New training centres are being developed to address the shortage of qualified workers

As the sultanate’s oil and gas sector enters a renaissance period, moving back towards production levels of 15 years ago using enhanced oil recovery (EOR), and while new unconventional gas production offers new economic opportunities, the industry has found itself facing a shortage of human resources (HR). Recent estimates put Oman’s HR gap in the tens of thousands, and the government is working with the private sector under its far-reaching in-country value (ICV) programme to reduce this gap, planning two new oil and gas institutes through Petroleum Development Oman (PDO). Private sector players had made their own contributions, with BP’s newly established Technicians Training Centre, under the stewardship of the Babcock Training Institute, expected to offer a new generation of Omani technicians the international expertise necessary to successfully extract some of the world’s most technically-challenging hydrocarbon reserves.

Oil Law 

Until 2011 nearly all oil exploration and production in Oman was regulated by Royal Decree No. 42 of 1974, also known as the Petroleum Law, which established the sector’s operations framework. In 2011 the government promulgated Royal Decree No. 8, the new oil and gas law, which added on previous legislation. The new law’s most significant changes pertained to HR development, and mandated greater provisions for training, as well as Omanisation obligations for international oil companies (IOCs).

Oman’s ICV programme was launched in 2013 with a focus on the energy sector, and required firms bidding for energy contracts to submit a plan detailing how they planned to boost local content in their activities, from procurement of goods and services to the hiring of Omani nationals (see Economy chapter). “ICV is a new concept for the oil and gas industry, and one which holds a lot of promise for the country. It is difficult to measure how much value is created in the country, but we are working on introducing key performance indicators and mechanisms to assess the impact procuring locally has on the sector and on the local economy,” Gong Changli, CEO of Daleel Petroleum, said. Training gaps in the local HR market have created short-term growing pains for IOCs. “When we have the chance we prefer to source locally, but there are various highly technical services and goods which we require that local companies do not have the capacity to deliver. It is advantageous to hire a local company for maintenance or electrical services, which creates jobs and supports the concept of ICV, but depending on the technicality of the job, we must source from outside,” Nalin Chandna, acting CEO of the National Gas Company, told OBG.

Job Growth 

Oman has witnessed rapid expansion in its energy industry’s oil recovery activities over the previous 15 years, with production jumping from a low of 710,000 barrels per day (bpd) in 2007 to current levels of around 945,000 bpd. PDO estimates it has added 15,000 well interventions to existing fields, while new steam, miscible and solar EOR activities have seen the sultanate embrace the latest in oil extraction technologies in partnership with the private sector.

However, as the industry expands, local HR gaps have become apparent. While the hydrocarbons-related technology is available, finding personnel with the appropriate experience and expertise to utilise it remains a challenge for firms in the country.

In May 2014 the Ministry of Oil and Gas (MoG) announced the energy industry will require between 20,000 and 30,000 new workers over the next 10 years. According to Said Al Aufi, undersecretary of the MoG, demand for skilled workers in the oil and gas industry is driven by the sultanate’s plethora of EOR-driven projects in various stages of development, and the Khazzan tight gas field development in central Oman.

The Khazzan gas field, developed by BP Oman, will employ horizontal drilling and wells and hydraulic fracturing technologies developed by BP in the US. The workforce requirements for the 300 planned wells will be considerable. PDO, for its part, has been active in employing EOR at legacy fields including Yibal, Marmul and Harweel. In October 2014 the company said it had created 1770 new jobs for young Omani graduates, with over 1000 trainees enrolled in vocational programmes.

New Training Institutes 

Oman’s skill shortage in the oil and gas industry has led to a host of new training programmes and institutions established in recent years, as well as high-potential ICV opportunities for private firms. The MoG is partnering with numerous private sector players, announcing in July 2014 that it plans to establish two new oil and gas training institutions to meet HR demand over the next 10 years. The first institute will be constructed in Adam, just south of Muscat, offering a three-year diploma programme in technical fields including electrical, mechanical and instrumentation. The Adam institute will be operated under a joint venture (JV) between the UK-based Petrofac, and the Oman Oil Company (OOC), and is expected to offer spaces for 500 students each year.

The second institute will be in Muscat, offering degrees in petroleum, chemical and mechanical engineering, with capacity for 100 new students annually.

BP Training Centre 

Perhaps most significantly, BP Oman opened its new Technicians Training Centre in August 2014. Up to 100 young Omani technicians will receive advanced skills training at the centre, with technicians expected to be recruited over the next five years, largely to support the firm’s Khazzan project.

BP’s Technicians Development Programme (TDP) trains participants in instrumentation, mechanical, electrical and production works over a period of four years, and includes a foundation year of workshop and classroom-based learning, as well as health and safety, behavioural, and technical training. In subsequent years, trainees gain hands-on practical training at a live BP operational worksite, and will enrol in BP’s Technician Competency Assurance Programme and work towards gaining professional certification.

In addition, the company has adjusted its programme requirements to better suit local culture, for example, allowing female challengers to spread their field hours over a longer period of time, in order to help them meet family commitments. Measures like these have led to heavy new demand for BP’s programmes, according to company officials. “As a company, we are always looking to hire promising talent in Oman. Recently, we received 700 applicants for 22 positions at the [TDP]. While we are pleased with this result, we will continue to do more to attract the best professionals and to provide them with opportunities for development,” Khalid Nasser Al Kindi, BP Oman’s deputy general and ICV manager, told OBG. “Two things we are all focused on are succession planning and building local capability. We are trying to identify leaders of the future who are Omani, and who can step up, for instance, into my role. Expats have a limited tenure, so we’re trying to ensure that each of our expatriate workers is skilled at coaching and developing deep technical expertise in the local workforce,” Stephen C R Rainey, BP Omans’ new well delivery and base management manager, told OBG.