PETROLEUM Development Oman (PDO) has pledged to increase its total spend on In-Country Value (ICV) initiatives to $3 billion by the year 2020.

Raoul Restucci, managing director, says the majority government-owned oil and gas firm is committed to procuring $100 million worth of Omani goods and services every year through to 2010.

“ICV is a long-term journey but the strategic investment of today’s oil and gas revenues has helped support a sustainable industry for the future with PDO on target to spend $100 million of Omani goods and services year on year up to 2020 and to increase ICV spend to $3 billion,” he says.

Effective from this year, ICV will be a significant requisite in new tenders, he stresses. “In 2013 alone, it is expected that we will award approximately 200 contracts but unlike before, all new tenders released will have ICV featured and identified at each stage starting at the contract strategy stage. Where viable, local supplies/contractors will be ring-fenced for contract services procurement or provision. Required skills for each tender will be listed and supported by a robust Omanisation plan and targets. These will be actively monitored year-on-year until a contract’s expiry, focusing on Omanising skilled and supervisory positions.”

Restucci underlines the important role envisioned for Omani entrepreneurs and small and medium entrepreneurs (SMEs) in the sustainable development of the Omani economy. “Dynamic, creative and competitive SMEs are pivotal to spurring the growth and diversification of the national economy, generating jobs and developing skills. And let’s be clear: many of the necessary conditions are already in place in this country for small businesses to be a success: political and financial stability, improving transport links, investment in technology and infrastructure, and last but not least, raw talent.”

PDO’s support for entrepreneurship and SME development goes back four decades, said Restucci, adding that it took on a new vigor in 2011 when His Majesty the Sultan outlined his National Objectives Programme.

“As the country’s largest oil and gas company, we believe we have a responsibility to support the growth of local enterprises – not only because the community expects it of us but also because it makes good business sense,” Restucci says.

“That’s why we developed our ambitious In-Country Value (ICV) strategy. This has seen us roll out a series of investment initiatives which have supported local community companies, increased the procurement of local goods and services and improved the capacity and capability of Omani people and businesses to secure long-term sustainable commercial benefits for the sultanate.” According to the official, PDO together with the Ministry of Oil and Gas and the contractor community, have worked assiduously to embed and expand ICV in all oilfield operations. This has led to the creation of more than 8,000 jobs.