Walid Hadi

Shell is investing in local human capital by emphasizing Omanization and attracting more female talent, particularly in STEM fields, while partnering with local companies to enhance competitiveness and create job opportunities.

What were the main achievements of Oman Shell in 2023?

We had three significant achievements in 2023. First, we successfully brought Block 10, a major development project initiated in December 2021, back online ahead of schedule and within budget. This achievement not only addresses Oman’s surging gas demand but also marked Shell’s direct operation of an upstream asset in Oman for the first time. Second, we signed two offtake agreements with Oman LNG that extend our licensing rights, which were originally set to expire in 2025, for an additional 10 years and solidify our position as the largest shareholder in Oman LNG. This integration paves the way for the creation of significant value for the government through competitive LNG offtake while fostering a stronger partnership in the market. Finally, we entered into the Green Energy Oman (GEO) consortium and successfully secured a concession during the inaugural licensing round of Hydrom. This development opens up new opportunities to explore the potential of green hydrogen on an export scale.

What is fueling the increased demand for gas in Oman?

Oman is pursuing economic growth through industrialization, which initially relies on gas but will eventually transition to low-carbon energy sources like hydrogen over time. We focus on ensuring a reliable supply of gas availability for these industries, while actively developing hydrogen alternatives. Our strategic priorities include growing the gas sector, establishing low-carbon energy value chains, and enhancing the sustainability of our oil production by reducing carbon intensity, electrification, and decarbonizing.

How does Oman Shell respond to the growing demand for green energy?

There is increasing emphasis on reducing the carbon footprint of the energy systems, which necessitates not just increasing the production of green energy, but also minimizing emissions from conventional sources. Oman Shell is aligned with Oman’s ambitious goal of achieving Net-Zero Emissions by 2050, and we actively pursue the development of large-scale blue and green hydrogen value chains through our participation in the GEO consortium. Our gas portfolio growth contributes to lowering the overall CO2 intensity of the energy system, as exemplified by Block 10. Regarding blue hydrogen, we received the Government’s support and endorsement to continuing the commercial and technical studies of our proposed project, which, if successful, will attract investment decisions and gas allocation.

How is Shell Oman investing in human capital and addressing unemployment?

We take great pride in investing in our people, both within our organization and among our joint venture partners like PDO and Oman LNG. Over the course of 50-60 years, we have successfully developed world-class petroleum and process engineers, turning Oman into a global leader in these fields. We have made remarkable progress, with Omanization approaching 90% in our joint ventures, while focusing on attracting more female talent, especially in STEM and technical fields and within our operations. We aim to demonstrate that factors like safety, performance, and in-country value can coexist. When addressing local human capital challenges, our overarching goal is to help build competitive supply chains that prioritize top-quality safety performance, agility, and local presence. This is not about giving preferential treatment to local companies; rather, it is about partnering with them to enhance their competitiveness, both domestically and potentially abroad, and in turn supporting them in creating more local job opportunities.

What strategies does Shell employ to stay up to date and improve its HSSE regulations?

In recent years, we have faced significant challenges in some of our Oman-based operations, particularly regarding safety incidents. We have devoted over 70% of our resources to enhancing safety performance guided by our philosophy of prioritizing safety above all else. From the outset, we have been committed to demonstrating this philosophy to our organization and contractors, even if it differs from industry norms. While there is no magic solution to achieving ultra-safe operations, with effective planning, the right personnel and tools, and clear communication within our organization and across our supply chain, particularly in defining non-negotiable priorities, we believe we can make rapid progress.