CONFIDENTIAL BDHL | Page PDO Warehouse Strategy Study 2015 PDO Port of Duqm Strategy May, 2017 By; Sulaiman Al Shaqsi PDO Logistics Manager and Corporate Function Discipline Head
CONFIDENTIAL BDHL | PagePDO Warehouse Strategy Study 2015
PDO Port of Duqm Strategy
May, 2017
By; Sulaiman Al Shaqsi
PDO Logistics Manager and
Corporate Function Discipline Head
Dimensions
Duqm• Capacity: 2 000 000 TAU
• Multimodal Logistics hub encompassing the maritime, road, air and rail modes of transport.
• Break bulk capacity
• Heavy lift capacity
• Storage capacity
• Chemical capacity for both dry and liquid
DUBAI
YEMEN
R 32
R 31
Sur
Masirah
Salalah
Sohar
Duqm
Muscat
IRAN
UAE
KSA
ABU DHABI
Hayma
Al Buraymi
Ras Musandam
Nizwa
Sinaw
GPS Co-ordinates of all In Field Destinations were weighted by the volume delivered to each location for a consolidated North & South center of gravity calculation.
200 KMsFromDuqm
Best Combined COG
Duqm
Weighted Centre of Gravity (COG)
Existing
South COGBetweenMarmul/
Nimr
COGNorthNear
Fahud\
North & South COG
North and South are consolidated into 5 satellite locations Fahud, Qarn Alam, Nimr, Marmul and Harweel
Desire for Inbound Origin to be 100% Duqm
Inbound average ton/trip remains as-is
Inter-warehouse flows removed and replaced with Hub to Satellite replenishment trips (assumption based on current ton despatched from existing warehouses)
Direct deliveries ex origins and Direct deliveries between field locations stay as-is (not shown on map)
Customers are allocated to either near to the satellite areas
<Single HUB
Fahud Satellite
Nimr Satellite
Distribution Overview
Overall
51% to
North
Over
800K Ton
of Cargo
+34m KMs
2017
Journey to Duqm
Duqm bringing increased efficiencies to its Supply Chain (potential elimination of 1/3rd km’s)
100,000 sqm of land has been aquired at Duqm
Duqm provides greater flexibility and reliability over other high activity Ports.
Deman for Sohar cgrew 300% in the past 3 years, and expected to further grow another 50% by 2022”.
Key Dependencies for Duqm Strategy
Port readiness for heavy cargo and container volumes.
Oman PDO suppliers continue to establish Duqm area.
Major Shipping companies are not currently calling at Duqm and this will not change until significant volume is diverted.
Duqm
Duqm
Rail – Added Benefit
Oman Rail Network is 5 year phased plan to connect industrial centers in Sohar, Duqmand Salalah, and later GCC.
The Oman Rail network offers major efficiencies to PDO’s Supply Chain :
Significant RT HSE Exposure Reduction (Tubulars & Chemicals).
Potential removal of 50 trucks per 1,000 tons of cargo.
Improved supply chain reliability.
30% cheaper (est).
9X Safer according to industry studies.
80% fewer emissions
Al BuraimiSohar Port
Muscat
Airport
Salalah
Port
Duqm
Port
Ibri
NizwaIbra
Marmul Amal
Thumrait
Haima
Oil Gas Fields
Potential Mining
Existing Mining
Sumitomo Pipe Agreement 2018-2023:
US$1.2 Billion Agreement with Sumitomo
Beginning Q3 2018, 3,000 metric tonnes of pipe a week through Duqm for years.
Forges PDO as an anchor tenant of Duqm as primary hub for Sultanates Oil & Gas
Sector.
SNC-Lavalin Agreement 2017-2022:
Ongoing funding of Rabhab Harweel Integrated & Yibal Khuff Projects.
Agreement signifies ongoing investment in 2 Oman mega projects with planning
and strategy to utilize Duqm.
Prior Success of 2016:
Major Project Overview
Vessel/MetricsCargo
TonnageCargo
QuantityCargo
DamagedVehicles
DeployedTrips
Completedkm's Driven
Driving Hours
Incidents
MV Aquila J 1,316 355 0% 38 99 153,288 2,264 0%
MV Industrial Dart 71 22 0% 8 11 22,550 336 0%
MV Regine 97 70 0% 5 9 16,444 244 0%
MV Genius Star 228 42 0% 11 14 29,762 444 0%
MV Morning Pilot 45 22 0% 6 6 6,924 99 0%
Totals 1,757 511 0% 68 139 228,968 3,387 0%
Closing
Reducing HSSE Exposure
Reducing KMS driven
Improving consolidation (Ton/KMs & Optimized Distribution)
Improving Availability and Responsiveness of Critical Materials
Reducing Inter Site Transfers
Sufficient and efficient use of space to store the right materials in the right way promoting good stock keeping principals and to reduce waste often caused by material degradation and obsolescence
Improved utilisation of Resources and Assets
Flexibility to align and implement further optimization opportunities with future developments (Rail/Duqm)
Flexibility to optimize ICV opportunities (current 70% International supply origins)
Promotes simplification and standardization.
Promotes the establishment of Duqm as a viable Oil & Gas Sector Port
Thank you