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Oman Business News

New Oman Oil and Orpic Group to invest $28 bn over next 10 years

Oman Oil and Orpic Group, created out of the merger of Oman Oil Company SAOC (the wholly government-owned energy and strategic investment vehicle) and Orpic Group (the refining and downstream petrochemicals flagship), have pledged to invest, together with its local and international partners, in excess of $28 billion in the energy sector over the next 10 years.

The newly integrated entity, billed as Oman’s new energy powerhouse, also envisions a doubling of its contribution to the Sultanate’s Gross Domestic Product (GDP) by the year 2030.

The revelations came in a post tweeted by Oman Oil and Orpic Group on Thursday, announcing the formalisation of its organisational structure with Musab al Mahrouqi (pictured) as Group CEO.

“The Group recently concluded a 100-day programme under the name of ‘Nakhla’ to evaluate the scope for sustainable growth in multiple growth markets, declaring a new vision and organisational structure that will deliver profound benefits for the national economy. Together with its local and international partners, the Group will invest in excess of $28 billion in the next 10 years,” the Board of Directors stated.

As many as nine prominent businesses that constitute a dominant part of Oman’s hydrocarbon value chain have been identified as ‘Core Businesses’ of new Oman Oil and Orpic Group.
Besides Orpic, which operates the nation’s two refineries at Mina al Fahal (Muscat) and Suhar, as well as Al Jifnain fuel depot and distribution network, the Core Businesses include Oman Oil Company Exploration & Production (OOCEP) — the upstream energy investments arm, Oman Gas Company (OGC), Salalah LPG, Duqm Refinery & Petrochemical Industries (DRPIC), Oman International Petrochemical Industries Company Limited (OMPET), Salalah Methanol Company (SMC), OXEA Group, and Oman Trading International (OTI) — the commercial arm of the Group.
Businesses not listed among these nine entities “remain important and will continue to be run as they are today”, the Board of Directors noted.

Further, in a move to deliver on its long-term objectives, the Board announced the reorganisation of the nine core businesses into two Business Lines (Upstream and Downstream) and four Central Functions, supported by a dedicated Integration Management Office.
It also constituted an eight-member Integration Leadership Team to drive the integration process. The team comprises Dr Salim al Huthaili, CEO — DRPIC, Isam al Zadjali, CEO — Upstream, Ahmed al Jahdhami, CEO — Downstream, Talal al Awfi — Chief Commercial Officer, Nasser al Lawati, Chief Financial Officer, and Ayad al Balushi, Lead — Integration Management Office. Yet to be named are two Senior Vice Presidents to head the People & Culture and Project & Technology positions on the Integration Leadership Team.

“Working together to build a better future for Oman, the Group has delivered an ambitious set of aspirations following the development of an integration roadmap. Oman Oil and Orpic Group seek to create an environment where talent thrives globally, capturing and capitalising on greater participation in the global hydrocarbon value chain, facilitating local and international private participation in Oman’s oil and gas sectors to increase value for shareholders and the Group’s contribution to the nation,” the Board added
  • Oman Oil
  • Orpic
  • Oman Oil Company SAOC
  • Energy Sector Investments
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