Experts
Orpic projects to create 1600 more jobs by 2016
Firstly, Orpic is continuing to perform extremely well; despite the market noise you have heard regarding oil prices. I want to say that although 2015 has seen a 40 per cent reduction in oil prices, Orpic’s performance and profitability depends on our refinery margins, not crude prices.
Today, Orpic is buying crude oil and other products at international prices and selling them to the local and global market at international prices. This is therefore closely linked to the movement of world crude oil prices, petroleum products, and petrochemicals. From this diversity of products, we can add value locally to supply the domestic market and meet ever-growing demand.
Secondly, we are an ambitious company with competitive growth plans underway, valued at over $8 billion.
With our performance in good shape, it is the perfect opportunity to realize our ambitious, but strategic growth plans.
Orpic’s current plant and refinery operations, coupled with its strategic growth projects, including the Sohar Refinery Improvement Project, the Muscat Sohar Product Pipeline and the Liwa Plastics Industries Complex are not only expected to generate significant dividends for shareholders, but will further diversify Orpic’s product mix, intensify Orpic’s downstream business operations, and increase the impact of Orpic’s contribution to the Oman economy.
As Orpic delivers on its strategic growth plans to revolutionize the way it operates, and pursue ambitious plans to provide fuels, feedstock, chemicals and petrochemicals to Oman and the world, the focus on higher standards of efficiency, lower costs, eliminating hazards, improving environmental and socio economic impacts, and serving the Sultanate with pride will carry forward – building momentum and strength.
Orpic’s Sohar Refinery Improvement Project (SRIP) is a multibillion-dollar capital investment for Orpic, which is scheduled for commissioning in 2016. It is being delivered in response to the need to upgrade Orpic’s refining capability in order to further maximize the value of Omani crude oil. SRIP adds five new units, improving Sohar Refinery’s ability to process heavier Omani crude oil.
Muscat Sohar Product Pipeline and Al Jifnain Terminal Project are being delivered by Orpic Logistics – a joint venture partnership between Orpic and Spain’s Compania Logistica de Hidrocarburos (CLH). It will connect Orpic’s Mina Al Fahal refinery in Muscat with its Sohar refinery here, via a two-way, 290 km, multi-product pipeline to an intermediate distribution and storage facility in Al Jifnain.
The Liwa Plastics Industries Complex is the biggest of the three major projects being executed by Orpic over the next three years. More than anything else, it will transform Orpic from a refinery operation to a dynamic and flexible petrochemicals producer.
Upon commissioning of Orpic’s Liwa Plastic Industries Complex project, Oman will be a producer of polyethylene, along with extra quantity of polypropylene. This is a significant strategy for Orpic and the petrochemical sector in Oman, as this will allow Orpic to increase the horizon of polymer products, and open new markets both in Oman and abroad.
With Liwa Plastic Industries Complex forecast to produce around one million tons of polymers annually, Orpic will be in a strong position to compete in the international polymer market, and at the same time improve value optimization within Oman, by converting the natural gas to plastics.
Lastly, but certainly not least, our vision and values are more than just words. People, performance and profit for the Sultanate are what drive us every day to do our best and succeed. Our commitments to the communities where we operate, job-creation, in-country value and so on are all very real and tangible actions we take to ensure the country is benefiting from our operations.
As an entity that is owned by the Government of the Sultanate of Oman, our impressive integration of refinery and plant operations, and our growth plans, has cemented Orpic as what I think is one of the industry’s most forward-thinking companies.
Since Orpic commenced operating in the Sultanate of Oman, we had one vision and a set of strong values, that centered around building an Omani integrated refining and petrochemical business we are proud of.
Each year, the In-Country Value (ICV) we produce, our socio- economic impact on the country, has grown and our team has worked hard to ensure we support opportunities to grow our people, grow our business and grow our capacity to meet the needs of Oman and international markets.
This year, for the first time in Orpic’s five-year history, we took a bold step to measure and assess Orpic’s actual socio economic impact.
The results of this independent study not only ascertained Orpic’s current total impact across GDP, employment creation, and trade surplus, but it also identified opportunities for further improvement and forecasting on the impact of Orpic’s strategic growth projects which are scheduled for commissioning over the next three years, to ensure Orpic is maximizing its contribution to the local economy through employment opportunities, investment opportunities and educational opportunities.
In numbers, the results speak for themself:
– Orpic currently contributes 6 per cent to GDP as of 2014, which is GDP Impact Annualized, $4.2 billion and upon commissioning of all growth projects in 2018; this number is forecast to reach GDP Impact Annualized, $6.5 billion.
– Orpic currently employs around 2400 people, of which 75 per cent are Omanis, and an estimated 1600 additional jobs will be created by the growth projects between 2014 and 2018, of which 75 per cent will be Omanised.
– Orpic’s growth projects will further promote opportunities for small to medium enterprises across our supply chain, which will also have a positive impact on the In-Country Value being generated by Orpic.
– Orpic’s culture is built upon our commitment to serve our bountiful Country, Oman, and in doing so, be a socially responsible corporate citizen.
Over the years, we have worked hard to embed ourselves in the communities where we operate.
In fact:
– Our visitor center has welcomed more than 5,000 people since it opened several years ago.
– 100 summer Omani trainees recently received on-job training in our premises on an annual basis.
– We offer five international scholarships annually to high potential students from the North Al Batinah area.
– Our ICV programme, which started two years ago, supports local businesses based in North Al Batinah and small to medium enterprises through Oman, and our support is measured against monthly scorecards
Our aim is to continue to maximize the economic and social impact of our business operation by playing an active and positive role as a good neighbor, and good corporate citizen.
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