Organisational Structure of Oman Oil Company

RUNNING HEAD: ORGANIZATIONAL STRUCTURE
0
Organisatio
nal
structure
July 17
2019
Oman
Oil
Company

ORGANISATION STRUCTURE 1
Contents
Abstract......................................................................................................................................4
Oman Oil Company...................................................................................................................4
Background................................................................................................................................5
Organisational Chart..................................................................................................................6
Analysing 7-S Framework.........................................................................................................7
Analysis -Balanced Scorecard....................................................................................................8
SWOT analysis.........................................................................................................................10
Strength................................................................................................................................11
Weakness..............................................................................................................................12
Opportunities........................................................................................................................12
Threats..................................................................................................................................13
PESTLE....................................................................................................................................14
Recommendations....................................................................................................................17
Bibliography.............................................................................................................................18

ORGANISATION STRUCTURE 2
Abstract
This report includes the organisational structure of Oman Oil Company (OOC) and the
history of organisation in the competitive market. Oil and gas remains an important aspect of
the economy. Oman is the Middle East’s biggest oil and gas producer outside the
Organisation of Petroleum Exporting Countries (OPEC). The company was established in
1996 to pursue investment possibilities both inside and outside Oman in the energy industry.
This report inculcates the significant role in the Sultanate’s attempts to diversify the Omani
economy and encourage foreign private sector projects. The study involves studying SWOT
analysis including Oman Oil Company strengths, weakness, possibilities and threats. Later, it
discusses about 7-S framework which depicts the seven key elements required by the
company. It also discusses about BSC i.e. balanced scorecard used for better coordination and
communication of work. The research also involves PESTLE analysis that describes the
occurrence that influence the company’s environment from a political, financial, social,
technological, legal and environmental point of view. This report will help in understanding
the driving forces that lead to successful working of the company and how it reduced the
country’s reliance of oil and gas production by diversifying in other sectors as well. This
study will help in ascertaining the portfolios of investment like exploration and manufacture,
energy infrastructure, shipping, power, petrochemicals, refining etc. of Oman Oil Company.
Oman Oil Company
The Oman Oil company (OOC) was founded in Muscat, Oman in 1996. The company invests
in oil and gas exploration, production, power generation, energy transportation. It also looks
after oil refining, petrochemicals, and infrastructure. It invests across fifteen countries and
fifty projects so far (Chala, et al., 2019). By 2014, CEO of OOC was jailed for 23 years due
to involvement in bribe, manipulation of office and money laundering. By end of 2016, OOC
gained dollar four billion as loan to invest into several projects and also signed a MOU with
Spain. It also sold 10 per cent of its stake in Khazzan. The privatisation of OOC has been put
to hold (Searle, 2019).

ORGANISATION STRUCTURE 3
Background
OOC is operated and controlled by Board of Directors and its chairperson Mohammed Al
Rumhi and vice chairperson Salim Al Habsi looks after the board (Amenshiah, et al., 2019).
Chief executive officers are in charge of managing directors who operate four main
subsidiaries. It has four subsidiaries:-
 Takamul Investment Company –It is a wholly owned subsidiary of OOC
established in 2008. It invests in cautiously viable projects from local industries. It is
engaged in developing projects and handling assets of OOC. It manages assets of
petrochemicals, metals, mineral sectors. Takamul works globally to diversify and
create employment (Mayer, 2019).
Oman India Fertilizer Company- It is a global fertilizer company in Sur. OMIFCO has a plant
of ammonia and urea each. This plant has a capacity of 1750 metric tons and 2530 metric
tons in a day. This plant yields 2,50,000 tons annually of surplus ammonia and granulated
urea. It has a partner by the name Indian Farmers Fertilizer Cooperative Limited (IFFCO)
(Dženopoljac, et al., 2019).
Oman Oil Refineries and Petroleum Industries Company (ORPIC) - It is a global and swiftly
growing company in the Oil Industry (Onyusheva, Khaing, and Aung, 2019).
Minerals Development Oman (MDO) –It looks after mining and mineral processing. It was
established in 2016 with hundred million capitals. It also looks after employment, growth,
and sustainable development. It is in partnership with four of the Omani wealth Funds
entities: State general Reserve Fund (SGRF), Oman Investment Fund (OIF), Takamul
Investment, Oman National Investment Development Company (Chadwic, 2018).
Innovation Development Oman Holding (IDO) - It is the strategic venture capital of
Sultanate’s. It deals in innovative solutions to understand the real world challenges in Oman
(Sazegar, et al., 2018).
Vale Oman Pelletizing Company- It is a private sector but a publically traded company which
has it’s headquartered in Brazil and offices in thirty plus company globally. They are partners
with international and regional companies.
Takatuf Oman – It was created in 2011 to fulfil current and future capital requirements
relating to human resources. It has become a global leader in HR solutions in HR policies,
practices, training and development programmes. Its short term focus is on meeting the needs
of OOC’s; medium term focus is in developing skills of workmen to gain employment

ORGANISATION STRUCTURE 4
opportunities. It has mainly two objectives: - to provide best human resource solutions;
linking the gap of skills required in the industry and educational system (Mahdi & Ali
Ahmed, 2019).
Sohar Aluminium Company (SAC) - It is aluminium established in 2004. It is under the
ownership of a leading mining and production company. Its production is 375000 tonnes per
annum and its port facility
 Oman Oil Company Exploration and Production- OOECP was set up as an oil
business and also as a gas business. It is majorly focussed in upstream and downstream
investments in Oman. It also looks for professional development of Omani human
resource.
 Oman Oil Facilities Development Company – it is engaged in the extraction of
petroleum gas in Oman. It was established in 2016 and operates as a subsidiary of Oman
Oil Company.
 Oman Oil Duqm Development-It’s been set up in 2010. Oman Tourism
Development Company (OMRAN) and Oman Dry Dock Company (ODC) own fifty per cent
each. It is an important part of Oman’s Government with a motive to develop the country. It
seeks to manage assets and develop residential to add a standard to people’s lives.
Organisational Chart
This chart depicts the hierarchical structure of Oman Oil Company. It starts with managing
director and then operational directors who do supervising task of Business development,
group finance and assistant managers. The business development manager task is further
divided into salesman and group finance manager is further divided into accountants and
auditors. The present organisational structure of Oman Oil Company is mentioned below.

ORGANISATION STRUCTURE 5
Source: (Anon., 2011) Figure 1 BEFORE
.
Analysing 7-S Framework
McKinsey model was developed by McKinsey consultants in 1980. Its consultants include
Peter, Robert, Waterman and Philips. This model has been used by practitioners and has been
one of the well-known tools (Onyusheva, et al., 2019). It emphasize on human resources
rather than bulk of capital, infrastructure and assets to perform well. It embarks in majorly
four common uses: - facilitating organisational change helps in implementation new strategy,
identify area of change, simplify mergers. This model is aimed to show seven key elements
of a company mentioned below:
 Structure –It states the divisions and units organized in such a manner that each information
that is accountable to who is represented. OOC structure is wholly owned by government.
The top level includes Managing Directors which are subdivided in operational directors.
 Strategy – It is developed to attain sustain competitive gain and to contest in the
market. It helps in achieving vision, mission and values. The key strategy of OOC is to
outcast the competitors through its business dimensions.
 Skills- It is the ability of employees to perform well. It inculcates skills and
competences required in case of new arrangement. Working in oil industry is one of the