Essay on Oman Gas Company

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1600 words
University of California, Santa Barbara
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The Oman Gas Company is situated in is among the list of businesses that leads in the transportation of gas in Oman. It specifically deals with the delivery of natural gas to the various power plants, industrial estates, impurities and water desalination plants. Besides the transportation of gas, the company also engages in the construction of some of the gas compression stations, gas supply stations, and high-pressure transmission pipelines.

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The company was established in 2000 as a joint stock company. It has various stakeholders including the government of Oman that gets represented by the Ministry of gas and oil, the Oman oil company. The government owns 80% of the shares while the Oman oil company possesses 20% (, 2016). The Oman Oil Company is usually guided by the laws of the land of Oman. The royal decree is one that spearheads the well-being of the company in the region. The order gives the company some concession rights for 27 years. The rights assist the company to own, maintain, construct and operate gas pipelines in the Sultanate of Oman.

Presently, the company facilities have traversed the Oman region in the north and the has managed to institute over 2000 kilometers of has also managed to deliver billions of natural gas throughout the area. The Oman gas company has undergone numerous transitions for the last eight years since its has transformed from a gas distribution company to an integrated enterprise that deals in the harnessing of power from the Oman natural gas transportation. The company has also played a great role in the economy of Oman as it has facilitated various employment opportunities. As a young and growing company, it faces a variety of challenges and opportunities. The Oman gas company is usually guided by its corporates values in its road to success, the paper below aims at analyzing the SWOT analysis for the Oman gas company.

Two major strengths of the Oman Gas Company

The company dedicates much of its time in the maintenance of its pipeline integrity. It engages in the inspections of the aging pipelines especially those that are 20 years and above. Honesty is usually imperative to the Oman gas company due to the safety as well as the availability of gas supply. The Oman Gas company has a team of experts who deal in the repair of most of its old pipelines. The company institutes adequate measures that aim at restoring maximum operational pressures. The company maintains its pipelines integrity by that application of the cathode protection. The method assists in enhancing the life of the pipes. The Oman gas company employs materials that are resistant to adverse weather conditions in its pipelines systems.

Another strength of the company is that of information technology and telecoms. The company has devised as well as active new forms of technology. The use of computers is very prominent in the company as it facilitates communication. The key IT projects that aim at upgrading the messaging systems have also come into play. Through the inception of the new form of technology that assists in clustering, they have made it possible for the Oman gas company to enhance its business continuity, availability and the various information and technical security upgrades (Al-Quwaitai and Krishnan, 2016).The institution of advanced systems of technology has made it possible for faster and secure communication. In cases of emergencies, the more rapid response gets instituted by the company. The business aspect of the company also improved as a result of the information technology and telecoms thus giving the Oman gas company an upper hand in the field of gas supply. The level of completion of the company in the gas and pipeline market also skyrocketed.

Two major weaknesses of the Oman gas company

Despite the existence of the high strengths and the guidance by the various corporate values. The company still suffers from a variety of weaknesses. For instance, the company has tribal aspects in its is evident that the corporation is an Oman based institution but its leadership lacks some aspects of intellectual ability. The company cannot employ someone outside the Oman to head its operations. Sometimes it is hard to find a qualified individual who has what it takes to run the company within the Oman. The resistance to hiring skilled personnel from outside the Oman makes the company lag behind in some areas of leadership. Some of the leaders of the group ascend to power by favoritism and not on their qualifications; it is through this that the business starts to portray some negative aspects on matters related to its operations and leadership.

Another weakness associated with the Oman Gas Company is that of permanent workers turnover of its staff. The Oman gas company has found it difficult to retain its workforce due to the existence of stiff competition from other businesses. The company does not have better-working conditions for its labor market, and this poses a challenge to its development.

Two major opportunities of the Oman gas company

The company has attained an outstanding opportunity to capture its market. It is the institution of various practices such as the employment of the new technology that has brought massive changes to the company. The company can detect any shortcomings in its supply systems. Through this, it can maintain a steady supply of its products thus enhancing its market superiority measures. The communication systems have also made it simple for the company to carry out its business in a faster and safer manner thus giving it an upper hand in the pipeline industry.

With the extensive in the coverage of a wider region by the pipeline of the Oman gas company, it has managed to reap more profits from the business. The increase in profit margins gives the company an upper hand in the has the capacity of traversing through the existing as well as the likely competitive markets (, 2016).The company is also well established with an excellent is through this that its consumers have based their loyalty to its products. The company has a history of quality product production, and this gives it an opportunity to shine in the gas industry within the Oman region.

Two major threats to the Oman gas company

The Oman gas company gets known for its professional expertise in using quality materials in constructing its pipelines. But, there exist some percentage of faults that might affect the pipeline due to the existence of adverse weather conditions. For instance, the presence of acid rain might impact negatively on the companys pipelines, and this would affect the supply of gas. The pipelines have a risk of rupturing due to massive pressures released by the torrential rains. Commination loss during such periods also might affect the company to a great extent.

Another significant threat to the company is the issue of bandits. There always exist a group of certain individuals who like to reap from other people's risks. The crooks cut the pipelines with the aim of stealing gas. Sometimes they end up dying due to explosions from the pipelines which affect the operations of the Oman gas company (, 2016).The issue of bandits has emerged as a menace to the enterprise. With the development, if the new forms of technology, the thieves have devised mechanisms that are minute and undetectable that help them in carrying out their criminal activities. The events result into the massive loss to the company.

Summary of overall SWOT Analysis:

From the above analysis, it is still vivid that the Oman Gas Company is one of the most outstanding gas enterprises in the has achieved significant successes in the industry. The various challenges that it has faced have made it stronger in emerged as one of the competitive gas companies. In fact, it has capitalized its strengths while at the same time taking vital interests in the current weaknesses and threats. The company has overcome all odds. It has managed to institute competent measures that help it in carrying out its daily operations. The company has a variety of potential strategies that might help it emerge as a superpower in the gas and pipeline industry.

The company has a lot of opportunities that it has managed to incorporate them in its activities as well as the mission of achieving excellence. The threats of bandits have also undergone strict containment with the employment of security measures to ward off the ill-intentioned persons from tampering with the activities of the company. The company has also tried to institute measures that aim at finding competent as well as qualified leaders to head the organization. It seeks at steering its wheel of success in the gas and pipeline industry. The above analysis shows a company that has potential in traversing through various markets in achieving economic excellence can also institute policies that might encourage it to increase sales revenue by 10% each year based on the current statistics where it is one of the most various and upcoming gas companies.

Reference list:

Al-Quwaitai, A. and Krishnan, P. (2016). Study and Design of Flare Reduction Initiative in the Region: A Case Study of Gas Flaring Reduction at Oman Liquefied Natural Gas Company. British Journal of Applied Science & Technology, 14(5), pp.1-7. (2016). OMAN GAS COMPANY SAOC - Oman. [online] Available at: [Accessed 31 Dec. 2016]. (2016). Oman Gas Company (OGC) Careers & Jobs | GulfTalent. [online] Available at: [Accessed 31 Dec. 2016]. (2016). Home. [online] Available at: [Accessed 31 Dec. 2016].

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