You are in negotiations with the government for a new tariff system. Can you elaborate on that?

Yes, we are talking for a certain arrangement with the government for a new tariff system. We expect it to be sorted out in a year’s time. If it is approved, we will be able to run the facilities for the government, finance these projects and charge a certain fee for providing our services.

What role is OGC expected to play in the Oman-Iran gas deal?

This question should be asked to the government. I can only say that we are prepared to play any suitable role that our shareholders ask us to play whether it is in this project or any other initiative, which is of strategic interest to the Sultanate.

On the In Country Value (ICV) front, what is the overall contribution of OGC especially in areas of direct and indirect job creation, talent development and supporting local companies/entrepreneurs?

In promoting ICV, it is always important to support small and medium companies. This has always been in our thought frame and we have made successful attempts in this direction even before it became big news and people talked of it. We have succeeded in our attempts to a great extent.

We continue to be an active member of the ICV committee chaired by the Undersecretary of Ministry of Oil and Gas. We have discussed various options and have also agreed upon some of them. There have been certain ICV documents in which we need further inputs, say in our major oil contracts to maintain the right balance.

Do you think focus on ICV leads to higher costs?

Not really. We have been trying to convey to everyone that ICV doesn’t necessarily mean that it will cost more. Most people continue to believe that if it is ICV, it is going to cost more. We have proven this through a certain contract of a pipeline requirement where we sourced the pipes from outside and got them coated here in Oman by a local company. This worked out cheaper for us and this initiative that we took is progressing as we speak. We have brought this initiative to the table and explained to the government that when we do ICV, it does not mean always that we have to pay more money.

However, ICV is work in progress as we need to continue to look at the terms and conditions to make it a robust endeavour. At the moment, I think of it as an experiment. As we go along, it will be more mature and will benefit the country more and I am sure that more companies including the international companies will also accept it. That is a natural approach and it is accepted all over the world. We hope we can manage to do this with the other oil & gas companies and use resources within the country that will be sustainable and mutually beneficial.

How’s ICV contribution expected to increase in the coming years as you move ahead with your expansion plans?

It is very difficult to quantify it at this stage. Whatever percentages we are investing in the ICV activities, we are hoping for maximum results. That’s the way we are framing our contracts. We demand a certain level of ICV that is mandatory but we do not mark the companies that are competing based merely on that. We ask them to give us their best. The better their output, the better is their marking. The better the marking, the better are their chances in winning the contracts.

For instance in the LPG project too, that is the approach we are taking. We define their scope of minimum requirement. Take for example, the international companies. They have worked in various parts of the world on multiple ICV projects and they have a rich experience on this front from which we could learn. At times, we are surprised by their innovative approaches and we certainly do not want to limit ourselves. We do not want to create barriers that will kill the initiatives of these companies and their willingness to help us as a country and to be part of the team.

What are the learnings in your opinion from the previous challenges faced by the country in terms of oil price oscillations? How should the ecosystem respond to the challenge in order to remain resilient without compromising on the long-term goals of the sector as well as the country?

It’s a tricky one. There is no silver bullet for it. There could be multiple answers to this question.

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