Post on 31-Dec-2016
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Annual Report2011
POWERING THE NATION
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OUR ACHIEVEMENTS IN FIGURES
FOR THE YEAR 2011
• Omanisation at 93 per cent representing
the highest rate in oil and gas operating
companies in the Sultanate.
• Annual gas transportation of 14 billion
cubic metres.
• Network gas availability 99.997 per cent.
• Gas transportation rate of 38.2 million
cubic metres per day.
• Highest gas transportation rate of 46.2
million cubic metres on a single day.
• Completion of two projects – Gas supply
to Vale and Mirbat Power and Desalination
Plants.
3His Majesty Sultan Qaboos Bin Said
4444444444444444444444444444
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Chairman’s Message 06
CEO’s Message 08
Board of Directors 10
Management Team 12
Overview 14
Operations 18
Pipeline Integrity Management 22
Projects 26
Projects Completed 30
OGC in Technical and Social Actions 36
Health, Safety and Environment 40
Human Resources 44
Tawasul Integrated ERP System Implementation 46
CONTENTS
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Oman Gas Company is now at the threshold of its second decade of operations. I am
delighted to report to you the uninterrupted growth of Oman Gas Company during
the year 2011.
Building on the previous success, and with the help from our shareholders, the
company has been expanding its operations throughout the Sultanate. We are proud
of our association with power and desalination plants, petrochemical and fertilizer
industries, oil refineries, steel plants and cement factories.
The major milestones such as EPC of Nimr Compressor Station, EPC of Fahud
Compressor Station, EPC of Expansion of South Oman Gas Transportation System,
and FEED of A’Duqm gas supply are testimony to the eagerness of the company
to play a pivotal role in the development of our beloved Oman. The Board of
Directors has approved new business plan whereby the company is paving the way
in playing a more proactive and diversified role. Such role would involve provision of
technical consultancy services in the area of hydrocarbon transportation, as well as
participation on the value-chain of the petrochemical industry.
In 2011, OGC delivered RO. 50 million worth of projects, which form another
milestone towards augmenting the existing Gas Transportation Network in Oman.
It forms part of the more than RO. 250 million outlay in the Government’s ongoing
Five Year Development Plan (2011-2015). The cumulative gas transported through
the company-wide network has leaped to reach 14 Billion Cubic Metres (BCM). The
company is also playing an active role in sustaining social community development
in its areas of operation.
I take this opportunity to express my sincere thanks to His Majesty the Sultan,
the Government of the Sultanate of Oman, the Shareholders, my colleagues at the
Board, OGC Management, our esteemed employees, contractors and customers for
their support and look forward to their continued support and patronage in our
future accomplishments as we enter another strategic period of our operations.
CHAIRMAN’S MESSAGE
Dr. Zaid Bin Khamis Al Siyabi
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H.E. Mohammed bin Hamad Al RumhyMinister of Oil and Gas
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CEO’S MESSAGE
The success of OGC continued during 2011, thanks to our dedicated employees and
the support of our stakeholders, shareholders and contractors.
2011 in numbers perspective saw a 12 per cent growth of gas delivered, high gas
availability of 99.997% and high Omanisation of 93%.
The Company managed to deliver the required projects to support the additional
gas offtakes. Gas to the new power and desalination plant at Mirbat and VALE at
Sohar has been successfully completed while two projects to supply additional gas
to new power plants in Barka and Sohar were near to completion.
OGC is considering few projects which focus on maximising benefits from the Gas
Value Chain. Feasibility studies for both have been completed and I hope that a
decision will be taken soon with regards to the implementation of the projects. OGC
will also be starting two new projects to supply gas to Al Duqm industrial Area as
well as expansion of the capacity of Salalah pipeline.
I am also glad to see an excellent integrated approach between OGC and the
Ministry of Oil and Gas on technical aspects of the gas system and good to see
remarkable joint achievements aiming to optimise the gas value and infrastructure.
On the HSE, OGC managed to achieve good milestones but was not able to meet
the desired plans due to unfortunate death of a contractor employee as a result of
road traffic accident; road traffic remain top on Company agenda aiming to reduce
such hazard.
I take the opportunity to thank their Excellencies members of the previous Board
for their support to the Company and at the same time welcome the new Board
members.
Yousuf bin Mohammed Al Ojaili
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BOARD OF DIRECTORS
H.E. Dr. Mohammed bin Hamad Al RumhyMinister of Oil & Gas
Chairman (until August 2011)
Mr. Mohammed bin Nasser Al Khasibi
Vice Chairman (until February 2011)
BOARD OF DIRECTORS
H.E. Nasser bin Khamis Al Jashmi
Undersecretary, Ministry of Oil & Gas,
Board Member (until August 2011)
H.E. Khalifa bin Mubarak Al HinaiAdvisor, Ministry of Oil & Gas,
Board Member
(until August 2011)
H.E. Sultan bin Salim Al HabsiUndersecretary of Finance,
Ministry of Finance,
Board Member (until August 2011)
Mr. Salim bin Zahir Al SibaniCEO Oman Oil Exploration and Production,
Board Member
(until March 2011)berer (un(
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Mr. Hilal bin Ali Al KharusiHead of Business Development,
Oman Oil Company
Board Member
Mrs. Awatiff bint Mohammed Al Hikmani
Director General of
Investigation & Assessment,
Ministry of Finance, Board Member
Vice Chairperson
Dr. Zaid Bin Khamis Al SiyabiDirector General Exploration & Production for Oil & Gas
Ministry of Oil & Gas
Chairman
Mrs. Kauthar bint Ali Al AbdaliDirector of Financial Evaluation & Follow-up of
Petroleum Investment, Ministry of Oil & Gas,
Board Member
Mr. Salih bin Ali Al HarthyDirector Gas Revenues,
Ministry of Finance,
Board Member
Mr. Abdullah bin Ahmed Al ShanfariDirector General of
Petroleum Industries,
Ministry of Oil & Gas, Board Member
Mr. Rashid bin Ali Al KhaifiDirector of Treasury
Ministry of Finance
Board Member
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MANAGEMENT TEAM
Mr. Yousuf bin Mohammed Al OjailiChief Executive Officer
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Mr. Maktoom bin Rashid Al MataniGeneral Manager,
Engineering & Technical Services
Mr. Abdulaziz bin Said Al MujaibiGeneral Manager, Operations
Mr. Ahmed Mohd Ali TaqiGeneral Manager,
Finance & Corporate Services
Mr. Nasser bin Mohammed Al KindiHuman Resources Manager
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Established in August 2000 as a closed joint stock company, Oman Gas
Company (OGC) SAOC is involved in the transmission and distribution
of natural gas, through a large network of gas pipelines, compressor
stations and gas supply stations. Fully owned by the Government of the
Sultanate of Oman, the Company’s shareholders are the Ministry of Oil &
Gas (80 per cent) and Oman Oil Company (20 per cent).
OGC now owns and operates a gas distribution pipeline network of more
than 2,500 kms covering the length and breadth of the Sultanate of
Oman.
In 2011, OGC was able to deliver around 14 billion cubic metres (BCM)
of natural gas to its customers including power and desalination plants,
petrochemical and fertiliser industries, oil refineries, industrial estates,
Sultan Qaboos University, steel and cement plants. This figure shows an
increase of 12 per cent over the previous year’s figures.
OGC strives to be an integrated, commercially oriented company,
capable of developing and operating hydrocarbon facilities in Oman and
to become the gas technical reference for all stakeholders. Its mission
is to add value and contribute to the Sultanate’s economic growth by
developing and managing reliable and efficient hydrocarbon operations.
OVERVIEW
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Muscat:BLEND OF TRADITION AND MODERNITY
Muscat blends tradition and modernity in perfect harmony with nature. Called “the Arab Tourism
Capital,” the modern city still retains its traditional charm in the form of several forts, castles and
historical monuments. These include Jalali and Mirani Forts, the capital’s most prominent landmarks
built in the 16th century AD. The forts and castles also stand testimony to Oman’s centuries old
Islamic past. Muscat offers all modern amenities to discerning visitors including its international
standard infrastructure such as state-of-the-art highways, flyovers, international airport, seaport
and an array of hotels, resorts, shopping malls and posh business centres.
Oman Gas Company’s head office is located in the heart of the city at Al Khuwair. The Company
also operates Gas Supply Stations (GSS) at Al Ghubra, Mina Al Fahal, and Rusayl. These Stations
provide gas to the Al Ghubra Power and Desalination Plant, Oman Refinery and Petrochemical
Co., Ministry of Defence (MAM) Power Plant, Rusayl Power Plant, Rusayl Industrial Estate, Oman
Cement Company, and Sultan Qaboos University.
OGC also maintains Gas Supply Stations and a pipeline network to various customers.
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Adequate supply of affordable energy is a pre-requisite for sustained growth, especially in
the developing and emerging economies. At the same time, the hazards posed by excessive
use of fossil fuels also cause much heart burn as the very survival of humankind is threatened
by people’s reckless pursuit for industrialisation.
Natural gas has emerged as the most benign fuel in today’s world. It is a new-age fuel with
the lowest carbon to hydrogen ratio. Natural Gas burns off in its entirety, making it the
cleanest of available fossil fuels. Natural Gas satisfies most of the requirements for a fuel in
a modern day industrial society – efficient, less-polluting and economical.
As the Company is entering the second decade of its operations, OGC is going through
an evolution to eventually transform itself from a mere gas transporter to an integrated
company in the gas industry.
OPERATIONS
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The Sultanate of Oman is on the path of fast-track industrial
development and OGC is now shouldering the responsibility of
energising an ever-growing list of clients without compromising
on Oman’s declared principles of environment protection and
preservation. The Company has achieved this through sustained
efforts by laying solid foundations for a modern gas distribution
infrastructure consisting of high pressure gas transportation
pipelines, compressor stations and gas supply stations, all not
involving any continous gas flaring.
GAS IMPORT
Oman Gas Company pioneered “cross border gas transportation” in
the region with the first import of gas received from the Dolphin
pipeline from Qatar via UAE in October 2008. OGC continues to
receive gas through this pipeline through the Buraimi Compressor
Station.
PIPELINE NETWORK
OGC has an extensive, world class gas pipeline network to ensure
uninterrupted, hassle-free gas supply to its customers.
GAS STATIONS
OGC operates through a vast network of compressor stations and
gas supply stations (GSS). The network has now grown into a state-
of-the-art distribution mechanism.
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Sohar:EMERGING INDUSTRIAL HUB
Sohar is the largest city in the Batinah region of the Sultanate of Oman and it is fast emerging as
the industrial hub of the country.
The coastal city of Sohar was once an important Islamic trading point and the largest town in the
country. This is the home city of Ahmed bin Majid, the historical sailor. One of the first references
to ‘Sohar’ is in the work of historian Yaqut al Hamawi who implies that the city took its name
in the 6th century AH from a descendant of Noah: Sohar bin Adam bin Sam bin Noah. When
the Palestinian Arab scholar Muqadisi visited the city in 10th century AH he described it as a
“flourishing city.”
The city is renowned for its copper deposits, and archaeological evidence points to copper extraction
being carried out 5,000 years ago. There are still three copper mines in operation in Sohar with
good copper deposits.
Today, Sohar Port is the leading industrial port in the region and the Port and the adjoining industrial
areas are home to several major industrial installations like the Sohar Aluminium Company, Jindal-
Shaheed Steel, Vale, Sohar Refinery, Methanol, Aromatics, Fertiliser and Polypropylene Co. Several
other industrial ventures are either on the anvil or in the process of implementation.
OGC operates through a regional office in Sohar and five Gas Supply Stations that cater to the
growing needs of the industries in and around Sohar. These stations feed a growing list of gas
consumers including Sohar Aluminium, Wadi Al Jizzi Power Plant, Wudam Power Plant, Sohar
Industrial Estate, Sohar Power Company, Al Batinah Power Company, Sohar International Urea &
Chemical Industry, Jindal-Shaheed Iron & Steel, Aromatics, Vale, Sohar Steel, Sohar Refinery and
Oman Methanol Co.
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Protecting the pipelines from potential hazards is one of the fundamental tasks in gas
transportation business. This task is also correlated to safety and environmental performance
and therefore it occupies a high place on Oman Gas Company’s agenda. OGC is committed to
ensure the integrity of its pipeline systems not only to enable the Company to successfully
meet its goal of delivering natural gas to end users but also to safeguard the public, our
customers, employees and the environment from potential hazards.
OGC has recently developed a systematic approach to pipeline safety and integrity management
programme (IMP). The primary goal of OGC IMP is the safe, reliable operation of the pipeline
system. It identifies multiple elements that define how the company works to prevent leaks,
determine pipelines that could affect high-consequence areas, and identify evaluation and
improvement opportunities to lower the operating risks of the pipeline.
PIPELINE INTEGRITY MANAGEMENT
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The company has introduced Pipeline Integrity Management System (PIMS) which is a software
that links all the data sets for analytical purposes. The PIMS software will be the main platform
for pipeline data including design, maintenance and inspection records. All integrity analysis and
corrosion assessment in addition to routine maintenance activities will be maintained in the
system.
During the course of 2011, the integrity department focused its efforts into demonstrating and
assuring the integrity of most critical pipelines which have been in operation for more than 20
years. Five critical pipelines have been successfully inspected using Inline Inspection technique
and integrity status is established. This will support subsequent planning and revision of mitigation
measures.
Extensive reviewing on integrity of Block Valve Station (BVS) valves has been completed in
2011. More than 90 BVS stations have been assessed for functionality and integrity purposes
and classified into colour coding. The outcome of this exercise will be the basis for rectification
programme that is planned for 2012.
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Fahud: THE ESSENCE OF DESERT CHARM
Fahud is part of Oman’s oil history as the place where the first oil well in the Sultanate was sunk
in May 1957 – many years before commercial oil explorations began in Oman. Though Fahud
disappointed in its initial test (the oil well was dry with very little oil output), today it is the central
base of Petroleum Development Oman’s (PDO) operations in the Adhahira Governorate of Oman.
It is a permanent oil camp and oil field in the middle of the central plain area of Oman. “Fahud”
means “leopard” which denotes that leopards are believed to have roamed this area once upon a
time.
Fahud still retains its antique charm with a predominantly Bedouin population. Most of the
Bedouins lead nomadic lives, relying on their herds on which they rely for milk, meat and “jameed”,
a type of yoghurt. For parts of the year, some families or family members return to a wandering
existence with their flocks. Few, however, are able to continue a truly nomadic existence though
the traditional Bedouin lifestyle is fast disappearing.
OGC has a regional office and operates a gas compressor station in Fahud and also houses several
kilometres of gas pipeline supplying gas to the Ministry of Defence Camp, Nizwa Industrial Estate,
Manah Power Plant, and Natih PDO Gathering Station. The pipeline network also links to Nimr,
Salalah, Sohar and Muscat pipeline networks.
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The year 2011 has been a year of several achievements for Oman Gas Company. The Company continues to
be the major source of the country’s energy demand from different regions. Not only that we have been
able to complete some major projects during the year, we have also laid down solid foundations for the
future which will endeavour to provide us great stimulus to our operations in the coming years.
ONGOING PROJECTS
The following are ongoing projects:
• EPC of Control System Replacement for Al-Ghubrah and Wadi Al Jizzi GSS
• EPC of Salalah Loopline and Fiber Optic Cable from Murayrat to Fahud
• EPC for Ad Duqm Pipeline & Gas Supply Stations
• EPC for Murayrat PLS Upgrade
• OGC office and accommodation at Ad’ Duqm (design)
• EPC of Associated industries at Salalah
• Nizwa Industrial Estate expansion study
• Raysut GSS upgrade
GAS DELIVERY
Oman Gas Company delivered 14 billion cubic metres of natural gas during the year recording a substantial
increase of 12 per cent over the previous year. The increase in supply was due to the increased demand for
gas at several industrial and power companies.
The daily average of gas delivered was 38.2 million standard cubic metres and the Company was able to
achieve the highest ever daily delivery quantity of 46.2 million standard cubic metres on 19 June 2011,
surpassing the previous year’s record of 42.6 million standard cubic metres. Overall gas availability during
the year was 99.997 per cent and the marginal reduction in target was due to some unplanned shutdowns
at some locations.
PROJECTS
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Power and Desalination sector dominated gas consumption during 2011 as well. The sector consumed around
53 per cent of the total gas delivered by OGC. Industrial and commercial consumers were the second in line in
consumption with the sector using 31 per cent of OGC gas. The rest of the delivered gas comprising 16 per cent
was consumed by the Oil Operations sector.
Sector-wise Gas Delivery 2011
Industrial & Commercial 31%
Oil operation 16%
Power and Desalination 53%
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40
35
30
25
20
15
10
5
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2010 Average 2011 Average
Million S
mM
illion S
m33/d
ay/d
ay
Average daily Gas delivery during 2010 and 2011 (January to December)
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Nimr:CHARM IN THE LAP OF NATURE
Nimr is an oil and gas field in the south, found in 1980. It is an oasis full of huge Al Ghaf trees
that grow in abundance in the area. Al Ghaf trees are unique and suited to the desert area as
they consume very little water for survival. This is one of the endangered species and serious
preservation efforts are on to save them from extinction. Nimr is also home to Omani Gazelle, an
endangered animal, which thrives in the area. Nimr is famous for its high cliffs and unspoilt white
sand beaches. Tourists and visitors throng this area to enjoy its panoramic beauty and peculiar
desert charm.
OGC has a regional office in Nimr and owns and operates a Gas Compressor Station and several
block valve stations (BVS) in the region. OGC also maintains a gas pipeline network comprising
18, 24 and 32 inch pipes from Saih Rawl to Nimr and Mukhaiznah oil field.
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Oman Gas Company initiated several new projects during 2011 and many of the projects
under various stages of implementation were completed and commissioned during the year.
Supplying of gas to Mirbat power plant in the Salalah region and VALE in Sohar were two
such achievement. Some of the major milestones achieved by the Company during 2011 are:
• EPC of Nimr Compressor Station
• EPC of Fahud Compressor Station
PROJECTS COMPLETED
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• EPC of expansion of South Oman Gas Transportation System
• FEED of A’Duqm Pipeline and GSS
• EPC of gas supply to Barka Phase III and Sohar Power Co. II
• EPC of segregation of Metering Skid for OMCO and Wadi Al Jizzi Power Company
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PIPELINES
Earth pits modification/missing earth rods installation works were completed on the 32in Fahud-
Sohar pipeline BVS, Murayrat PLS, MAF GSS, 24” Murayrat to Barka pipeline BVS, 10” Murayrat to
MAF pipeline.
Damaged foundations repair works were completed at Shafa GSS and BVS of the 20-inch and 36-
inch pipelines. The pipeline from 24” Salalah to PDO Harweel station was commissioned and Site
Acceptance Testing of the fiscal metering skid was completed. Early Tie-in shutdown at Sohar for
the future customer Batinah Power Company was completed successfully.
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COMMUNICATION AND IT
The year witnessed several initiatives in the communication and information technology (IT) sector.
SCADA data transfer reliability was improved by moving the dialup station into the new SCADA using
GPRS at Muaskar Al Murtafiah Gas Station, Oman Cement and Sultan Qaboos University.
EQUIPMENT MAINTENANCE
Preventive maintenance of Trains A, B, and C at 12,000 hours of running and Train C at 16,000 hours
of running have been completed for Al-Buraimi Compressor Station.
Six-yearly equipment internal inspection and major service have been completed for the water bath
gas heater, gas liquid separator and instrument gas vessel at Sohar. To enhance company’s gas quality
monitoring system, gas chromatograph analyzers were installed at BVS-5 of the 32-inch Fahud-
Sohar pipeline, on the supply lines from Oxy and PTTEP.
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Salalah: DEEP-ROOTED IN HISTORY
The City of Salalah, in the Dhofar region of the Sultanate of Oman, is the epicentre of several
activities during the popular Khareef season. The green mountains, pristine beaches, streams, valleys
and its flora and fauna all combine to make Salalah a unique destination not only in the Gulf, but
in the entire Arab world. The Khareef Festival every year attracts large crowds from neighbouring
countries who prefer to remain in the place for longer periods to enjoy nature’s bounty with all its
vibrancy. Salalah is also famous for frankincense which grows in abundance at the natural settings
of the region’s mountains.
Salalah has been one of the busiest sea routes between India and Africa since time immemorial.
It has been a major port-of-call for maritime trading fleets between the Far East and India, and
Europe. It was also once the centre for spices and Frankincense trade on the Silk Route.
Strategically located on the sea route between the Arabian Peninsula, East Africa and Indian Ocean
Rim countries, Salalah offers one of the most significant pro-business environments in the region.
Salalah Port and the Free Zone are making waves in the region due to their strategic location on
the equatorial trade route between Asia and Africa. Several historical sites and monuments add to
the glory of Salalah which has in store a treat for any discerning visitor.
Oman Gas Company has a regional office at Salalah and maintains and operates two Gas Supply
Stations at Salalah and Mirbath to feed gas to major industrial installations like Dhofar Power
Company, Raysut Cement Company, Octal, Raysut Industrial Estate, Salalah Methanol Company,
and SembCorp Salalah Power & Water Company.
The Region also has 24-inch gas pipeline between Saih-Rawl and Salalah, one of the backbones of
the Company’s pipeline network system.
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OGC IN TECHNICAL AND SOCIAL ACTIONS
Oman Gas Company has been powering the nation for a decade. The Company is not
working in isolation and it involves in the industry and the community through various
programmes and initiatives. Oman Gas always takes active role in supporting technical
hubs at the national and regional levels and believes in sharing business expertise. OGC
sponsored and participated in several events and programmes during 2011.
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SPE Middle East Unconventional Gas Conference and Exhibition
The conference program brought together experts, researchers and oil and gas industry leaders
from all over the world to Oman. Presentations and debates on prominent unconventional
gas issues such as, unlocking value of unconventional gas, well testing and data acquisition,
reservoir modeling and other issues were outlined. OGC participated in the conference.
Second Technical Engineering Gathering
The Gathering was held at the Higher College of Technology. On the sideline of the gathering,
the exhibition stand of the Company attracted tremendous number of students and showcased
the latest business updates.
Seventh Annual Gas Arabia Summit 2011
The summit was held in Oman for the first time by effort of OGC and highlighted a number of
issues relevant to the new global emphasis on natural gas as a reliable source of energy for
powering industries in many economies of the world. Oman Gas had a remarkable presence
as it chaired steering committee, sponsored and presented several papers.
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EMPLOYEE ENGAGEMENTSOman Gas Company takes special care in providing employees with recreational and social engagement
opportunities. As part of the integrated brand marketing strategy, we aim to communicate our business
through the engagement of employees and their families and to bring new and fresh ideas to enhance
the image of the company as a leading company in the oil and gas industry in Oman.
Meisan Beach Ball TournamentThe Company participated with two teams which competed strongly in the two-day beach ball
tournament organised at the Oman Diving Centre. The two teams showed the spirit of integration and
teambuilding.
Staff Football Activity As part of its continued support of employees’ activities for healthier lifestyle, the Company offered a
football playground for the employees to get together after the working hours and exercise football
each Saturday.
393
Tenth AnniversaryOGC celebrated the 10th anniversary of its operations under the auspices of H.E Mohammed
bin Hamad al Rumhy, Minister of Oil and Gas. It was also an occasion to benchmark the
Compnay’s long journey in powering the nation and the Omani community with reliable
natural gas. The event was attended by officials from various government bodies, OGC board
members, and the employees.
A video film depicting the Company’s profile, milestones, facilities, modern technologies,
work environment, and employees, among others, was played to commemorate the occasion.
Appreciation gifts were given away to the employees to mark the anniversary. Branded
backdrops and dropdown banners have been installed in the Head office building and
reception areas and at the regional offices to compliment the 10th anniversary.
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HEALTH, SAFETY AND ENVIRONMENT
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The goal of all occupational safety and health programmes is to foster a safe work environment.
It also involves protection of co-workers, family members, employers, customers, suppliers,
nearby communities, and other members of the public who are impacted by the workplace
environment.
Due to the growing concern for ecological preservation, there is also increased awareness to
protect the environment and eco-system from pollution and degradation. It is a reflection
of the essential value systems adopted by a company or entity in its managerial systems,
personnel policy, principles for participation, training policies and quality management.
414
331 Safe Days
7,474,603Kilometres
Previous Record maintained after the last LTI (15 June 2010) up to the Fatality (12 May 2011)
1,882,767Man-Hours Free from LTI
201Safe Days
2,736,063Kilometres
Continuous Record maintained after the Fatality (12 May 2011) up to the end of December 2011
OGC’s overall safety performance for the year 2011 was within the set targets except for a fatality accident
involving the personnel of a contractor in a road traffic accident on 12 May 2011.
The fatal accident broke the record of 4,529,354 man-hours free from Lost Time Injury (LTI); 331 Safe
Days and 7,474,603 kilometres driven free of accident that was maintained from 16 June 2010. After the
fatality accident on 12 May 2011 until the end of December 2011, OGC has been maintaining the record of
1,882,767 man-hours free from LTI; 201 safe days and 2,736,063 kilometres driven free of accident.
Combined (OGC & Contractors) total man-hours worked in 2011 was 3,478,477 hours. OGC man-hours
contributed 13 per cent to the total, while contractor man-hours contributed 87 per cent.
Combined Lost Time Injury Frequency Rates (LTIFR) is 0.29, far below the set target of 1.00.
4,529,354Man-Hours Free from LTI
1MF
42
2,600,000
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DEC’
403,083 353,303 382,848 329,293 320,653 309,773 301,942202,267
205,968 191,310 154,479 146,245
0.33
0.62
0.29
0.56
3,478,477
1.00
0.80
0.60
0.40
0.20
0.00
Man
-hours
LTI Fr
equen
cy R
ates
Dec’ 2011 YTD Combined (OGC & Cont) - Manhours & LTIFR
OGC-Manhours Contractors-Manhours OGC-LTIFR
Contractors-LTIFR Combined LTIFR Combined LTIFR-Threshold
3.00
2.80
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Fatality LTIF TRCF RTAF ROAF TOIF
0.00
1.00
1.00
3.00
3.00
2.00
0.29
0.29
0.29
0.29
0.00
0.00
Incident Rates - KPI 2011
Target-Combined Frequency Rates 2011
Actual-Combined Frequency Rates Dec’ 2011 YTD
Fatality
LTIF
TRCF
RTAF
ROAF
TOIF
434
The OGC Journey Management Rate (JMR) for each operating region is well maintained below the target.
JMR (OGC only)
Target 2011
Actual Dec’ 2011
Dec’ 11 YTD Cumulative JMR
The QHSE Department in 2011 participated and supported the Company’s business in many areas and aspects. The
process of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certification was initiated.
New quality procedures were developed such as corrective and preventive action procedure, deviation control
procedure and updated all mandatory quality procedures such as document and record control procedures, internal
audit procedure, quality manual etc.
MUSCAT
SOHAR
FAHUD
SALALAH/NIMR
5.50
9.50
7.00
8.00
1.35
5.76
5.72
4.25
1.91
6.13
4.25
4.16
Journ
ey M
anag
emen
t Rat
es
0 2 4 6 8 10
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In the modern corporate culture, employees are viewed as assets to the enterprise, whose
value is enhanced by development. OGC considers its people as the most important and
precious asset it possesses and chalks out programmes and policies for their welfare.
In line with OGC’s philosophy in job enriching and enhancing competencies with fair chance
to all, training and staff development programmes were implemented based on closing
identified competency gaps with more emphasis towards technical disciplines and better
working environment. On the job training sessions were conducted through specialized
vendors for all new projects that require certain level of professional working standards.
The Company continued to face challenges through competition in the local labour market
from Oil and Gas Companies in attracting and retaining staff. However, despite this market-
driven factor, the Company managed successfully to attract high level of new employees
HUMAN RESOURCES
he C
44
454
in various technical fields and in other supporting departments. Emphasis
was on skills in operating new compressor stations, gas supply stations and
other facilities and managed to minimize employee’s turn over to minimum
levels.
OGC embarked on improving working policies and employees’ procedures by
revisiting the current policies in various employee working practices. There
were also extra efforts in attracting and recruitment of fresh graduates in
various educational levels from high school certificate holders to diploma
holders in various technical disciplines in addition to degree holders in
various engineering specializations that Oman Gas Company perform in,
and in other specializations for the support functions.
With the total number of staff reaching 229 by the end of 2011, the Company
has achieved Omanisation level of 93%. The entire senior management team
is fully Omanised and many departments achieved 100% Omanisation.
Although OGC is a Company of operational nature, the female employee
population has grown to nearly 10%.
46
TAWASUL INTEGRATED ERP SYSTEM IMPLEMENTATION
OGC has achieved substantial progress in its integrated
SAP Enterprise Resource Planning (ERP) System which
aims at automating the Company’s business processes
and ensuring availability of real time information that
are vital for decision making, enhanced productivity,
efficiency and achievement of declared business goals.
The Project, planned in two phases, was kicked-off in mid
of 2011, and is currently in the “realization” Phase for
Phase I, having completed the Project Preparation and
Business Blueprinting phases. Nicknamed “TAWASUL,” it
is an end-to-end Project that aims to fulfill OGC’s vision
of having an integrated ERP system to cater to operational
business needs and enable real-time reporting.
Enterprise Resource Planning (ERP) systems integrate
internal and external management information across
an entire organization, embracing finance/accounting,
manufacturing, sales, service, and customer relationship
management, etc. ERP systems automate this activity
with an integrated software application like SAP. Their
purpose is to facilitate the flow of information between
all business functions inside the boundaries of the
organization and manage the connections to outside
stakeholders.
SAP – which stands for “Systems, Applications, and
Products in Data Processing” – helps companies of
all sizes and industries run better. From back office to
boardroom, warehouse to storefront, desktop to mobile
device, SAP empowers people and organizations to work
together more efficiently and use business insight more
effectively to stay ahead of the competition.
The project was planned in two phases. As part of the
Phase I implementation of TAWASUL, Finance, Contracts,
Human Resources, Procurement, Warehouse and Projects
departments would start using the SAP system by March,
2012. As part of Phase II implementation, Operations,
HSE, SCADA, and Administration would start using the
SAP system by August 2012.
Some of the benefits that the project is expected to
bring to OGC as an organization include:
• Integrate different departments that are now running
on separate (discrete) systems such as SUN Finance,
PACER and Pay Manager on a single SAP system.
• Enable real-time reporting to help management in
swift and informed decision-making.
• Reduce paperwork and shift to a system-enabled
“workflow” method, wherein all requests are initiated
and approved through the system.
• Empower OGC staff to be adroit in the use of business
systems, in par with market leaders and multinational
organizations.
ContractsOGC awarded 38 contracts with a gross value of RO.
11,663,664 through different tender forums in the year
2011. Out of these, contracts worth RO. 10,460,000
(nearly 90 per cent) were awarded to local contractors
depicting OGC’s continuing commitment in supporting
local entrepreneurs.
Others
10.4%
Local Contractors
89.6%RO. 10,460,000
Contracts awarded to local contractors
RO. 311,129
RO. 10,095,709
RO. 1,256,526
Contracts 2011
Major Tender Committee
Government Tender Board
Secondary Tender Committee