local supply chain.“Since 2011, our ICV strategy has so far created more than 15,000 National Objectives job and training opportunities for Omani jobseekers and we are working all the time to develop and support Omani service and manufacturing capabilities.”

The compressors are planned to be installed at 11 PDO projects, including the Yibal Khuff mega project, Lekhwair, Mabrouk and the second phase of the Saih Nihayda and Kauther Depletion Compression projects.The suppliers have committed to maximising the local content in their submitted contract plans. This should lead to the recruitment and training of a number of Omanis as engineers and technicians and maximise the use of PDO’s in-house repair workshops.PDO received one award at the OCCI event for the largest one-off contract with Siemens LLC worth US$210 million.The PDO booth at the two-day OCCI event featured presentations on the Company’s ICV efforts, including an array of artisan products made by its social enterprise Banat Oman which has given vocational training to more than 200 women from low-income backgrounds.


PDO People

All Systems Go For…

More than 300 vendors have attended engagement sessions to acquaint themselves with RABiTAH, the new digital system which will make it easier and faster for them to deal with PDO.The system, which is scheduled to go live early this year, provides automated end-to-end contracting and procurement (C&P) solutions and will integrate all procurement activities under one SAP-based operating platform.Once the system is up and running, vendors will conduct all transactions pertaining to C&P through RABiTAH.Contract Engineer Manal Al Barwani said: “It is imperative that vendors are equipped with the relevant knowledge and skills to enable them to use the system so they can do business with PDO.“The project team has planned various activities to ensure they are ready when RABiTAH goes live.”Al Fahal spoke to Manal for further insights:How does RABiTAH benefit vendors?It will build a stronger and more valuable supplier relationship with PDO and bring enormous benefits to vendors. Amongst the key benefits are:• Reduced supplier qualification and invoice

processing time• Lower administrative burden and manual

follow-up• Ease of working with a user-friendly

SAP Supplier Relationship Management enterprise portal

• Accurate and up-to-date supplier master data

• Better system security, uptime and role authorisation

• Enhanced collaboration among suppliers, buyers and the PDO C&P team

• Improved performance reduced risks and increased profitability for PDO and suppliers.

What is next for vendors?The project team has prepared various activities to support suppliers to prepare them in using RABiTAH. The activities facilitate flexibility, continuous learning and accommodating their different learning requirements. They include:

“One Team, One Family”

Ahmed Al BusaidiPT/RE Technical Assistant

If we all work as a team, and as a family, then our collective effort will enable us to work more efficiently and quickly.All of those in the workplace must make a concerted effort to reach this standard. Everyone, from junior to senior staff needs to co-operate with each other. At the same time, everybody should feel valued and we should be careful not to underestimate any employee. It’s about “One Team, One Family.”My views are based on practical experience gained at several companies. Everyone working to this standard can achieve their career goals while meeting their daily job requirements without getting bored or tired because they are constantly aware of the other members of their team – and not just thinking about their own needs or ambitions. If the team succeeds, then so do they; if it doesn’t succeed than neither do they.With everybody pulling together and working sincerely and with dedication towards a common goal, it is easier to get the job done, both quicker and better. This work ethic creates a positive and pure spirit within staff to improve their organisation from the bottom to the highest echelons. People feel a responsibility not only for the successful outcome of their own work but also for that of others. A united team with everybody working as one and co-operating together – aware of each other’s challenges, demands, deadlines and opportunities – can be an unstoppable force. Of course, creating an environment which fosters a spirit of teamwork can be hard and may take time. However, if we all become less selfish and more geared to thinking about the concept of “One Team, One Family” we not only make our workplace even more special, but also more productive.

CommunicationA series of vendor engagement sessions have been scheduled and the objective is to provide the latest information, the training activities and the Post-Go-live support for the vendors.TrainingSuppliers will be required to send two representatives to training sessions. The project is adopting the “Train-the-Trainer” approach where representatives will be required to train their colleagues who will be using RABiTAH. The training will take the form of interactive sessions.Walk-In Clinic SessionsA series of clinic sessions is being held prior and post Go-Live to provide support to vendors who require further support in using the system. Trained PDO employees will man the clinic to provide hands-on guidance to suppliers.User GuideThere will be a simple user guide for vendors who want to learn at their own pace.Post-Go-Live SupportThere will be a dedicated phone line for vendors to call if they have queries and require support.There will be more planned and timely training sessions and more interaction and communication before the launch. We will consider a test run before the “Official Big Bang” and we have a responsive support team to help.What has been the feedback from vendors so far?Overall, they felt that RABiTAH will build a stronger and more valuable supplier relationship, enhance transparency within PDO and suppliers, and eliminate manual follow-up and paper-based processes.What is your message to vendors?It is important that all vendors participate in all the events that have been prepared them. This is to ensure that they are well-prepared when RABiTAH goes live. Meanwhile, should anyone have any feedback or require further details, please do not hesitate to the project team at [email protected].


PDO News

PDO has a supported an expedition which has found evidence of dinosaurs in Oman from more than 70 million years ago.Former PDO geologists Axel Hartman, who joined the Nimr team for three years in 2011, and Mohammed Al Kindi, who worked in the Study Centre and the Fahud cluster, were part of a team which discovered bone fragments of hardosaurs in the foothills of the Hajar mountains.The herbivorous beasts – nicknamed duck-billed dinosaurs - measured up to 12 metres

PDO Geologists In Dinosaur Find

long and had horny beaks and hundreds of teeth in the sides of their jaws.The find provides the first evidence that these giant animals were in Arabia, after previously being thought to have been limited to North America, Europe and Asia.Mohammed, currently Chief Executive of Al Hajar Geological and Engineering Projects, said: “Several elements of the hind leg were discovered, as well as vertebrae.”And Axel, now Shell Senior Geoscientist in the Middle East Exploration team based in The Hague, added: “Dinosaurs have been found almost everywhere around the world. However, the Arabian Peninsula was for a long time one of the few white spots on the ‘dinosaur map.’ We believe we have now helped to colour in those dots.”Mohammed explained how during the Cretaceous Period about 90 million years ago, Oman experienced one of the most important geological tectonic events throughout its history. The oceanic crust of a former ocean known as the Neo-Tethys was emplaced on the northern

part of the country. As the crust advanced on top of Oman, the north buried deep – or sub-ducted -into the earth’s interior.When the emplacement ceased, the subducted continental plate rebounded back to surface, thereby creating suitable land above sea level for terrestrial animals, including dinosaurs, to live on. The beasts moved along flowing rivers and through forests of ferns, cycads and conifers. When the dinosaurs died, their bones, together with erosion material from the mountains, were washed down by streams and rivers to the sea shore, where they were buried by sediment.In 1992, two other geologists found a fragment of a dinosaur bone near the village of Fanjah. However, things remained quiet until 1997 when Axel and Anne Schulp, a Dutch paleontologist, decided to have a closer look at the area. This first dino-expedition was supported by PDO. After three days of digging, Axel and Anne found a massive vertebra near the village of Al Khod.In 2011, when Axel moved to Oman, he seized the opportunity to go back to what he calls ‘Dinoland’ together with Mohammed, who was the chairman of the Geological Society of Oman (GSO). Many weekends were spent in the field and at the end of 2013 an excavation project was set up with the support of the Diwan of Royal Court, the GSO, the Oman Botanical Garden and PDO.A lot of additional and very interesting bone material was collected and these new discoveries resulted in a recent publication in the world-renowned peer-reviewed scientific journal ‘PLOS One’.Axel said: “At the end of the Cretaceous Period, about 70 million years ago, when these hadrosaurs lived, the Afro-Arabian continent was separated from the northern continents by the wide Neo-Tethys Ocean. The interesting question is how these dinosaurs managed to cross this barrier, as the hadrosaurs were not able to swim across an ocean. It’s most likely that Oman was connected to Eurasia via a string of islands or a land bridge that existed in the Neo-Tethys Ocean. The discoveries in the Al Khod area change the understanding of what this part of the world geographically looked like at the end of the dinosaur era. “And we still think Oman’s mountains will reveal more exciting secrets in the years to come.”

Mohammed Al Kindi (far left) and Axel Hartman (far right) with colleagues in the expedition team

An artist’s impression of a hardosaurMohammed with one of the dinosaur fossils


PDO News

PDO Launches Instagram Page

PDO has expanded its social media presence with a dedicated page on Instagram.

The page was launched on National Day and attracted almost 1,000 followers in the first week.

The External Affairs Directorate has been steadily building up the content by posting photos and videos covering key events, achievements, activities, campaigns and real-time news – including the Company-wide celebrations on 18 November and the 45 entries for the photography competition.

Social media fans and those wishing to learn more about PDO can follow the page @PDO.Oman

The launch on Instagram is the latest move into the world of social media after PDO launched on LinkedIn, YouTube and Facebook and the directorate is currently examining other platforms such as Twitter.

External Affairs & Communication Manager Suleiman Al Mantheri said: “Social media offers many exciting opportunities for us to showcase our strengths and to build understanding as to why we are “Proud to Serve Oman.” In actively participating in social media, we welcome your support of PDO and its activities.

“However, it is of paramount importance that we all act responsibly on these platforms. Therefore, I would like to remind staff of our social media guidelines and code of practice, which are on the PDO intranet, and strongly urge you to follow them at all times.”

BAB-BMF Shuttle Launched

A new service linking the Bait Al Bushra (BAB) and Bait Mina Al Fahal (BMF) buildings has been launched.The free Shuttle Pod was devised by the Corporate Real Estate Department to ease commuting problems around Mina Al Fahal. The Real Estate team has received positive feedback from those using the service.At the moment, the route of the shuttle is restricted between BAB and BMF during working hours between 7am to 4pm with a two-minute stop in each location. However, Corporate Real Estate Manager Azzan Al Kindy said: “We will continue to study and analyse the feedback received from people on this service and observe whether extra routes would be a further improvement for the issues faced with parking and commuting between buildings.”

Azzan Al Kindy was one of the first passengers to use the new service


Helping SMEs Succeed

PDO News

Supporting SMEs

Managing Director Raoul Restucci believes the recessionary pressures faced by Oman are an opportunity for small and medium businesses to create sustainable employment opportunities for the country’s youth.

He said the current environment could drive change in the market as companies explored new technologies and ways of working.Giving his keynote address to the Small and Medium Enterprise Development Forum, hosted by Bank Muscat, Raoul said PDO had a robust plan to facilitate sustainable long-term prospects for SMEs despite declining oil prices. He pointed out processes, such as payment methods, needed to be simplified to help entrepreneurs establish successful ventures and said the key priority for PDO was to set a foundation for sustainable employment and productivity.Raoul explained that although the oil and gas industry is specialised, it provides indirect opportunities for SMEs to participate in the value chain providing, for example, office supplies, catering services, communication and technology services, construction, transportation, fabrication and welding He said: “As part of our In-Country Value (ICV) strategy, PDO has played a key role in encouraging SMEs to develop, ring-fencing contracts, offering technical and business support and staging workshops on how to successfully bid for our contracts and establish sound corporate governance and quality assurance frameworks.“Local SMEs need to get the basics right and

PDO has staged a workshop for Omani small and medium enterprises (SMEs) to raise their awareness of how they can do business with the Company.Around 75 entrepreneurs from SMEs and Local Community Contractors (LCCs) – businesses

owned by individuals or families within the Block 6 concession area - participated in the half-day event at the Learning and Development Centre.The seminar included an overview of the oil and gas industry and topics such as PDO’s processes and procedures for vendor registration, contracting and procurement and tendering, and its stringent health, safety and environment (HSE) policies and practices and business ethics.Delegates also learned more about PDO’s In-Country Value (ICV) strategy to retain more of the industry’s wealth in the Sultanate through greater Omanisation of the goods and services supplied to the oil and gas industry and more training and employment opportunities for Omani jobseekers.During the workshop, experts from the Company’s ICV team shared a number of success stories where PDO had supported Omani businesses. For example, during 2014, more than 170 active LCCs benefitted

from PDO contracts, providing services such as electrical, mechanical, civil engineering, logistics, manpower supply and equipment hiring.ICV Operations Manager Khalfan Salim Al Busaidy (left) said: “PDO is an active champion of small and medium local businesses, providing support across a wide range of activities.“The workshop showcased our continuous commitment to support government directives to provide support to SMEs so that they understand fully what is required if they want to work with us.“There are some fantastic Omani SMEs which can begin or expand work in the oil and gas industry. PDO wants to fully unlock that potential but it is important that suppliers and vendors are made fully aware of the standards and specifications and rules and regulations which must be complied with.”The awareness-raising workshop is the second of its kind at Mina Al Fahal this year and follows one held in April. PDO’s ICV team has also conducted other workshops in 2015 to enhance LCC business acumen and HSE, and highlight commercial opportunities, including at two of its main operational areas at Fahud and Marmul.Additionally, another workshop on PDO’s tendering procedures was conducted in May to help Omani firms which had been unsuccessful in bidding for PDO business.

be able to execute work safely, professionally, honestly and at commercially competitive rates. Ensuring that their employees feel they have a stake in the success of the business, through things such as competitive salaries, decent training and/or good career prospects, is also key.”In-Country Value Development Manager Mohammed Ghareebi told the audience how PDO had supported SMEs since 1998 with the launch of the Local Community Contractor scheme and how 10% of the value in contracts is allocated to SMEs or by ring-fencing scopes up front.Mohammed also spelt out how PDO was making it easier for them to do business with the Company. Methods include workshops on business awareness and PDO’s requirements and standards, simpler registration procedures and online tools such as the Technology Providers Hub which is a platform, accessible to new and existing suppliers, for sharing challenges and inviting solutions.


PDO Projects

PDO has bought three brand new single buoy moorings (SBMs) to ensure the continued safety of crude oil exports at Mina Al Fahal for the next 40 years. SBMs are offshore floating platforms to which an export tanker is secured during the transfer of oil. Those at MAF are located at a distance of 3-4 kilometres offshore and are connected to subsea pipelines laid on the seabed to the crude oil tank farm. The SBMs are kept in place by securing them to the seabed by chains and anchor piles and each one is fitted with a large bearing (4 metres in diameter) which allows the tanker and the floating hose string to rotate completely during the crude oil loading operation and also transfer the mooring load of the tanker to the anchoring chains. The Company has exported all its crude oil through the SBMs since 1967. The second-generation SBMs have been in service since 1973 and have surpassed their design life of 25 years. Head of Marine Operations Captain Atiq Ahmed said: “Oil loading operations at SBMs are the safest, most environmentally responsible, efficient and cost effective method.”Work on replacing the aging SBMs began in 2013 after instructions from Infrastructure Director Sami Baqi. The design and tendering exercise was completed in November 2014 and the contract for three new SBMs was awarded to The Monobuoy Company based in the UK. The fast-track project was managed by a team led by Pipeline Infrastructure and Oil Terminal Manager Suleiman Al Maany and it was successfully completed with no incidents, delays or additional costs. The new SBMs were delivered to PDO on 16 November and the contract for their installation was awarded to a local Omani company Marine Technology Services, boosting In-Country Value. The new devices boast the latest design and unique features which enables each one to operate for 25 years in the water without the need of a dry dock overhaul. They are fitted with tanker load monitoring and swivel leak detection systems and telemetry to transmit vital load and pressure data to shore. They also have triple hull protection and underwater zones have been thermally sprayed with aluminum for corrosion protection. The overall maintenance cost of the SBMs during their service life has been reduced by US$10 million (75%) by removing the need for dry docking every eight years.On average, 350 Very Large Crude Carrier (VLCC) tankers per year load crude oil through the SBMs. The VLCCs are one of the largest floating structures ever built and are on average 300 metres in length with a width of 60 metres and are as high as a 15- storey building.During the 42-year service of the old SBMs at MAF, some 10 billion barrels of crude oil have been exported through them.

Making Waves On Oil Exports

13

مشاريعنا

2016 ينــــايـــــر | الـفـحـل

PDO has bought three brand new single buoy moorings (SBMs) to ensure the continued safety of crude oil exports at Mina Al Fahal for the next 40 years. SBMs are offshore floating platforms to which an export tanker is secured during the transfer of oil. Those at MAF are located at a distance of 3-4 kilometres offshore and are connected to subsea pipelines laid on the seabed to the crude oil tank farm. The SBMs are kept in place by securing them to the seabed by chains and anchor piles and each one is fitted with a large bearing (4 metres in diameter) which allows the tanker and the floating hose string to rotate 360 degrees during the crude oil loading operation and also transfer the mooring load of the tanker to the anchoring chains. The Company has exported all its crude oil through the SBMs since 1967. The he second-generation SBMs have been in service since 1973 and have surpassed their design life of 25 years. Captain Atiq Ahmed, Head of Marine Operations, said: “Oil loading operations at SBMs are the safest, most environmentally responsible, efficient and cost effective method.”Work on replacing the aging SBMs began in 2013 after instructions from Infrastructure Director Sami Baqi. The design and tendering exercise was completed in November 2014 and the contract for three new SBMs was awarded to The Monobuoy Company based in the UK. The fast-track project was managed by a team led by Pipeline Infrastructure and Oil Terminal Manager Suleiman Al Maany and it was successfully completed with no incidents, delays or additional costs. The new SBMs were delivered to PDO on 16 November and the contract for their installation was awarded to a local Omani company Marine Technology Services, boosting In-Country Value. The new devices boast the latest design and unique features which enables each one to operate for 25 years in the water without the need of a dry dock overhaul. They are fitted with tanker load monitoring and swivel leak detection systems and telemetry to transmit vital load and pressure data to shore. They also have triple hull protection and underwater zones have been thermally sprayed with aluminum for corrosion protection. The overall maintenance cost of the SBMs during their service life has been reduced by US$10 million (75%) by removing the need for dry docking every eight years.On average, 350 Very Large Crude Carrier (VLCC) tankers per year load crude oil through the SBMs. The VLCCs are one of the largest floating structures ever built and are on average 300 metres in length with a width of 60 metres and are as high as a 15- storey building.During the 42-year service of the old SBMs at MAF, some 10 billion barrels of crude oil have been exported through them.

Making Waves On Oil Exports

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