05 May 2007
MUSCAT -- Petroleum Development Oman (PDO) has been encouraging local entrepreneurs by awarding new contracts. New business valued at more than $70 million was awarded to local contractors last year, bringing the total spent by the company over the last six years through the local community contractor (LCC) scheme to over $290 million, according to PDO's latest annual report. PDO's local community contracting programme is a flagship social development effort to channel its contracts to businesses based in the company's concession area. There are two types of local community contractors -- Al Ahliya and Private.
Al Ahliya contractors comprise eleven companies that have been set up along tribal lines in consultation with the Ministry of Oil and Gas, local government authorities and tribal shaikhs. The ownership of a given Al Ahliya company is open to any member of the corresponding tribe. Al Ahliya may accept work related to the oil and gas industry in all areas of PDO's operations. Private LCCs are restricted to accepting work in their geographical base that is not specific to the oil and gas industry, thereby allowing them to pursue opportunities in other industries.
Meanwhile, PDO has developed a contracting strategy based on incorporating the front-end engineering and design as part of the tendering process. The strategy enabled the company to work with the contractor to reach an early alignment on the design, thereby shortening the overall delivery timeframe. Most of the company's activities are underpinned by more than 400 contracts for goods and services with a total contract value of some $11 billion.
To improve the management of such an extensive and varied portfolio of contracts, the company deployed in 2006 a Contract Performance Management (CPM) framework for all new contracts of more than $50 million in value. The framework creates a joint management plan between the company and the contractor to safeguard the cost, delivery deadlines and quality of the contracted goods and services while respecting the company's standards regarding the health and safety of people and the protection of the environment.
MUSCAT -- Petroleum Development Oman (PDO) has been encouraging local entrepreneurs by awarding new contracts. New business valued at more than $70 million was awarded to local contractors last year, bringing the total spent by the company over the last six years through the local community contractor (LCC) scheme to over $290 million, according to PDO's latest annual report. PDO's local community contracting programme is a flagship social development effort to channel its contracts to businesses based in the company's concession area. There are two types of local community contractors -- Al Ahliya and Private.
Al Ahliya contractors comprise eleven companies that have been set up along tribal lines in consultation with the Ministry of Oil and Gas, local government authorities and tribal shaikhs. The ownership of a given Al Ahliya company is open to any member of the corresponding tribe. Al Ahliya may accept work related to the oil and gas industry in all areas of PDO's operations. Private LCCs are restricted to accepting work in their geographical base that is not specific to the oil and gas industry, thereby allowing them to pursue opportunities in other industries.
Meanwhile, PDO has developed a contracting strategy based on incorporating the front-end engineering and design as part of the tendering process. The strategy enabled the company to work with the contractor to reach an early alignment on the design, thereby shortening the overall delivery timeframe. Most of the company's activities are underpinned by more than 400 contracts for goods and services with a total contract value of some $11 billion.
To improve the management of such an extensive and varied portfolio of contracts, the company deployed in 2006 a Contract Performance Management (CPM) framework for all new contracts of more than $50 million in value. The framework creates a joint management plan between the company and the contractor to safeguard the cost, delivery deadlines and quality of the contracted goods and services while respecting the company's standards regarding the health and safety of people and the protection of the environment.
By Business Reporter
© Oman Daily Observer 2007
