15-17 APRIL th September 2018, Kempinski Hotel, Muscat. Oman Convention & Exhibition Centre Muscat, Oman

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1 Under the auspices of APRIL 2019 Oman Convention & Exhibition Centre Muscat, Oman 6th September 2018, Kempinski Hotel, Muscat Organized by

2 Shaping ODEC 2019 In preparation for the highly anticipated 3rd edition of the Oman Downstream Exhibition & Conference (ODEC) on April 2019, the WRA and Oman Expo gathered senior stakeholders from the Sultanate s downstream industry including the Omani Ministry of Oil and Gas to formulate the topics shaping the conference and address the pressing challenges for the country. In this exclusive closed-door meeting an array of key themes were covered including: Future outlook for the refining landscape from The potential of full value chain integration between upstream, midstream and downstream sectors Creating a long-term strategy to promote investment to Oman and differentiate it from its GCC neighbours Moving towards increased petrochemical production in order to support the demand seen in China as well as India and Africa The allocation of gas from the recent discovery by Petroleum Development Oman (PDO) in the Mabrouk gas field Capitalising on the Industry 4.0 wave to optimise and maximise Oman s technological capacity Development of talent to support Oman s downstream sector Through interesting insights and discussions, it was concluded that there was a great opportunity for Oman to showcase itself to the global downstream community next year and there was reason to be optimistic. Read on further to see the key takeaways from this leading board meeting. We look forward to welcoming you in Oman next year. Sandil Sanmugam Conference Manager World Refining Association

3 Advisory Board Members Chair: Sanjay Sharma Vice President - MDE & India IHS Chemical Advisors: Dr. Saleh Al Anboori Director General of Management of Petroleum Investments Ministry of Oil & Gas Christiaan van der Wouden Chief Operating Officer Orpic Hilal Al Kharusi Executive Managing Director Oman Oil Company Mai Al Eisa Deputy Chief Executive Officer Duqm Dr. Hilal Al Hinai General Manager Corporate Support Services Orpic Saleh Al Amri General Manager EPC Package 2 Duqm Refinery Project Dr. Shanmugam Balaji Head of Planning & Business Development Oman Oil Company Lee Chee Khian Chief Executive Officer Duqm Special Economic Zone Authority (SEZAD) Erwin Mortelmans Commercial Director Port of Duqm Andrew Carne-Ross VP Commercial Onshore, MENA, McDermott Colin Crowley Vice President Business Development and Sales - Africa UAE and Oman, SNC-Lavalin Jamal Qakeesh Regional VP Business Solutions KBC Nathan Waldron Oman General Manager Wood Vikas Upadhyay Senior Engagement Manager McKinsey & Company

4 Petrochemicals Pave the Way Ahead For Oman Downstream To kick things off the ODEC board members assessed today s global macroeconomic climate. They identified the various trends that could influence the road ahead for the Omani downstream industry particularly the current period of geopolitical instability and the rise in demand for electric vehicles. Senior consultants and refiners noted that the global shift towards an all-electric economy especially within western countries could have an impact on Oman s overall downstream strategy. With fuel demand set to decrease, the board concluded that the use of Oman s crude and gas would need to be put to better commercial use in the form of petrochemicals production. Some Omani companies have already begun their strategy including Orpic who will increase their polypropylene and polyethylene production volumes to 1.5 million tonnes by 2020 and look to spread their international presence to over 100 countries. This view paralleled with the International Energy Agency s recent report which identified petrochemicals as the principal driver in long-term oil demand. Board members suggested that Oman should focus its increased domestic oil output on international markets including South East Asia, Africa and India whilst the Omani Government continues to develop its local demand. Even though it was concluded as a positive move there was a word of caution about the current negative societal and regulatory perception of plastics. The board noted, however, that by supporting plastics advocacy, recycling plastics and encouraging economic growth in emerging economies the benefits would outweigh the costs. As such, identifying ways to support the petrochemical industry in Oman was viewed as a top priority by advisors to be addressed at ODEC in April.

5 Allocating Oman s Gas Discovery to the Downstream Sector Will Differentiate the Country from its Regional Competitors As a smooth transition from the discussions around petrochemical feedstock, conversations centred on the latest discovery in the Mabrouk gas field. With the recoverable amount being estimated at more than 4 trillion cubic feet (TCF) and 112 million barrels of condensate, Oman has a key differentiator in the region with Total and Shell already being involved in gas projects in the Barik area. The question at the heart of the advisory board was how gas could be used and how the Omani Government could allocate shares to various downstream players. One suggestion was the use of LNG as a bunker fuel to overcome the challenges from the pending IMO 2020 regulations; another was for Oman to differentiate itself globally by investing in gas-to-liquids especially as there are only three alternative international locations, Nigeria, Qatar and Malaysia. Alternatively, there was the proposed gas to aromatics which was also viewed as a way to differentiate from the traditional crude-to-chemicals projects seen in the Middle East. Identifying the best use of gas and defining the Ministry s allocation strategy was also of interest for the board. As such, at ODEC2019 there will be leading keynote panel including the Ministry of Oil and Gas as well as other national and international gas stakeholders.

6 Developing Oman s In-Country Value is Essential to the Country s Progression A question that resonated with the group was how Oman can be an attractive destination for the downstream sector when there is limited local demand for refinery products. Both the international and local board members discussed this at length identifying three core issues for Oman to address: infrastructure, technological capabilities and talent. Logistics Senior representatives from Oman s key infrastructure bases including SEZAD and the Port of Duqm emphasised the importance of the free-flow of goods which would generate further international investment and subsequently encourage local growth by improved access to materials. In addition, many raised the challenge for investors when operating in Oman posed by the multiple companies currently operating across the national oil chain. It was suggested that integration or JVs across upstream and downstream would be more effective and would follow the simpler models seen in other countries. Technological capabilities Digitalisation and Industry 4.0 has been integrated into businesses strategies across all sectors globally. It was suggested that Oman could jump-start its downstream industry by investing heavily into new digital technologies to support its goal of increased production. This could also help cut operational expenditure, improve safety and make processes more efficient. Refiners mentioned that innovating the refinery control rooms and accessing large data sets with a click of a button would help improve turnarounds times and troubleshooting at a much faster rate. Other forms of investment mentioned to help improve Oman s downstream were into the digital twin as well as research and development. If Oman were to become the industry leader in digitalisation in the region, it could allow for new educational opportunities for young engineers, in turn helping the on-going talent challenge. Talent For logistics and technology to work, it relies entirely on the human capital running the operations. For many this is where Oman is struggling and the country needs to support young talent in preparing them for a career in process and chemical engineering. There were many anecdotal remarks about manpower capacity as the key issue hindering the business capabilities in Oman. As a solution, many spoke of international and national downstream businesses collaborating and provide training through incubators and other student engagement programs. To address these three issues we have added digitalisation and infrastructure panel discussions; youthengagement programmes including our Rising Stars initiative; and dedicated consultancy-led workshops supporting Oman s long-term in-country value initiatives. These takeaways have shaped the agenda for 2019 s Oman Downstream Exhibition and Conference which will be taking place on April in Muscat.

7 Join us at ODEC 2019 on 15th 17th April 2019 Visit downstream-oman.com for more information. For sponsorship opportunities contact: Max Michaud-Daniel Satyam Chopra For speaking opportunities contact: Sandil Sanmugam +44(0) For Media Partnerships or press contact: Melissa Daleja Delegate Registrations contact: Emma Dinwoodie +44 (0)