2019 was a steady year for us in terms of business. All the contracts are long-term contracts, and we are executing what is expected of us. In logistics, there has been much activity due to the increased number of blocks that Occidental Petroleum Corporation (Oxy) acquired from the government. The sustainability of this business, however, is always a concern. We are a young company, and it is time to take the company to the next level by adding innovation to the commodity business and adopting new technology. The fear is always about whether or not the spending will be worth the return, though it could bring a high degree of added value, efficiency, and safety. We are working on this and making headway with Oxy in this term through the preparing of a pilot project. The entire sector is trying to get more oil to the pipeline faster, which means more pressure on the machines that need preventative maintenance. Thus, we also aim to bring automation technology for our well services, since it will be the first of its kind in Oman and the region. The idea is to reduce the amount of people who have to spend a large amount of time with heavy equipment for the sake of efficiency, cost saving, and reliable performance. If that works, our next-stage strategy would be to assemble and build the equipment in the country.
Oct. 6, 2020
Local players in Oman's oil and gas market have experienced many ups and downs in the past few years. Now, technology adoption, whether developed inhouse or brought in from the outside, is vital for business growth in the coming years.
CEO, Al Khazain Oilfield Services
Sohail A. Mikrani
Deputy GM, Maktoom Co.
R&D and new technology is always the oil and gas market's demand. We always need new technology to solve today's and tomorrow's problems. R&D is the lifeline for oil and gas industries. The level of R&D in oil and gas must be high enough to capture more hydrocarbons per well. We must invest a minimum of 25-30% of revenue on our R&D. Without new technology, no company can survive for long; there are many examples of the hero who went to zero because they did not update their outdated technology on time. Only 5% of the world's oil and gas wells have enough reservoir pressure to flow naturally. The remaining 95% rely on artificial lift technologies. To get the most return from the well, we must strike an optimal balance between production cost and production performance; by investing in R&D, we can do so. At Maktoom, we know the major artificial lift problems like gas, solids, pressure, high temperature, high mechanical loads, high fluid viscosity, and high water cuts. It is these areas our R&D is oscillating around. As far as competition in the market goes, we believe that competition makes companies strong, productive, and focused. We are happy that we had the chance to penetrate the artificial lift systems (ALS) world. We are highly trained, highly responsive, and highly dedicated to developing more efficient ways to deliver more hydrocarbons per well.
Abdullah Al Shuely
CEO, Al Haditha Petroleum Services
The construction industry in oil and gas in Oman is extremely competitive. We experienced the fall of revenues and rising costs. After a detailed review of our strategy, we restructured and implemented new programs. The results of these efforts was immediate: we saw growth in our revenue stream and reduction in cost. Moreover, the relationship with our clients and subcontractors was enhanced. The team is now fully energized to move into the next phase of improvement. Our business relies on many players in order to deliver our promises. We will invest in a tool that will assist us in integrating our business, so that we can collect, store, manage, and interpret data from many business activities. This will help us further enhance our processes, and we will be able to monitor progress and identify issues quickly. We also started to explore technologies that will help us delivering routine and repetitive fabrication activities; however, the nature of our business does not justify setting up an inhouse R&D. We will see what we can buy and implement. It is cheaper and quicker, and we can tweak it slightly to better suit our needs. Everything has to be balanced between our investment and what we are getting out if it. The opportunity is there to develop partnerships with local institutions, which may turn our challenges into solutions in future.