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4 5
• 95% Omanisation rate;the highest in the Oil and Gas sector in
the Sultanate.
• Gas availability at 99.997%, with improved station trip and
recovery performance.
• OGC operations start in the Sur region along with the handover
of gas supply from Petroleum Development Oman (PDO) to Sur
Power Station.
• The Salalah LPG, City gas and ORPIC’s Fahud NGL projects
progress for FEED stage.
• As part of its commitment to support local businesses, OGC
awards around 85% of the total contracts to local companies
during the year.
OGC’s future focus is on opportunities to optimise the gas
value chain for the Sultanate. We have very successfully
progressed the Salalah LPG concept study work and the
project looks technically and economically solid. While
taking this project forward, OGC will also evaluate other
similar opportunities in different locations in Oman,
where LPG or NGL extraction based.
As we grow our business in above areas, we recognise
that we also have an important obligation to increase our
In Country Value contribution as well as to develop the
Sultanate’s Small to Medium Enterprises.
2013 key achievements
Outlook 2014
• 963 safe working days, 3.83 million km and 5.17 million man-
hours without ‘LTI’ achieved by OGC and its contractors.
• Annual gas transportation 15.34 billion cubic meters.
• Gas transportation average 42 million standard cubic meters
per day.
• Highest gas transportation rate of 50.34 million standard
cubic meters per day.
Sohar GSSSIE
S.A.S
WadiAl JizziBuraimi
CompressorStation
FuhudCompressor
Station
GGP
NimrCompressor
Station
PTTEP
WudamBarka
Al GubrahMAF
OCC
SQUMAM
RPP-RIE
Izki PLSOLNG
Shafa
KGP
SNGP
Mukhaizna GSS
MirbatSalalah GSS
Saih Rawl CPP
Barik
Marmul
OXY
OXY
La Khuwair
Manah GSS
N.I.E
32
” Gas Lin
e
24” Gas Line
32” Gas Line
16” Gas Line
36” Gas Line
48” Gas Line
20” Gas Line
24”
Gas Line Operated by OGC
Gas Line Operated by PDO
OGC Gas Facility
Gas Supply Facility
Compressor Station
Contents
Foreword from the Chairman .......................................................................................................... 7
Board of Directors ............................................................................................................................................ 8
CEO’s Review .......................................................................................................................................................... 11
Leadership Team ............................................................................................................................................. 12
Operations .................................................................................................................................................................. 16
Project Delivery ................................................................................................................................................... 20
Contracting & Procurement ............................................................................................................... 22
Human Resources ............................................................................................................................................. 24
QHSE ..................................................................................................................................................................................... 26
General Welfare .................................................................................................................................................... 28
OGC Snapshot
6 7
Foreword from the Chairman
Oman Gas Company S.A.O.C. (OGC) had an exceptional year in all areas of our operations. We delivered a robust business performance
while further strengthening our sustainability agenda. Please allow me to take this opportunity to present to you our comprehensive
2013 Annual Report, which is a reflection of what we achieved and delivered as a team in the execution of our business plans. We
expanded our footprint across the Sultanate and continued enhancing OGC network to deliver gas to more customers.
The year 2013 was a year full of milestones. With a significant step to optimise the gas value chain in the Sultanate, the Salalah
Liquefied Petroleum Gas (LPG) project is now ready to go for the Engineering design stage. In addition, the Duqm gas pipeline is in
its final stages for materials supply contract. These successes were also reflected in our vision towards quality, health, safety and
environment. We excelled in meeting the increased demand and managed our rapid network expansion with a year free of Lost Time
Incidents (LTI).
With impressive records of Omanisation, our people went over and beyond to contribute to our long term strategy of becoming a
world-class midstream gas value chain company. These dedicated individuals give us confidence in the future to continue maximising
the gas value for Oman.
Our ability to deliver consistently strong results in the midst of rapid growth requires focus, teamwork and commitment, and I want
to thank all our shareholders for their tremendous support in our journey to deliver consistent growth rates during 2013.
Above all, and on behalf of the entire Board of Directors, I express our deepest gratitude to His Majesty Sultan Qaboos bin Said
for his wise leadership and guidance that has nurtured our country for so many decades and for his vision towards achieving a
sustainable economy while maximising the value of our natural resources supported by a strong infrastructure.
Hilal bin Ali al Kharusi
8 9
Abdulrahman bin Ahmed al HarthiChief Audit ExecutiveOman Oil Company Board Member
Board of Directors
Hilal bin Ali al KharusiVice President Emerging BusinessesOman Oil CompanyChairman
Salih bin Ali al HarthyDirector of Gas RevenuesMinistry of FinanceBoard Member
8 9
Kalat bin Ghalum al BalushiChief Executive OfficerOman Investment CorporationBoard Member
Abdullah bin Ahmed al ShanfariDirector General, Exploration & Production for Oil & Gas Ministry of Oil & GasBoard Member
10 11
CEO’s Review
The year 2013 was a significant milestone for Oman Gas Company. In terms of growth figures, the Company achieved gas availability of
99.997%. In fact; it was an excellent ‘HSE year’, as OGC and its contractors recorded a landmark by reaching close to 1,000 LTI-free days.
Integrity management was given utmost importance; to the extent that a Company level Policy statement was issued highlighting OGC’s
priority and commitment towards technical as well as business integrity.
Throughout the year, OGC was steadfast in its goal to provide uninterrupted and reliable supply of natural gas to its consumers throughout the
country. It undertook a number of expansion projects to meet the growing demands of its customers, both public and private;started operations
in the Sur area, and began supplying gas to Oman Aluminum Rolling Company and Gulf Special Steel Industry. The Salalah LPG project was
progressed to the pre-FEED stage which is crucial for OGC to progress from providing gas infrastructure, which of course we will continue to
upgrade, into gas value chain projects as well.
OGC’s Human Resource approach was robust in the last year. In accordance with His Majesty Sultan Qaboos bin Said’s directive to cultivate
national talent, OGC recruited and trained a huge number of Omani nationals. It gives me immense pleasure to announce that the Company has
achieved 95% Omanisation level and earned itself an unrivaled reputation of having the highest Omanisation rate in the oil and gas sector in
the country.
Training Omani nationals to highly skilled jobs and giving experience to talented students is a fundamental part of our CSR ethos;as also is our
dedication to give back to our community for good causes and contributing to public and social projects as much as we can.
I would also like to take this opportunity to thank our government, board members, shareholders, employees, and customers who have given
us immense support and guidance.
Yousuf bin Mohammed al Ojaili
12 13
Abdulaziz bin Said al MujaibiGeneral Manager, Operations
Amer bin Salim al JabriGeneral Manager, Finance
Hakeem Noor Assaid al TauqiActing General Manager, Corporate Services
Yousuf bin Mohammed al OjailiChief Executive Officer
Leadership Team
Mansoor bin Ali al AbdaliActing General Manager, Engineering
History Timeline
2000
2003
2005
2009
2002
2004
2006
2010
2008 2012
2013
2007
2011
• OGC was set up through a Royal Decree with the transfer of asset of 1000 kilometre pipelines and associated facilities.
• Loans were successfully secured to finance new pipeline projects.
• Successfully took over the operation and maintenance of the gas transportation facility from PDO.
• Completed laying 1000 kilometres of new pipelines.
• Added the Barka Pressure Reduction Terminal to OGC facilities.
• Supplied gas to Dhofar Power Company.
• The head office building and Salalah pressure reduction terminal (PRT)were added to the OGC facilities.
• The State-of-the-art SCADA system became operational from the control center located in OGC.
• Successfully took over from Canadian Energy Services to perform operations and maintenance works in-house –2 years ahead of scheduled takeover.
• First gas customer in the Sohar Industrial Port area (Sohar Refinery).
• Completed gas supply facilities to Salalah Methanol Company –part 1.
• Completed the 252-kilometer 32’’cross-country pipeline from Saih Rawl to Sadad.
• Completed the upgrade of Barka gas supply station control system.
• Completed the upgrade of gas supply stations at Rusayl, Wadi Al Jizi, and Al Gubrah Power plants.
• Supplied gas to Sohar Power Plant.
• Successfully completed Refinancing.
• Supplied gas for the first time from PTTEP.
• Supplied gas to Oman Refinery Company.
• Gas Supply to Vale Pelletizing Company.
• Gas Supply enhancement to Oman Cement Company.
• Laying additional new 20" pipeline from Murayrat to Al Ghubrah.
• Gas Supply to Salalah Methanol and Shadeed Steel & Iron.• Supplied gas to Oman Methanol
Company.
• Supplied gas to Sohar International Urea & Chemical Industries.
• Supplied gas to Oxy Mukhaiznah.
• Completed gas export to Dolphin Energy, UAE.
• Supplied gas for the first time to Sohar Aluminum power plant.
• Concluded Feasibility and Concept Study for Muscat City Gas Distribution Network.
• Supplying gas to new Taqa Power Plant.
• Completed Front End Design (FED)for Ad Duqm Pipeline Project.
• Commissioning Fahud Compression Station.
• Supplied gas to Sohar Aluminium smelter.
• Supplied gas to Sharq Sohar Steel Rolling Mills.
• Supplied gas to SMN Barka power and desalination plant.
• Commissioned Al Buraimi compressor station and gas import from Dolphin Energy.
• Supplied gas to OCTAL.
• OGC and contractors completed three years without lost time or injury.
• Supplied gas to Aromatics Oman.
• Successfully managed two major gas production interruption emergencies with minimum impact on gas supply to customers.
• Supply gas to Barka III and Sohar II Power Plants.
• Completed FED for Ad Duqm EPC Pipeline Project.
• Executed a concept study for BP’s export pipeline.
• 70 trainees completed their training with ORPIC.
• Commissioning Nimr Compression Station.
• Moved OGC operations to its head office building and regional offices.
• First gas export made by OGC to UAE, the first ever between two GCC countries.
• Construction was commenced on the Sohar Pressure Reduction Terminal with 5 streams, which will increase OGC's gas
deliveries to almost double of its current deliveries.
VISION
To be a world-class midstream gas
value Chain Company in Oman.
MISSION
To maximize Country’s value by developing and operating Oil & Gas facilities to
international standards through innovation, efficiency and development of local talent.
• Achieved 95% Omanisation rate;the highest in the Oil and Gas sector in the Sultanate.
• Completed nearly 1000 Lost Time Incident (LTI)free days.
• Sucessfully maintained Gas
availability at 99.997%, with improved station trip and recovery performance.
• Started operations in the Sur region along with the handover of gas supply from Petroleum Development Oman (PDO)to Sur Power Station.
• Progressed the Salalah LPG, City Gas and Fahud NGL projects for FEED stage.
• Awarded around 85% of the total contracts to local companies.
16 17
Operations
The Year’s Highlights
u Supply of Gas to Oman Aluminium Rolling Company.
u Supply of Gas to Gulf Special Steel Industry.
u Supply of Gas to Sur Independent Power Plant.
u Delivery of 15.34 billion cubic meters (BCM) of natural gas to its diverse customer base.
u Catering of 42.02 million cubic meters daily average of gas.
u The highest daily gas delivery of 50.34 million cubic meters recorded on the 17th of June which is
the highest-ever quantity in the history of the Company.
Integrity Management
In 2013, an Integrity Management Policy statement was developed and issued to demonstrate management approach towards
technical integrity. Along with the policy, other standards and procedures were also framed so that the objectives of safeguarding
technical integrity are systematically managed throughout the year. The Integrity Management policy will help ensure that the
Company’s facilities and infrastructure perform at optimal levels and comply with all standards, codes and legislation;hereby ensuring
that all the Company’s assets will do what they are intended to do, and that they have the tools and processes to continue to function
safely and effectively throughout the asset lifecycle.
Responsible for constructing, maintaining and operating natural gas facilities in the Sultanate of Oman, OGC ensures uninterrupted
gas supply through its 2,500km pipelines and associated infrastructure to power industries in Oman. OGC has been evolving and
slowly transforming from a gas transportation Company to an integrated enterprise harnessing the power of Oman’s natural gas
transportation.
High gas availability was maintained during 2013 to all the company’s customers, which include power and desalination plants,
methanol, petrochemical, refinery, steel and cement plants.
18 19
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2012 Average 2013 Average
Average Gas Delivery 2012 - 2013
50
45
40
35
30
25
20
15
10
5
0Ave
rag
e D
aily
Gas
De
live
ry (
mill
ion
SC
M)
Average Gas Consumption
Peak Gas Consumption
Total Gas Consumption
Gas Interruptions
Gas Interruptions
Gas Availability
Million Sm3/d
Million Sm3/d
BCM
Number
minutes
%
42.02
50.34
15.34
4
73
99.99995
42.14
49.92
15.42
3
86
99.99968
-0.3
0.8
-0.6
33.3
-15.1
0.0002
Unit 2013 2012 Change %
u Pipeline inspections were successfully completed with total of 15 ILI runs. All critical facility inspections were also carried out including high and
medium criticality piping and static equipment. GIS implementations were successfully completed for 5 pipelines within the OGC network. The
purpose of the pilot was to outline the main requirement for such project implementations and also to make the foundations for future project
phases. The objective was to have all data related to technical integrity centralized within the GIS solution.
u During the course of 2013, corrosion management played a major role in providing protection to the exposed pipelines. The main achievement
was related to qualification of coating systems for sweating conditions. The new systems were successfully applied in 2013 in Salalah, Barka
and Wudam.
u The Company acquired an on-line condition monitoring system which could identify equipment degradation prior to failure. The system worked
with the principle of sophisticated analysis and performance trending.
u Knowledge of pipeline integrity, cathodic protection, and condition monitoring were imparted to Omani employees so that they acquire skills of
integrity management in line with the Company’s Omanisation objectives.
Sector-wise Gas Delivery 2013
Power &Desalination Oil Operations
Industrial &Commercial
17% 30%53%
Operations
20 21
Project Delivery
The Year’s Highlights
u Concept Study for LPG Extraction Project.
u Concept Study for NGL Extraction Project for ORPIC.
u FEED for Gas Pipeline to Ad Duqm Industrial Area.
u Concept Study for Oil Pipeline to Ras Markaz.
u Receipt of the Line Pipes for SLL 32” Loopline – Phase 2.
u Completion of Business Continuity Project at Al Mabelah.
u Concept Study for Tie-in of DNO Oman Ltd export gas to North Gas Grid.
u Concept Study for Additional Gas Supply to Salalah Methanol Company.
u Concept Study for Gas Supply to Carmeuse/Majan at Salalah Free Zone.
u Detail Engineering of Gas Supply to Associated Industries Limited located at
Salalah Free Zone.
u FEED for additional Gas Supply to Raysut Cement.
u FEED for Gas Supply to Technical Research Center.
The demand for gas increased dramatically across the Sultanate throughout 2013.
OGC has been able to rise to the challenge through strong management practices and
project delivery. Not just this, the Company has been able to strategically plan ahead by making
use of previous years’ data, and has achieved the objective of high delivery through a series of projects.
20
22 23
Contracting & Procurement
A majority of OGC’s operations depend on contracts and agreements with third parties.
The Company has not only improved its cost efficiency in the year 2013 by working
with local contractors and suppliers, but also done its bit towards contributing to the
In Country Value (ICV) status of the nation, as 85% of the company’s contracts and
tenders were awarded to local companies in the year 2013.
RO. 1,378,786
RO. 4,959,314
RO. 130,238
Contracts 2013
Major Tender Committee
Government Tender BoardM
illio
n O
MR
Secondary Tender Committee
24 25
The year 2013, was an important year for OGC, as the Company won the Ministry of Manpower Excellence award in Omanisation. The Company continued playing
its role in creating new job opportunities for Omanis throughout 2013, and achieved 95% Omanisation, the highest in the Oil and Gas sector in the country. The year
also saw the inception of several initiatives and measures that will transform the way the HR function works in the Company.
To recruit and retain a highly skilled workforce, the company took the following measures in 2013:
u Underwent “Critical Workforce Identification” and “Attrition Analysis” studies.
u Hired 104 permanent employees.
u Trained and counselled 65 academic trainees.
u Achieved outstanding record in the training plan implementation with 18,972 hours of training.
u Conducted “Employee Engagement Survey” to see the level of employee motivation in the interest of the organization.
u Successfully implemented the following SAP modules:
u Performance Management System (PD).
u E- Recruitment.
Human Capital
26 27
QHSE
20
12
Co
mb
ine
d M
anh
ou
rs (
OG
C &
its
Co
ntr
acto
rs)
30
00
00
28
00
00
26
00
00
24
00
00
22
00
00
20
00
00
18
00
00
16
00
00
14
00
00
12
00
00
10
00
00
80
00
0
60
00
0
40
00
0
20
00 0
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
162,
410
149,
319
140,
654
141,
657
0.30
0.20
0.10
00
Manhours
LTI Frequency Rates
Co
mb
ine
d M
anh
ou
rs
133,
449
118,
187
133,
581
104,
944
111,
642
108,
276
107,
044
132,
484
Num
ber o
f Inc
iden
ts to
reac
h th
e se
t fre
quen
cy ra
te
Inccident Frequency Rates
Inci
de
nt
Rat
es
- K
PI
20
13
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Fata
lityLT
ITR
CRT
ARO
ATR
OI
0.00 0.
30
0.30
0.80
0.80
0.80
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
Targ
et-C
ombi
ned
Freq
uenc
y Ra
tes
Actu
al-Co
mbi
ned
Freq
uenc
y Ra
tes
Actu
al Nu
mbe
rof
Incid
ents
Fata
lity
Lost
Tim
e In
ciden
t
Tota
l Rec
orda
ble
Case
s
Road
Traf
fic A
ccid
ents
Rollo
ver A
ccid
ents
Tota
l Rec
orda
ble
Occu
patio
nal Il
lnes
ses
0.30
0.80
0.80
0.80
0.30
3 2 1
Quality and HSE
OGC recognizes the importance of Quality, Health, Safety, and Environment management systems and commits itself to apply
their philosophy at all levels. Furthermore, it keeps implementing measures to ensure that the key messages are conveyed to all
personnel and that the fundamental procedures are followed and understood.
Quality
The Company carried out 19 internal audits and 2 external audits as part of QHSE Plan 2013. Vendor assessment audits for different
projects were conducted. OGC successfully completed the surveillance audit which helped in maintaining the IMS certification. To
train all personnel, quality awareness sessions were also organized at the regional offices.
HSE Statistics
The Company has sucessfully maintained its records since the last LTI up to 31st December 2013 as shown in the chart.
3,836,571Safe Km Driven
5,178,756Manhours
963Safe Days
without LTI
Contribution to the welfare of people and the natural environment
is enshrined in OGC’s business principles. The Company ensures
that it respects people’s health and safety, benefits the communities in
which it operates, and helps maintain the environmental richness of the country.
28 29
General Welfare
Career and Training Opportunities Fair at Sultan Qaboos
University
At the Career and Training Opportunities Fair of Sultan Qaboos University,
OGC officials acquainted a large number of students and job-seekers with the
employment opportunities offered by the Company.
Sponsorship of Annual Oman Traffic Safety Expo
In line with its commitment to help reduce road accidents and promote
the traffic safety awareness, the Company once again supported the Annual
Oman Traffic Safety Expo. Safety is a prime area of focus at OGC and adequate
training of employees in all matters related to traffic safety is an integral part of
the Company’s HSE policies.
The 9th Annual Gas Arabia Summit
OGC once again actively participated at the annual Gas Arabia Summit as the co-host sponsor. Also the Company delivered at the event two work papers on managing old and new assets and an overview on the LPG and NGL extraction projects undertaken by the company.
Social Performance
As a responsible corporate citizen, OGC has undertaken a host of initiatives for shared and long-term prosperity and strongly believes that the true success of a company is aligned with its commitment to give back to the society in which it operates.
In line with this belief, OGC began 2013 with a CSR initiative and organized a campaign to clean-up the beaches of Sohar to protect Oman’s coastline from the threat of contamination. It also rendered support for maintenance of two Falajs at Izki to aid the communities living near OGC gas pipelines and facilities.
Throughout the year, OGC supported social programs such as Deaf Arab Child Week organized by Al Amal School for Deaf, the ‘Young Investor Program’ by Arwa Bint Al-Mutalib School-Muscat, Mental Health Awareness Open Day organized by Al Masarra Hospital, Oman Cancer Association’s 10th Annual Oman Cancer Walkathon, among many others.
OGC has actively contributed to several Omani charity organizations for their programs and to provide specialized wheelchairs for the differently-abled.
30
In-Country Value Conference
OGC also took part at the In-Country Value (ICV) Conference for the Oil
and Gas Industry and showcased the available business opportunities for
local companies in the sector.
A milestone achieved
On June 17th, the Company achieved a new record for natural gas
delivery, with 50.34 million standard cubic metres delivered in a single
day compared with 49.9 million standard cubic metres daily rate delivered
in 2012. There was an increase of 0.8%, reflecting the excellent performance
of OGC in 2013.
General Welfare
Al Roya Economic Forum
In keeping with the company’s belief that a diversified growth is the
backbone of Oman’s continued economic progress, OGC sponsored the
Al Roya Economic Forum at the beginning of the year. The main theme of
the forum was ‘Investment:Opportunities and Challenges’.