Petroleum Development Oman (PDO) and Oman Centre for Governance and Sustainability (OCGS) have launched a new landmark Code of Corporate Governance for super local community contractors (SLCCs).
The launch event, held on Tuesday at PDO’s Learning and Development Centre at Mina Al Fahal, was attended by OCGS chief executive officer SayyidHamed bin Sultan al Busaidy, PDO’s external affairs and value creation director Eng Abdul Amir bin Abdul Hussain al Ajmi, representatives from both organisations, and CEOs and chairmen of SLCCs.
SLCCs are closed Omani shareholding companies set up jointly by the government and PDO ten years ago, which are owned by more than 9,000 shareholders from PDO’s concession area. These firms were established to create career opportunities and develop entrepreneurial skills to provide services to oil and gas companies in Oman in competition with other established local and international firms.
The Code of Corporate Governance, which was developed by OCGS in collaboration with PDO, aims to provide a binding framework for corporate governance relating to the business objectives, organisation and supervision of SLCCs.
The code clearly pinpoints the roles and responsibilities of boards of directors, aims to develop a strong culture of accountability and transparency in their businesses, and enhance their knowhow in protecting shareholder interests. This will be achieved through a series of defined policies, processes and procedures to realise the main pillars of the code, which are transparency, accountability, fairness and integrity.
This code is the first of its kind in Oman to be developed for closed shareholding companies.
OCGS CEO Busaidy in a press statement said, “The OCGS is dedicated to building a stronger and more competitive economy through streamlining corporate governance and sustainability into economic cycles and processes, by learning and leadership.”
“One of the most vital steps towards building a solid and an adaptable firm is to have embedded governance practices within the company’s culture, which flows smoothly across all management levels, starting from board members to operational and first line employees.”
PDO’sAjmi, who gave the keynote address at the launch event, said, “I would like to congratulate SLCCs on this impressive milestone of embracing the Code of Corporate Governance. It is quite remarkable what they have accomplished to date, and the vision is to maximise the long-term value for SLCCs and their shareholders with the implementation of this new code.”