Dr. Khalid Khamis Al Jahwari

What have been some of the major highlights across your operations in Oman over the past year?

We have had many highlights in 2021 and made progress on a number of major projects in Oman, including the successful completion of BP Ghazeer ahead of schedule. With Petroleum Development Oman (PDO), a key partner, we delivered some of their most complicated projects, which involve high risk in sour operations, such as Harweel 2AB and Rabab Harweel Integrated Project (RHIP). Yibal Khuff is also reaching the latter stages of completion, with PDO announcing the start-up in September. We have established a strategic partnership with OQ, and our liquefied petroleum gas (LPG) project for OQ in Salalah has been another highlight. The Duqm Refinery, one of our high-profile major projects, is ongoing, having now passed 70% construction completion. The pandemic has had a significant impact on our clients and our business; however, we are still proceeding well and recently signed new contracts for PDO, PDC North, and the Marmul Main Production Station (MMPS) – Gas Compression project, which will be the first full engineering, procurement, and construction (EPC) lump-sum project executed from our Muscat office.

Which partnerships have you established in Oman?

Petrofac has been in Oman for over 33 years; we have established key strategic partnerships with major oil, gas, and petrochemical producers and supported many governmental initiatives. We have also developed and supported many local suppliers and subcontractors. None of our projects have been executed in Oman without involving a large range of local partners. Petrofac has maximized In-Country Value (ICV) and invested USD3 billion through procurement, services, and construction. Our relationship with Omani local contractors and suppliers has developed further, where we also jointly bid for key projects in the Sultanate. The development of Omanis and local capabilities is core to our businesses; we have built up teams that combine a solid mix of Omani and expatriate expertise, and through our business relationships we are also able to leverage our global network for goods and services that are not always available in-country. The focus is also increasingly on SMEs and entrepreneurial ventures, which through our tendering process are encouraged to be part of our procurement and services activities. From the first day of announcement, Petrofac signed up to support and deliver Oman’s Vision 2040; we are working closely with the Ministry of Energy and Minerals, Ministry of Finance, Ministry of Higher Education, Ministry of Labor, OPAL, and many other institutions to deliver key pillars of the vision, and these efforts will continue.

What role does Petrofac play in Oman’s green energy transition?

Green energy is the talk of the world; there is a clear shift in delivering more cleaner energy. There have been various treaties announced globally in recent years to which Oman is committed. Petrofac too is committed to realizing these and has established a dedicated new energy services business. We are interested in blue and green hydrogen and ammonia and solutions that use solar or wind energy to produce electricity or steam instead of burning hydrocarbons. We are also looking into CO2 capture, as Oman is ranked highly in this area, and through our extensive experience on other projects, we know the sites and with our clients can develop solutions toward achieving this transition. Oman plans to have zero flaring by 2030, and by 2040 much of its GDP should come from sources other than oil and gas. Petrofac is well placed to participate in projects linked to these goals.

Are you planning any projects in that direction in the short term?

We have been in talks with some of the major players in Oman and are interested in participating in upcoming tenders as and when they arise. Petrofac has established key partnerships with various technology providers, and with our engineering and construction expertise we can assure our partners of our high standards in delivering new energy projects.

What innovative technologies have you been employing in your services, and how will this change the market?

Our growing track record in supporting new energies projects globally is across a wide range of different technologies. Petrofac has secured significant contracts in a number of countries, covering carbon capture utilization and storage (CCUS), blue and green hydrogen, and waste-to-value. We are currently partnering with Storegga Geotechnologies, an independent UK company pioneering carbon reduction and removal for a net-zero world. Our Technical Delivery Alliance aims to support the development and management of Storegga’s low carbon initiatives, along with other complementary projects across direct air capture (DAC), CCUS, and blue hydrogen. We are actively engaging with other developers and technology providers to create new partnering relationships, which give us long-term visibility of projects and preferred access to them.

How do you see the sector transforming in the next five years, and what will be essential for its evolution?

In the long run, the sector will change significantly as the world moves away from the more traditional sources of energy, and our clients demand greener solutions under pressure to achieve country and global targets. Essential for this, as the “green” projects may appear to be less lucrative in the immediate and short term, will be investment. The attraction of foreign investment into Oman will be crucial, and there are avenues, for example, funding from the UK, which remains keen to invest in Oman like it is doing on the Duqm Refinery project. There are, however, other elements, such as carbon credits and CO2 offsets, that need to be better understood and able to be monetized which will help the viability of the projects and further attract investment in Oman. There is a rapid change in this direction; however, as the Sultanate relies heavily on the oil and gas sector, we will need to strike the right balance. Investment in conventional oil and gas in the Sultanate should continue—and at an even bigger scale—so that we maximize the return of investment, while we concurrently establish a solid base for new energy and be ready and a part of the continued transition over the coming years.

What are your objectives for the next 12 months?

Our aspirations are big, and we are focused on future growth, across both traditional and new energies, built on a foundation of the highest standards. We are delivering a number of important current projects and will continue to do so safely, ethically, and to the highest standards, keeping people healthy and providing them with the best working environment and work-life balance. We have a legacy to develop with our growing workforce, and I want to see our graduates continue to develop into lead engineers and other important roles on projects. We have a clear view on how to work together with key partners to deliver the highest standard of projects in Oman and engage to drive new opportunities. We are also focused on continuing to add smaller projects to our portfolio, and if some of these projects are within the new energy sector, that would be exciting.