Dr Mohammed Al Balushi, CEO, Shell Oman Marketing Company SAOG shares insights on the company’s contribution to the energy transition journey and support to Oman’s Carbon Control Target Plan, which is an integral pillar of Oman Vision 2040. Excerpts from an interview with OER.

OER: Shell Oman Marketing Company (SOM) operates in multi-downstream business such as mobility, lubricants and aviation providing a range of products and services. How is the company responding to Oman’s growing energy demands in an environmentally sustainable manner?

Dr. Mohammed: Our commitment to contribute to sustainable development is at the heart of the way we do business and an integral part of the Shell General Business Principles. We embed this commitment into our strategy, our processes and decision-making, as we aim to provide more and cleaner energy solutions in a responsible manner. The Powering Progress strategy sets out Shell’s roadmap to accelerate the transition of our business to net-zero emissions.

Today, we continue to build on these foundations while driving change across the organisation to help society and the industry tackle their pressing challenges, including those related to climate change and the environment. SOM reinforces those core fundamentals into its business, which is evident through a number of steps that have been taken in this regard, including operating business on renewable energy sources. An example of that would be multiple mobility service stations operating on solar power like Mukhaizna as well as the recently inaugurated mega service stations on Batinah Expressway.

The future of mobility is as much about creating more diverse and quality choices that increase customer convenience as it is about moving people and products in a sustainable way, and I believe many opportunities will emerge as we make the global shift towards a lower-carbon future.

Moreover, earlier in the year, SOM had launched its first Electric Vehicle charging point (ShellRecharge) in Al Bandar Service Station in Muscat, with a plan to expand across other service stations within the Sultanate. These plans take into consideration the market requirements as well as local regulations to be issued in this regard. Even though the pace at which EVs are being adopted in this region is relatively slower than other parts of the world, we believe in the importance of being a key partner in this journey. This is also refected in the efforts we are witnessing by the offsetting emissions.

As a leading player in the sector, SOM is committed to contribute to the energy transition journey and support Oman’s Carbon  Control Target Plan, which is an integral pillar of Oman Vision 2040. We are working together with our partners, and key stakeholders to create innovative mobility solutions with enhanced efficiency and contribute to sustainability whilst helping us drive towards a lower-carbon future. It remains our endeavour to collaborate with the relevant authorities and stakeholders to realise the goals of Oman’s National Energy Strategy and accelerate the gradual transition to a lower-carbon economy and an energy matrix with lower carbon emissions.

OER: Can you highlight the company’s Mobility business strategy and the plans to expand the service network?

Dr. Mohammed: SOM’s Mobility business remains the largest business segment of the company, with an existing network of 205 service stations strategically located across the Sultanate. Our mission is to make life’s journeys better – by providing an evolving range of quality fuels, a welcoming and comfortable break, and a retail experience that offers customers convenience, quality, and choices of energy solutions and non-fuel retailing. Supported with access to know-how and experience of Shell Global, the business also focuses on leveraging its existing technical solutions and further enhancing its online and digital platforms to facilitate its operations and improve customer experience.

When it comes to expansion plans, the company follows a selective approach that considers economic conditions, value for customers and shareholders as well as supporting the notable investments the government is making in infrastructure projects and maturing industrial and logistical hubs. An example of that is the latest Memorandum of  Understanding (MoU) signed with the Ministry of Housing and Urban Development for four Shell service stations on the Batinah Expressway. Among these four service stations, Shell Liwa Expressway, Twin Hoor in Suwaiq, and Saham Expressway were inaugurated so far, with the remaining one in Suwaiq planned to be operational in a few weeks. In addition to these, Al Rusayl Industry Service Station was also inaugurated in July 2022.

The service stations on the Batinah Expressway will all feature sustainable and energy-efficient solutions, including ultra-rapid electric vehicle charge points and built-in solar panels. Customers will be able to purchase Shell fuels, including Shell V-Power, our best performance and efficiency fuel, as well as Shell Mogas 95, Shell Mogas 91, Shell Diesel, and benefit from the Shell Recharge facilities for Electrical Vehicles, at the first phase of Shell Batinah Expressway Service Stations. The service stations also provide a designated lane for trucks to ensure a smooth customer experience.

In the upcoming phases, Shell’s Batinah Expressway service stations will be convenience destinations. With the altering demands of motorists in mind, the second phase will include the development of a commercial centre composing of Shell’s convenience store – Shell Select – as well as a variety of businesses and spaces that will be available for rent as co-locators and alliance outlets. The commercial building will also include dedicated prayer areas and toilets as well as a playground area for kids. A one-stop hub to provide drivers on the road with a gamut of products, services, and amenities to make their journeys better. It will also come with a car service centre offering a wide range of Shell’s car care services.

As for Non-Fuel Retail (NFR), the business continues to expand its range of products and services to customers by introducing and expanding the new generation of Shell Select experience in Oman with multiple convenience stores introduced during the year in collaboration with local Omani SMEs. Furthermore, the experience was enhanced with the launch of digital ordering channels by Shell Select in partnership with local and regional providers. The company also supported local SMEs by sourcing coffee beans from local rotisseries which are available in our very own Shell Cafes. On the other hand, the car care segment witnessed further growth with many new car wash and oil change facilities being introduced in our service stations during the year, providing customers with an integrated experience. The business carries on its focus on addressing evolving customer needs through acceleration of its digitalization journey and continuous improvement in operational excellence, through leveraging on its existing systems and developing new ones to provide better transactional controls and digital value propositions.

OER: How has the company performed in the year 2021? What is the outlook for the year 2022?

Dr. Mohammed: The pandemic and the parallel macroeconomic challenges have severely impacted both the industry and the country, and the continuous uncertainty that the world went through during the past two years had been visible across all levels. The energy sector, like many other sectors, had its share of challenges and new realities to adapt with. Even though these unprecedented times brought along new challenges, they also came with valuable lessons and equipped us with knowledge that we made sure is reflected in our future visions and plans. As we are recovering post-pandemic, SOM has laid out a well-planned strategy to remain abreast with the growing changes and opportunities. We have reassessed our plans in light of the new conditions, reconsidered their practicality and revised them to acclimate to the current circumstances, on economic, social and geopolitical aspects. More importantly, we are committed to serving our customers in line with our world-class HSSE and operational excellence standards and will continue collaborating with our key stakeholders and business partners to create value for our investors and the community in which we operate, in line with Oman Vision 2040 and Shell’s Powering Progress strategy.

In what ways is SOM adopting digitalisation to enhance efficiencies?

Dr. Mohammed: Digitalisation has a significant influence on how we manage our energy use. Increasing the energy efficiency of products, processes, and people is arguably the most important impact digitalisation can have. We enhance the efficacy and efficiency of our processes by gathering high-quality data, transforming it into insights, and then acting on those insights to improve the performance of our assets and operations. By partnering with companies such as Microsoft, SAP and IBM, we have further accelerated innovation in support of decarbonisation and energy industry transition.

Through the years, SOM has made significant strategic investments in enhancing its IT infrastructure, interactive platforms and processes which have, in turn, been instrumental in ensuring its effective business continuity plans and strong financial resilience. Being a customer-centric company, we have been pioneers in developing online management systems for our fleet customers that provide them with live updates and enable them to monitor their fuel use as well as generate e-invoices and reports, reducing administration time and increasing their business’ efficiency.

In addition,  an integrated digital HR system had been launched contributing to transforming SOM’s Digital ecosystem and ensuring high levels of reliability, resilience, productivity, and development. Focused on enhancing SOM’s Employee Value Proposition, it helps in creating a seamless work environment that is easily accessible to employees and offers them opportunities for improved flexibility, enhanced collaboration and prospects for better careers and growth.

OER: CSR has been an important value for SOM. How is the company contributing to the well-being of the communities in which it operates?

Dr. Mohammed: Powering Lives is an important pillar within Shell’s Powering Progress strategy, and we are committed to being a responsible corporate citizen by sharing benefits with the societies in which we operate. The company puts in place an annual CSR budget and has developed a strategy that targets a wide range of initiatives to drive social awareness and contribute to the well-being of the local community. The strategy focuses on the following main themes: Road Safety, Environment and Enterprise & Community Development, and apart from the targeted strategic social investment initiatives planned at the beginning of every year, SOM keeps a window open for dialogue with the Omani community in terms of social investment. This is done through addressing requests received from various organisations, charities, and entities in Oman. This approach allows the company to build on its strategic long-term relationship with its stakeholders, in both the public and private sectors as well as non-government organisations (NGOs) and youth charity groups.

The company will carry on playing its role in the energy transition journey, while continuing to focus on the various social investment programs in the fields of innovation, sustainable mobility, and energy-related initiatives. In addition to that, we will also work on incorporating the message of enterprise development into the journey of this transition, as well as working to develop and strengthen our long-term strategy in creating In-Country Value. We are committed to sustaining opportunities for entrepreneurs throughout the supply chain, and continuously engaging with stakeholders in the government and private sectors as well as NGOs.

OER: Omanisation is an important national priority. In what ways is SOM contributing towards this goal?

Dr. Mohammed: SOM devises, implements, and manages projects and facilities to generate long-term societal benefits. Our emphasis on Omani talent development is at the forefront of this, as seen by the Omanisation rate of almost 97 per cent across the organisation, with 100 per cent Omanisation level in the leadership team.

Additionally, we collaborate with local suppliers and contractors to generate In-Country Value (ICV), which provides jobs and business opportunities for Omanis. While doing so, we are also investing in developing and sustaining a value offer that attracts and retains the finest individuals, keeps them engaged and encourages them to take the lead in expanding and widening their competencies. The company believes that this strategy will help address and sustain the requirements of the dynamic businesses we support, and promote the workforce’s development needs and aspirations, whilst helping build local professional talents in Oman.