A cooperation agreement to establish a Liquefied Petroleum Gas (LPG) bottling plant in Musandam was signed by Oman Oil Company Exploration and Production (OOCEP), Fund for Development of Youth Projects (Sharakah) and Bukha Development Company.
The signing ceremony was held under the patronage of Sayyid Khalifa bin Al Mirdas Al Busaidi, Governor of Musandam. Under the agreement, OOCEP will provide financial and administrative support for the 2,500-square-metre project in Khasab, which is expected to be ready by the end of 2018.
Ashraf Hamed Al Mamari, Corporate Affairs Director at OOCEP, Mohammed Darwish Al Shehhi, Board Member of Bukha Development Company, and Abdullah Al Jufaili, General Manager of Sharakah, signed the agreement. On the sidelines, a consultancy agreement was signed between Sharakah and Bukha Development Company.
“Witnessing a collaboration that will serve as a growth factor for the Sultanate’s economy, delights all of us. The joint efforts of OOCEP and Sharakah to establish a project of such importance will also aid in providing employment to the locals,” Sayyid Khalifa bin Al Mirdas Al Busaidi said.
The project aligns with OOCEP’s ongoing social commitment to develop and build the capacity of local communities while contributing to sustainable development and Oman’s socio-economic growth.
“We at OOCEP firmly believe projects such as the Musandam LPG Bottling Plant reflect our commitment to supporting In-Country Value (ICV) and promoting local investment opportunities. Therefore, we have adopted this project as part of our corporate social responsibility,” said Al Mamari.
“We will offer the required support to help realise its objectives and have provided a non-refundable grant to set up the factory with the required equipment and technology,” he added.
Sharakah cooperated with OOCEP to provide financial and post financial services to Bukha Development Company. The firm will monitor the plant’s operations. Additionally, Sharakah will guide Bukha Development Company for 12 months to ensure that the company progresses and sustains. To achieve this, Sharakah will deploy its industry-certified Risk Assessment Tool, Financial Analysis Tool and Business Performance Monitoring Tool.
Umaima Al Ghadani, Investments Manager at Sharakah, said, “We appreciate OOCEP’s confidence in us to guide and monitor this project. The role we play consists of evaluating the business plan of Bukha Development Company, identifying areas for improvement and providing OOCEP feedback on the business plan. We have conducted a feasibility study that includes market research, finance mechanism, timeline and other administrative aspects. Our plan is to conduct regular meetings to track progress and provide required consultations.”
The Bukha Development Company is a privately held company established in 2014 and owned by 27 shareholders from Bukha. The company aspires to invest in various areas of business including providing the Wilayat of Bukha and Governorate of Musandam with a sufficient supply of cooking gas.
“We would like to thank the Governor for his continuous support and guidance, as well as extend our sincere thanks to OOCEP for their confidence in us. It is our role to not only ensure efficient operations in the plant and increase customer satisfaction, but to benefit our society as a whole,” said Al Shehhi.
As part of OCCEP’s support, Bukha Development Company will get a thorough analysis of business status and suggestions for improvement from Sharakah. This will help it operate better and increase efficiency, as well as business performance. The company will be provided with necessary consultancy to develop an annual budget, prepare a marketing plan and analyse its financial status.