The monthly newsletter for Petroleum Development Oman staff and its Contractors

Issue - 435MAY 2015

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6 Contractor SavingsMOG Media Briefing

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11 Double Winners!PDO Football Cup

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8 Global ImpactUII Awards

PDO HOSTSCOUNCIL OFMINISTERS

PDO HOSTSCOUNCIL OFMINISTERS

When the aromas of the past meet the present... Omani frankincense

packaged in the traditional dress woven by “Banat Oman” sponsored

by Petroleum Development Oman

Features

First WordDear Colleagues,

This edition captures yet another busy month for the Company, not least the first-ever visit by the Council of Ministers to PDO. It was an honour and pleasure to host such an eminent delegation and to showcase just some of the incredible work that our staff deliver each day. It was also gratifying to hear the words of praise from Highness Sayyid Fahd bin Mahmoud Al Said, Deputy Prime Minister for the Council of Ministers, which bear out the importance of PDO to the nation and reaffirm the all-round support for the direction and commitment we are taking towards sustainable development.

PDO was also front-page news after the annual Ministry of Oil and Gas Media Briefing event where we were able to report on our many excellent achievements in 2014 and outline our aspirations and challenges for 2015. Al Fahal summarises some of the key points, including our goal to raise our average daily oil production plateau to 600,000 barrels per day and our target of creating 7,000 jobs and training opportunities for Omanis for this year and beyond.

In this latter respect, the report on the graduation of a further 362 young Omani jobseekers from another successful PDO training scheme so they can take up full-time work in the oil and gas industry marks another milestone on our In-Country Value journey. The recruits are now embarking on hopefully long and rewarding careers with PDO contractors in a wide range of trades, including as mechanical, electrical and instrument technicians, welders and pipe fitters. The official graduation ceremony also saw us sign a Memorandum of Understanding with the Ministry of Manpower for further co-operation on providing more skilled jobs.

Another aspect of our ICV programme is our support for Omani small and medium enterprises and the half-day workshop to enhance their awareness and understanding of how to do business with PDO was a good step in this direction. The seminar focused on processes and procedures including ICV, business ethics, tendering, registration, health, safety and the environment (HSE), and training and Omanisation.

The workshop also covered contracting and procurement, a vital facet of our business which was celebrated recently at the first C&P Day. This successful event clearly underlined how pivotal C&P staff are to keeping the wheels of PDO turning in our dealings with our contractors, vendors and service providers.

Regards,Raoul RestucciManaging Director

ICV: Making The Grade ............................... 1

A Host With The Most ............................... 1

Art Show Is A Major Draw ...................... 2

Good Work ....................................................... 2

Council Of Ministers First Visit To PDO ..... 3

Lean Speeds Up Project Planning ......... 5

Contractors Rise To Cost-Control Call ........6

Staff In The Spotlight ..................................... 7

Global Impact ................................................... 8

Adding Value ...................................................... 9

Tech Talk ............................................................... 9

The Seven Billion Dollar Team ..............10

Helping Small Firms To Think Big .........10

Double Winners............................................11

Editor:David BrownTel: 24673977PHotoGrAPHY:Mohammed Al Mahrezi Tel: 24675283

ArABiC Editors:Saleh Al Alawi Tel: 24678901 Zahran Al Ruqeishi Tel: 24678508Ikhlas Al Waili Tel: 24676891

dEsiGn ConsultAnts:United Media Services LLCTel: 24700896

PrintEd BY:Loay International LLCTel: 24794700

iF You HAVE A storYInitially contact the editor or production editor with an outline of your idea either by phone or by email. Submission of written articles without prior discussion with either of the editors is not encouraged to avoid disappointment in cases where a story is not suitable for Al Fahal.

PHotoGrAPHYRequests for photography should be directed to the photographer. 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.

CoPYriGHtPlease 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 get in touch with the editors.

Email: editors@pdo.co.om

A further 362 young Omani jobseekers have graduated from a PDO training scheme enabling them to take up full-time work in the oil and gas industry.

They celebrated their success with a graduation ceremony at the Crowne Plaza hotel in Muscat under the auspices of His Excellency Dr Mohamed bin Hamed Al Rumhy, the Minister of Oil and Gas.

All had undergone an 18-month vocational training programme at specialist institutes in Oman with the majority achieving Level 2 of the National Vocational Qualification and the Construction Industry Training Board programme.

They are now starting their careers with PDO contractors in a wide range of trades including as mechanical, electrical and instrument technicians, welders and pipe fitters.

Their progress is further evidence of the success of PDO’s In-Country Value (ICV)

strategy which is aimed at developing the capability and capacity of Omanis so they can play an increasingly important role in the oil and gas sector.

Also at the graduation event, and in the latest in a series of education and employment initiatives with the Omani government, the Company agreed a Memorandum of Understanding (MoU) with the Ministry of Manpower.

The MoU was signed by His Excellency Sheikh Abdullah bin Nasser bin Abdullah Al Bakri, Minister of Manpower and Managing Director Raoul Restucci. Under its terms, both parties will encourage co-operation in areas of training and Omanisation in the sector and other industries.

His Excellency praised the relationship between PDO and the Ministry for helping to provide skilled jobs for Omani youths. He

PDO has hosted the 39th Gulf Co-operation Council (GCC) Drilling Technical Exchange Meeting in Muscat.

The event featured a health, safety and environment (HSE) workshop, focusing on Behaviour-Based Safety (BBS), implementation challenges, learnings and HSE impact.

The workshop also covered a discussion on best practices for encouraging contractors to report near misses and selecting a wells process safety key performance indicator for the HSE dashboard.

Well Engineering HSE Team Leader Mahmoud Al Shukri said: “There was a lot of similarity between the different BBS programmes implemented by GCC national oil companies (NOCs), and they are facing similar challenges in implementation, such as high staff turnover, which is impacting the sustainability of the programme.”

Completion and Well Intervention Engineer Hamdan Al Sadi gave a presentation on

emergency protection zones, simultaneous operations and well test flaring, focusing on the risk of hydrogen sulphide at three PDO high sour risk fields.

Performance Well Engineer Sulaiman Al Salmi also spoke about the PDO Well Quality Index, including its use as a tool to identify technical

A HOST WITH THE MOST

ICV: MAKING THE GRADEdescribed the agreement as a model of co-operation between the two sides and added: “We look forward to continuing to work closely with PDO in the future to achieve our shared ambitions.”

Raoul said: “We are very pleased to be continuing our fruitful relationship with the Ministry of Manpower and working together. The graduation event is clear evidence of what can be achieved by working with our key stakeholders to create rewarding and skilled jobs for young Omanis.”

In 2014, PDO significantly ramped up its ICV drive, working with its contractor community to create more than 4,300 jobs through structured training programmes to meet industry requirements. Since His Majesty Sultan Qaboos bin Said’s National Objectives programme was launched in 2011, PDO has created over 14,300 job and training opportunities.

issues that jeopardize the quality of a well and reduce its life.

Other GCC NOCs attending included ADCO, ADMA, ZADCO, Saudi Aramco, QP, KOC and Tatweer from Bahrain. The Drilling Technical Exchange Meeting takes place every six months.

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Disabled artists captured the attention of hundreds of PDO staff with an exhibition of their work in the BMF atrium.

Paintings, photos, sketches, carvings and sculptures produced by members of the non-profit Adatee Hayatee (My Tools Are My Life) group were a big attraction during the six-hour event.

The exhibition generated more than RO 1,000 in sales on the day and was a major talking point on social media.

Wafa Al Harthy, a 22-year-old maths student from Sultan Qaboos University who is unable to walk, said: “At one point, I had five people bidding for one of my pictures and it went for 100 rials in the end.

“I was really happy I was able to engage with the employees here.

“I have been painting since I was seven years old and, like others in the group, believe I can achieve as much as anybody and that we are not limited by a disability,

“Art has no borders and I am looking forward to competing in exhibitions worldwide.”

Waleed, 30, who is blind, showed off his carving skills on a small lathe as he crafted pens, condiment pots and candles from rosewood.

ART SHOW IS A MAJOR DRAW

Students interested in working at PDO flocked to the Company stall at the Sultan Qaboos University (SQU) annual career fair.

Senior focal points from the Well Engineering, Petroleum Engineering, Engineering and Operations and Infrastructure Directorates joined the recruitment team from the People and Change Directorate and representatives from the Young Professional Network and Young Graduates Club to spread the word about life at PDO.

The three-day event, which was held under the auspices of His Excellency Sheikh Abdullah Bin Nasser Al Bakri, the Minister of Manpower, was aimed at more than 3,500

He said: “I am very happy with the response from people at PDO and sold 12 pieces. The more I sell, the more confident I become.”

Managing Director Raoul Restucci and External Affairs Director Abdul-Amir Al Ajmi toured the exhibition booths and awarded appreciation certificates to the artists.

Adatee Hayatee launched last December and champions a mix of full-time and part-time artists who have a form of disability.

However, Manager Laila Al Wahaibi said: “It is not all about physical disability. These are

talented people in their own right.

“Disabled people can be doctors, engineers, teachers and artists. It’s wrong to think they can’t do anything because they have a disability.

“We are very grateful to PDO. They have been really supportive and we wish all companies could support us as well.

Group volunteer Sultan Al Subhi added: “This is part of PDO’s mission to support In-Country Value and Omani talent and this event has been a great help to the artists in building their confidence and interest in their work.”

students graduating from SQU this year who are interested in jobs and internships, in addition to those graduating from local and international universities and colleges.

Learning and Development Manager Hamed Al Hadhrami (pictured), who attended the gathering on the first day, said: “The career fair is an opportunity for PDO to market its remarkable contribution in providing job

opportunities for fresh graduates. It is also an opportunity to interact with students and network with other corporations to benchmark and share recruitment practices.”

“The fair also helps students to gain access to a large number of corporations in a one-stop environment.”

Around 3,000 potential candidates varying from trainees, graduates and experienced hires visited the PDO stall which played two Company videos. They were presented with a stylish USB pen that contained a step-by-step film on how to apply to PDO.

Hassan Al Lawati, a member of the Young Graduates Club, said: "It was a great pleasure to meet the future generation of PDO and experience the enthusiasm of potential PDO recruits. It was an enriching experience overall."

GOOD WORK!

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The Council of Ministers has praised PDO after making a first-ever visit to the Company.

The eminent delegation of Cabinet members and officials was led by His Highness Sayyid Fahd bin Mahmoud Al Said, Deputy Prime Minister for the Council of Ministers, during the three-hour visit to the BMF building.

The dignitaries were received by Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, and Managing Director Raoul Restucci.

Raoul gave an overview of the Company’s performance on a range of matters including production, health, safety and the environment, cost control and job and training opportunities for Omanis through the pioneering In-Country Value programme.

The delegation toured a small exhibition showcasing models of some of PDO’s leading projects, such as the Nimr reed beds and Amal

COUNCIL OF MINISTERSFIRST VISIT TO PDO

solar trial, and its social investment efforts, and also visited the Lekhwair Collaborative Work Environment.

His Highness hailed the efforts made by the Company in the growth of the national economy and its active role in training and employment of national manpower; a role which the government is looking forward to enhancing by providing more job opportunities in areas where the Company is operating.

He said: “We are proud of what we have seen and heard today as they promise a bright future.”

Raoul said: “It was truly a great honour to welcome such distinguished visitors and we very much thank them for their interest in, and continuous support for, PDO.

“We were privileged to have the opportunity to give the Council of Ministers an overview on our activities, strategic priorities and focus

areas and it was a very valuable and fruitful engagement.

“Our staff and contractors are immensely proud to serve Oman and this visit will motivate them even more to do their very best for the nation day in, day out.”

In a statement, His Highness thanked PDO for the efforts made and still being made to add momentum to the Omani economy and ensure more economic diversification. He also pointed out the scale of PDO’s activities beyond the delivery of oil.

The visit comes after an extensive programme of engagements in the past year with a range of key stakeholders, including high-profile visits by the Majlis A’Shura, foreign and Omani ambassadors, the Tanzanian Prime Minister, The Honourable Mizengo Peter Pinda, and Her Royal Highness Princess Astrid of Belgium..

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For the first time in PDO, the concept definition for a major hydrocarbon maturation project has been completed in a significantly shorter time and with enhanced efficiency using Lean principles to enable new way of smarter working.

The breakthrough means the project schedule at the Lekhwair Upper Shuaiba development has been reduced by more than a month freeing up engineers’ time and leading to faster, more aligned decision making.

The development employs an “unconventional” approach by dividing the entire acreage (of approximately 1,500km2) into a number of 100km2 areas that utilise a standard development scheme.

The production evacuation scheme employs a standard remote manifold station (RMS) at every 100 km2 with four satellite multiport selector valve (MSV) stations in the peripheral locations. The standard RMS design caters for high-case development after which only a phased development is executed based on subsurface maturity, and has flexibility for expansion by modular addition.

The Basis for Design (BfD) is a compilation of project data from the Select phase and finalises the translation from the field development perspective during Select into a project definition perspective. However, the BfD review and approval stage usually take 5–8 weeks involving more than 20 engineers. The majority of these engineers reside in the matrix organisation (functions) with different reporting lines. They also provide their support on a part-time basis to several projects at the same time across the Company.

Although the delivery of the BfD is the responsibility of the concept engineer, who is usually dedicated to the project, the multi-disciplinary nature of the BfD and the decentralisation of the contributors make it necessary to conduct many separate inter-disciplinary reviews, accommodating everyone’s different schedules, to ensure that every individual contribution is consistent with that of everyone else. It was clear that this was a highly inefficient process with a lot of “waste” in terms of time and effort.

However, by using the BfDin1Go approach, the review and approval process was successfully completed in just one week. The key elements of this approach are a structured agenda containing an alignment session, dedicated review time combined with plenary sessions (key for efficient time and effort management), the use of live key performance indicators to monitor progress as well as to flag approaching hold-ups in a timely manner, and a collaborative workspace (which is key for fast resolution of multi-disciplinary issues).

The Central Concept Engineering team (CCET) has developed a Standard Operating Procedure (SOP) based on the Lekhwair Upper Shuaiba experience which will be used

as a basis for future projects. This procedure is a live document which will be continuously improved as more projects adopt this approach. This method has a high degree of replicability which can be applied to the processes of other deliverables such us field development plans, concept selection reports and feasibility studies.

Kedar Sadhukhan, Lead Concept Engineer for the Upper Shuaiba Development team, said “It is an unceasing effort to find ways of achieving excellence in supporting PDO’s business objectives against a changing business environment in which there is a demand to get more done, faster, with fewer resources. The BFDin1Go has not only made my job easier by getting the signature of Technical Authority 2 (a person who can approve the technical requirements at the BfD level) in a week, but also made the project manager happier with the project schedule accelerated by more than a month.”

Ashiq Al Moosani, Head of the CCET and Corporate Function Discipline Head for Concept Engineering, said: “This extraordinary achievement by the project’s Front End Development Manager and his concept team deserves recognition. This is especially because they proved otherwise to everyone from the Company’s concept engineering community who agreed that it was a great idea but couldn’t be done because the status quo was unshakable. This is not the end but just the beginning of a journey that the CCET is eager to facilitate and see implemented on other key engineering deliverables and in other projects.”

LEAN SPEEDS UP PROJECT PLANNING

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Managing Director Raoul Restucci has revealed that PDO contractors have so far submitted ideas that could save at least US$120 million in the coming years.

Speaking at the annual Media Briefing event at the Ministry of Oil and Gas, Raoul said they had tabled 304 proposals to work more efficiently and 178 had already been endorsed by the Company. Many of the savings could be realised this year and in 2016.

The response came after a successful engagement in March with 150 key contractors to combat the steep fall in oil prices.

Raoul also gave a detailed breakdown of PDO’s 2014 performance, including the creation of 4,300 job and training opportunities for Omanis with its contractors and the generation of 7,000 such opportunities this year and beyond. Contracts worth US$4.9 billion were also awarded to local companies and the four Super Local Community Contractors now employed 650 Omanis and had 9,400 shareholders.

He also confirmed that the Company was working towards a new sustainable long-term oil production plateau of an average 600,000 barrels per day by 2019 and that it was pursuing a robust growth programme despite the volatile oil price environment.

Raoul commented: “Despite the challenging price environment, we maintain our profitable growth plans and we intend to stay the course with a continued focus on business improvement and sustainability.

“Our well engineering and project activity levels continue to grow and we are pursuing early monetisation of prospects where possible. We are confident in our programme and we must seize the opportunity from the significant oil price decline, enabling increased cost-saving opportunities and more collaborative ways of working.

“PDO is a reliable supplier and we intend to get even better and more efficient at exploring

and extracting the hydrocarbons which power Oman and meet our shareholders expectations.

“In the past five years, we have added 700 million barrels to our production profile despite working in some of the most testing conditions in the oil and gas industry.”

PDO posted an average daily oil production for 2014 of 570,534 (bpd), representing its highest oil production since 2006. In addition, the

combined average PDO production (oil, gas and condensate) stood at 1.231 million barrels of oil equivalent per day (boepd) last year, the third highest in the Company’s history.

Raoul also announced a significant 8% increase in Stock Tank Oil Initially In Place (STOIIP) from 61.9 billion to 66.6 billion barrels over 2014. This addition included the booking of two discoveries in the Dhulaima and Birba A3C reservoirs, with a cumulative STOIIP of just over 613 million barrels, the Exploration Directorate’s largest booking in the last 20 years. There was also a 16% increase in Gas Initially In Place (GIIP) to 75.4 trillion cubic feet (Tcf), underpinned by new discoveries in Khulud West and Mabrouk South.

He said the Company is also actively pursuing

and accelerating projects which can generate increased revenues, whilst maintaining its overarching focus on personal and process safety.

PDO recorded its best-ever Total Recordable Case Frequency of 0.97 although Raoul pointed to a “plateauing” safety performance last year which was being addressed through a range of new initiatives, including a comprehensive simplification of safety processes.

Raoul said: “The fundamentals of our business are robust and we are escalating our efforts to address greater efficiency and reduce waste in all we do. We are working with our contractors to identify sustainable opportunities for greater productivity, cost efficiency and revenue enhancement opportunities.”

Speaking after the event about the contractor cost-control response, Saif Al Harthi, Head of Contracting and Procruement Strategy and Planning, said: “It is very encouraging to see the creativity and energy levels that many of our key contractors have displayed. Over 300 ideas were received in Q1 2015, more than half of which being real value add that are being actively pursued.

"This exercise and the ongoing Contract Optimization Reviews have both demonstrated to be extremely powerful tools to unlock value for the country which is paramount during the current economic climate. I would like to thank all the Company's stakeholders including contract holders and contract engineers for their continuing efforts in ensuring the delivery of the identified opportunities.

"We need to maintain the momentum and focus to ensure all quick wins are implemented within the next few weeks, while some of the fundamentals changing or specifications challenging proposals are reviewed and agreed by the relevant Star Chamber by June.”

CONTRACTORS RISE TO COST-CONTROL CALL

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STAFFIN THE SPOTLIGHT Hussain Al Ajmi (Production Geologist)

Hussain Al Ajmi has made his mark in the region by winning a prestigious Society of Petroleum Engineers Gulf Co-operation Council competition.

Hussain finished first in the Young Professional paper contest with the topic “Drilling Challenges in Highly Fractured, Shale Interlayered Carbonate Reservoirs.”

He beat off the challenge from six other talented young staff from the GCC at the event at the Saudi Aramco–Upstream Professional Development Centre, Dhahran – a tremendous achievement for both PDO and the SPE Oman section.

Here, he talks about his accomplishment.

What is your background at PDO?

I joined in 2004 as a scholar after high school, and studied Geology at the University of Leeds in the UK, graduating with a BSc in 2009. I came back to PDO in the same year as a Petroleum Engineer starting in the Fahud cluster. I worked as an operation geologist in the New Oil team for the first three years and then moved to the Development Planning team as a production geologist. I recently joined the Improved Hydrocarbon Recovery (USI) team in the Study Centre.

What does your job involve?

As an operation geologist I was monitoring/following rig drilling operations from subsurface geology point of view. I worked closely with the Well Engineering Directorate and provided them with the required subsurface information to achieve successful and safe drilling operations. The basic job roles involve preparing well proposals, rig locations and well trajectories/plans and supporting rig geologists.

Why is it a good idea to join the Young Professional Network?

The YPN is a great forum for communication, knowledge sharing and experience exchange. It is a place to share success stories and get inspired by other great achiever YPs. The gatherings and the events are very useful and can be used widen someone’s network of connections and they are places where most of our basic questions get answered. Also, during these events, YPs can practice and improve certain skills like presentation and organisation.

How did you win the GCC award?

Seven contestants participated in the final round of the competition to determine who would win the honour of being on top of the GCC SPE sections. The contestants were all SPE members from multi-disciplinary backgrounds. The competition is open to young professionals aged 36 and younger from a range of disciplines. The areas of focus for the papers included drilling and completion, production and operations, reservoir description and dynamics.

Each competitor presented their paper before a group of five judges: During a 15-minute presentation, contestants outlined their paper concepts with visual aids, and the judges followed up with challenging questions.

We were judged on a broad scope of criteria designed to showcase our mastery of our chosen subject. The judges looked for a logical and systematic presentation that provided a thorough explanation of the subject matter, as well as sufficient evidence and relevant literature to support the contestant’s findings.

What conclusions did you come to in your paper?

Working for three years on a field, you get to see all kinds of problems which gives you a wide range of knowledge and hands-on experience. The Natih formations in the Fahud field, being composed of soft, highly fractured rocks, can present a wide range of problems, from fractures leading to losses and borehole stability issues to swelling rocks which can result in immediate hole collapses.

I used to make notes of the drilling problems we faced, how issues got escalated and how

we overcame the problems. I collected these observations and grouped them depending on types of causes. The procedures to tackle those problems were also noted.

I presented the initial report as my establishment project and built on it as I gathered more and more experience. I thought this work could help new joiners to the Fahud cluster. I shared a draft version of this report with the rig crew and people working in the field and it was very well received.

What was it like presenting at the contest?

Initially, I felt a bit nervous but seeing contestants from the same age group, with more or less a similar amount of experience, made me feel better. Seeing the judges go hard on some participants made me feel hesitant although I overcame that by telling myself: “I am on top of what I am presenting here today, it’s my field, it’s my work.”

What are your career ambitions?

Currently, I am working on my competency gaps as a geologist. I want to learn about the roles of geologists in our industry and then I am planning to get back to operations and probably be a New Oil Team leader soon. I need to do some work in Exploration and our gas fields and then I can do operation geology again.

How do you relax away from work?

I do a lot camping and off-road trips and enjoy long car rides. Car racing has always been my passion but I try to keep it to minimal level for safety reasons. I also do quad biking.

Hussain receives his award

Hussain (left) with PDO colleague Abdullah Al Mamari at the GCC event

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GLOBAL IMPACT

Two PDO teams have been recognised globally for their excellence in arresting production decline and delivering In-Country Value.

The Yibal asset and Super Local Community Contractor (SLCC) teams were honoured after winning Shell Upstream International Impact Awards.

The awards attracted 509 entries from Shell operating units and joint ventures in 21 countries, with 59 submissions coming from PDO.

Shell Oman’s Country Chairman Chris Breeze congratulated the teams for their collaborative approach at a special recognition event at the Shell Development Oman headquarters, adding: “I am delighted to recognise and celebrate the achievements of the PDO winners in these global Shell awards.

“Both winning teams, in very different ways, epitomise PDO’s vision to be renowned and respected for the excellence of its people and the value it creates for Oman and all its stakeholders.

“I extend my congratulations to the leadership of PDO and the staff who have made both projects such a great success. They exemplify the reason why we in Shell are very proud of our longstanding association with PDO.”

Victory for Yibal in the Production Optimisaton category came after an integrated effort to halve the annual production decline rate from 14% to 7% from 2011-2014, reduce operating costs and extend the life of the field, which has about 400 wells.

The field had faced numerous challenges due to uncontrolled water injection and aging surface facilities. However, a robust new well, reservoir and facilities management regime, aided by Lean implementation in 2012, led to a turnaround.

The team used in-house software to gauge actual pressures and water injection requirements and segmented the field into 19 sectors, redistributing water in a controlled and monitored way from high pressure to low pressure areas and tackled integrity issues by repairing and replacing leaking flow lines and subsurface tubing.

The effort has saved around 1,500 barrels of oil a day, uncovered around two million barrels of light oil reserves and the idea is now to replicate it across other PDO assets.

Yibal Cluster Leader Zaher Al Hinai said: “This award means a lot to us as it encourages the team to work even harder, it makes them prouder and leads to improved production in Yibal.”

The SLCC team success in the Safety Leadership, Environment and Social Performance category came once more after integrated teamwork, this time from staff in the Well Engineering and ICV Directorates and Contracting and Procurement Department for the successful establishment and start-up of the SLCCs, Al Sahari, Al Shawamikh and Al Baraka.

The three deliver core oilfield services, such as well engineering, wellhead maintenance and hoist services, and are generating employment avenues and entrepreneurship opportunities for thousands of Omanis in the concession area. All are performing well enough to compete with

existing contractors performing similar services and dividends have begun to be distributed to local shareholders.

PDO provided investment, HSE, training technical, operational and contracting assistance and a dedicated team was assigned to manage the procurement, deployment and commissioning of hardware and to run the operation thereafter. Scores of Omanis from concession area communities have been trained and the project established a successful model for setting up local companies to follow in the Sultanate and region.

ICV Operations Manager Khalfan Al Busaidy said: “This is global recognition for our achievement of social support. It gives us more motivation and focus for what we have been doing.”

Managing Director Raoul Restucci paid tribute to the winning teams and all those who submitted entries.

He said: “I have the best job in the world because of the talent at PDO. The Yibal project is a fantastic example of integration between surface, subsurface and engineering. The team works as one and it is sustainable.

“On the SLCC project, we have awarded more than US$540 million of work to the SLCCs, we have a sustainable proposition and we are now working on a fifth one. It is unbelievable.”

The UII Awards aim to recognise teams in the Shell Group, including joint ventures such as PDO, that have delivered exceptional results that can be replicated across the company’s global operations.

Raoul with Chris Breeze

PDO has a long-standing collaborative relationship with Sultan Qaboos University, where PDO funds research projects to enhance SQU research capabilities. In return, SQU plays a role in providing services and solutions to the Company.

The relationship is mutually beneficial and plays a major role in bridging industry with academia.

In the past decade or so, Oman has witnessed a surge in the number of private higher education institutions, with some non-state universities emerging as new players in the field of research and innovation.

So, aiming to replicate the partnership with SQU, PDO initiated several collaborative frameworks with individual private universities.

In November 2014, the New Technology Implementation (UCT) team visited Sohar

University where they met Vice Chancellor Professor Raymond Volker and the research teams, followed by a guided tour through the research and teaching facilities. The university exceeded expectations, with the award-winning solar laboratory standing out.

In January 2015, the UCT team also visited Nizwa University, where they met Vice Chancellor Professor Ahmed Al Rawahi and saw the great leaps taken by the university to advance its research capabilities and the calibre of researchers. The university was ahead of a lot of others by having dedicated researchers concentrating solely on research, and is also equipped with cutting-edge technologies to carry out research in nano-technology.

Finance staff have been commended for a range of Business Partnering initiatives which have added value to PDO.

The projects were introduced as part of the Finance Directorate’s Business Partnering strategic priority which was launched in December 2013.

This included a new Business Partnering award scheme aimed at stimulating ideas within the directorate to bring value to the business.

An event was held in the BMF building to recognise the winners attended by Technical Director Amran Al Marhubi, Finance Director Haifa Al Khaifi, Engineering and Operations Director Abdullah Al Shuely and Corporate Planning Director Ruqaiya Al Hinai.

ADDING VALUE

Around 140 staff from Finance and across PDO also attended the event.

The Finance leadership team shortlisted the top six initiatives from the many submissions

PDO is currently working on signing non-disclosure agreements with both universities to initiate a collaborative research and services framework in specific areas of interest.

The co-operation with local universities is an excellent example of PDO’s ICV programme. The interdependent research relationships between universities and the Company enable both sides to sustain growth in their respective areas. While companies rely on university researchers for product innovations, faculties gain prestige through increased external research funds. Just as industry needs innovative ideas to ensure profits, researchers need additional research funds to sustain faculty productivity.

Tech Talk

and these were then assessed and ranked by MDC members for their impact on the business. The first prize went to the Procurement and Inventory Management (FPP) team for improving inventory demand planning cycles, the second to the Ras Al Hamra development project team for delivering commercial value and the third to the Finance Treasury (FCT) team for implementing an internet banking project which redesigned the banking transactions process with PDO banks.

Members of the winning teams were recognised with certificates and cash gift vouchers.

Amran paid tribute to the quality of the entries and urged the Finance community to: “Think the impossible and then deliver it in your pursuit of the objective to be true business partners.”

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Hundreds of staff attended the first Contracting and Procurement Day which showcased the crucial place of the department in the Company’s business.

The C and P portfolio consists of over 600 contracts with an average duration of about five years and a value of US$30 billion, with more than 2,000 suppliers registered in the PDO system.

There were 10 digital booths at the three-hour event outlining the department’s involvement in such matters as supplier relationship management, well engineering, capital projects, procurement and inventory management and people capability development.

Managing Director Raoul Restucci said: “C and P holds the key to many of our decisions across the whole spectrum.

“Our annual Opex and Capex is seven billion dollars and most of that goes through this team.

“There is an astonishing amount of quality work that is very much down to the professionalism in place. It’s about delivering first-class work, day in, day out with a continuing focus on improvement.”

Finance Director Haifa Al Khaifi said: “PDO has been setting the pace of change for C and P and that has been recognised by external bodies such as the government and Shell.

“In this current oil price environment, C and P is a very fine example of aligning our cost structures in a very sustainable manner.”

Haifa said the department brought a balance of creativity and control and was at the forefront of innovation in activities such as contract strategy development, people capability development, supplier relationship management, SAP integration and online bidding.

There was a strong focus on the Contracting and Procurement Lean value stream and also the work the team was doing in embedding In-Country Value in contracts, ensuring ICV plan compliance and supporting Omani businesses.

Last year, C and P specialists played key roles in PDO contracts worth US$4.9 billion which were awarded to nationally registered companies, and in ICV strategy workshops and business awareness sessions for small and medium enterprises (SMEs).

They have also been pivotal in the successful operation of Local Community Contractors and Super Local Community Contractors, with SLCCs now employing more than 650 Omanis and handling contracts of over US$564 million.

Contracting and Procurement Manager Husam Al Jahdhami said the event was about showcasing the achievements, systems and processes and best practices of C and P.

He added: “PDO’s activity portfolio is expanding in terms of size and complexity and the Contracting and Procurement Department is at the forefront of supporting PDO to deliver its business targets through effective and fit-for-purpose contracting strategies and transparent and efficient administration of contracting and procurement commitments.

“The first C and P Day provided a platform for staff to learn more about what we do and how we support the business.

“We were really delighted with the turnout and the interest shown by management and our colleagues.”

THE SEVEN BILLION DOLLAR TEAM

A workshop has been held for Omani small and medium enterprises (SMEs) to enhance their awareness of how to do business with PDO.

The half-day seminar focused on processes and procedures including In-Country Value (ICV), business ethics, tendering, contracting and procurement, registration, health, safety and the environment (HSE), training and Omanisation.

Experts from the ICV Directorate also

held the session with the aim of educating local Omani companies on identifying possible commercial opportunities for themselves in PDO’s In-Country Value programme.

A similar workshop was conducted in 2014 targeting SMEs, where a gap in communication and guidance was identified and an agreement was forged to improve this.

An opportunity to support the set-up of businesses was also identified amongst participants, and workshops are planned to take place to impart know-how to key decision makers of local company contractors and local Omani companies.

In-Country Value Director, Abla Al Riyami added “Through engagement of our SME stakeholders we are able to identify gaps and co-create solutions

to meet both parties’ requirements achieving the overall aim to maximise opportunities yet deliver our business goals.”

PDO is an active backer of local businesses, providing support across a wide range of activities. For example, in January the Company committed to develop and use four Omani SMEs for electrical work across its operations. During 2014 there were also 171 active Local Community Contractors benefiting from PDO contracts. Examples of their services included electrical, mechanical, civil engineering, logistics, manpower supply and equipment hiring.

HELPING SMALL FIRMS TO THINK BIG

9 10

11

The Oil South Directorate capped a memorable double by retaining the PDO Football Cup with a powerful 4-0 victory over the Well Engineering Directorate.

For the second year running, the OSD team proved too strong for the opposition and triumphed in the final at the PDO School football pitch.

Around 500 spectators watched a keenly fought game, refereed by Managing Director Raoul Restucci.

The OSD aces went into a 2-0 lead in the first half, with the second goal coming from a penalty. After the break, the UWD side mounted a valiant comeback but failed to capitalise after missing their own spot-kick and the reigning champions put the game out of reach with two more well-taken goals.

There was a party atmosphere at the venue with PDO flags fluttering around the pitch and half-time entertainment provided by a PDO School dance troupe and a “keepy-uppy” performer.

There were jubilant scenes of celebration at the final whistle led by Oil South Director Suleiman Al Tobi as the trophy was lifted.

During the course of the 22-game

tournament, the victors scored 27 goals, without conceding any. Their player Abdullah Al Salmi, a Harweel Production Operator, also finished the tournament as the top scorer with eight goals.

Coach Abdullah Al Abri, a Medical Laboratory Technician, said: “I feel very privileged to have been given the opportunity to coach the OSD football team for the second time and like the OSD fans, I am thrilled to have won the interdepartmental football competition for the second time.

"Our strategy has been to sustain the motivation and the spirit of the players as much as focusing on their physical preparation. We have practiced on a regular basis to improve our players’ skills and maintain their physique. The OSD performance has been great throughout the games, both in maintaining defence and ensuring the midfielders and strikers maximise their potential to take the lead and score the goals. "

“The tournament was well organised; my sincere thanks are to the organisers and the referees who have done a tremendous job. My special thanks goes to Raoul for excellent refereeing on the final day. I wish the OSD team more successes in the future.”

The competition was organised by the One Finance team as a way of promoting wider co-operation, teamwork and friendship across the directorates.

Legal Counsel Juliette Ominigho, of One Finance, said: “The team is thrilled to have organised the PDO Football Cup tournament again this year with an overwhelmingly positive response.

“The finals were well attended by over 500 people. The match between OSD and UWD was keenly contested, and the atmosphere was festive and joyous.

“We say ‘well done’ to all 12 directorates which participated this year and a special congratulations to OSD for lifting the Cup yet again!”

The Engineering and Operations Directorate won the third-place play-off 4-0 against the Corporate Health, Safety and Environment Department.

The External Affairs Directorate team, which lost all three of their games, eventually managed to win something – after scooping the Fair Play trophy!

The final was a rematch of last year’s inaugural PDO Football Cup, which OSD also won.

DOUBLE WINNERS!

11

فريق بفوز لعام 2014 القدم لكرة ال�صركة دوري انتهى

مديرية نفط اجلنوب لل�صنة الثانية على التوايل باإحرازه اأربعة

اأهداف مقابل ال �صيء �صد مناف�صه فريق مديرية هند�صة االآبار.

نفط مديرية فريق اأثبت التوايل، على الثاين وللعام

يف يفوز جعله مما مناف�صيه اأمام تقهر ال قوة اأنه اجلنوب

املباراة النهائية التي اأجريت مبلعب مدر�صة ال�صركة.

الفريقان فيها تفانى التي النهائية، املباراة ح�صر وقد

ب�صدة، حوايل 500 متفرج، وقام املدير العام راوؤول ري�صتو�صي

بالتحكيم فيها.

وقد انتهى ال�صوط االأول بفوز فريق مديرية نفط اجلنوب

بهدفني مقابل ال �صيء، حيث مت ت�صجيل الهدف الثاين ب�صربة

جزاء، وبعد الف�صحة بني ال�صوطني، �صن فريق مديرية هند�صة

اال�صتفادة من ولكنه ف�صل يف ات�صم باحلما�س، االآبار هجومًا

ركلة اجلزاء، وبعد خ�صارته ومع ت�صديد الفريق الفائز هدفني

اآخرين، ت�صاءلت فر�س فوز فريق هند�صة االآبار.

اأعالم رفرفت حيث احتفائيٌة اأجواٌء امللعب و�صادت

فرقة قامت بينما امللعب حول املن�صوبة وال�صركة ال�صلطنة

فنية باإذكاء حما�س الالعبني من خالل اأداء فني ملجموعة من

طالب مدر�صة ال�صركة خالل الف�صحة بني ال�صوطني كما قام

اأحد الفنانني باأداء ليوقد احلما�س وروح التناف�س.

نهاية يف االحتفالية وامل�صاهد الفرح م�صاهد وعمت

املباراة، وكان يف املقدمة مدير مديرية نفط اجلنوب الزميل

�صليمان التوبي حيث مت رفع الكاأ�س معلنًا الفريق الفائز.

الفريق �صجل مباراة، 22 ت�صمنت التي البطولة وخالل

اأنهى وقد كرة. اأي مرماه تخرتق اأن دون 27هدفًا، الفائز

ال�صاملي، اهلل عبد الزميل اجلنوب نفط مديرية فريق العب

الذي يعمل كم�صغل اإنتاج بحقل هرويل، البطولة بر�صيد ثمانية

اأهداف ليفوز بلقب هداف البطولة.

طبية: خمتربات فني وهو العربي عبداهلل املدرب وقال

اأتيحت يل فر�صة تدريب منتخب مديرية نفط اأن بالفخر "اأ�صعر اجلنوب لكرة القدم للمرة الثانية، ومثل بقية م�صجعي الفريق، اأنا

�صعيد بفوزنا ببطولة دوري كرة القدم للمديريات للمرة الثانية".

الدافع على احلفاظ اإىل ترمي ا�صرتاتيجيتنا "وكانت على االإبقاء مع احلما�س من املزيد الفريق لبذل املعنوي

معنوياتهم مرتفعة بقدر ما نركز فيه على االإعداد البدين. لقد

تدربنا ب�صكل منتظم لتح�صني مهارات العبينا واحلفاظ على

اجلنوب نفط مديرية فريق اأداء كان وقد البدنية. لياقتهم

اأو الدفاع على احلفاظ يف �صواء املباريات، جميع يف متميز

يف �صمان اأن العبي خط الو�صط واملهاجمني يبذلون ق�صارى

جهدهم لياأخذوا زمام املبادرة وي�صجلوا االأهداف".

اأتوجه اأن واأود التنظيم. بح�صن البطولة "ات�صمت بعمل قاموا الذين واحلكام املنظمني اإىل �صكري بخال�س

رائع. واأخ�س بال�صكر راوؤول لتحكيمه املمتاز يف اليوم االأخري

من املزيد اجلنوب نفط مديرية لفريق واأمتنى للدوري.

النجاحات يف امل�صتقبل".

يف الف�صل يرجع الذي الدوري، هذا من الهدف وكان

يكون اأن هو باملالية"، اجلماعي العمل "فريق اإىل تنظيمه

بني واالأخوة اجلماعي والعمل التعاون عرى لتوثيق و�صيلة

موظفي املديريات.

وقالت امل�صت�صارة القانونية جولييت اأومينيجو من مديرية

كاأ�س بطولة بتنظيمه غامرة ب�صعادة الفريق "ي�صعر املالية:

ال�صركة لكرة القدم مرة اأخرى هذا العام مع ا�صتجابة اإيجابية

للغاية من اجلميع".

وكان النهائية. املباراة �صخ�س 500 من اأكرث "وح�صر النهائية بني فريقي مديرية نفط التناف�س �صديدًا يف املباراة

جو اخلتامية املباراة و�صاد االآبار. هند�صة ومديرية اجلنوب

احتفائي مفعم بالفرحة".

ع�صر االإثنى املديريات جلميع اأح�صنتم نقول "ونحن لفريق اخلا�صة تهانينا عن ونعرب العام هذا �صاركت التي

مديرية نفط اجلنوب لفوزه بكاأ�س البطولة مرة اأخرى!".

الثالث باملركز والعمليات الهند�صة مديرية فازت كما

مبباراة فا�صلة 4-0 �صد دائرة ال�صحة وال�صالمة والبيئة.

كل خ�صر الذي اخلارجية، ال�صوؤون مديرية فريق اأما

املطاف من نهاية لعبها فقد متكن يف التي الثالث املباريات

ح�صد كاأ�س اللعب النظيف!

وكانت املباراة النهائية مماثلة للدورة االأوىل للبطولة العام

املا�صي حيث فاز بالكاأ�س اأي�صًا فريق مديرية نفط اجلنوب.

مديرية نفط اجلنوب حت�ضد الكاأ�ض لل�ضنة الثانية

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