OLNG PDO

Business Opportunities

in the Oil and Gas Industry

In-Country Value 5 June 2014, Sultanate of Oman

الفرص االستثمارية في

النفط والغاز قطاع

القيمة المحلية المضافة ، سلطنة عمان 2014يونيو 5

June 5th , 2014

The Local Workforce Development Program (LWDP): Update

Presented on behalf of the oil and gas industry by:

ICV HR sub-committee

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Safety briefing and lodging

Emergency contacts

Emergency alarm / fire drills

Prayer rooms

Toilets

Coffee / tea

Arrangements for smokers

Mr. Elvis Michael, mobile number - 99417609

Guests should go to the nearest assembly point once you hear the fire alarm. Assembly point is located near the Hotel main entrance

Ladies prayer room is located at the lower lobby near Tropicana Restaurant. Male Prayer room is located outside the hotel

located near the Sindbad Ballroom and near the Reception

will be served at the foyer area as per the contract

allowed outside the hotel at the Banquet entrance

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Purpose of this presentation

Purpose of the presentation

• Share the role of the Local Workforce Development as part of ICV for Oman

• Share an update on the progress made since 18th December 2013

• Obtain feedback from the market

• This workshop is NOT an contractual commitment with any business entity

More information on the ICV blueprint or on other opportunities could be found in the brochure and catalogue distributed today or by visiting www.incountryvalueoman.net

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Meeting agenda

1. HR sub-committee mission and objectives

2. Our approach

3. Success Factors

4. Next steps

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Within the oil and gas industry, the local workforce development is addressed by the ICV HR Sub-Committee

The Oil and Gas industry is committed to local workforce development

1. Develop all initiatives collaboratively ensuring key stakeholders involvement

2. Drive HR development initiatives across Oman oil and gas companies

3. Deliver step change in oil and gas skills development for Omani citizens

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Strategic objectives

1. Analyze industry requirements

2. Ensure availability of the required qualified and trained local workforce

3. Align existing academic and vocational training programs with industry requirements

4. Develop these programs to internationally accredited standards

5. Build local capacity to meet Oil & Gas HR needs

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Our initial focus

What do we need in the Oil & Gas industry?

1. Alignment between Education System Outcome and Industry Requirement

2. Standards-based Training & Assessment

3. International Accreditation

4. Capacity & Capability versus Demand

5. Employment Value Proposition (EVP)

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Meeting agenda

1. HR sub-committee mission and objectives

2. Our approach

3. Success Factors

4. Next steps

The defined local workforce development journey involves contribution of all relevant stakeholders throughout the defined cycle

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Align key Stakeholders Set priorities and phases

Develop the Oman oil and gas industry competence

framework

Develop employee value proposition to attract into

the required jobs

2 - Review industrial standards and

curriculum

3 - Assess education and training bodies

(capacity and capability)

5 - Award & train to employ

4 - Define and implement action plan

to close the gaps

1 - Define precisely the required demand

Process for each priority skill

3 to 6 months

5

4 2

1

3

Current stage

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A standard skill development approach has to be followed to ensure all stakeholders are aligned during implementation

- Standard skill development approach -

Select Define Develop Train Appraise

Standard launch & waving approach

Skills Development Progress

Standard Skill Development Approach

18th December 2013

Definition of execution strategy

Selection of accreditation

Definition of standards and curriculum

Budget estimation and approval

Identification & selection of training providers (preference for VTCs & TCs)

Assessment of the selected training providers

Identification of gaps and required actions to meet the defined curriculum

Candidates selection and programme promotion

Engagement, selection and commitment of employers

Finalization of award / agreement

Training for employment Follow-up on employment

Market assessment Refresh demand analysis Skill gap and training needs

identification

Define yearly waving planning

Skill prioritization & allocation

Launch wave preparation

ICV blueprint strategy

Assess

Development of the training programme

Implementation of action plan to close gaps

Underlying Competency Framework: MMP Alignment & VTC Facilitation

5 4 2 1 3

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Current activities for executing the approach

Our approach

1. Work with Industry to Develop Prioritization Matrix

2. Develop Common Standards for Selected Skills

3. Work with Institutes to assess Existing Programs against Developed Standards

4. Work with VTCs, TCs and at a later stage with other institutes to upgrade Facilities, deliver Training Standards, and close Gaps

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Meeting agenda

1. HR sub-committee mission and objectives

2. Our approach

3. Success Factors

4. Next steps

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Key success factors

1. Increasing numbers of qualified Omani citizens in selected disciplines in oil and gas

2. Reducing training cycle among employers (both operators and contractors) and reducing the time to autonomy

3. Upgrading VTCs and TCs programs to internationally accredited standards

4. Growing demand for VTCs among Omani students and reduced drop-out rates

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Meeting agenda

1. HR sub-committee mission and objectives

2. Our approach

3. Success Factors

4. Next steps

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Next steps

1. Incorporate your feedback in our approach

2. Register market interest through the PMO on: www.incountryvalueoman.net

3. Increase market involvement through a platform dedicated to ongoing dialogue with the oil and gas industry

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Vocational Vs. Academic Path

Secondary Education Enrollment

0

20

40

60

80

100

Oman 2000Oman 2009

Oman 2013

94 94

93

6 6 7

Academic Vocational

1. The oil and gas industry needs to focus on EVP for technical & vocational paths

2. In Oman only 6% of high school graduates opts for vocational & technical paths

3. HR Policies need to be revisited

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The current distribution: 22,369 Omanis working in the oil and gas in 2012

The study shows that the current Omanization levels are diverse depending on the sector and the skill level

- Number of Omanis and Omanisation level per sector (1) -

Note(s): (1) based on 2012 job distribution

- Number of Omanis and Omanisation level per skill level (1) -

5,630

9,494

4,050

3,361

6,497

12,160

Manufacturing

Oil and gas companies

Service providers

Construction

To be assessed in next wave

59%

25%

63%

xx% Level of Omanisation in 2012

xxx

xxx

Number of expatriates in 2012

Number of Omanis in 2012 4,456

186

915

936

3,166

3,097

2,271

2,424

5,131

918

261

1,988

987

2,219

3,606

6,488

Unskilled

Inspector

Managerial

Supervisor

Operator

Technician

Engineer

Semi-Skilled 27%

46%

39%

32%

76%

78%

17%

58%

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Oil & Gas workforce demand

0

10000

20000

30000

40000

50000

60000

70000

80000

2013 2014 2015 2016 2017 2018 2019 2020

Job

Po

siti

on

s

Operators Construction Sector Service Providers Manufacturing

Size of the opportunity

> 50,000 jobs

Peak Demand:72,704

Current Omanis:22,369

- Total number of positions required for the oil and gas industry activities per year -

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Prioritization matrix

0%

20%

40%

60%

80%

100%

Cu

rre

nt

Om

anis

atio

n le

vel

Higher Lower Value

Priority 1

Priority 2

Priority 3

Operators

Semi-skilled

Technicians

Engineers

Skilled non-tech

Supervisors

Inspectors

Size of the bubble = demand at peak – current number of Omanis

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Wave one selected skills

Electrical

Mechanical

Instrumentation

Welder 6G

Draughtsman Highest demand

Lowest Omanisation level

Highest value-added Timeframe vs. Skill level

Selected Skills Prioritization criteria

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Please make use of the additional related information that is available with the four entities

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Materials and follow-up

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Thank you for your contribution!

Our mission:

Developing a competitive and sustainable local supply market... Together!

Business Opportunities

in the Oil and Gas Industry

In-Country Value 5 June 2014, Sultanate of Oman

الفرص االستثمارية في

النفط والغاز قطاع

القيمة المحلية المضافة ، سلطنة عمان 2014يونيو 5