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OM23_EN_Abraj Energy_(2)_Saif Al Hamhami

OMAN - Energy & Mining

Saif Said Al Hamhami

CEO, Abraj Energy Services SAOC

Bio

Saif Said Al Hamhami is the CEO of Abraj Energy Services, responsible for implementing the company’s robust growth strategy and reinforcing its position as a leading oilfield and gas services provider. He has over two decades of experience in the energy sector, covering end-to-end processes in production, drilling, contracts, procurement, technology, and innovation. Prior to joining Abraj, Al Hamhami held senior positions in Petroleum Development Oman (PDO). He holds a bachelor of science in chemical engineering from the University of Nottingham and a master of science in petroleum engineering from Heriot-Watt University.

"In line with the Sultanate’s in-country value program, Abraj has contributed over USD50 million of SME spend and USD312 million on ICV from 2020 to October 2022 with an average ICV index of 63.3% over the same period."

Saif Said Al Hamhami, CEO, Abraj Energy Services SAOC, talks to TBY about delivering high-quality services in a safe and efficient manner and become a leader in drilling in Oman.

What have been some major highlights in the past year for Abraj Energy Services?

For over a decade, Abraj has consistently reported a strong financial performance across economic cycles. From 2019 to 2021, Abraj has delivered consistent growth across all key metrics—11.4% revenue CAGR, 17.9% gross profit CAGR (excluding depreciation), and 21.5% adjusted EBITDA CAGR in the same period. Abraj delivered a robust revenue of USD323 million in 2021, supported by an increased number of drilling rigs. In the mid-term outlook, with an order backlog of over USD1.8 billion as of July 2022, Abraj’s outlook is bolstered by its diverse and stable customer base. Abraj is contributing to the development of ongoing oil and gas projects across Oman by providing drilling and well services in fields operated by BP, PDO, OQ, and Oxy Oman. Abraj has continued to invest and focus on innovation and R&D development, which have driven the company’s operational effectiveness, productivity efficiency, and sustainability efforts. This includes introducing technologically advanced drilling rigs and investments in cementing services and well integrity technologies. In addition to operational enhancements, Abraj also revealed its new brand identity in September 2022, building on historical successes while looking ahead to an ambitious future.

What competitive advantage does Abraj bring to the market?

Abraj has invested in state-of-the-art equipment and now has one of the youngest drilling fleets in the region. The drilling rig fleet operated at a 97% utilization rate in the nine months that ended September 30, 2022. The company offers a diverse service offering, including drilling, workover, fracturing, cementing, and coiled tubing, that provides for clear synergies across business segments. Abraj is also a regional pioneer in development of unconventional deep tight oil and gas in Oman. The company’s modern and diversified fleet of 25 drilling rigs represents a leading market share of 29% of all contracted operating drilling rigs in Oman, and it drilled an average of 252 wells per year from 2019-2021. The fleet’s diverse horsepower capabilities strongly position the company favorably against fleets offered by competitors outside of Oman, in particular in KSA and Kuwait. Furthermore, Abraj also has the advantage of an established track record with leading national and international operators in Oman, with extensive pre-qualification credentials. This is an advantage given the high switching costs associated with changing service providers.

What steps is the company taking to integrate environmental excellence into its business strategy?

Abraj is currently developing an ESG framework in line with His Majesty Sultan Haitham bin Tarik’s directive to reach carbon neutrality by 2050. This includes building a sustainability roadmap and strategy as well as a greenhouse gas calculation and monitoring system. Innovation and research lie at the core of Abraj’s strategy, and we are constantly working to make our operations and fuel consumption more efficient.

How important is promoting human capital development and local talent within the company?

Abraj’s employees include 25 nationalities, with Omanis making up over 90% of the workforce, in line with the country’s Omanization targets. We are committed to fostering an inclusive culture within the company and promoting an environment of training and continuing professional development for our work force. A comprehensive competency system (Kafa’a) is currently being rolled out to support employee assessment, development, and career progression.

In which other ways do you improve ICV?

In line with the Sultanate’s in-country value program, Abraj has contributed over USD50 million of SME spend and USD312 million on ICV from 2020 to October 2022 with an average ICV index of 63.3% over the same period. On top of this, Abraj prioritizes sourcing of Made in Oman goods and services in the procurement processes, supporting local manufacturers in developing and improving their production. Abraj has developed strong corporate governance and social frameworks where HSE standards are aligned with global benchmarks and workplace safety is a top priority that helps retain clients and keeps international oil and gas companies operating in Oman. 6

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