Structure

Oman Oil Refineries and Petroleum Industries Co.
Sohar Refinery, PO Box: 282

Falaj Al Qabail, PC: 322, Sohar
Sultanate of Oman
Social Impact Assessment Report

Liwa Plastic Industries Complex
9 November 2015
Issue and Revision
HMR Company
Rev. Document Description Date
Prepared Checked Approved Approved
SIA Draft
2
Report
Third draft 9/11/2015 NR NR HMR Orpic
SIA Draft
2
Report
Second draft 2/11/2015 NR NR HMR Orpic
SIA Draft
1
Report
First draft 1/11/2015 SRAO NR HMR Orpic
This document has been prepared for the above titled Project and it should not be relied upon or used for any other Project
without the prior written authority of HMR Environmental Engineering Consultants. HMR Environmental Engineering
Consultants accepts no responsibility or liability for this document to any party other than the client for whom it was
commissioned.
HMR ENVIRONMENTAL ENGINEERING CONSULTANTS

P.O. Box: 1295, CPO Seeb, Postal Code: 111
Sultanate of Oman
Tel: (968) 24618800 ; Fax: (968) 24618811
Email: [email protected]
www.hmrenv.com
ii
Contents
Section 1. Introduction ..................................................................................................................... 6
Limitations .......................................................................................................................................... 7
Project overview .................................................................................................................................. 8
Purpose of the Social Impact Assessment (SIA) ............................................................................... 10
Project Description ............................................................................................................................ 11
Project location .................................................................................................................................. 12
NGLE Plant ................................................................................................................................... 12
Pipeline .......................................................................................................................................... 12
Petrochemical Complex (PC) in SIPA .......................................................................................... 12
Project Affected Population Centres ................................................................................................. 13
Section 2. Socio-Economic baseline .............................................................................................. 15
Petrochemical Complex .................................................................................................................... 15
Pipeline Route ................................................................................................................................... 28
NGLE Plant ....................................................................................................................................... 35
Stakeholder Identification & Analysis .............................................................................................. 39
Section 3. Impact Assessment ........................................................................................................ 40
Petrochemical Complex .................................................................................................................... 41
Pipeline Route ................................................................................................................................... 42
NGLE Plant ....................................................................................................................................... 43
Section 4. Management plans ......................................................................................................... 50
Social Management Plan ................................................................................................................... 50
Section 5. Monitoring programs ..................................................................................................... 54

Orpic, Sultanate of Oman SIA Report (LPIC)
List of Tables
Table 1: Population along Pipeline ....................................................................................................... 14
Table 2: Population along Pipeline ....................................................................................................... 14
Table 2: Villages within 5 km of Sohar/Liwa Plant (2010 data) .......................................................... 15
Table 3: Population Distribution of Liwa and Sohar (2010 data) ........................................................ 16
Table 4: Health Facilities in Liwa/Sohar Wilayat ................................................................................. 20
Table 5: LPIC Project Stakeholders ...................................................................................................... 39
Table 6: Construction impact assessment ............................................................................................. 44
Table 7: Operation impact assessment .................................................................................................. 46
Table 8: Social Management Plan for LPIC ......................................................................................... 51
List of Figures
Figure 1: Map of Oman ........................................................................................................................... 6
Figure 2: 2014 Population Statistics ....................................................................................................... 7
Figure 3: Overview of LPIC Project Location ........................................................................................ 9
Figure 4: LPIC Project Timeline ............................................................................................................. 9
Figure 5: Sohar Industrial Port Area ..................................................................................................... 13
Figure 6: 2015 Elections to Oman Consultative Assembly .................................................................. 19
Figure 7: Petrochemical Complex and Surrounding Villages............................................................... 20
Figure 8: Al Batinah Coastal Study Area.............................................................................................. 22
Figure 9: Fish Landed by Traditional Fisherman .................................................................................. 24
Figure 10: Industrial Port of Sohar to the Fishing Market at Sohar Harbour........................................ 24
Figure 11: Pipeline Route and Surrounding Villages ........................................................................... 28
Figure 12: Typical Nomadic Tribe in Central/South Oman .................................................................. 29
Figure 13: Tribal Center at Haima ........................................................................................................ 30
Figure 14: Engagement at Al Jell and Dhawaher Al Tawi ................................................................... 32
Figure 15: Vist to As Saqah and Kashishal Al Milh Villages ............................................................... 33
Figure 16: Images from Consultations along Pipeline Route ............................................................... 35
Figure 17: NGLE Plant and Surroundings ............................................................................................ 37
4
List of Appendices
Appendix A: Stakeholder Engagement Management Plan
Appendix B: Camp Management Plan
5
Section 1. Introduction
Oman Oil Refineries and Petroleum Industries Company (Orpic) is one of Oman`s largest companies
and a rapidly growing business in the Middle East`s oil industry. Orpic currently operates oil
refineries (MAF and Sohar Refinery), an aromatics plant and a polypropylene plant at its complex
located within the port of Sohar Oman. The Liwa Plastics Industries Complex (LPIC) is a new project
by Orpic and the focus of this report. It is to be noted that the project is being developed within
existing industrial areas, designated by the Government of Oman. The project is mostly in barren,
sparsely populated areas. This report aims to capture the socio-economic baseline of the project to
identify potential impacts and develop corresponding management and monitoring programs. The
map of Oman showing all the regions and main towns is illustrated below1.
Figure 1: Map of Oman
1
Map source: http://www.mapsofworld.com/oman/
6
The 2014 official population numbers per region is illustrated below2.
Figure 2: 2014 Population Statistics
Limitations
The local operating environment and governmental process in Oman presents the following
limitations:
 Access to publically available information in Oman is a challenge. In particular, socio-

economic information is difficult to source and obtain and there is no integrated system for
data collection at the government level. Records exist in various ministries and governmental
authorities however data is either lacking or underreported.
 Stakeholder consultations with local communities are typically done at a governmental level
(vs. corporate level) and the types of surveys and discussions need to be tailored to the local
sensitivities (for e.g. health indicators, social activities, etc. are not freely discussed and could
be perceived as interrogatory and invasive). Furthermore, communication protocol locally is
conducted through the village leaders (known as Wali’s of Sheikh’s) vs. the community
members. Therefore actual perceptions may not be represented.
 The last national census was conducted in 2010 at the local community/village level. The
latest statistical data published in 2015 only include high-level macro population and socio-
2
National Center for Statistics and Information, Oman, 2014 published data
7
economic figures (i.e. no village/community level details). Only government organizations

(particularly, National Center for Statistics and Information) are authorized to preform the
census and report population figures.
In lights of these challenges and appreciating the need to meet international standards, Orpic
developed its own tools to inform the socio-economic baseline and develop this report. These tools
included:
 Rapid Rural Assessment: Orpic conducted a windshield survey to capture visual

observations on the social dynamics, community resources and infrastructure.
 Stakeholder Consultations: Orpic conducted stakeholder consultations with village
representatives along each project component to discuss the project and gather their concerns
and feedback on the project.
 Focus Group Discussion: Orpic conducted a focus group discussion with Orpic employees
who live within the villages next to the petrochemical complex. A social survey was shared
and they each contributed.
 Key Informant Interviews: Orpic conducted interviews/informal discussions with key
informants to help inform the baseline. These included health professionals around the project
area and professors at local Universities.
 Local Statistics: Where available, Orpic references relevant studies and statistics to
supplement and validate the findings from consultations and further inform the socio-
economic baseline.
The stakeholder consultation process is ongoing throughout the duration of the project and will serve
to inform, verify and update the socio-economic baseline information presented in this report.
Traditionally, communication and consultation sessions are through village leaders/representatives
(known as Wali or Sheikh) however Orpic is making every effort to consult directly with a range of
representatives and the directly affected local communities. The SIA will be updated once relevant
studies and statistics become available in Oman at a local community level and further consultations
are conducted with project affected parties.
Project overview
The Liwa Plastics Industries Complex (LPIC) is a steam cracker project which will process light ends
produced in Orpic’s Sohar Refinery and its Aromatics plant as well as optimize Natural Gas Liquids
(NGL) extracted from currently available natural gas supplies. The NGL will be extracted from a
plant at Fahud and transported via a pipeline to a petrochemical complex at Sohar. The overall project
location from the extraction plant at Fahud to the complex at Sohar is illustrated in Figure 3.
8
Figure 3: Overview of LPIC Project Location
The overall project timeline is present in Figure 4.
Figure 4: LPIC Project Timeline
9
Purpose of the Social Impact Assessment (SIA)
This document serves to complement the Environmental Impact Assessment 3 (EIA) and outline how
LPIC is assessing and managing social risks of the project in accordance with the Equator Principles
(EP), IFC Performance Standards (PS) and the associated Environmental, Health and Safety (EHS)
Guidelines. This report has been prepared by HMR Environmental Engineering Consultants (HMR)
on behalf of Orpic to fulfill the IFC PS1 requirement (assessment and management of environmental
and social risks and impacts).
The key aims and objectives of the SIA include
 To provide an accurate representation of the social, cultural and economic conditions of the
population surrounding the project components;
 To identify the potential socio-economic positive and negative impacts of the construction,
operations and decommissioning and closure phases of the proposed project;
 To develop attainable mitigation measures to enhance positive impacts and to eliminate,
reduce or avoid negative impacts; and
 To develop management and monitoring measures to be implemented throughout the life of
the project.
The approach and methodology that was employed during the socio-economic assessment included
desktop review of relevant country reports and documentation pertaining to the project area of
influence, government publications and legislation, and previous social project reports, and qualitative
and quantitative fieldwork data collection. Socio-economic fieldwork comprised of the following:
 Rapid rural assessment: Orpic HSE and external communications team conducted an
assessment of the project area by driving through the project route, noting key developments,
and conducting one-on-one meetings with affected people/villages within the project
influence area.
 Social survey: Surveys were undertaken by representatives from 7 villages around the
petrochemical complex. The key focus of the survey was to understand household
composition, education levels, general health status, livelihood strategies, employment, and
income and expenditure.
 Focus group meeting: Discussions were conducted to brief the project affected people on the
project components, summarize the environmental and social impacts (during construction,
3
Three EIA’s have been prepared for each project component (NGLE, Pipeline and Petrochemical Complex) in
accordance with the Oman Ministry of Environment and Climate Affairs (MECA) Guidelines on Environmental
Impact Assessed. MECA is the environmental regulatory authority for issuing permits in Oman. LPIC has
obtained preliminary environmental permits for the project as of June 2015.
10
operation and decommissioning) and understand their lifestyle, dependencies, opportunities,

administrative and hierarchical systems within the community, land ownership, and social
concerns in relation to the proposed project.
Project Description
The LPIC project is Orpic’s latest expansion, and will consist of the following core components:
• An NGL extraction plant in Fahud (NGLE Plant);

• 300 km NGL pipeline between Fahud and SIPA;
• The Petrochemical Complex (PC) consisting of the following
• An 863,000 t/y Steam Cracker Unit (SCU);
• HDPE Plant;
• LLDPE Plant;
• MTBE Plant;
• Polypropylene Plant; and
• Pygas Hydrotreater Unit (PGHYD)
The NGLE Plant at the Fahud Site is the most upstream component of LPIC Project. The NGLE
Plant will recover Ethane and heavier components from rich natural gas by a cryogenic process. Rich
natural gas which is the feed gas will be sourced from both Government Gas Plant (GGP) in Yibal
and Central Processing Plant (CPP) in Saih Rawl.
NGL (C2+) extracted from proposed the NGLE Plant is to be located near the existing Fahud
Compressor Station (FCS) shall be transported to the PC Complex via a proposed 300 km pipeline in
liquid phase. The proposed pipeline is to be collated within the existing Oman Gas Company’s (OGC)
32” natural gas pipeline (right of way (ROW)) from Fahud to Sohar.
The PC proposed in the SIPA will include a nominal 863 kilo tons per annum ethylene cracking plant,
high density polyethylene (HDPE) plant, linear low density polyethylene plant (LLDPE), new
polypropylene plant, methyl tertiary butyl ether (MTBE) plant, Butene-1 plant and associated utility
and offsite facilities. The PC will be integrated with the existing Sohar Refinery, Aromatics Plant and
Polypropylene Plant. NGLs (C2+) extracted at the NGLE Plant forms one of the feedstock for the PC.
Other feed-stocks are mixed LPG produced in the Sohar Refinery and aromatics complex, dry gas
produced in the RFCC unit and new delayed coking unit that is included in the SRIP, and condensate
(light naphtha) imported from OLNG by marine tanker. Some of the materials produced in the PC,
including hydrogen, MTBE, pyrolysis fuel oil and hydro-treated pyrolysis gasoline will be returned to
the Sohar Refinery, Aromatics Plant and existing Polypropylene Plant.
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Project location
The project components are located on land designated by the Government of Oman for industrial
development. Each segment of the project is being developed in areas with existing industrial activity.
The NGLE is within an Oil & Gas concession, the pipeline is within Oman Gas Company (OGC)
existing government gas pipeline route, and the Petrochemical Complex is within the Sohar Industrial
Port Area.
NGLE Plant
The proposed NGLE is located on approximately 100 ha of land within the Petroleum Development
Oman (PDO) concession area near Block Valve Station 2 (BVS2) of the Government’s main gas
pipeline. Proximity to the natural gas line is the main consideration for the selection of this site. The
site is located about 56 km east of GGP n Yibal and about 100 km north of CPP) in Saih Rawl.
Pipeline
The NGL pipeline begins at the battery limits of Fahud Site and ends at the boundary limits of Sohar
Site covering a total distance of about 300 km. The proposed NGL pipeline will be constructed in
parallel to the existing 32” OGC gas pipeline. An image of the site is shown in Error! Reference
source not found.Error! Reference source not found..
Petrochemical Complex (PC) in SIPA
The proposed project site for PC will be spread on two plots and located adjacent to the Sphar
Refinery Improvement Project (SRIP) in the Sohar Industrial Port Area (SIPA) which is a dedicated
industrial area. The PC will be integrated with the Sohar Refinery, Aromatics complex and
Polypropylene Plant. SIPA is spread on an area of 132 km2 and located on Al Batinah coast about 20
km north of Sohar and 220 km from Muscat. The site location is shown in Figure 3.
A part of the LPIC is located on the southern boundary of the SIPA while the other is located on the
south eastern end and covers an area of about 100 ha. Plot 1 of the PC will have an interface with the
Aromatics Complex on the eastern side, and the Polypropylene Facility on the northern side and
proposed PET/PTA complex on the western side. Plot 2 is located on the eastern side of the SRIP.
Below is a layout of SIPA.
12
Figure 5: Sohar Industrial Port Area
Project Affected Population Centres
The project components are located within government designated industrial areas with previous
developments already in place. The NGLE and the Pipeline route are located within very sparsely
populated areas and barren landscapes. This section presents an overview of the population centers
with more detailed information included in Section 2 of this report.
NGLE Plant
The proposed NGLE is located on about 100 ha of land area within PDO’s concession area near Block
Valve Station 2 (BVS2) of the Government’s main gas pipeline. The nearby human settlement is the
plant township at Fahud. The population at Fahud comprises industrial workers and total 3,729.
Pipeline Route
The NGL pipeline begins at the battery limits of Fahud Site and ends at the boundary limits of Sohar
Site covering a total distance of about 300 km. The pipeline corridor passes through 3 governorates,
the Ad Dhahirah Governorate, Al Buraimi and the North Al Batinah Governorate. The Muscat
Governorate is the centre of government and major urban centre in Oman. The Al Batinah Region
occupies a vital geographical location on the coast of the Gulf of Oman. It is confined to a coastal
strip of 25 km between the Gulf of Oman and the foot of the Al Harj Al Gharbi mountains. The
coastal Al Batinah Plain is the key region for agriculture, industry and settlement.
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There are 5 small villages within a 50-100m or more buffer away from the pipeline route. The
population figures as per the 2010 census and validated/estimated by the consultations and windshield
surveys are as follows:
Table 1: Population along Pipeline
Village Population
Saqah 60
Kashishat Al Melh 58
Al Jaylat 15
Al Jall 10 (estimated from windshield survey)
Wili 10 (estimated from windshield survey)
Petrochemical Complex in SIPA
The project site is located within SIPA, an area designated for industrial development. However, the
current socio-economic condition near the project influence area (5km radius from both the polymer
area and the steam cracker unit) has been established based on published documents and previous
studies conducted in the area. The project site falls under the North Al Batinah Governorate, which
lies between Khatmat Malahah in the North and Al Musanaah in the South and confined between the
Al Hajar Mountains to the West and the Gulf of Oman to the East. It is located within SIPA, which
comes under the Wilayat Liwa and characterized under industrial land use. There are 10 villages lying
within a 5km radius of the project site. Out of these 10 villages, 7 come under the Wilayat of Liwa
and 3 are part of Wilayat of Sohar. Analysis of all aspects of the socio-economic profile was carried
out at the micro level entailing these individual villages as well as the PIA as a whole. The village
population as per the 2010 census is summarized in the table below.
Table 2: Population along Pipeline
Village Population
Ghadfan 7324
Al Ghuzayyil 2473
Harmul 2120
Al Mukhaylif 1822
Wadi Al Qasab 1680
Wqdat Al Mawani 1526
Al Hadd 913
AL Khuwairiya 2
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Section 2. Socio-Economic baseline

This section presents the overall socio-economic baseline context of the project component. Each
project component include social, political, health, economic and industrial baseline information. The
baseline data presented in this section will be further elaborated/verified by the on-going stakeholder
consultations at Orpic.
Petrochemical Complex
Social Baseline
According to the 2015 Statistical Yearbook listing 2014 population figures at the regional level, North
Al Batinah has the second largest population, after Muscat, at 655,873 people of which 68% were
Omani and rest were expatriates of different nationalities. The total population in Sohar is 197,517
(54% Omani) and Liwa has a population of 40,896 (72% Omani).
Out of the twelve Wilayats in North Al Batinahm, Sohar acts as a Regional center and is the most
populated Wilayat with 30% of Region’s total population (based on the above 2014 population
figures). However, Liwa, the adjacent Wilayat of Sohar which conceives the major industrial
development of the country (including the project site) is considered amongst the sparsely populated
Wilayats of the Region. It constitutes less than 6% of the Region’s population.
There are 10 villages lying within 5 km radius of the Project Influence Area (PIA), population
distribution and health facilities in Liwa/Sohar wilayat as presented in Tables below and depicted in
the figure. Out of these 10 villages, 8 come under the Wilayat of Liwa and 2 are part of Wilayat of
Sohar. Village details are given in Table 1 and population distribution in Table 2.
Table 3: Villages within 5 km of Sohar/Liwa Plant (2010 data)
Approximate Distance
S.No. Village Wilayat Direction From Plant
from Plant (KM)
1 Harmul 4 N
2 A1 Mukhylif 3.5 NW
3 Uqdat A1 Mawani 3 NW
4 Wadi A1 Qasab Liwa 2.0 NW
5 A1 Hadd 1.1 SW
6 A1 Ghuzayyil 1 SW
7 Ghadfan 2.5 S
8 A1 Khuwayriah 2.0 E
9 Majees Sohar SE
10 Amq SE
15
Table 4: Population Distribution of Liwa and Sohar (2010 data)
Population Decennial
Population
Region/wilayat/ No. of
Land Area Male Female Total Growth
Town Households
(2003-2010)
2
Batinah Region 12.500KM 106,465 434,032 338,558 772.590 18.22%
Wilayat of Liwa 728KM2 4,190 19,999 14,002 34.001 31.91%
Wilayat of Sohar 1728KM2 20,886 85,346 54,006 140.006 34.20%
As per the RD 80/2002, approximately 2000 hectares of area was declared as Sohar Industrial Port
Area and therefore there are no traditional rights over the project site. However, the communities
maintain traditional rights for grazing land and fishing over 5km outside of the site area of influence
and will likely not be affected by the project.
Most of the settlements are positioned in such a way that they have an easy access to the highway for
connectivity, and simultaneously they are also in the vicinity of marine sources. Majees is situated
along the coast and exhibits fishing village characteristics.
Sohar has good number of schools and medical facilities when compared to pipeline route and NGLE
plant locations. Sohar has four high educational institutes:
 Sohar University - a private university in association with the University of Queensland.

 Sohar College of Applied Sciences - a government owned college.
 Oman Medical College - a private university in association with West Virginia University
School of Medicine.
 International Maritime College Oman
Sohar also has a number of international schools such as:
 Al Batinah International School (owned by Sohar Aluminium)

 Sohar International School (S.I.S)
 Indian School Sohar
 Pakistan School Sohar
Social consultations were conducted, in petrochemical complex area, by Orpic, during October 2015.
The representatives from villages, located near to the port area, Harmoul, Al Ghuzayel, Al Haad,
Wadi Ghasab, Ghadafan and Al Zahiyah, attended the consultations. The meeting was conducted by
16
the External Relation Services, a community communication department of Orpic. The LPIC HSE
Project Manager was also present during the consultation.
The main aspects raised during the consultation were as follows:
 Concerns over dust and noise levels, inadequacy of medical centers and other facilities with
respect to influx of people, traffic congestion, and odor issues particularly around the port
area.
 Increase in labor workers has crowded the (limited) social services such as shopping malls
and public spaces.
 Appreciation that the living standards of the local people had been improved since 2013, with
implementation of new projects.
 Anticipation that LPIC Project will further improve the job opportunities and consequently
purchasing power of the locals within the area.
 Auxiliary establishments will create more business opportunities for locals.
Political Baseline
Politics of Oman takes place in a framework of an absolute monarchy whereby the Sultan of Oman is
not only head of state, but also the head of government.
Judicial system
The court system in Oman is regulated by Royal Decree 90/99. There are three court levels in Oman,
the Elementary Court is the lowest court, followed by the Court of Appeal, and then the Supreme
Court as the highest court in the country. In addition to this there is an Administrative Court that looks
into cases made against the government.
Administrative divisions
Administratively, the populated regions are divided into 59 districts (wilayats), presided over by
governors (walis) responsible for settling local disputes, collecting taxes, and maintaining peace.
The Consultative Council
In November 1991, Sultan Qaboos established the Consultative Assembly (Majlis al-Shura), which
replaced the 10-year-old State Consultative Council, in an effort to systematize and broaden public
participation in government. Elections to the council occur every four years, with representatives from
each of the wilayat per governorate. The Assembly has 85 elected members (recently elected in
October 2015) with only consultative tasks. Representatives were chosen in the following manner:
Local caucuses in each of the 59 districts sent forward the names of three nominees, whose credentials
were reviewed by a cabinet committee. These names were then forwarded to the Sultan, who made
17
the final selection. The Consultative Assembly serves as a conduit of information between the people
and the government ministries. It is empowered to review drafts of economic and social legislation
prepared by service ministries, such as communications and housing, and to provide
recommendations. This body also seeks out the views of the people represented. Service ministers
also may be summoned before the Majlis to respond to representatives' questions. It has no authority
in the areas of foreign affairs, defense, security, and finances. Article 58 of the Omani Basic Law
stipulates that a candidate of Majlis Al Shura should be an Omani national by birth, be of at least 30
years of age, never sentenced to a felony or crime involving moral turpitude or trust. It also stipulates
that the candidate should be on the electoral role, not affiliated to a security or military authority, not
interdicted by a judicial judgment, and not suffering from mental illness.
Political parties and elections
Oman does not allow political parties and only holds elections with limited suffrage for a consultative
assembly. Though Oman is developing into a constitutional monarchy, political parties are not yet
allowed in Oman. The previously influential opposition movement, the Popular Front for the
Liberation of Oman, is dormant today. Elections are open to all Omani nationals and are conducted
every four years to select new councils (Majlis al-Shura). The Higher Committee for Majlis Ash’shura
is in charge of supervising the elections, election appeals, monitoring the work of election
committees, the circulars and decisions issued by the Main Election Committee and approving the
final results for the voting. A snapshot of the 2015 elections across Oman is illustrated in the figure
below4.
4
Figure taken from the Oman Observer Article, Sultanate Votes Today, October 25th 2015:
http://omanobserver.om/sultanate-votes-today/
18
Figure 6: 2015 Elections to Oman Consultative Assembly
Sohar has elected 2 Shura members and Liwa has elected one member. During consultations it was
noted that the elections were decoupled from the upcoming projects (including LPIC) and no
information or leverage from LPIC project was referenced during the elections.
The political system is common for all components falling in LPIC (Petrochemical complex, Pipeline
route & NGLE Plant). Therefore the same is not discussed in each component of where LPIC is
establishing their projects. However efforts were made to give the villages falling in the respective
project component.
Ten villages namely, Harmul Al Mukhylif, Uqdat Al Mawani, Wadi Al Qasab, Al Hadd, Al
Ghuzayyil, Ghadfan, Al Khuwayriah, Majees, falls near to the petrochemical complex. The villages
are shown in the map in the figure below.
19
Figure 7: Petrochemical Complex and Surrounding Villages
Health Baseline
Major health facilities in Liwa and Sohar were given in below table.
Table 5: Health Facilities in Liwa/Sohar Wilayat
Year of Establishment Total Facilities

available
# Hospital Population No Of
Beds
1 Liwa Health Center 1984 L, R
29,606 Nil
2 Nabr Health Center 2007 R, L
Sohar Hospital
3 1973 363 D, R, L
Regional Hospital
4 Wadi Hibi local Hospital 1993 18 D, R, L
5 Wadi Ahin Health Center 1993 0 L
124,643
Sohar Extended Health
6 1997 0 R, L
Center
7 Al Multaqa Health Center 2004 0 R, L
Al Uwaynat Health
8 2007 0 R, L
Center
L-Laboratory, R-Radiological Procedure: Source: Annual Health Report
20
A recent study assesses the potential health implications in the young population of the Sohar
port area due to increase in industrial activity
Respiratory and allergic health effects in a young population in proximity of a major industrial park in
Oman
By Dr Adil Alwahaibi, Institute for the Environment, Brunel University London, Uxbridge, Middlesex,
London, 2015 published J Epidemiol Community Health doi: 10.1136/jech-2015-205609.
Background Sohar industrial zone (SIZ), Oman, which started operating in 2006, contains many
industries that potentially affect the health of the local population. This study's aim was to evaluate the
health effects in a young population living near SIZ.
Methods Patient visits to state health clinics for acute respiratory diseases (ARD), asthma,
conjunctivitis and dermatitis were obtained for the period of 2006 to 2010, for children ages <20 years
old, for two large provinces around SIZ. Three exposure zones were defined on the basis of the distance
from SIZ determined as: ≤5, >5 to 10, ≥20 km to represent high, intermediate and control exposure
zones, respectively. Age-specific and gender-specific monthly counts of visits were modelled using
generalised additive models controlling for time trends. The high and intermediate exposure zones were
later combined together due to the similarity of associations. Exposure effect modification by age,
gender and socioeconomic status (SES) was also tested.
Results Living within 10 km from SIZ showed a greater association with ARD (risk ratio (RR)=2.5;
95% CI=2.3 to 2.7), asthma (RR=3.7; 95% CI=3.1 to 4.5), conjunctivitis (RR=3.1; 95% CI=2.9 to 3.5)
and dermatitis (RR=2.7; 95% CI=2.5 to 3.0) when compared with the control zone. No differences in
associations were found for gender and SES groups; greater effects were noticed in the ≤14-year-old
group for asthma.
Conclusions This is the first study conducted in Oman to examine the health effects of a young
population living near an industrial park. The showed greater association with respiratory diseases the
closer to the industrial zone.
Economic Baseline
Agriculture is one of the major sources of employment for people in this area especially cultivation of
date palm, vegetables and citrus fruits. These agricultural areas are not within the area of influence of
the project. Dug wells are still the main source of irrigation even though most of these wells and
groundwater supplies have been contaminated by salt-water intrusion due to the industrial activity at
Sohar. However, a study conducted in 2014 on the entire Al Batinah Coast summarized challenges
21
and improvements in groundwater quality5. The study area and characteristics of water networks n
the Al Batinah Coast is illustrated in the figure below.
Figure 8: Al Batinah Coastal Study Area
The main aspects of the study included the following key conclusions on the groundwater quality and
improvement efforts:
 Annual recharge from rainfall is greatly affecting the GW quality at Al Batinah coast.
 Groundwater quality improvements at some parts and/or deterioration of others along Al
Batinah coast on 2010 survey is controlled by both hydrological and socio-economical
conditions prevailing during the last five years. These conditions could be summarized as on
the following:
– Groundwater deterioration/increasing sea water intrusion is directly related to areas of
high agriculture intensity such as Barka and Al Khabourah.
– Recharge from natural resource (exceptional recharge from two cyclones Guno 2007
and Phet 2010 at Wadis Al Khoud, Rusayl and Manumah). These cyclones hit Seeb
area as part of Al Batinah coast.
5
Ministry of Regional Municipality and Water Resources, Oman, Gulf Water Conference and Exhibition
Presentation, October 2014.
22
– Recharge from retained dams(Al Khoud,Al Jizzi,Al Hawasinah).

– Rapid economic development and increase of urbanization rate.
– Changing land use
– Changing source of water supply system from conventional source (groundwater) to
non-conventional source (desalination).
 Preventing the saline water intrusion along the Batinah coast depend on the following factors;
continuous recharge events from rainfall and wadi flows which maintaining high water levels
and, controlling the over pumping from wells along the Batinah coast
Over the development of the industrial area, a considerable number of date palm plantations adjacent
to the SIPA have been abandoned due to increased salinisation. Treated or desalinated water is also
used to irrigate some of the agricultural lands in the vicinity of SIPA. Some of the local population
rears animals like goats mostly for domestic consumption. Although there are areas within the villages
that supports grazing (natural vegetation in the form of shrubs and small trees), animal fodder is
usually purchased from the local market and livestock are fed in temporary sheds (either in homes or
farms).
Fishing is a significant part of the economy as fish is an essential part of the daily diet of the
community. There are number of fishing areas rich in important marine species in the vicinity of the
project area. Some of the chief species found here include Kingfish, mackerels and sardine. Majees
and Harmul are considered as fishing settlements. The Ministry of Agriculture and Fisheries is the
governing body for managing fishing areas within the Sultanate. Permits are required for commercial
fishing in Oman, and a commercial fishing ship license is issued to companies which have already
been granted a commercial fishing quota through the ministry. Oman regulates fishing tightly with
rules such as minimum distance between boats, time a boat can fish in one area, separation of
commercial and private fishing areas and protection of species. The main commercial fishing areas in
Oman are further south of Sohar in areas such as Sur and the coast of Al Wusta Region. The
traditional fishing areas are illustrated in the map below6.
6
2014 Data from Oman National Center for Statistics and Information
23
Figure 9: Fish Landed by Traditional Fisherman
The fishing market at Sohar Harbour is over 20KM away from the industrial area. The map below
illustrates the distance between the two areas. In an effort to integrate the community, the Sohar Port
shares the jetty with Fisherman requiring maintenance services.
Figure 10: Industrial Port of Sohar to the Fishing Market at Sohar Harbour
24
Industrial Baseline
As illustrated in Figure 4, the industries in Sohar area are, 863 kTPA ethylene cracking plant, HDPE
Plant, LLDPE Plant, PP Plant, MTBE Plant, butene-1 Plant and associated utilities and offsite
facilities.
The Petrochemical Plant is scheduled for completion in 2018, which will enable Orpic to produce
polypropylene (in addition to the existing polypropylene plant) and, for the first time, polyethylene,
the plastic most in demand globally, which will boost Oman’s export earnings. At the same time and
with the production of one million tonnes of plastics, the country’s downstream plastics industry will
have the opportunity to grow, with the promise of more downstream industries, increased
employment, and overall additional in-country value.
Overall, the LPIC project is expected to further enhance the socio-economic impact of Orpic from the
perspective of revenue growth, employment generation, and capability development (refer to chart
below)7.
Orpic’s integrated refining and petrochemical operations is critical to Oman’s downstream

development. Furthermore, there are positive social contributions such as skills development through
training, employment generation, local business opportunities and other social investments. Contracts
are required to have 30% Omani workforce. The skill development programs are highlighted below.
7
Findings and charts from the report to Orpic from consultant: Strategy& (Draft Report May 2015)
25
Orpic and the LPIC are undertaking other initiatives to address critical sustainability elements such as
Omanization, local supply base development, and environmental impact management. These
initiatives are summarized in the chart below.
The overarching socio-economic impact assessment for Orpic and the LPIC (below referred as LPIC
(Liwa Plastics Industries Complex) is summarized in the chart below.
26
27
Pipeline Route
Social Baseline
The pipeline route covers different topographies. It starts at Fahud, central plains runs through
northern plains and northern mountains and finally lands in Batinah Coastal Plain. The existing
pipeline along the same route is operated by Oman Gas Company (OGC). Orpic continue to work
closely with OGC to understand community needs and develop programs to address their concerns.
The social baseline has been informed by Orpic consultations with 4 of the 5 major villages along the
pipeline. Although the project would not affect the nomadic activity in Oman, as they were observed
over 10km away from the pipeline area, Orpic are studying their settlement patterns to ensure they are
not affected and managed through effective implementation of the environmental and social
management plan, including providing mechanisms to communicate with Orpic on any grievances.
The map of the pipeline route and surrounding villages is illustrated below.
Figure 11: Pipeline Route and Surrounding Villages
Nomadic Activity in Oman
The tribal structure of Oman has undergone deep changes over the centuries. Many nomadic tribes
have arrived and settled. Other tribes, adapting to the changing rhythm of history have established
28
settled branches in widely dispersed regions of the country, specialising in farming, fishing or
pastoralism. Families within one tribe have been known to change their economic focus from time to
time, given the general ecological conditions in any particular era.
The Harasiis are one of six major nomadic pastoral tribes in Oman. Along with the Duru, the Wahiba,
the Jeneba, the Beit Kathir, and the Mahra, the Harasiis live in the central deserts of the Sultanate.
They raise camel and goats in a largely subsistence economy and number about 5,000 people; a few
of their numbers are also found in parts of the United Arab Emirates bordering Saudi Arabia. Of all
the nomadic tribes in Oman, the Harasiis are the most remote; their traditional territory, is set halfway
between the north and the south of the country8.
According to Harasiis oral tradition, the original section of the tribe was Beit Afarri, living in Wadi
Kadrit, between Salalah and Hadramaut. Over the past few hundred years the Harasiis have gradually
pushed - and been pushed - north east into the Jiddat. As they moved into the various wadis that mark
the natural geographic borders of the Jiddat, they have come up against other pastoral tribes such as
the Jeneba to the east and the Wahiba to the north. Along the way, they have also incorporated groups
‘expelled’ from their own tribes making the Harasiis something of a ‘refuge’ tribe in this remote and
inhospitable landscape.
Figure 12: Typical Nomadic Tribe in Central/South Oman
8
See more at: http://www.nomadsinoman.com/#sthash.PRnoP223.dpuf
29
Over the last 50 years have transformed the Jiddat and profoundly affected its people. In the 1950s, oil
exploration in the region resulted in two water wells - at Haima and at al-Ajaiz - dug in the process of
oil exploration being left open for the use of the local human and animal populations. These two wells
- the first in an area of more than 40,000 square kilometres - became magnets for local herds and
rapidly changed patterns of migration and animal husbandry. In the late 1970s the government of
Oman built a ‘Tribal Centre’ at Haima to deliver services to the local people. The tribal center is
illustrated below. At about the same time, the Sultan approved the setting up of an Arabian Oryx
reintroduction project in the NW quadrangle of the Jiddat. These activities rapidly transformed both
the economic horizons of the Harasiis people while circumscribing their extensive subsistence
activity.
Figure 13: Tribal Center at Haima
The Harasiis tribe organizes itself into seven lineages or subgroups called beit: Beit, Aksit, Mutaira,
Barho, Sha’ala, Aloob, Afarri and Katherayn. Theses seven lineages are divided into two factions; one
headed by the Beit Aksit and the other by the Beit Mutaira. The leadership of the tribes as a whole lies
with the Beit Aksit whose ancestral forbearer is acknowledged to have united the disparate units into
one tribe about 180 years. This leadership is however being challenged by the Beit Mutaira, whose
leader is more popular with the government-appointed governor and oil company officials. Each
lineage generally recognizes or appoints two spokesmen who act on its behalf. These men, called
30
rashiid / rushada, represent the lineage in meetings with the local governor or wider intra- tribal
discussions regarding the welfare of tribal members.
Their traditional economy is based on the raising of camels and goats by natural graze for the
production of milk rather than meat. Women own the herds of goat, a combination of white short-
haired, Somali goat and, the more recently introduced, long-hair dark goat from north Oman. Men
own the herds of camels, and men exclusively milk the camel herds. At the core of their way of life is
migration - at least of their herds - to best utilize available pasture and water. Survival in this
environment makes movement from deficit to surplus areas vital. With the introduction motor
vehicles in the late 1970s and early 1980s, the mobility of men and herds has increased, although the
main family households have become less mobile. Most households have one or two men employed
in wage labour in Haima, or further afield in the Army or Police Force. A few Harasiis men have
managed to become business entrepreneurs carving out an area of activity in transport, or the service
industry. The Harasiis tend to live in wadis (valleys) and haylats (depressions) where there are trees
under which to shelter and where graze for their animals is more plentiful. In recent years a number of
families have taken up residence in the government housing compounds at Haima, Wadi Bu Mudhabi
and Zawliya. Often these are seasonal homes made up largely of women with children attending
school, or the elderly and disabled. Many families have multiple households and temporary herding
camps manned by hired foreign labourers from Baluchistan and Sindh.
Central Plains: Human settlement within the central plains is limited to very few localities (under
50). In proximity to the southern end of the Fahud to Sohar pipeline any settlement is likely to be only
temporary. Nomadic Bedouin community people associated with livestock (camel) grazing camps
were observed over 5 km away from the pipeline route.
Northern Plains: Settlements across the northern plains are scattered. Along the alignment of the
Fahud to Sohar pipeline route, human settlements are almost non-existent with only one seasonal
settlement present and elsewhere occasional temporary grazing camps.
Northern Mountains: Human settlements along the alignment of the pipeline route in this section of
the Hajar Mountains are scattered and very few (less than 50). More significant centres exist adjacent
to Wadi Jizi, along which the Buraimi-to-Sohar highway has been constructed.
North Al Batinah Region: The Batinah Coastal Plain is a low-lying alluvial plain extending
approximately 270 km from Muscat to border with U.A.E, North of Shinas, and extending
approximately 30km inland from the coast. As summarized in the Petrochemical Complex social
baseline, According to the 2015 Statistical Yearbook listing 2014 population figures at the regional
level, North Al Batinah has the second largest population, after Muscat, at 655,873 people of which
68% were Omani and rest were expatriates of different nationalities. The total population in Sohar is
197,517 (54% Omani) and Liwa has a population of 40,896 (72% Omani).
31
A windshield survey and social consultations were conducted, by Orpic, in Al Jell and Dhawaher Al
Tawi Villages neighboring to the Gas Pipeline on 11 October, 2015. Illustration from the
consultations the community members is illustrated below.
Figure 14: Engagement at Al Jell and Dhawaher Al Tawi
Windshield survey results
The social infrastructure in Al Batinah is very developed, with designated areas for schools, mosques,
and other community centers. Basic utilities (electricity, water, sewage, telecommunications, etc.) are
readily available and the government and service providers maintain the quality of services provided.
Informal consultation results
It was observed local villagers are receiving information about existing and on-going pipelines, but no
one from the Project proponents was available to interact with community members. This limited the
opportunity for communities to express their concerns. Generally, local people expects to receive
financial support towards social developments. Expectations also included funding for the
maintenance of the “Al Jell falaj”. The Al Jell Falaj is a traditional water channel which provides
32
irrigation in the Al Jal village. Other expectations included the construction of a community hall for
local gatherings.
Further consultations were conducted with As Saqah and Khashishat Al Milh villages on 21 October
2015. Photographs from the consultations are illustrated below.
Figure 15: Vist to As Saqah and Kashishal Al Milh Villages
The main outcomes of the consultations included:
• The feeling of only receiving information and lack of dialogue between Orpic and the
community.
• Lack of Support and Social Investment from the Owner Company of the Old Gas
Pipeline.
• Request for funds and help maintaining Khishishat AL-Melh Village Cemetery Wall.
• Construction dust and noise along existing pipeline and fear of increased dust and noise
levels during the construction of the new LPIC route.
• Maintaining Relation/ link/ connections with the community in the Villages.
33
Nomadic communities (beduins) visited during the windshield survey have become more urban than
conventional nomads, with the provision of some of the basic infrastructure facilities such as
electricity, communal telephone, and some basic road network. They live in temporary to semi-
permanent houses and have temporary yards for their livestock.
These tribes do not seem to have any concerns with the upcoming industrialization in the area. This
lack of concern by these people to the proposed industrial activity could be attributed to the distance
involved between these communities and the proposed developments. Instead, the community
members expect the upcoming industrial and development activities to bring basic network
infrastructure such as potable water supply, sanitation, and waste management. The residents in these
communities also look forward to receiving social infrastructure facilities such as schools, clinics,
libraries and other socio-cultural facilities. Communication with these groups will be through
quarterly visits and they can communicate with Orpic through the visitor center and community office
at Liwa, or through the Wali/Sheikh of the Region.
Political Baseline
There are four villages are along the pipeline route as illustrated in the figure below. There is no
significant political activity within the direct route of the pipeline, however, it crosses three
governorates wherein elections occur to the consultative council every four years (as described in the
Political Baseline of the Petrochemical Complex).
In the recent (October 2015) Shura elections, 4 members were elected in Al Dhahiriya Region and 4
in Buraimi. Through consultations with the villages, it was noted that the LPIC project was not used
as leverage or to win votes during the elections.
Health Baseline
During consultations, done by Orpic, no specific issues about health were raised. The pipeline
corridor passes through 3 governorates, the Ad Dhahirah Governorate, Al Buraimi and the North Al
Batinah Governorate. Medical facilities such as healthcare centre at all these wilayats will serve to the
people of the four villages along the pipeline. Further, Petroleum Development Oman (PDO) has
medical facilities at Fahud (start of the pipeline route).
Economic Baseline
The economic baseline is classified in line with the social baseline classification (central plains,
northern plain, northern mountains, coastal plain).
There are no areas of cultivation within the region of the central plains across which the pipelines will
cross. The temporary and permanent camps of PDO and their contractors are the only significant
34
centres of settlement, which for the purposes of this study due to their wholly commercial interests,
are not considered further.
Across the northern plains, there are only very occasionally areas of cultivation, and these are
associated with more permanent settlements distant from the pipeline corridor and in closer proximity
to the main Buraimi to Nizwa highway. Through consultations with the affected community, other
employment types include taxi drivers.
Settlements at northern mountains which are adjacent to the pipeline tend to consist of single or small
clusters of dwellings that cultivate mainly of date plantations. Orpic has a grievance mechanism for
the villages to communicate if there are any issues in cultivation. Furthermore, the Ministry of
Agriculture and Fisheries designate areas for agriculture.
Industrial Baseline
There is limited to no industrial activity along the existing pipeline route and within the area of
influence. Images from the windshield survey illustrating residential dwellings along the pipeline
route are presented below.
Figure 16: Images from Consultations along Pipeline Route
NGLE Plant
Social Baseline
The nearest human settlement from the proposed NGLE Plant is the PDO camp and contractor
industrial area. The latest EIA for Fahud (2003) indicated that there were over 2000 workers within
the Fahud camp and windshield survey’s estimated around the same number of workers. Besides these
camps other notable settlements that are located within 50 km are small villages such as Awaifi,
Natih, Wadi Umayri and Wadi Aswad. The local people belong to a single tribe, the Duru. Oman is a
tribal country wherein the local population belongs to a particular tribe and has ties to particular
regions or wilayat. There are no differentiated impacts on the indigenous people (the Duru tribe) in
35
the local area. The Duru do not conduct specific rituals nor have specific communication methods
which suggest that the impact assessment, and the stakeholder engagement plan, should be
differentiated specifically for these groups. However, Duru cultural events and sensitivities have been
considered in the planning of events, communication tools and protocols, which have been captured
within the SEP.
In addition to the permanent settlements, several camel farms and Bedouin populations are known to
exist in the area. Fahud falls in central plains where nomadic Bedouin community crosses however,
this is over 50 KM away from the project site. As along the pipeline route, Bedouins have become
more urban than conventional nomads, with the provision of some of the basic infrastructure facilities
such as electricity, communal telephone, and some basic road network. They live in temporary to
semi-permanent houses and have temporary yards for their livestock.
Based on informal interviews, these tribes do not seem to have any concerns with the upcoming
industrialization in the area. This lack of concern by these people to the proposed industrial activity
could be attributed to the distance involved between these communities and the proposed
developments. Instead, the community members expect the upcoming industrial and development
activities to bring basic network infrastructure such as potable water supply, sanitation, and waste
management. The residents in these communities also look forward to receiving social infrastructure
facilities such as schools, clinics, libraries and other socio-cultural facilities.
36
Political Baseline
The proposed NGLE site falls in Fahud which is located within the administrative boundary of Adh
Dhahirah Region. It is evident from map shown in below figure that there are no villages within 5 km
range from NGLE Fahud plant.
Figure 17: NGLE Plant and Surroundings
Health Baseline
There are 16 healthcare facilities including 1 hospital at Ibri, 1 polyclinic, and 14 health centers in the
Al Dhahiriya Region. Further, PDO has a medical facility provided for the camp at Fahud. The
facility at Fahud has two doctors and several experienced nurses. Patients in need of specialist
medical treatment can be evacuate by air to larger facilities. Health care services in PDO are provided
by the Medical Department. The Medical Department is a service organization responsible for seven
clinics in the interior and one clinic at Mina Al Fahal on the Coast. The services include outpatient
consultation, general practitioners, antenatal clinics, vaccination, diabetes, mother baby and child
health clinics, and (basic) physiotherapy services. Supporting services include laboratory facilities, a
pharmacy, an X-ray unit and a medical administration section. Emergency assistance is available 24
hours per day.
37
Economic Baseline
Most of the people residing in the Fahud area are either directly or indirectly employed by PDO.
While majority of the land in the area is barren and unutilized, there are a few farms in this area.
Cultivation of dates and subsistence farming are seen in the smaller settlements located near the
Wadis. The wadis and their immediate plains are used as rangelands for domestic livestock like
camels and goats. Date farming and trading are the major occupation for the people residing in the
villages of Wadi Umayri and Wadi Aswad.
As per srudies by Orpic in the area it is observed that majority of the workforce in the villages near
the study area is employed in the private sector, especially in the oil and gas companies in Fahud. A
part of the population is engaged with small businesses and other occupations like farming, driving
etc. Women are not involved in any direct economic activities. They are mainly responsible for
household works and taking care of the livestock.
Industrial Baseline
Government Gas Plant (GGP) in Yibal, Central Processing Plant (CPP), Kauther Plant, BP Plant and
Khuff Plant in Saih Rawl are nearby industries to Fahud site. Each of these sites are over 50 KM away
from Fahud and contained within the PDO camps and industrial complex.
38
Stakeholder Identification & Analysis
The detailed stakeholder engagement plan for the project is provided in Appendix A. Stakeholders
were mapped and identified based on:
 Whether they are directly and/or indirectly affected by the project (or company operations);
 Have interests in the project of parent company; and/or,
 Have the potential to influence project outcomes or company operations.
The table below presents the project stakeholders per group, including the affected population (under
the Communities stakeholder group).
Table 6: LPIC Project Stakeholders
Stakeholder Group Description

Communities Local Affected Villages at (as per the figures in the baseline section of this
report):
- Sohar/Liwa (10 villages)
- Along the pipeline (5 villages)
- Fahud (1 industrial complex)
Shareholders Investors, Orpic Board, Oman Oil Company
Media Newspapers, Press, TV and Radio
Academics Shinas College of Technology , Sohar University
Government This group includes: Ministry of Oil and Gas, Ministry of Environment
and Climate Affairs, Ministry of Finance, Ministry of Culture and
Heritage, Ministry of Agriculture and Fisheries, Ministry of Regional
Municipality and Water Resources, Sohar Chamber of Commerce, etc.
Labor Representatives HSE Representative, Labor Accommodation Management and Worker
Group Managers
Cultural Groups Bedouins, Tribal communities
NGOs Oman Women’s Association, Environment Society Oman
39
Section 3. Impact Assessment

An assessment of the actual and perceived impacts (as surmised during the stakeholder consultation
sessions) provided input to this section. An overarching matrix for impacts during construction and
operation was developed for all three project components. This is summarized in the tables in this
section. The impacts were identified based on likelihood, duration, extent and severity. The definition
of High (H), Medium (M), Low (L) and Positive impacts are as follows:
Impact Definition
Rating
High (H) An impact of high significance where it would influence the decision regardless of
any possible mitigation. An impact which could influence the decision about
whether or not to proceed with the project.
Medium (M) An impact of medium significance where it could have an influence on the decision
unless it is mitigated. An impact or benefit which is sufficiently important to
require management. Of moderate significance - could influence the decisions
about the project if left unmanaged.
Low (L) An impact of low significance where it will not have an influence on the decision.
Impacts with little real effect and which should not have an influence on or require
modification of the project design or alternative mitigation.
Positive An impact that is likely to result in positive consequences / effects.
The extent of each potential impact was considered as follows:
 Local (i.e. at the site and community level)

 Regional (at the regional level (reference to Omani regions: Al Dhahiriya, North Al Batinah,
South Batinah, Buraimi, etc.))
 National (across Oman)
 International (trans boundary)
40
The below matrix was used to link likelihood and severity impact thereby determining the overall risk
of the impact:
Likelihood of Occurrence
Very Unlikely Unlikely Likely Very Likely Certain
Negligible LOW RISK

Severity of Impact
Minor
Moderate MEDIUM RISK
Major HIGH RISK
There are certain beneficial impacts from the project in terms of generation of employment
opportunities, development of the project area and the nearby communities, contribution to the
national strategy of economic diversification and GDP increases, etc. The objective of impact
assessment in this section is to assess the adverse and the positive impacts and rate them as high,
medium or low so as to identify priority actions and develop appropriate elimination and/or mitigation
measures.
Below is a summary for each project component based on consultations with the Affected Population.
Petrochemical Complex
After commissioning of LPIC, the following positive social effects will be achieved at regional level
are:
 Competitive working conditions and improvement of skills and qualification of the operating
personnel.
 Improvement of the employment situation and development of occupational education and
training.
 Improvement of the living standards of the local people.
 Job creation and local business development
 Purchasing power of the people is expected to improve due to the expected job creation
 Auxiliary establishments will create more local business opportunities
The following are potential impacts which require management and/or mitigation during construction
and operation:
 Increased risk of emergency situations with social consequence;
41
 Intensification of traffic in the Fahud, Liwa and Sohar

 Increased risk for the employee’s health and
 Increased risks to public health in the nearest residential areas
 Influx of construction workers crowding public spaces
 Influx of negative social problems common with large imported workforces9
 Increase levels of noise pollution
 Concerns over increase in odour issues around the port area
 Increase in dust levels. Affected populations have requested that during LPIC construction
activities, adequate dust control measures must be considered to avoid creating dusty
environment similar to the current unpleasant situation.
 People foresee that Medical centers are not adequate to fulfill the requirements of influx of
workers in this area.
 High influx of labors may create congestion in traffic and space available for shopping and
other services areas.
 Concern over increase risk of respiratory diseases
Pipeline Route
During consultation wilayats said that, with previous experience of the construction process for OGC
pipeline they have some idea of what to expect from the LPIC project. In general, the overall attitude
to the project was positive but cautious, that they thought the construction and operation of the
pipeline would be beneficial. Employment was by far the most important perceived benefit. Loss of
access to camel grazing land for Bedouin community was expressed as a concern.
Additionally, the following aspects were expressed:
• Job creation and local business development along the pipeline route
• Concerns over current dust levels given the existing industrial activities and potential
further increase in dust and emissions from the LPIC project
Perceived fears/risks included employee accidents and accidents in local villages during construction
and operation phases. However, there is no risk of accidents occurring in the local villages because
the construction/operational traffic do not pass through the villages. Furthermore, Orpic has a robust
HSE policy (which contracts are required to comply) with the following goals:
- Zero accidents
9
Abuse of drugs and alcohol, and the prohibition of prostitution are all controlled within Omani law, however,
there is global practical experience that demonstrates that these issues can regularly arise when there is a
presence of a large imported workforce. Mitigation measures have therefore been adopted within the CEMP and
LMP as a precautionary measure.
42
- No harm to people
- Minimize impacts of activities on environment and society
NGLE Plant
The NGLE plant is located in PDO area, which is developed as an industrial area. The primary social
impacts addressed were the improvement in local people living standards through support/auxiliary
facilities to industries in Fahud.
43
Table 7: Construction impact assessment
Impact Mitigation measure Impact level Impact

Likelihood Duration Severity Extent and
Risk
Air quality impacts from increased Coordinated action plan among various project Certain Throughout Moderate Local M
dusts and emissions managers and contractors is required to monitor construction
and manage the ambient air quality in the area. with
To be detailed in the Construction Environment periodic
Management Plans peaks
Increase in ambient noise levels Coordinated action plan among various project Certain Throughout Moderate Local M
related to construction activities managers and contractors is required to monitor construction
and manage the ambient noise in the area. To be
detailed in the Construction Environmental
Management Plans.
Influx of expatriate workers during Development of a construction camp Certain Periodic Major Local H
construction management plan (see Appendix B) with peaks
Increased use of public Delineate house and curfew for construction Likely Throughout Major Local M
infrastructure due to increase in laborers and include time slots for recreation construction
construction workers during peak times of constructions to manage the
impacts on public infrastructure (see Appendix
B- construction camp management plan)
Public health and safety impacts due • Mandatory health checks are required for Likely Throughout Major National H
to increase traffic and potential every worker entering Oman. construction
44

Risk
diseases • Alcohol is prohibited under the Omani
Law.
• Visitor control and no mixing between
sexes.
• Coordinate periodic health checks for all
workers.
• Enforce curfew limits for the workers.
• EPC develop traffic management.
• EPC HSSE plan to be prepared in
accordance with Orpic HSSE
management system.
• Training on risks of communicable
diseases for all workers at site.
10
Possible loss of grazing lands • Designate clear Right of Way areas for Unlikely Throughout Major Local M
project affected people construction
• Continue engagement with locals to
understand grazing patterns
• Develop and manage strict traffic routes
10
Noted that grazing lands are over 3KM away from Project Proponents therefore Right Of Way is unlikely to be impacted.
45

Risk
that must be followed by all contractors.
Creation of employment This is a positive impact for the locals. Orpic to Certain Start of Major National Positive
opportunities train locals to ensure they have the necessary construction
skillset to work within their core business.
Further, Orpic stipulate a 30% local hiring
(Omanization) requirement in all contracts.
Increase in business opportunities Orpic requires (in all contracts) local Certain Start of Major National Positive
for local services procurement of at least 25%. construction
Table 8: Operation impact assessment

Risk
Air quality impacts from increased dusts Follow the environmental management and Certain Throughout Major Local M
and emissions monitoring plan for managing air emissions operation
and dust developed for each component of
the LPIC project.
Increase in respiratory issues related to air Manage air emissions as per operational Unlikely Throughout Major Local M
emissions from the project environmental management and monitoring operation
plan.
46

Risk
Increase in ambient noise levels related to Follow the environmental management and Likely Throughout Moderate Local M
operations monitoring plan for managing noise operation
developed for each component of the LPIC
project.
In-migration of local workers • Establishment of a “local labour Very likely Throughout Major Regional H
desk” at the Orpic or contractor operation
offices to identify a local labour with peak
pool. during the
• Implementation of skills beginning
development programmes to ensure
support local population in
obtaining employment
opportunities.
Loss of employment after completion of  Provide of list of services needed by Certain Beginning Major National H
construction local contracts for operation and of operation
maintenance.
 Recommend alternate employment
opportunities for locals
Creation of employment opportunities This is a positive impact for the locals. Certain Throughout Major Positive
Orpic to train locals to ensure they have the operation
47

Risk
necessary skillset to work within their core with peak
business. Further, Orpic stipulate a 30% during the
local hiring (Omanization) requirement in beginning
all contracts. Details included in the Labor
Management Plan and Orpic/Contractor In
Country Value plans..
Increase in business opportunities for local Orpic requires (in all contracts) local Certain Throughout Major Positive
services procurement of at least 25%. operation
with peak
during the
beginning
Decommissioning Impacts
The decommissioning and closure phase is expected to have similar environmental impacts as during construction. The surface infrastructure will be
dismantled and removed and the area rehabilitated. The main objective is to rehabilitate the area back to its pre-LPIC project land use and restore its
suitability for agriculture.
It is recommended that a detailed rehabilitation plan is developed prior to construction and a detailed closure plan developed prior to regulatory approval 3 to
5 years prior to decommissioning.
Potential impacts associated with the Decommissioning Phase may include the following:
48
 A temporary increase in employment opportunities followed by a decrease: Project closure would result in the loss direct jobs, as well as associated
indirect employment and business enterprises dependent on project operations and the increased population. The reduction in economic activities will
be particularly significant as current income-generation is largely dependent on the industrial activity that will no longer be a possibility following
decommissioning and closure.
 Noise and dust impacts associated with decommissioning activities;
 Impacts to the quality and quantity of natural resources surrounding the project area:
 Change in economic benefits from industrial activity to others.
It is assumed that impacts will be fully assessed and options explored to mitigate these impacts during the LPIC Project Closure Plan.
49
Orpic, Sultanate of Oman
Section 4. Management plans
Social Management Plan

Based on impacts assessed, social management plans have been developed and will continue to be
updated for the project. These plans include:
- Stakeholder Engagement Plan- Stakeholder consultations are an on-going process that will help
inform the SIA and manage social concerns. The Stakeholder Engagement Plan for LPIC is in
Appendix A
- Construction Camp Management Plan- The location for the construction camps has yet to be
selected however it is expected that they will be within the designated free zone at Sohar (for the
petrochemical complex), and the PDO camps at Fahud (for the NGLE). The construction of the
pipeline will follow an assembly line method, with one segment being constructed at a time. The
EPC will develop a detailed construction camp management plan. Orpic developed the
overarching initial camp management plan which the EPC will be contractually obliged to follow.
This Camp Management Plan in Appendix B.
- Influx Management Plan- This plan will be developed to manage the economic in-migration
locally and the influx of expatriate workers during construction and operation.
It should be noted that Oman has not ratified 4 of the 8 ILO Core Conventions and therefore not all
ILO conventions are protected under national legislation. However, Orpic has addressed these gaps
through the HR policy and Labor Management Plan to meet international standards for workers (as
per IFC PS2). The ILO Core Conventions which have NOT been ratified by Oman are:
C087 – Freedom of Association;
C098 – Right to Organise and Collective Bargaining;
C100 – Equal Remuneration; and
C111 – Non Discrimination
The table below provides a summary of the social management plans for all project components. The
timeframe is based on the following project phases: Construction, Commissioning, Operation and
Decommissioning.
50
Table 9: Social Management Plan for LPIC
No. Impacts Assessed Proposed Management Plan Responsibility Timeframe
Competitive working This is a positive impact and LPIC Prior to

conditions and Orpic can further develop construction
improvement of skills good procedures to identify
1. and qualification of gaps in skills and
the operating qualifications and support the
personnel. operating personnel in
achieving them.
Creating jobs locally Identify the requirement and LPIC Prior to

and development of conduct training for commissioning
2. occupational employees as per requirement.
education and training.
Increased likelihood of Prepare On-site & Off-site LPIC/Orpic Prior to

emergency situations emergency plans for entire construction.
with social LPIC (Petrochemical
consequence. Complex, Pipeline & NGLE
Plant), which may be in line
with Orpic emergency plan.
3.
Communication plans and
protocols developed with
appropriate authorities if
emergency situation to have
social consequence
Intensification of  Develop proper traffic LPIC/Local Prior to

traffic in the Fahud, management plan with Traffic construction
Liwa and Sohar support of local Management
administration to solve Department.
4. this traffic congestion
with respect to LPIC.
 Develop awareness
campaigns for schools
Increased likelihood Regular free health check-ups LPIC-EHS During

for the employee’s to employees and department construction
health and the public and operation
health in the nearest Periodic checks ups for public
5. residential areas. in health camps. This plan
should be developed with the
local health authorities and
form part of the health
baseline monitoring
51
programme, as well as
coordinated with the SEP
activities.
Issues with workers Camp Management Plan to be LPIC HR Prior to

camp developed by EPC as per plan department construction
6. prepared by Orpic (Appendix /Contractors
B)
Dust, Air and odour LPIC has to develop LPIC-EHS Prior to

issues raised by locals monitoring plans for these department construction
7. during consultation. impacts as suggested in the
EIA report.
Loss access to camel LPIC should develop a LPIC/Opric Prior to

grazing land for management plan in CSR construction
Bedouin community consultation with affected Department.
8. communities to manage the
issue without affecting their
livelihoods.
Employee accidents LPIC to develop LPIC/Contractor Prior to

accident/incident register. s construction
LPIC should require
9. contractors to maintain the
register also ensuring every
accident/incident registered in
it.
Accidents in local LPIC needs to assess the LPIC/Contractor Prior to and

villages related to/as a accident (if occurred within s during
result of Orpic the project boundary and construction
activities during control of Orpic) and should and operation
construction and note it in the accident/incident
10. operation phases. register. Accordingly LPIC
can support the person/family
to which the person belongs to
as per LPIC Corporate Social
Responsibility procedures.
Increased migration, LPIC should continue Orpic/LPIC Prior to

unemployment for investment in social programs operation
11.
locals. already in place such as the
international scholarship
52
program. Having a tie-up

with local educational
institutions to develop
curriculum which can cater to
Orpic’s (LPIC Project)
operational requirements
(both technical & non-
technical) will enable the
workforce to be future ready.
This may require time to
develop, but will help address
the issues of migration and
create employment for locals.
LPIC can encourage locals to

establish auxiliary
industries/facilities to manage
these issues.
Stakeholders Adherence to the SEP. LPIC On-going

Consultation Development and integration
of the social oriented
12. Programme of stakeholders’
interaction at the construction
& operation stage.
53
Section 5. Monitoring programs

Social monitoring programs are combined for LPIC (Petrochemical Complex, Pipeline and NGLE
Plant) and classified into local residents living within range of 5 km and employees working in LPIC.
According to the EP and IFC performance Standards, the Company has to develop a procedure for
monitoring the social environmental and has to make the data obtained available to the interested
parties. It is required to document the monitoring results, define required corrective and preventive
measures and include them into the management program subject to regular updating.
Whatever health and social issues raised by different stakeholder groups in social consultations should
addressed on priority basis. Subsequently, it is essential to implement such corrective and preventive
actions and ensure subsequent monitoring and recording of their efficiency. Orpic has a grievance
mechanism for stakeholders and it is included in the Stakeholder Engagement Plan (Appendix A-
Section 8).
LPIC will develop and implement a social environment monitoring program related to the following
affected parties:
1. Local residents living within a range of 5 km from the Pipline & Petrochemical Complex
2. Fahud industrial camp
The social monitoring of the community within a range of 5 km from the pipeline and Petrochemical
Complex, and the Fahud industrial camp should cover the following aspects:
 Impact on public health (measurements of quality of ambient air and groundwater; and health
status of local affected settlements);
 Changes in the standards of living (for most of residents involved in NGLE Plant &
Petrochemical Complex operations) through Living Standards Measurement Survey;
 Environmental performance (as per environmental management plan and monitoring
programs)
The following measures are required to carry out social monitoring:
 Approve a routine monitoring program, including monitoring of community health status and
occupational health and safety (OHS) compliance as its integral part;
 Comparison of the wages of the Company’s employees with the average monthly wages in
the region.
 Comparison or prices for local produce.
 Community Grievance management and resolution monitoring.
 Review of Labour accommodation camp standards;
54
 Review of Labour Grievance Mechanism;

 Review of livelihoods within industries which may be affected by the project, (with a focus
on agriculture producers and fishing)
 Quarterly (or more frequent if needed) of management programs during construction
An update on the parameters described above, should be submitted to the Company’s management
and the HSE management department on a quarterly basis.
The following parameters are to be monitored with respect to the local residents living within the
townships of NGLE, Pipeline & Petrochemical Complex:
 Quality of new housing;

 Impact on public health in the new housing environment;
 Changes in the standard of living.
Monitoring should be conducted in the following ways:
 Survey residents with the aid of questionnaires at least once per year(more frequently during
the first year);
 Arrangement with medical institutions to provide quarterly information about the number of
visits by local residents with complaints caused by cardiovascular, breathing and gastro-
intestinal diseases;
 Comparison of the information obtained with the average statistics data for the given
administrative area;
 Preparation of quarterly reports on the results obtained. If the actual data exceed the average
statistical values, identify the cause of the problem.
 Review of worker grievances and resolution and
 Review of community grievances and resolution.
A report on a current situation based on the monitoring data is to be submitted to the municipal
administration and disclosed to the local community on a quarterly basis. The method for
communication and disclosure with the local communities is described within the stakeholder
engagement plan (Appendix A).
55
Appendix A: Stakeholder Engagement Plan
56
Appendix B: Camp Management Plan
57
Sultanate of Oman
Stakeholder Engagement Plan

9 November 2015
LPIC Stakeholder Engagement Plan
Issue and Revision

HMR Company
Stakeholder
Engagement
B Second draft 9/11/2015 HMR HMR HMR Orpic
Plan
Stakeholder
Engagement
A First draft 27/10/2015 HMR HMR HMR Orpic
Plan
This document has been prepared for the above titled Project and it should not be relied upon or used for any other Project
without the prior written authority of HMR Environmental Engineering Consultants. HMR Environmental Engineering
Consultants accepts no responsibility or liability for this document to any party other than the client for whom it was
commissioned.
HMR Environmental Engineering Consultants

Sultanate of Oman
Tel: (968) 24618800; Fax: (968) 24618811
www.hmrenv.com
ii
Contents
1. Introduction .................................................................................................................................... 4
1.1 Project Description.................................................................................................................. 4
1.2 Purpose of this Plan ................................................................................................................ 6
1.3 Goals and objectives of the SEP .............................................................................................. 6
1.4 Principles of the SEP ................................................................................................................ 7
2. Regulations and Requirements ....................................................................................................... 7
2.1 Scope of the SEP...................................................................................................................... 7
3. Summary of previous stakeholder engagement activities ............................................................. 8
4. Project Stakeholders ....................................................................................................................... 9
5. Stakeholder Engagement Program ............................................................................................... 10
6. Timetable ...................................................................................................................................... 16
7. Resources and Responsibilities ..................................................................................................... 17
8. Grievance Mechanism .................................................................................................................. 18
9. Monitoring and Reporting ............................................................................................................ 19
10. Management Functions ............................................................................................................ 20
Appendix A: Summary of Engagement Activities.................................................................................. 21
Appendix B: Socio-Economic Survey Template .................................................................................... 32
Appendix C: Sample Stakeholder Log ................................................................................................... 35
Appendix D: Environmental and Community Complaints Process ....................................................... 36
3
1. INTRODUCTION
Oman Oil Refineries and Petroleum Industries Company (Orpic) is one of Oman`s largest companies
and a rapidly growing business in the Middle East`s oil industry. Orpic (the company) currently
operates oil refineries (Mina Al Fahal and Sohar Refinery), an aromatics plant and a polypropylene
plant at its complex located within the port of Sohar Oman.
1.1 Project Description

The Liwa Plastics Industries Complex (LPIC) is a steam cracker project which will process light ends
produced in Orpic’s Sohar Refinery and its Aromatics plant as well as optimize Natural Gas Liquids
(NGL) extracted from currently available natural gas supplies. The NGL will be extracted from a plant
at Fahud and transported via a pipeline to a petrochemical complex at Sohar. The overall project
location from the extraction plant at Fahud to the complex at Sohar is illustrated below.
Figure 1: Overall Project Location
The NGLE Plant at the Fahud Site is the most upstream component of LPIC Project. The NGLE Plant
will recover Ethane and heavier components from rich natural gas by a cryogenic process. Rich
natural gas which is the feed gas will be sourced from both Government Gas Plant (GGP) in Yibal and
Central Processing Plant (CPP) in Saih Rawl. NGL (C2+) extracted from the NGLE Plant is to be located
near the existing Fahud Compressor Station.
The NGL extracted shall be transported to the Petrochemical Complex via a proposed 300 km
pipeline in liquid phase. The proposed 14” pipeline is to be collated within the existing Oman Gas
Company’s (OGC) 32” natural gas pipeline (right of way (ROW)) from Fahud to Sohar.
4
The petrochemical complex proposed in the designated Sohar Industrial Port Area will include a
nominal 863 kilo tons per annum ethylene cracking plant, high density polyethylene (HDPE) plant,
linear low density polyethylene plant (LLDPE), new polypropylene plant, methyl tertiary butyl ether
(MTBE) plant, Butene-1 plant and associated utility and offsite facilities. The complex will be
integrated with the existing Sohar Refinery, Aromatics Plant and Polypropylene Plant. NGLs (C2+)
extracted at the NGLE Plant forms one of the feedstock. Other feedstock are mixed LPG produced in
the Sohar Refinery and aromatics complex, dry gas produced in the RFCC unit and new delayed
coking unit that is included in the Sohar Refinery Improvement Project, and condensate (light
naphtha) imported from Oman LNG by marine tanker. Some of the materials produced in the
complex, including hydrogen, MTBE, pyrolysis fuel oil and hydro-treated pyrolysis gasoline will be
returned to the Sohar Refinery, Aromatics Plant and existing Polypropylene Plant.
The figures below illustrate the three main components of the project (NGLE, Pipeline and
Petrochemical Plant) and the potential project affected population.
Figure 2: NGLE at Fahud
Figure 3: Pipeline from Fahud to Sohar
5
Figure 4: Petrochemical Complex at Sohar (SIPA)
1.2 Purpose of this Plan

This Stakeholder Engagement Plan (SEP) outlines tools for initiating, building and maintaining long
term positive relationships with local stakeholders. Further, it serves to manage and monitor the
social environment of the LPIC project thereby maintaining Orpic’s social license to operate within
the community.
1.3 Goals and objectives of the SEP

Orpic is a socially responsible operator and is interested in understand the social dynamics of the
project affected communities. The SEP will enable Orpic to maintain channels of communications
with the local stakeholders to update on project progress and impacts and provide opportunities for
stakeholders to voice their opinions and concerns. This will build trust and strengthen relationships
with project affected parties.
The objectives of the SEP are to:
 Identify project stakeholders

 Provide meaningful information in a format and language that is readily understandable and
tailored to the needs of the stakeholders
 Identify issues of importance to stakeholders
 Identify and utilize effective channels of communication with stakeholders
 Build and maintain relationships with Affected Communities
 Enable an informed Orpic response to the issues raised by stakeholders by providing clear
mechanisms for responding to people’s concerns, suggestions and grievances
 Incorporate feedback into the project where possible
6
 Monitor the affected communities response to the project
1.4 Principles of the SEP

The key principles of the SEP are:
 Processes free of intimidation or coercion
 Transparent two-way dialogue that gives both sides the opportunity to exchange views and
information, to listen, and to have their issues heard and addressed
 Inclusiveness in representation of views, including women, vulnerable and/or minority
groups
2. REGULATIONS AND REQUIREMENTS

There is no institutional requirement to publish notification of a project under Omani law; however,
the company published their Invitation to Tender documents widely in Q1 2014 which gave notice
on their web site that the project was under consideration. The main driver for developing this SEP
and associated documents is to comply with international Lender requirements (i.e. Export Credit
Agencies) for environmental and social due diligence. The key ECA criteria are the eight IFC
Performance Standards (2012). Additionally, the third edition of the Equator Principles (EP) is
followed by many ECA’s and investment banks.
The applicable IFC Performance Standard (PS) is PS1: Assessment and Management of
Environmental and Social Risks and Impacts (paragraphs 25 to 36). The section on Stakeholder
Engagement provides the basis for building strong, constructive and responsive relationships that
are essential for the successful management of a project’s environmental and social impacts.
Stakeholder engagement is an on-going process that may involve, in varying degrees, the following
elements:
 Stakeholder analysis and planning
 Disclosure and dissemination of information
 Consultation and participation
 Grievance mechanism
 On-going reporting to Affected Communities
The nature, frequency and level of effort of stakeholder engagement may vary considerably and will
be commensurate with the project’ risks and adverse impacts, and the project’s phase of
development. The IFC PS further describes the steps needed to ensure effective analysis and
engagement with stakeholders, disclosure of information, consultation methods, informed
consultation and participation, consideration of indigenous people, external communication and
grievance mechanisms and on-going reporting to Affected Communities. The IFC Good Practice
Handbook for Stakeholder Engagement has been referenced in development of this plan to ensure
alignment with the requirements of the IFC PS.
2.1 Scope of the SEP

The SEP scope covers areas of influence such as project site and related facilities, ancillary facilities,
and pipeline route. The project affected areas are illustrated by maps Figures 1 through 4.
Throughout all phases of the Project a variety of stakeholders will have power and/or influence
affecting project objectives and the overall outcomes. These stakeholders need to be engaged with
and consulted early to identify and address concerns, interests or issues to enhance the success of
7
the project. Orpic believes in the importance of close connection with stakeholders and this
document is intended to be a guideline for stakeholder engagement throughout all phases of the
project.
3. SUMMARY OF PREVIOUS STAKEHOLDER ENGAGEMENT ACTIVITIES

The company conducts regular stakeholder engagement as a part of the corporate sustainability
program. Project related information is posted on the website and available at the visitor center at
Sohar. Furthermore, stakeholder consultations are underway with communities located around the
project area.
A summary of the engagements conducted to date including the type of communication, locations,
date, and information on individuals consulted is included in Appendix A. The majority of the
stakeholder consultations have been conducted via in-person meetings and key informant
interviews. The focus group meeting with the villages around the petrochemical complex also
included social surveys which were completed by participants during the meeting. The information
from the surveys was used to inform the socio-economic baseline. The survey template is included in
Appendix B. The project information disclosed with stakeholder included a brief project introduction,
potential environmental and social impacts and the overarching project timelines. Orpic’s standard
template for recording stakeholder meeting outcomes is included in Appendix C.
Additionally, a Socio-Economic Impact Assessment was conducted on behalf of the company by

Strategy&. The purpose of this study was to highlight the role of Orpic and LPIC in meeting the
current socio-economic priorities of Oman. Stakeholder consultations were conducted as a part of
the study. Summary of the interviews conducted by Strategy& for the study is included in Appendix
A.
The list of stakeholders engaged to date include:
1. Al Jall Village
2. Saqah Village
3. Khshishat Al-Melh Village
4. Village representatives from around the Petrochemical Complex including: Harmoul, Al
Ghuzayel, Al Haad, Wadi Ghasab, Ghadafan and Al Zahiyah
5. Governor of North Al Batinah
6. Wali of Liwa
7. Sohar Chamber of Commerce
8. Shinas College of Technology
9. Sohar University
10. Jusoor (Social Investment Arm of Orpic)
11. Oman Women’s Association
12. Minister of Finance
13. Ministry of Oil & Gas
14. Ministry of Environment and Climate Affairs
15. Ministry of Manpower
16. Oman Oil Company
17. Orpic Management
18. Media
The main concerns from the community and project affected population include:
8
 Local hiring to service project needs

 Environmental controls to manage odour, dust, noise and any air quality impacts
 Investment social infrastructure such as community centres
 Upgrading community network such as water systems (Falaj)
Through the stakeholder consultations, Orpic raised awareness about the LPIC project and shared
the mechanisms for the project affected people to communicate with the company. Key outcomes
from the stakeholder consultations informed the social baseline of the project and helped identify
appropriate mechanisms to communicate with the different stakeholder groups.
4. PROJECT STAKEHOLDERS
Stakeholders were mapped and identified based on whether they are directly and/or indirectly
affected by the project (or company operations); have interests in the project of parent company;
and/or have the potential to influence project outcomes or company operations. Communities in the
project affected area were considered as follows:
Impacted communities: Resettled/Displaced Communities
Proximity community: Serves as a transport corridor, is affected by or adjacent to any of the

Project’s site elements
Fence-line: Communities that are on the boundary of the Project site or pipeline
Host: Communities that have received any (historic) resettled parties and/or live locally to where the
workforce will be accommodated.
The table below summarizes the project stakeholders per group.
Table 1: LPIC Project Stakeholders
Stakeholder Group Description

Communities Local Affected Villages at:
- Sohar/Liwa (Harmul, Al Mukhaylif, Uqdat Al
Mawani, Wadi Al Qasab, Al Hadd, Al
Ghuzzayyil, Ghadfan, Al Khuwairiya, Majees
and Amq)
- Along the pipeline (Al Jaylat, Al Jall, As
Saqah, Kashishat Al Milh and Willi)
- Fahud (Fahd industrial camp)
Shareholders Investors, Orpic Board, Oman Oil Company
Media Newspapers, Press, TV and Radio
Academics Shinas College of Technology , Sohar University
Government This group includes: Ministry of Oil and Gas,
Ministry of Environment and Climate Affairs,
Ministry of Finance, Ministry of Culture and
Heritage, Ministry of Agriculture and Fisheries,
Ministry of Regional Municipality and Water
Resources, Sohar Chamber of Commerce, etc.
Labor Representatives HSE Representative, Labor Account
Management, Representative of Labor Camps,
and Worker Group Managers
Cultural Groups Bedouins, Tribal communities
9
NGOs Oman Women’s Association, Environment

Society Oman
Internal stakeholders Comprising ORPIC staff, Contractor staff and sub-
contractors working in the project
5. STAKEHOLDER ENGAGEMENT PROGRAM

Principles
Orpic aims to listen, respond and collaborate with stakeholders to ensure trust building and to
maintain its social license to operate.
Communication planning and developing key messages (NB. This is an internal process and explain
the communications plan: situation analysis; purpose; risk prevention or mitigation, desired
outcomes, key messages, target audiences, comms channels and comms schedule – a lot of this
work has already been completed by Strategy&)
Key messaging - to help create consistent messaging to inform re. key project milestones and
activities (it is quite helpful to have an internal key messaging handbook which contains factual
information about the Project and enables standard answers and responses to specific issues or
questions that arise from interaction with S/H)
Form Engagement Mechanisms
Considering the lack of experience with public consultation processes in Oman, Orpic has selected
mechanisms which are familiar to the affected and interested stakeholders. Therefore Orpic uses a
range of tools to communicate with its stakeholders such as in person meetings, website
notifications, announcements in the visitor’s center and local representative (Wali/Governor) office.
The stakeholder engagement program is summarized in the table below.
Table 2: Stakeholder Engagement Program
Stakeholder Group Description Tools to communicate Frequency

Communities Local Affected Villages - Face-to-face meetings - Monthly face-
at: with community to-face
- Sohar/Liwa representatives meetings
- Along the pipeline - Visits to the Sohar - Sohar plants
- Fahud plants for members of visits by
the local community request
(and the general - Monthly
public) publication of
- Newspapers updates
- Radio
- Orpic website
- Flyers distributed by
hand
Shareholders Investors, Orpic Board Board meetings and email - Monthly and
circular more
frequently if
required.
Media Newspapers, Press, TV - One-to-one meetings - Monthly
and Radio - Press conferences - Event based
10
Stakeholder Group Description Tools to communicate Frequency

- Press releases or as required
- Media lunch
Academics Shinas College of - In person meetings - Annually
Technology , Sohar - Flyers
University - Recruitment events
Government This group includes: - In person meetings - Quarterly
Ministry of Oil and Gas, - Status reports
Ministry of Environment
and Climate Affairs,
Ministry of Finance,
Ministry of Culture and
Heritage, Ministry of
Agriculture and
Fisheries, Ministry of
Regional Municipality
and Water Resources,
etc.
Labor Representatives HSE Representative, - In person meetings - Weekly
Labor Account - Status updates
Management and
Worker Group Mangers
Cultural Groups Bedouins, Tribal - In person meetings - As needed
communities
NGOs Oman Women’s - In person meetings - Quarterly
Association, - Email
Environment Society communications
Oman - Flyers
The views of women and other relevant sub-groups (e.g. minorities, elderly, youth etc.) will be taken
into account through dedicated sessions catering to these groups (i.e. stakeholder consultation
session with women organized by Orpic through the Women’s Association). Further, Orpic will make
every effort to highlight the importance of the difference in opinion during engagement session to
raise awareness on the issue.
Orpic leadership stress the importance of diversity and inclusion which influences the organizational
culture and attitude towards consultation sessions. Tools used to promote inclusivity involve
including women (or other sub-groups as relevant) during the session; using active facilitation to
draw out minority opinions; and, where needed, conducting separate meetings for women/sub-
groups.
Informal Engagement Mechanisms
Informal engagement sessions are often the more effective means of communication with the local
communities and affected parties. These mechanisms include discussions and social survey’s with
workforce who live locally, coffee sessions with an Affected Party in the communities, and feedback
through conversations with family members. Information engagement sessions are managed
through Orpic’s External Relations Services
11
Orpic External Relations Services

Orpic has dedicated External Relations Services (ERS) with the mandate to: To position Orpic as a
good corporate citizen recognized for excellence in community engagement, contributing to the
prosperity of the community where we operate by applying our values. The main objectives of the
ERS are to:
 Build Strategic alignment between Orpic business direction and its stakeholders;
 Maximize economic and social impacts of Orpic operation by playing an active and positive
role as a good neighbour;
 Strengthen the engagement platform that leads to a greater understand of Orpic’s business,
and;
 Actively engagement stakeholder for more effective contribution to the socio-economic
development of the local community
The work strategy elements include stakeholder programs described in subsequent sections:
Community Office, Vistor’s Center, CSR Programme, Volunteerism, and Public Capacity Building.
Snapshot of ERS community engagement

programs in 2015
14 Meetings with Government Officials 2 Iftar Gathering during Ramadan
13 Dialogues with Affected Parties 3 social gatherings for local community leaders
Community Office
Orpic has a Community Office located in Falaj Al Qabail in Sohar to enable the community to gain
easy access to Orpic. The Community Office open Sunday to Thursday allows Orpic’s staff to assist
with any business inquiries the community may have including assistance with vendor registrations
for local businesses, receive tender bids, display tender announcements and showcase Orpic’s latest
environmental developments and employment opportunities. Directions to the office are available
on Orpic’s website.
12
Visitor Centre
Orpic also has a dedicated Visitor Centre at the Sohar
Industrial Complex. The centre is open during working
days (Sunday to Thursday) and aims to provide the public
a glimpse of the core business at Oripc. The visitor
programme consists of an animated film on oil and the
refining industry, a guided tour of the Visitor Centre
which details Orpic’s operations, plants, products,
environmental commitment and many other aspects of
Orpic’s business. The programme normally lasts about
one and a half hours in total.
CSR Programme
The Visitor’s
Through Jusoor, a corporate social responsibility Center received
and organized
initiative created by Orpic, Vale and Sohar Aluminium, programs for more
the corporate social responsibility efforts of the than 1000 visitors
by mid-2015.
companies are being combined for the benefit of the
communities within the immediate areas of operations. Jusoor has initiated a number of human
capacity development projects in the North Al Batinah region since its inception and will extend
along the planned pipeline route and at Fahud industrial area. The programs underway include:
Professional Education: A series of projects to complement the Omanisation efforts being made
by the Government and private sector. These structured training programmes (varying from one
to two years) are aimed at providing young Omanis with the knowledge and skills needed for the
labour market.
Jusoor Enrichment Programme: This commenced in January 2013, with the aim of cascading
knowledge amongst Omani youth in North Al Batinah in the field of entrepreneurship. It also
provides career guidance with the objective of contributing to the graduate’s readiness for
joining the labour market.
Jusoor Volunteerism Program: A three month training programme was initiated to teach trainees
how to sew. 50 trainees were given sewing machines for their personal use, which will help them
develop their skills and make their own homemade tailored products.
Industrial Tailoring Workshop: Following the tailoring training programme which commenced in
2012, the foundation aims to establish an Industrial Tailoring Incubator that will work mainly on
producing work uniforms for the many of the companies in Sohar industrial area.
Further community engagement sessions in 2015 included:
 Safety Traffic Awareness Campaign
 Simplifying work procedures in Government Institutions
 Effective Communication Skills training in the Municipal Councils
 HSE and Fire fighting training sessions for the community
 Elderly Health Awareness and Screening Campaign
13
Figure 5: Orpic Community Engagement Activities
Construction activities will generate issues that require systematic assessment and determination of
response by the Project. The range of these issues will change depending on activities at site and
over time and therefore the Stakeholder Identification and Issues scoping will be implemented to
assess prevailing issues and the perceptions of stakeholders as well as the capacity of Orpic to
effectively respond (in collaboration with contractors)..
Stakeholder Identification and Issues Scoping
Table 3: Key Stakeholder Scoping
Key Stakeholder Position, power and Goal, motivation and Potential role in
influence interests project
Ministry of Environmental Environmental permit Regulator of
Environment and regulator and conditions and environmental
Climate Affairs authoritative body renewals permits
Royal Oman Police Regional security and Site security plans and Second line of defence
safety crime management at project site and
ensuring safety of all
stakeholders
Shinas College of Higher education Increased enrolment Skills development
Technology and provider in degree programs and capacity building
Sohar University specific to industrial through quality higher
development education programs
to ensure a ‘future
ready’ workforce for
LPIC
Ministry of Oil and Governmental body Diversification of GDP Development and
Gas responsible for all through LPIC project implementation of
government Oil and downstream plans, policies and
gas projects. industries studies to ensure
optimum exploitation
of the oil and gas.
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Table 4: Affected Stakeholder Scoping
Affected Stakeholder Ways affected by the Key issues/concerns Potential role in

project to be addressed project
Harmul, Al Mukhaylif,  Traffic during  Traffic Inform Orpic on key
Uqdat Al Mawani, construction and management plan community
Wadi Al Qasab, Al operation issues/concerns and
 Dust monitoring
Hadd, Al Ghuzzayyil, provide feedback to
 Dust levels during and mitigation
Ghadfan, Al ensure management
construction through
Khuwairiya, Majees and monitoring
environmental
and Amq  Congestion in programs are
management plan
public social effective.
infrastructure due  Management of
to large numbers construction
of construction workers.
workers.
 Local job creation
 Employment and skills
opportunities development
 Local business  Local business
opportunities development
Al Jaylat, Al Jall, As  Dust levels during  Dust monitoring Inform Orpic on key
Saqah, Kashishat Al construction and mitigation community
Milh and Willi) through issues/concerns and
 Employment
environmental provide feedback to
opportunities
management ensure management
 Local business and monitoring
 Local job creation
opportunities programs are
and skills
effective.
development
 Local business
development plan
Fahd industrial camp  Traffic and dust  Traffic and dust Inform Orpic on key
during management issues/concerns and
construction programs provide feedback to
ensure management
 Interactions with  Labor camp
and monitoring
construction management plan
programs are
worker
 Human resource effective.
 Interactions with management
employees during policies
operation of the
NGLE
Orpic will update the issues scoping once a year unless there are significant impacts identified in a
particular location in which base more regular reviews will be undertaken.
15
6. TIMETABLE
Stakeholder consultations are currently underway and will continue through all phases of the
project, i.e.: construction, commissioning, operation and decommissioning. This will better inform
Orpic’s socio-economic baseline and tailor programs to manage and where possible mitigate the
perceived social impacts of the project. The outcomes or activities resulting from the stakeholder
consultations will be incorporated into the social management system prior to commissioning and
updated during operation as consultations continue. The timeline for engaging with each group is
included in the table below.
Table 5: Stakeholder Consultation Timetable
Stakeholder Group Description Timeline

Communities Local Affected Villages Monthly
at:
- Sohar/Liwa
(Harmul, Al
Mukhaylif, Uqdat Al
Mawani, Wadi Al
Qasab, Al Hadd, Al
Ghuzzayyil,
Ghadfan, Al
Khuwairiya, Majees
and Amq)
- Along the pipeline
(Al Jaylat, Al Jall, As
Saqah, Kashishat Al
Milh and Willi)
- Fahud (Fahd
industrial camp)
Shareholders Investors, Orpic Board Monthly
Media Newspapers, Press, TV Monthly (or more frequent if project

and Radio related news arises)
Academics Shinas College of Annually

Technology , Sohar
University
Government This group includes: Quarterly
Ministry of Oil and Gas,
Ministry of Environment
and Climate Affairs,
Ministry of Finance,
Ministry of Culture and
Heritage, Ministry of
Agriculture and
Fisheries, Ministry of
Regional Municipality
and Water Resources,
etc.
Labor Representatives HSE Representative, Weekly
Labor Account
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Stakeholder Group Description Timeline

Management,
Representative of Labor
Camps and Worker
Group Managers
Cultural Groups Bedouins, Tribal As needed
communities
NGOs Oman Women’s Quarterly
Association,
Environment Society
Oman
7. RESOURCES AND RESPONSIBILITIES

The company has a dedicated external communications and community liaison team who will be
managing and implementing the stakeholder engagement program. This will be through Orpic’s
External Relation Services (ERS) Team and Communications team. The team will report back to the
Project Director on a monthly basis to provide oversight and track progress. There are currently 5
employees working within the ERS team and 6 with the Communications team at Orpic. They are
available to support the LPIC project in close collaboration with the HSE focal point to understand
project details and potential environmental/social issues.
Training
The following training is provided to the ERS and Communications Team:
 Managing Time with Multiple Tasks

 Finance for Non-Finance
 HSE Re-induction
 Process Safety
 Security Awareness Training
 Setting Priorities, Managing Stress & Pressure at Work
 Hazard Identification
 Orpic Re-induction Course
 Global PR Trends Summit Middle East 2
 Protocol and event Management
 Screen and motion design
 First Aid training
Resourcing
Orpic maintains its commitment to Omanization and hiring locals. In particular, Orpic has already
hired from the local community affected by the project. Furthermore, Orpic continuously assesses
the skills required to support activities and will hire according to the business needs..
Budget
There is a dedicated budget for the Community programs.
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Responsibilities
The SEP team is responsible for relationships with a wide range of stakeholders as identified in this
plan, including liaising with local, regional and national government. They are responsibility for
implementing the stakeholder engagement activities included in the SEP. Further, they undertake
Orpic’s public consultation exercises and social research.
8. GRIEVANCE MECHANISM
In keeping with the HSE Policy Statement, Orpic’s highest priority is to provide for the safety and
environment of the local communities. It has a goal of “minimize the impact of our activities on
environment and society.”Orpic’s formal grievance channels use a variety of techniques, from site
visits, workshops and meetings to distributing literature. Community enquiries and concerns are
brought to Orpic’s attention directly via through the toll free Enquiries and Complaints Contact
Number, or raised through the Sohar Environmental Unit, Community Office, or Visitor Centre. The
complaints number is broadly advertised on Orpic’s website and through local offices. Stakeholders
that located in remote areas or are unable to travel can raise complaints via their local
representative office (Wali or Governor).
Orpic implements a structured process of registering, verifying and investigating complaints and
prioritises the process of providing feedback on the status of the complaint received. Corrective
actions are put into effect to ensure legitimate complaints are addressed and adverse effects
mitigated as soon as possible. For example, the majority of community concerns raised relate to
odour from the facilities, an issue that was identified to be linked to waste water management
practices. This issue has been actively managed and resolved through the design and
implementation of an odour abatement system.
The objective of the Environment and Community Complaints procedure at Orpic is to understand
perceived and actual impacts on the community and stakeholders, correct the situation as
appropriate, provide feedback on the correction to the complainant, and through management
review, develop strategies to prevent the causes of the complaints. In responding to the complaints,
a key emphasis is a timely resolution of the immediate issue. Complainant will receive notification
that the issue has been received within 3 working days and within 10 working days a preliminary
response will be provided including a summary of additional actions/concluding statements, etc. If
the Grievance mechanism cannot resolve the issue, and the escalation mechanisms fail, then the
complainant has the right to make use of any legal channels available.
The process, while facilitated by the HSE Department, requires the integration and involvement of a
number of departments to resolve the complaints. Management is involved in the development of
longer term strategies, as appropriate, to deal with the causes of the complaints.
The environmental and community complaints process is included in Appendix D.
LPIC Workers grievances will be resolved as per Human Resource Policy. The grievance procedure at
Orpic is as follows:
 When an employee has a grievance, they should discuss with their immediate leader within
5 working days. It is a part of the leader’s accountability to help solve the grievances within 3
working days.
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 If the employee is still dissatisfied with the outcome, they may appeal to the leader’s direct
superior by filling a Grievance Form within 3 working days of the outcome being
communicated. Once this form is completed and submitted to the Department Manager the
Formal Grievance procedure is initiated. The process can only be terminated by the
aggrieved employee.
 If the employee has discussed their grievance with the department manager and is not
satisfied with the outcome, they may proceed to preset the grievance within 5 working days
to the Function Head.
 If the grievance is still not resolved, the Function Head HRS till submit a summary of the
process followed, and proposed outcome to the Function Head within 5 working days. If
required, consultation with the parties concerned should be conducted and a final
recommendation be submitted to the Executive Team for ratification
 The decision of the Executive team will be the final position of the company.
 The decision of the Company will be communicated, in writing, to the employee who may
exercise their right to submit the case to the Labor Office under the Oman Labor Law.
 The whole process, from time the employee has filed the grievance (through the Grievance
Form) will be completed within a reasonable time not exceeding 21 working days.
9. MONITORING AND REPORTING

Consultations will be an on-going process throughout the duration of the project. This will inform
baseline data collection and update/very findings from statistics which are available. Feedback from
engagement sessions will be reported back to the project affected people through project status
briefings or specific one-to-one interviews on a quarterly basis. Perception survey’s undertaken by
Orpic on an annual basis will included quantitative and qualitative indicators as follows:
Quantitative indicators include: Number of meetings held, number of disclosure activities and
attendees, stakeholder groups present during meetings (including women and vulnerable groups),
number of issues/concerns raised, number of beneficiaries from CSR programme activities
Qualitative indicators include: Improved messaging, interest of stakeholders to be involved in
project/monitoring, increasing ability of stakeholders to propose and undertake actions, emergence
of local Affected Parties willing to take on leadership roles, interaction among groups, etc.
Reporting will be conducted through the following channels:
 Stakeholder Log
 Internal Weekly Meetings: HSE, ERS and Communications Team meetings
 External Reporting : The executive summary of the Environmental and Social Impact Report
in Arabic and English will be available on the Orpic website, at visitor centre and the
community office. Company newsletters, project briefings and publications such as the bi-
annual corporate sustainability report are available at the visitor centre and community
office. Air quality and emissions from the Sohar refinery are updated on an hourly basis and
available online. Orpic’s annual report is also available online and at local offices.
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10. MANAGEMENT FUNCTIONS

Stakeholder engagement activities are the responsibility of the corporate external communications
officer with the support of the HSE team. Representative from the LPIC project will manage external
communications and community relationships for project-specific elements. The responsible
manager will report to the LPIC project director on a monthly basis to ensure accountability.
Furthermore, monthly status reports on the stakeholder engagement program will be provided to
Orpic leadership on the LPIC project to track progress. Contractors will have no engagement with
local stakeholders and any consultations will be done by Orpic on behalf of the contractors.
Management tools such as the Orpic stakeholder engagement database (part of the corporate
sustainability report) will be leveraged to document, track and management the stakeholder
engagement process. The stakeholder engagement activities will be integrated into the
environmental and social management system to align with core business functions. This will be
communicated internally within Orpic through an email circular to all employees and during team
meetings.
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APPENDIX A: SUMMARY OF ENGAGEMENT ACTIVITIES
Stakeholder Channel Frequency Summary

Group
Orpic Board - Board meetings - As required, at least - Status update of Orpic
- Monthly MIS monthly performance
and Projects progress
- Briefings for required approvals
OOC Board - Written status reports - Quarterly - Status update of Orpic
of Directors performance and Projects progress
Ministry of - One-on-one meetings - As required, at least - Status update of Orpic
Oil and Gas with the minister monthly performance and Projects
- Written status reports progress
Ministry of - One-on-one meetings - As required, at least - Status update of Orpic
Finance with the undersecretary monthly performance and Projects
- Written status reports progress
Ministry of - One-on-one meetings - Based on - Status with a focus on labor
Manpower with HE and the announcements of major issues
undersecretary changes, roughly
- Written status reports quarterly
Ministry of - One-on-one meetings - - Based on - High-level status update of Orpic
Environment Status reports announcements of major with a focus on environment
and Climate changes, roughly every 3 issues
Affairs months or as required - Progress in improving
environmental protection
Governor of - One-on-one meetings - Based on - Progress in improving
North Al announcements of major environmental
Batinah changes, quarterly or as Protection
required - Update on new projects progress
- Progress in community
involvement
- Employment opportunities
- Prior to any Instance where may
be perceived suspiciously by
community i.e. heavy smoke,
weird flaring..etc.)
Walis of - One-on-one meetings - Based on - Progress in improving
Sohar, Liwa announcements of major environmental
and Shinas changes, Every 2 months Protection
or as required - Update on new projects progress
- Progress in community
involvement
- Employment opportunities
- Prior to any Instance where may
be perceived suspiciously by
community i.e. heavy smoke,
weird flaring.. etc.)
Newspapers, - One-to-one meetings Occasionally ,At least - HSE improvements
TV and other - Press conferences monthly. - Developments in community
media - Press releases relations
services -Event based or as
- Media lunch - Progress of New Projects
required
- Orpic performance
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Group
Local - Face-to-face meetings - Monthly face-to-face - Progress in improving
community with community meetings environmental protection
in Sohar, representatives - Sohar plants visits by - Job opportunities
Liwa & - Visits to the Sohar plants request
Shinas for members of the local - Monthly publication of - Corporate Social Responsibility
community (and the updates program progress
general public)
-
- Newspapers
- Radio
- Orpic website
- Flyers distributed by hand
Local - Face-to- face meetings Monthly in-person - The feeling of only receiving
Community - Newspapers meetings information and lack of
at Pipeline - Radio Dialogue.
- Orpic Website - Lack of Support and Social
- Flyers distributed by Investment from the Owner
hand Company of the Old Gas
Pipeline.
- Maintaining Khishishat AL-
Melh Village Cemetery Wall.
- Complaining from neighboring
crushers companies and that
polluting the air by truck
movements and the
operations.
- Maintaining Relation/ link/
connections with the
community in the Villages.
- Need for little fund for
Maintaining the “Al Jell falaj”
A traditional water channel
irrigating the Village farm.
- Request fund for providing a
play areas and playground
- Building of “Majliss” a
traditional common hall for
gathering of community
members hosting regular
meetings and celebrations.
- Maintaining Relation/ link/
connections with the
community in the Villages
22

Group
Local - Face-to-Face meetings - Bi-Monthly face-to-face - Progress in improving
community with community meetings environmental protection
in Muscat representatives - MAF plant visits by - Job opportunities
- Visits to the Sohar plants request - Corporate Social Responsibility
for members of the local - Monthly publication of program progress
community (and the updates
general public)
- Newspapers
- Radio
- Orpic website
Potential - Newspapers - Job opportunities based - Job opportunities

employees - Orpic website on availability
from around - Participation in job/career
Oman fairs
- On-campus presentations
23
Pictures from recent stakeholder meetings
Consultations with Al Jall Village along Pipeline Focus Group Meeting: Liwa villages
Consultations with Khashaishat Al Melh
Consultations with Al Sagha Village along Pipeline Pipeline route
24
Summary of Interviews Conducted for Socio-Economic Study by Strategy& (April 2015)
H.E. Sheikh Mahna bin Saif Al Lamki – Governor of North Al Batinah
 Overall positive prospects and expectations of LPIC

 It is expected to generate a sizeable economic stimulus to Al Batinah and Oman:
 Create Jobs
 Support local SMEs
 LPIC should consider prioritizing the local Liwa workforce for employment
 LPIC is also expected to support capability development efforts
 On the social side, managing the environmental aspect is critical
 Building trust with the local community is also a key success factor and this could be done
through constant and transparent communication
 A community-ORPIC committee to support this process
H.E Sheikh Dr. Said bin Humaid Al Harthi – Wali of Liwa
 Job creation for Omanis is an immediate priority in the region; Giving some priority to the
local population in Liwa is also a must
 Any kind of jobs would do in the short term and not necessarily high paying jobs only
 We need to ensure that the LPIC project respects all environmental norms
 Social services such as building a cultural center would be key for such a project
 Al Batinah North is the most populated area: Sohar accounts for ~120K people
 The geographical location (close to the UAE) of Sohar and its ports should be additional
reasons why LPIC would be a great fit to Sohar
Sohar Chamber of Commerce
Interviewees:
Hafedh Al Rubaei
Sheikh Ali Al Badi
Asma Al Futaisi
Interview Summary / Key Points:
 A win-win situation with the local SMEs is needed

 Sohar aluminum has a better reputation than ORPIC
 Local SMEs can provide basic services around
o Levelling / foundation
o Basic construction
o Catering
o Cleaning
o Supplying utilities
o IT Networking
 Local companies are unexperienced and small with limited capabilities. Developing them
requires a leap of faith
25
 Currently local content quota is taken by “fake” Omani companies, with non-omani
management
 According to some of the local SMEs, it is estimated that 93% of SRIP budget is being
captured by non-local resources
 The chamber proposed to establish a local content committee between ORPIC and local
SMEs owners and the chamber
Dean and Faculty – Shinas College of Technology
 There are links with ORPIC for training the students – the college is willing to adapt more to
the industry’s requirements
 There is no human capital planning in Oman and everyone is suffering from this
 ORPIC needs to do more in terms of
 employment generation for the people of Liwa specifically, and environmental impact
management
 ORPIC can follow the example of Vale which has been working a lot with the local
community, in terms of employment and outreach programs
 ORPIC should work on creating ‘win-win’ situations for itself and the local community
 We view everyone in the Sohar Port Industrial Area as ORPIC, and any environmental
complication we blame it on ORPIC
 Communication is key to the social success of any project
 Since the inception of the first refinery (prior to ORPIC), the population has developed a
negative perception of ORPIC driven by its inheritance of this refinery
 The local SMEs in Liwa have not been contacted or contracted by ORPIC on their projects
and operations
Sohar University
Interviewees:
Dr. Hamdan Al-Fazari – Professor, VC, Resources
Dr. Ghassan Al-Kindi – Director of Research and Industrial Collaboration
Interview Summary / Key Points:
 There are 6200 students in the University currently, of which, 82% are women – this reduces
the suitability of the graduates for industrial jobs such as shift operators
 Main reasons for the lower percentage of male students:
 Significant number of male students enter the Army, Police or Civil Services after high school
 Entry to the University is largely based on scholarships which is given to the best performing
high school students – these are mostly the women – one way to address this can be to
lower the high school performance requirement for male students to get a scholarship
 Further, women prefer to go into government or administrative jobs as well once they
graduate given the better working hours and relatively higher compensation at entry levels
 In the private sector, work - visas for expatriates are not transferable across companies
whereas the Omanis can switch companies more easily – this acts a disincentive for private
sector companies to hire and invest in Omanis
 Unemployment issue in the region is significant and ORPIC / LPIC alone cannot address this:
26
 There would be 1000-1500 students entering the job market from Sohar University every
year for the coming few years
 LPIC would create around ~1000 jobs in total
Ali Al Hashar – CEO, Jusoor
 Jusoor is the CSR arm of Vale, ORPIC and Sohar Aluminum

 Jusoor manages both Jusoor branded or ORPIC branded projects
 Jusoor has implemented multiple social projects for the companies, ranging from small scale
projects to rehab centers to schools and other infrastructure projects
 The key priority to the local community is:
 Creation of job opportunities
 Training and build capabilities of people to be able to succeed in their job
 Omanis typically prefer public sector jobs and that is the key challenge for Omani
employment in general
Khadija Al Nofali - Oman Women’s Association, Sohar
 There are two categories of women:

 Educated women prefer to work in the public sector driven by the environment and working
hours
 Un-educated women don’t mind working in any kind of job
 The key challenge for the women working in Industries is the shift system, and the fact that
the law does not allow them to work under a 3 shifts system
 They have developed a study on the environmental impact of the industrial zone in Sohar,
and they would be sending it to the working team as soon as they get the go-ahead and
required approvals
H.E. Mohammed Jawad – Advisor to the Minister of Finance
 Most of the approvals for LPIC from Ministry of Finance have already been received
 Financial returns (i.e., IRR) of investments are important but it should not be the only
criteria. Ministry of Finance itself looks at several socio-economic parameters before
approving projects including:
 Economic diversification
 Adding value to in-country resources
 In-country human capital development
 Employment generation is very important for Oman today and SMEs are the only way to
address this issue
 Government should only provide subsidies to develop SMEs when there is a clear net
positive impact on GDP, employment and capabilities
 There are several other ways in which the Government can drive SME development and
MOF is working on several of these, including:
 Fix ODB’s procedures: Increase lending limits while securing the principal; Reduce the types
and number guarantees required; Increase approval for seasonal loans
 Bring together the various lending bodies
 Increase liquidity and infrastructure support (e.g., set up incubation centers)
 Provide assured revenue in initial phase through government contracts
27
 Provide ‘education for employment’ i.e., educational programs that help Omanis get
employed in current jobs in the economy which are primarily occupied by expatriates, e.g.,
accountants, auditors, financial analysts, IT specialists, pilots / co-pilots, etc.
 There is need to target private sector companies in Oman to develop Omanis by using the
right incentives / levers. Specifically, 2 types of companies need to be targeted:
 Companies that have been around for a long time in Oman and have made a lot of money
already
 Companies that are looking to enter Oman
 Training programs for capability development need to be properly structured to have the
right impact
Ali Al Riyami – DG Marketing, Ministry of Oil & Gas (MOG)
 Oman has been a little late in developing downstream oil & gas sector and other industries –
a lot of valuable time and resources have been lost by just exporting crude oil and LNG since
1960s
 Arab spring with the uprising in Sohar was a wake - up call in terms of realizing that the
wider Omani population is not completely satisfied with the current socio-economic
situation
 Employment creation is an immediate requirement and not something in the future – close
to 60,000 Omanis will join the working ae group every year for the next 5-10 years
 Companies like LPIC, ORPIC and the other large companies in SIPC will not be able to solve
the employment problem on their own – these are capital intensive and will employ a very
small number of people and not across all skill levels
 SIPC has not been able to incentivize / set-up other companies that would employ more
people – D’uqm SEZ might be able to address this in a better way
 There is a need for a long term view across the entire economy in order to identify focus
areas that will address the economic and especially, employment related issues – needs to
be addressed as part of the country’s economic planning
Shanmugan Balaji – Strategy and Performance Director, Oman Oil Company
 Oman Oil Company follows a rigorous process to evaluate investment opportunities that
looks at overall impact rather than just financial returns
 There are several factors that need to be taken into account, e.g.,
 Link back to Oman
 High quality jobs creation
 Bringing new technologies into the country with the potential to develop these technologies
further within Oman
 Private sector and SMEs development
 Employment generated per MMBTU of energy spent
 Potential to develop further downstream industries and diversify the economy on the back
of an investment
 Transfer pricing is a key issue to be considered when evaluating the impact of integrated
investments
 Downstream plastics park in Oman would have a significant impact on the economy even if
raw material needs to be subsidized to make the projects profitable and competitive in the
short term
28
Dr. Anwar Al Kharusi – Head of International M&A for Upstream, Oman Oil Company
 Upstream investments are quite large and capital intensive and therefore, do not contribute
significantly to indirect and induced GDP / employment impact
 One could consider exporting Omani capabilities to develop oil & gas projects in other
regions that lack capabilities, e.g., Africa
 Other potential parameters to consider while making investments:
 Security of government revenues
 Security of supplies
 Returns to shareholders in the government
Faisal Al Mamari – Takamul
 Takamul’s focus is explore and develop small and medium size industries downstream of
current major companies, via two potential models:
 Integrated model (backward linked into existing mega projects)
 Support services model
 Takamul follows four key criteria in selecting investments that are similar to the ones
identified by the study:
 Sectors need to be one of Chemicals, Minerals, Metals or Industrial Support Services
 Financial returns
 Integration – either on the raw material side or in terms of services supplier
 Omanization
Musab Al Mahruqi – CEO, ORPIC
 There are several competing projects for every dollar being invested in Oman therefore GDP
impact needs to be maximized
 Further, investments should definitely result in economic diversification of Oman
 Orpic has already made a significant impact on the GDP of the country by providing refined
products for domestic consumption that would have otherwise been imported
 Further, it has also contributed significantly towards the development of Sohar region and
the local community– however, this has not been highlighted enough
 LPIC will further add to Orpic’s contribution:
 Ensure high degree of integration across the value chain which will have a greater indirect
and induced impact
 Will maximize the value add from gas (through gas separation) and refinery side streams
(dry gas, condensates, etc.)
 Will also bring new capabilities into the country (e.g., plastics) and develop them further
 Finally, Orpic is a business and needs to be treated like one, which implies that Orpic can
only contribute to a certain extent in terms of improving the socio-economic situation in
Oman and in Sohar.
 Government and the ministries need to play a strong enabling / facilitating role in this regard
Raphael De Loenen – COO, ORPIC
 Key issues faced by Orpic in recruiting / training people in Oman:

 Curriculum mismatch in local universities – too many non-technical topics
 Students don’t have ‘application based teaching’ in schools and therefore need to be trained
extensively to bring them up to the Orpic level
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 Orpic is already contributing a lot towards local community development:

 Recruitment and training:
 Hiring Omanis in advance for future projects and sending them to refineries and
petrochemical plants in India / South Asia to get trained on the job – and paying for the
training
 Program to hire graduate engineers and train them as panel operators
 Hiring Omani women for non – shift technical jobs (maintenance, technical, etc.)
 Developing a career path for Engineers that would develop well rounded and experienced
professionals
 Providing a mix of classroom and on-the-job trainings under the ItQan program to prepare
professionals for Orpic
 SME development:
 Metrics defined for ICV performance measurement
 Supporting and engaging locals to take up new SME opportunities as sole suppliers of
specific goods / services for Orpic – providing support in terms of business feasibility
assessment, assured revenues (supply contracts) for a fixed period.
 Government / ministries / other entities can do more in this aspect, e.g.,
 Align curriculum in schools / colleges with industrial requirements
 Promote technical jobs and raise awareness and appeal among students about the Oil & Gas
industry
Nazar Al Lawati – CFO, ORPIC
 LPIC is a natural extension to Orpic in the sense that refining is not a high margin business
globally and Oman needs to extract maximum value from all the other streams that are not
essential to meeting Oman’s fuel requirements
 While LPIC may be a good investment among the industrial investment options, service
sectors should be also considered at the government level
 At the government level, service sectors such as Tourism should be a focus area as it has the
potential to generate significant employment opportunities, which is a critical socio-
economic priority for Oman
Ibrahim Al Kalbani – Head of Procurement, ORPIC / Abdullah Al Farsi – Manager of Planning and
ICV, ORPIC
 Orpic has implemented several initiatives to help develop local SMEs. These include both
 ICV enhancement initiatives: Orpic has defined its own set of criteria to enhance ICV,
especially on large projects and has also been able to drive significant ICV content as a result
(e.g., 25% on the pipeline project)
 Other local content development initiatives aimed at developing suppliers within the Sohar
region itself (target for total spend from supplier base within Sohar has been set at 10%)
 Enhancing ICV can be challenging depending on the project, as spend profile varies from one
to the other. E.g., for the Muscat – Sohar pipeline, a relatively higher ICV was achieved given
the availability of pipe manufacturers within Oman, but this may not be possible for other
projects
 While the local population in Sohar has been requesting Orpic and the government to
provide employment opportunities, some drive is also required on part of the general
population in terms of being entrepreneurial and starting up companies that can become
potential suppliers
30
 Another way to enhance ICV can be to encourage Orpic alumni to start intermediate supplier
businesses based on the capabilities they have developed while working for Orpic
 One concern with respect to enhancing the ICV on LPIC would be the requirements of
potential foreign investors in the project (i.e., requirements on using material and services
from the investors’ countries / projects)
31
APPENDIX B: SOCIO-ECONOMIC SURVEY TEMPLATE

Date:
Village/Town:
Wilayat:
Name of Respondent (Wali/Sheikh/Local People):
Sl. No. Social Variables Comments

A Demography
1. Most populated settlement
2. Least populated settlement
3. Main tribe – (write the distribution in villages)
4. Other tribes
5. Native tribe of Sohar
6. For how long people are residing in you region?
7. Average family size
8. Family demography – major population Children Major (0-6)
Youth Major (6-15)
Economically Productive (15 – 45) Major
Old Major (+45)
B Economic Characteristics
1. What were the early occupations of residents of
your region?
2. What is the current occupation of residents?
3. Major source of income for the local community at

present
4. Reason for changing occupation – if any
5. Average household income
6. Changes in employment characteristics over the
years
7. Influence of recent industrial development on
employment opportunities
8. What is the current economic status?
C Social and cultural characteristics

1. Girls of school age are going to school and higher All are going
education? Mostly Yes
Mostly No
Girls are not attending schools and higher education
2. Boys of school age are going to school and higher All are going
education? Mostly Yes
Mostly No
Boys are not attending schools and higher education
32

3. What is the current education level in the Yes gone to University
community? Have most gone to university? If so, List degree programs:
what type of degree programs did they pursue?
4. Is there any vocational training provided to the Yes

community to provide practical experience? No
5. Are the current education facilities (i.e. schools and

Universities) enough? Sufficient? Of good quality?
6. Major occupation of women in family House hold works

Animal rearing & house hold works
Rarely service
Women do not go for jobs
Any Others …………………………………………………………..
7. Effects of population influx on social environment Increased Vehicle
Increased Crime
Increased cost of food/living costs
Increased Road Accidents
Increase in outsider workers/population (Omani and
Expatriate)
Cultural Depletion
8. Seasonal migration Any other
Inward
Outward
9. Seasonal Inward Migration Expatriate More
Omani from Other Regions More
10. Reason for Seasonal Inward Migration
11. Seasonal Outward Migration of natives - Reasons
12. Permanent Migration of Omanis Inward
Outward
13. Reason for Permanent Migration of Omanis -
Inward
14. Reason for Permanent Migration of Omanis -
Outward
15. Effects on land use pattern and natural resources
16. Concerns regarding relocation of local population

(if required)
17. Changes in social or family structure
18. Impacts of influx population on local culture
19. Potential health issues
20. What is the current health status of the
community? Any common diseases (e.g.
respiratory illness, cancer, etc.)?
33

21. Are the current health facility sufficient and of
good quality?
22. Pressure on current infrastructure

D Attitude towards project development
1. Any impact from the Industrial Development in
Sohar?
2. Any positive or negative impacts of the current Agriculture and grazing activities
development (seawater Intake pipe, excavation Influx of more working population
activities etc.) on communities? Any others …………………………………………………………..
Specify the Community………………………………………
3. Is the local community in favor or against current

development and why?
4. Expectations and aspirations of the local
community
34
APPENDIX C: SAMPLE STAKEHOLDER LOG

ORGANISATION NAME OF POSITION CONTACT MEETING MEETING ISSUES OUTCOMES FOLLOW RESPONSIBILITY DEADLINE SPECIFIC
CONTACT DETAILS PLACE DATE & UNDER UP DATE ADDITIONAL
TIME DISCUSSION ACTIONS DETAIL
35
APPENDIX D: ENVIRONMENTAL AND COMMUNITY COMPLAINTS PROCESS

(Next Page)
36
37
Sultanate of Oman
Labor Camp Management Plan

9 November 2015
Issue and Revision
HMR Company
Camp
B Management Second version 9/11/2015 HMR HMR HMR Orpic
Plan
Camp
A Management First version 1/11/2015 HMR HMR HMR Orpic
Plan
This document has been prepared for the above titled Project and it should not be relied upon or used for any other
Project without the prior written authority of HMR Environmental Engineering Consultants. HMR Environmental
Engineering Consultants accepts no responsibility or liability for this document to any party other than the client for
whom it was commissioned.
HMR Environmental Engineering Consultants

Sultanate of Oman
Tel: (968) 24618800; Fax: (968) 24618811
www.hmrenv.com
Contents
Introduction ............................................................................................................................................ 1
Legal Requirements and Grievances ....................................................................................................... 1
Management and Monitoring................................................................................................................. 2
Roles and Responsibilities ..................................................................................................................... 12
Training, Awareness and Competency ................................................................................................. 12
Performance Indicators ........................................................................................................................ 13
Appendix A: Legal and Other Requirements......................................................................................... 14

LPIC Camp Management Plan
Introduction
Orpic (the Company) has developed this Camp Management Plan as part of its Environmental and
Social Management Plan (ESMP) outlining a range of mitigation measures designed to avoid or
reduce undesired camp management impacts during construction. This document establishes a basis
and template for use by the Contractor to develop their own plans outlining not only mitigation
measures but to also incorporate the roles and responsibilities described in the ESMP.
The objectives of the Camp Management Plan are:
 Avoid or reduce negative impacts on the community and maintain constructive relationships
between local communities and workers’ camps; and
 Establish standards on worker welfare and living conditions at the camps that provide a
healthy, safe and comfortable environment.
This Plan should be read in conjunction with other environmental and social management plans
(EMPs and SMP’s), including:
- Traffic Management Plan

- Security Plan
- HSSE Management System
- Stakeholder Engagement Plan
Legal Requirements and Grievances

The Contractor is required to operate within the parameters of the Omani Labor Law and the
International Labor Organization guidelines. Oman has ratified 4 of the 8 ILO fundamental
conventions. The IFC Performance Standards are applicable to this project, therefore Performance
Standard 2 covering labor and working conditions will be followed. Furthermore, the Company has a
Human Resources Policy which is required to be adhered to by the Contractor. Through this policy,
the Contractor may file a grievance by sending an email, stating the causes of complaints, to:
[email protected]. Furthermore, contractors will have access to the Orpic worker
grievance mechanism for escalation purposes.
The Company will acknowledge receipt of the complaints immediately and will go through an
internal process to investigate. A more detailed response regarding the grievance will be provided
within 60 days. In the event that no response is provided within 60 days, Contractor can contact the
Market and Logistics Team Leader within the Procurement, Contracts and Inventory Department on
+96822105353. Furthermore, Company personnel conduct regular safety walks and an HSE
committee will track performance against requirements stipulated in this plan. The Contractor will
also have its grievance mechanism developed for the project.
Additionally, the Company Code of Business is applicable to this Project and the Contractor would be
required to sign and acknowledge the Code of Business Conduct and agree to abide by its provisions.
Legal requirements applicable to this Plan are detailed in Appendix A.
1
Management and Monitoring

Figure 1 presents a flow chart summarising key management steps associated with implementation
and review of this Plan, including steps to allow for continued improvement. Table 1 presents a
summary of the potential impacts related to camp activities, together with mitigation and
management measures to avoid or reduce these impacts, and the monitoring required to assess the
performance of these measures.
The Contractor shall develop a Contractor Plan which shall, as a minimum, incorporate the camp
management measures described in Table 1. The Contractor shall not be limited to these measures.
Monitoring to be undertaken as part of this Plan is described in Table 1.The Contractor is responsible
for developing area or site-specific procedures for the monitoring program (where necessary) based
upon the final design details of the infrastructure
2
Figure 1: Camp Management Process
3
Table 1: Management and Monitoring1
Aspect Potential impact Mitigation & Management Monitoring Frequency Responsibility

Community Relations Unauthorised movements of 1. Contractor shall enforce a 'closed' camp policy 1. Monitoring 1. On-going 1. Contractor
construction workers (during and after unless otherwise agreed and approved by 2. Verification 2. Every 3 2. Contractor
working hours) could result in Company. Workers will comply with the agreed 3. Verification months 3. Contractor
trespassing, damage to local land and camp closure hours. 4. Verification 3. Every 6 4. Contractor
property and create amongst local 2. Contractor shall implement suitable measures to 5. Notification months 5. Contractor
residents a sense of their privacy being maintain the closed camp policy which may 6. Verification 4. On-going and/or
invaded. include perimeter security fences, security 7. Verification 5. On-going Company
controls and guard houses, monitoring transfer of 8. Verification 6. On-going 6. Contractor
Residents may feel vulnerable and goods into and out of camps for contraband and 9. Verification 7. Every 3 and/or
there may be increasing incidents of stolen goods. Contractor should refer to the months Company
crime and or violence and threats to Project Security Management Plan. 8. On-going 7. Contractor
the safety of community members. 3. Contractor, as appropriate, shall provide 9. Every 3 and/or
adequate recreation facilities for workers to months Company
Disparity of pay, increase in disposable reduce incentive for leaving camps during leisure 8. Contractor
income and potential availability of time. and/or
illegal substances, illicit or culturally 4. Contractor shall limit workers interaction with the Company
inappropriate lifestyle choices, leading community when outside the camp e.g., by 9. Contractor
to increased tension between local organising transport directly to and from the and/or
communities and the workers at worksite. Company
camps. 5. If community members or local businesses
express grievances in relation to camp related
activities/operations, the Project shall respond to
the grievance in accordance with the grievance
procedure outlined in this plan and the
Community Grievance Procedure contained in the
Stakeholder Engagement Plan (SEP).
6. Company may request that camp related
activities/operations be amended to address
1
Detailed plans to mitigate and manage potential impacts will be developed by the Contractors once they are appointed for the LPIC project. These Plans will be monitored on a
weekly basis my contractors and Orpic will conduct over-arching checks on a quarterly basis.
4

community grievances. Contractor shall comply
with these requests.
7. Workers shall abide by camp rules which include a
disciplinary process to be developed by the
contractor once appointed.
8. The Project shall, be cognisant of the environment
in which it works and shall, where practicable,
respect local cultural events such as religious
events, funerals and the like.
9. The Project shall provide training to all workers,
national and expatriate on camp management
including:
a. A briefing on camp rules, including closed
camp policy, behaviour between fellow
workers and the community;
b. Procedures for dealing with camp related
complaints, worker issues and community
issues (as per Stakeholder Engagement
Plan, SEP); and
c. Community relations orientation. The
objective of this orientation will be to
increase awareness about the local area
and cultural sensitivities.
Health Potential interaction between workers, 1. Contractor shall comply with the Minimum Health Verification 1. Every Contractor
persons engaged in illicit activities and Requirements for Project Execution and the three
the community increases the risk of Community Health and Safety Management Plan months
spreading communicable diseases, which set out requirements and management 2. On-going
particularly in more remote measures on controlling communicable diseases 3. Every
communities. within camps and to outside communities three
Camp operations have the potential to 2. Contractor shall enforce the closed camp policy to months
develop favourable conditions for limit interaction with community
weeds, pests and disease, which could 3. The Project shall comply with the Weed, Plant
impact the health of workers and the Pathogen and Pest Management Plan to prevent
community, as well as affect exotic weeds, plant pathogens and pests from
5

community livelihoods (e.g. rodent entering the Project areas (including camps) and
infestation affecting crops). spreading outside of those areas.
4. Posters and informational sessions will be
conducted to raise awareness among the
workforce and communities locally around the
worker camps.
Waste management, Camp has the potential to have off site 1. Contractor shall exercise all reasonable due 1. Verification On-going Contractor
pollution and pollution impacts from waste disposal, diligence to conduct its operations in a manner 2. Verification
environmental emissions and spills. Camp operations that will minimize pollution. 3. Notification
impacts may also cause environmental issues 2. Contractor shall comply with the Waste
including deteriorating water quality, Management Plan and Hazardous Materials
erosion, sedimentation, noise and air Management Plan which define requirements to
quality issues. These factors have the contain, transport, handle and dispose of camp
potential to affect the community if wastes and hazardous materials to avoid impacts
not adequately managed. to human health and the environment.
3. Contractor shall also apply appropriate
management controls set out in Orpic’s HSSE
Management Plan.
Community resources  Any infrastructure, services or 1. Contractor shall utilise water sources for camp use 1. Verification 1. Prior to 1. Contractor
resources used by camps (e.g. in a manner that minimises impacts on local supply 2. On-going establishin 2. Contractor
water abstraction) that result in and use. Freshwater sources used by the 3. Verification g the 3. Company
reductions/ shortage/interruptions Contractor should be reviewed and accepted by camps
for the local community will have a Company. 2. Every 3
negative impact. 2. The Project shall routinely monitor quality and months
 There is potential for social envy supply of water source used by camp through 3. Annual
and increased resentment from quarterly sampling exercises.
the community towards the 3. Company will implement the In-Country Value Plan
Project and project team if camp and the Company Community Support Strategy
facilities are perceived to be which identifies strategic community investments.
superior to those in the
community. Services of note
include camp health facilities,
power supply, clean running
water. Restricted ability to access
6

these services may increase
frustration at the level of the
services available to them.
Procurement and Increased demand for food and other The Project shall not purchase products in the local Verification On-going Contractor
supply of goods provisions may deplete natural community unless through formal contracts with
resources e.g. agriculture, fisheries, approved suppliers as per the In-Country Value2 and
etc. potentially causing shortages of Local Content Plan to be developed by contractors as
supply in the local community, and/or detailed in Appendix B.
increasing the price of goods, affecting
affordability for local communities.
Camp location  Siting of camps may result in 1. Potential camp locations will be selected in Verification 1. Prior to Contractor
displacement of residents, loss of consultation with Company and affected establishin and/or Company
productive lands and the resources communities will be subsequently consulted. g the camp
upon these lands. Camps may also Necessary permits will be obtained from the 2. On-going
restrict or impede access to areas relevant local government organizations for the
for the local community. approved camp location.
 Construction camps may result in a 2. The Project shall refer to those Environmental
noticeable increase in traffic, Management Plan's (EMP) that include
noise, air emissions and light mitigation/avoidance measures that relate to the
intrusion which could negatively local community, including:
affect the amenity and lifestyle of o Noise and Vibration Management Plan;
nearby communities and pose a o Air Emissions Management Plan; and
potential safety issue. o Waste Management Plan.
In-migration There is a low likelihood of in-migration  Contractor shall enforce a ‘closed’ camp policy Verification On-going Contractor
into areas around the construction unless otherwise agreed by Company. This is and/or Company
camps. However, people from outside intended to deter individuals setting up near camp.
of the local area may migrate into  Contractor shall develop a Labor and Working
existing settlements or develop new Conditions Management Plan with a minimum
2
In-Country Value is defined as “The total spend retained in country that benefits business development, contributes to human capability development, and stimulates productivity in Oman’s economy”. The ICV
requirements for the Contract are: Local purchase content of minimum 25%; a minimum Omanization level of 30% at all levels of the organization; and, training effort for a number of Omani’s in excess of 15% of those
Omani’s employed (excluding owner employees). The contractor is required to submit a draft ICV plan for Orpic’s approval within 45 days of contract award. The ICV plan will be a single, stand-along, auditable document
containing responses and supporting information as per the requirements stipulated in the ICV requirements and local content guidelines.
7

settlements in proximity to camps and compliance with the Omani Labor Law, Company
the Project area. Existing communities HSSE Policy, Human Rights and HR Policy, and HSSE
may also relocate to be closer to Management Plan.
camps. In-migration can result in  The Contractor is to refer and abide by the
disputes and sometimes violence Workers Accommodation process and standards
between the new settlers and the (IFC/EBRD).
resident community. Migrants moving
into existing settlements may increase
demand and inflate prices for housing,
goods and services. Increased
population and development of new
and uncontrolled settlements increase
pressure on infrastructure, services and
resources. The increased traffic from
in-migration may also result in greater
theft and smuggling of goods.
Worker welfare and Construction workers living in camps Contractor shall comply with minimum standards for Verification On-going Contractor
living conditions may encounter stresses and camp buildings, facilities and services cited in Omani
discomforts that negatively impact Law, Workers Accommodation process and standards
their health and welfare. These (IFC/EBRD) and the Project Invitation to Tender (ITT)
stressors or discomforts may be caused requirements.
by Poor living conditions Standards covered include but are not limited to:
(accommodation, ablution and • Building requirements;
sanitary, health, recreation catering • First aid facilities and services;
and laundry). • Sanitary and ablution facilities;
• Entertainment and recreation facilities and
services;
• Communication services;
• Food and canteen facilities and services;
• Accommodation requirements; and
• Laundry facilities.
There is potential for resentment if  Where there is a difference in camp Verification On-going Contractor
living conditions of Omani or other accommodation, Contractor shall manage this
country nationals are of a lesser issue in an open and transparent manner. Orpic
8

standard than expats. will work with contractors to improve standards to
an international level.
 All camps will operate on a non-discriminatory
basis and provide the same standard of
accommodation and welfare facilities for
workers; although distinctions may be appropriate
based on seniority of individuals and job
classifications.
Cultural issues (nationality, religion,  Contractor may provide prayer rooms and other Verification On-going Contractor
discrimination and harassment, etc.). facilities, as necessary and to the extent
practicable, to satisfy the religious needs and
customs of its workforce.
 Contractor’s personnel shall not engage in any
discrimination or harassing behaviour. Contractor
shall establish an Equal Opportunity Policy to
promote non-discrimination in accordance with
Labour and Worker Conditions Management Plan.
 Contractor shall implement a worker grievance
procedure to address grievances between workers.
Refer to the Worker Grievance section of the
Labour and Worker Conditions Management Plan.
Mental health issues (morale, isolation, 1. Camps will be treated as closed camps. Camp rules Verification 1. On-going Contractor
family attachments, boredom). in relation to alcohol consumption and drug 2. Every 6
prohibition will be complied with. months
2. Contractor shall provide recreational facilities
where practicable.
3. Contractor will provide counselling for all workers,
with no discrimination by race, sex or religion.
Personal security (crime, and  Camps will be controlled by security to avoid Verification Prior to Contractor
emergencies). intrusions from outside community. establishing
 Work Site Security Plan to be developed by camp
Contractor shall include security measures to be
provided at the camps which may include fencing,
9

locks, alarms, pass card systems, badge and pass
system, access points, safe transport of personnel
as appropriate. Orpic has a site Security Plan as
detailed in Appendix C.
 Contractor shall develop an Emergency Response
Plan that meets requirements set out in the ITT
package
Environmental stress (climate, noise Contractor shall comply with the Minimum Health Verification On-going Contractor
etc.). requirements for Project Execution Project Design
Specifications (PDS) and Health Design Specifications
for Projects, and as per requirements of the IFC/EBRD
Guidance for Worker Processes and Accommodation in
addressing environmental factors including:
 Accommodation will be designed to suit climatic
conditions;
 Accommodation and surroundings shall be
constructed so that noise does not interfere with
sleep to the extent that is reasonably practicable;
and
 Health and hygiene inspections of facilities as per
the above PDS.
Decommissioning Decommissioning of camps has several  Contractor is to follow the retrenchment Verification On-going Contractor and
potential impacts: procedure discussed in the Labour and Worker Company
• Local employment and provision of Conditions Management Plan.
local goods and services at camps will  Where Community requests, some infrastructure
no longer be required; and services may be retained at the discretion of
• Locals employed and previously Company:
accommodated in camps will no longer o Disturbed areas will be reinstated as per
have access to services and benefits the Reinstatement Plan;
available at camps (e.g. health services, o Where practicable, Contractor will return
recreation facilities); and camp areas to former landforms;
• Infrastructure which provides o No facilities will be maintained in or near
benefits to communities may no longer especially environmentally or socially
be maintained (e.g. roads) and may be sensitive areas; and
10

decommissioned and removed or o Where there are negative consequences
reinstated (e.g. access tracks). of induced access, the facility will also be
decommissioned and the area reinstated.
11
Roles and Responsibilities

The implementation to this plan required consistent and committed resources from the Company
and Contractor. Below are the expectations of roles and responsibilities for this Plan:
 Contractor shall ensure sufficient resources are allocated on an on-going basis to meet the
requirements of this Plan.
 The Contractor Plan shall describe the resources allocated to and responsible for the
execution of each task and requirement contained therein, and shall describe how roles and
responsibilities are communicated to relevant personnel.
 Company shall ensure sufficient resources are allocated on an on-going basis to achieve
effective implementation of Company’s responsibilities in the Camp Management Plan.
Training, Awareness and Competency

Training is a critical component to raise awareness on the various impacts and associated
management functions of the Plan. As such, it is expected that:
 Contractor shall ensure that all personnel responsible for the execution of the tasks and
requirements contained within this Plan are competent on the basis of education, training
and experience.
 The Contractor Plan shall describe the training and awareness requirements necessary for its
effective implementation.
 Contractor’s training activity associated with the Contractor Plan shall be appropriately
documented by means of a training needs assessment, training matrix/plan and records of
training undertaken.
 Project shall ensure that personnel responsible for the execution of tasks and requirements
in the Camp Management Plan are competent on the basis of education, training and
experience.
 Project training activity associated with the Camp Management Plan shall be appropriately
documented by means of a training needs assessment, training matrix/plan and records of
training undertaken.
12
Performance Indicators
Table 2 outlines the indicators for measuring and verifying performance in relation to camp
management. However Contractor may, subject to agreement with Company, may modify or add
to these indicators to enhance the Contractor Plan based on lessons from the performance
indicators.
Table 2: Performance Indicators
Performance Indicator Measurement Assessment Frequency*

Camp Management Training 100% of workers resident at Monthly
participation camp undergo training on camp
management.
Company satisfaction with An 80% compliance with the Monthly
Camp Management standards outlined in the
Company Camp Monitoring
Plan (contained in the
Temporary Construction Camp
Standard).
Worker satisfaction with living Number of workers’ grievances related Monthly
conditions to camp management.
* Frequency is determined by Company and may vary subject to Contractor’s performance.
8.0 REPORTING AND NOTIFICATION
The Contractor shall submit to the Company a monthly report addressing the performance
indicators (see Table 2). Other reporting or notifications required as part of the implementation of
this Plan are summarised in Table 1.
13
Appendix A: Legal and Other Requirements

Labor Framework and Inspection in Oman3
Labour inspection is one of the responsibilities of the Labour Division of the Ministry of Manpower
and at a central level comes under the General Directorate of Labour Care (GDLC). The GDLC
comprises the six departments: Labour Inspection, Occupational Safety and Health, Labour Dispute
Settlement, Labour Services, Trade Unions and the Office of Joint Inspection.
The Department of Labour Inspection organizes inspection visits to the private sector's
establishments, to ensure their compliance with the laws and decrees through three sections: the
Routine Inspection Section, the Work Permits Inspection Section and the Foreign Workers
Recruitment Agencies Section. General labour inspectors do not inspect safety and health
conditions, but if they come across any relevant violations they report them to the director of OSH
department who follows up with his inspectors. The Department of Occupational Safety and Health
has within its mandate to conduct regular inspection visits to enterprises in all sectors to ensure that
they abide by the safety and health provisions of the Omani Labour Law. The Department of Labour
Services also monitors enterprises concerning the implementation of the labour law provisions
related to workers’ social welfare and services. The Office of Joint Inspection conducts regular
routine visits to enterprises and workplaces to ensure that all their foreign workers are legal and
have valid work permits.
Laws that cover organization and function
 Labour Law, issued by the Royal decree No. 35/20034;

 Regulation of Occupational Safety and Health for Establishments Governed by the Labour
Law. Issued by Ministerial decision No. 286/2008;
 Ministerial decision No. 11/2008, concerning the approval of the “Guide to Labour
Inspection”.
Current reforms
There was no labour inspection in Oman prior to 2007 but a comprehensive change started when
the ILO started technical programs in Oman, which included assisting the country in rebuilding the
capacities of its labour inspection system. The MOM is fully committed to the development and
promotion of the labour inspection system in their country. The Omani situation, with such high
level commitment and the very good infrastructure at the General Directorate for Labour Care is
promising to become one of the best models of modern and effective labour inspection systems in
the region.
Scope of Labour Inspection
The Labour inspectors have authority to carry out judicial investigations for the implementation of
the provisions of the labour law and the regulations which applies to all enterprises and sectors,
except members of the armed forces and public security organizations and employees of the state
3
International Labor Organization, Information resources, Oman
4
Omani Labor Law: https://www.manpower.gov.om/portal/en/pdf/toc_en.pdf
14
administrative apparatus and other government units; members of the employer’s family of his
dependants and domestic workers.
Labour inspectors have the right to enter the places of work and audit the books, records and
documents, interview whoever they find necessary and prepare relevant reports. The labour
inspectors do not usually deal with individual labour disputes, but such cases may be referred to
them only if they concern labour rights, but not termination of service. Collective labour disputes
may be handled by labour inspectors, when such cases come to them, either directly from the
dispute parties or through the Department of Labour Dispute Settlement.
Some of the functions and activities carried out by the Department of Labour Inspection are not
really related to labour inspection, such as auditing the applications and requests for licensing new
recruitment agencies and auditing the applications of obtaining or renewing work permits for
foreign workers.
Local Divisions
There are five General Directorates of Manpower (GDM) out of the capital Muscat, one in each of
the other five governorates. Each of those General Directorates of Manpower has, among other
departments a Section of Labour Inspection and Occupational Safety and Health and a Section of
Labour Care and Dispute Settlement. The five regional General Directorates of Manpower have eight
regional Labour Departments, each of which have a Section of Work Permits and Inspection and a
Section of Employment and Labour Care. Each regional GDM has a similar status as the central
general directorates and reports directly to the undersecretary of the MOM for the labour division.
OSH activities at the MOM are limited to the capital Muscat and the district of Salalah, where there
is an OSH specialist in the General Directorate of Manpower there. There are no OSH inspectors or
activities in any other district.
Programming and communication
The activities of the Department of Labour Inspection are interrelated with those of other
departments. It coordinates with the departments of employment and the Joint Inspection Office
concerning illegal work of foreign workers and monitoring the implementation of the Omanization
policy. It also receives requests from the Department of Labour Dispute Settlement for interference
and settlement of some labour disputes.
The Department of Labour Inspection sometimes receives request from the Inspectors at the
Ministry of Fisheries to join them in some offshore inspections. There is little coordination with the
Public Administration for Social Security, the Ministry of Trade and Commerce, the Ministry of
Health, the municipalities and the Royal Police of Oman.
There is little supervision of the regional labour inspection activities in the provinces by the central
authority. Most of the plans of the central authority do not include the regions out of the capital
Muscat.
The regional directorates don’t seem to have adequate communication and coordination with the
central authority.
15
Human Resources and career development
Permanency of inspectors
Labour inspectors are civil servants.
Selection process, background required and training
Labour inspectors are of two categories: (a) labour inspectors that have full inspection authority and
can conduct individual or joint inspections are university graduates: general labour inspectors, law
graduates, and OSH inspectors, science graduates, mostly engineers; (b) junior inspectors attached
to the Office of Joint Inspection, who are not authorized to conduct individual visits are intermediate
college graduates.
Training is one of the main priorities of the MOM. The MOM has trained 92 inspectors on the
national labour law, computer and English communication skills and the ILO trained them on the
International Labour Standards and labour inspection skills. New hires have been, going through
various training courses, provided by the MOM and the ILO, on the local labour law, International
Labour Standards, labour inspection, trafficking, forced labour, trade unions issues, occupational
safety and health and public prosecution. The staff of the Department of Labour Services have never
underwent any training, other than the general training provided to other public servants.
Types of visits
Both general labour inspectors and OSH inspectors may perform routine and follow-up visits. There
are special visits that are also frequently performed: (i) organization inspection visits: conducted to
ensure that the inspected enterprise abides by the percentage of Organization determined for its
sector, as required by a relevant Ministerial decree; (ii) afternoon inspection visits: conducted to
ensure compliance with the prohibition work between 12:30 pm and 03:30pm, during the Summer
months of July, August and September; (iii) distinguished treatment inspection visits: to verify the
eligibility of enterprises for the Distinguished Treatment Status; (iv) conducted to the agencies
involved in bringing foreign domestic workers into the country; and (v) inspection visits to the
enterprises applying for importing foreign workers into the country.
Currently all inspection visits are announced to build up more confidence with employers and to
keep more channels of cooperation open with them. Under cover or unannounced visits are very
rarely conducted by the inspectors. All inspection visits are organized in teams. Labour inspectors
have the right to enter the places of work and audit the books, records and documents related
thereto to ensure that the provisions of this law and its executive regulations and decisions are
implemented.
Role of preventive measures
Within the functions of the Department of Labour Inspection is raising awareness among employers
and workers of their legal rights and duties and advising them on the best means of compliance with
the labour legislation. One of the main priorities of The Department of Occupational Safety and
Health also is raising safety and health awareness among workers and employers and providing
them with relevant materials and advocacy. The Department of Labour Services also organizes
awareness raising programs for workers and employers, on workers’ social welfare and services
16
required by the law, including, workshops, training courses, brochures and media campaigns. A 24
hours Labour Relations Office has also been established at Muscat International Airport, which
provides information to incoming foreign workers on their legal rights and duties. A special brochure
has been developed for this purpose and copies are distributed to foreign workers, which contains
the most important provisions of the Omani Labour Law and direction and advices to workers.
Programming
Inspection visits are usually planned. The head of the DLI prepares quarterly plans, which are revised
every month. Priority is always given to the following categories: (i) enterprises on the Distinguished
Treatment List (Green Card holders), (ii) enterprises employing 50, or more, workers, (iii) Enterprises
referred by other departments for inspection, (iv) enterprises with reported violations of the labour
law. Follow up visits are included in the following month plan.
Registries and reporting of accidents /diseases at work
Enterprises have the obligation to notify the MOM of every serious accident, in written, within 24
hours of its occurrence and of every proved occupational injury or disease, and to notify the Public
Authority for Social Insurance of occupational injuries of socially insured workers. Despite the legal
obligation, work injuries, are rarely reported to the MOM.
The Omani social security system maintains records of reported injuries, but this system covers only
nationals and does not cover foreign workers.
The Ministry of Health also collects information on occupational injuries from the health services
providers but the reported cases of work related injuries represent the tip of the iceberg, and
occupational diseases are not reported at all due to lack of awareness and lack of human and
technical resources to diagnose such diseases.
Sanctions and administrative processes
In general, it is very rare that a serious action or coercive measures are taken against violators of the
Omani Labour Law. If a violation is identified, the inspectors start with providing advice on
compliance issues, to employers. Then they issue verbal warnings and may proceed to written
warnings. Verbal and written warnings may be repeated, but they rarely go beyond that. In case an
inspector decides to sanction an employer who does not respond to warnings, the penalty is
referred, through the legal department at the MOM, to the Public Prosecutor who again gives the
violator time to rectify the situation. It is rare that the Public Prosecutor lets such cases proceed to
the court. The sanctions stipulated in the Omani Labour law may be financial, administrative or
penal.
OSH inspectors have the right to order immediate suspension, total or partial, of work, or stopping
the operation of a machine, or more, in case of imminent risk and they may seek the assistance of
the Royal Oman Police, when needed.
ILO Conventions ratified
Oman has ratified the following 4 conventions:
1. CO29: Forced Labour Convention, 1930 (No.29)

17
2. C105: Abolition of Forced Labour Convention, 1957 (No. 105)
3. C138: Minimum Age Convention, 1973 (No. 138)
4. C182: Worst Forms of Child Labour Convention, 1999 (No.182)
IFC Performance Standards
IFC Performance Standard 2: Labor and Working Conditions; recognizes that employments should
be accompanied by the protection of fundamental rights of workers. With respect to contracted
workers, the Company will apply the following requirements5:
Occupational Health and Safety
The client will provide a safe and healthy work environment, taking into account inherent risks in its
particular sector and specific classes of hazards in the client’s work areas, including physical,
chemical, biological, and radiological hazards, and specific threats to women. The client will take
steps to prevent accidents, injury, and disease arising from, associated with, or occurring in the
course of work by minimizing, as far as reasonably practicable, the causes of hazards. In a manner
consistent with good international industry practice, as reflected in various internationally
recognized sources including the World Bank Group Environmental, Health and Safety Guidelines,
the client will address areas that include the (i) identification of potential hazards to workers,
particularly those that may be life-threatening; (ii) provision of preventive and protective measures,
including modification, substitution, or elimination of hazardous conditions or substances; (iii)
training of workers; (iv) documentation and reporting of occupational accidents, diseases, and
incidents; and (v) emergency prevention, preparedness, and response arrangements.
Workers Engaged by Third Parties
With respect to contracted workers the client will take commercially reasonable efforts to ascertain
that the third parties who engage these workers are reputable and legitimate enterprises and have
an appropriate ESMS that will allow them to operate in a manner consistent with the requirements
of this Performance Standard, except for paragraphs 18–19, and 27–29.
The client will establish policies and procedures for managing and monitoring the performance of
such third party employers in relation to the requirements of this Performance Standard. In
addition, the client will use commercially reasonable efforts to incorporate these requirements in
contractual agreements with such third party employers.
The client will ensure that contracted workers have access to a grievance mechanism through
inclusion in on-boarding process for all workers. In cases where the third party is not able to
provide a grievance mechanism the client will extend its own grievance mechanism to serve
workers engaged by the third party.
5
IFC Performance Standards on Environmental and Social Sustainability, Effective 1 January 2012
18
Appendix B: Orpic In-Country Value and Local Content Plan for Contractors
19
Oman Oil Refineries and Petroleum Industries Company SAOC
Tender No: 9900005041, Package LPIC-EPC-1

Steam Cracker with Off-Site Works & Utilities
C10.1 - IN COUNTRY REQUIREMENTS AND LOCAL CONTENT
CONTENTS
1. REGULATION AND POLICY ................................................................................................................... 2

2. ICV PLAN .................................................................................................................................................. 3
3. INSTRUCTIONS TO PREPARE ICV PLAN ............................................................................................. 4
4. LOCAL SOURCING OF GOODS ............................................................................................................. 6
5. EVIDENCE OF OMANI ORIGIN FOR GOODS ........................................................................................ 8
6. ICV MONITORING AND REPORTING..................................................................................................... 8
7. OWNER RIGHT TO VERIFY AND AUDIT ............................................................................................... 9
8. NON-CONFORMANCE ............................................................................................................................ 9
APPENDIX A – ICV PLAN ................................................................................................................................ 11
APPENDIX B - DEFINITIONS ........................................................................................................................... 12
APPENDIX C: QUARTERLY ICV CONTRACT PERFORMANCE REPORTING TEMPLATE ...................... 14
APPENDIX D: QUARTERLY ICV SUB-CONTRACT PERFORMANCE REPORTING TEMPLATE ............. 15
APPENDIX E: QUARTERLY REPORT OF FIXED ASSETS, NATIONAL SUPPLIERS,
INSTITUTIONS TEMPLATE ................................................................................................................... 16
Document No.: 1-C10.1 Rev 0 Page 1 of 16


1. REGULATION AND POLICY

1.1. Nothing contained in this Attachment shall contradict or relieve Contractor from any statutory
obligation in accordance with the relevant laws and regulations of the Sultanate of Oman.
1.2. Contractor shall comply with, and shall cause its sub-contractors to comply with, all applicable
Laws and regulations of the Sultanate of Oman governing the engagement and employment of
Omani personnel and preferences for local goods and services, including, but not limited to:
 Article 11, Royal Decree 35/2003 on Omanisation requires an employer to employ

Omani employees “to the greatest possible extent”. Ministry of Manpower stipulates the
minimum percentage of Omani citizens to be employed within a Company in four sub-
sectors: Productive and operating, direct services, assisting services, and local
companies.
 Article 36, Royal Decree 36/2008 on Tenders requires that “preference in bids shall be
granted to the national products of the small and medium enterprises fulfilling the
conditions and specifications. This preference would contain price preference within
increase of 10%.”
 Article 21, Royal Decree 1/79 on foreign capital investment requires that “preference
shall be given when purchasing for the government, to local products which conform
with the provisions of this law, provided that such local products satisfy the standard
specifications in terms of excellence and quality, also including a price preference in the
region of 10% at the most”.
 Article 5 Royal Decree 1/79 on foreign capital investment requires that “preference shall
be given to the projects using local products and raw materials which maximise the
value added thereof, to the export oriented industries, and to the industries introducing
new products or using modern technology …..[and] that attract and localize
internationally reputed industries”.
1.3. Owner is committed to increase In-Country-Value (hereafter “ICV”) in Oman within the context
of technical excellence and commercial attractiveness in the Omani oil and gas industry, and to
require Contractors, sub-contractors and suppliers to contribute to this objective.
1.4. Through its expenditure on personnel, goods and services, the Owner is committed to
generating ICV in the Oman oil and gas sector. Therefore, subject to Article 1.3, the Owner
expects its services Contractors, sub-contractors and suppliers to seek to:
 maximize and develop employment opportunities for Omanis and placements for
Omanis on vocational or professional training courses, both in Oman and overseas, with
a principal focus on skilled and managerial positions;
 Maximize and increase over time expenditure on goods and services produced or
provided by Omanis working for companies registered in Oman with a physical presence
in Oman;
 Maximize and develop locally-produced - Made-in-Oman - materials, products and
equipment that increase value-added in-country, introduce new technologies and grow


Oman’s export industries;

 Develop the capabilities of the local small and medium scale enterprise (SME) sector,
both during contact delivery and in the longer-term;
 Develop world class capability in vocational and professional education, training and
research institutions in Oman, matched to actual industry opportunities.
Company may have its own policy or procedures that give consideration to supporting
communities within specific concession areas.
2. ICV PLAN
2.1. In-Country Value (ICV) is defined as “The total spend retained in country that benefits
business development, contributes to human capability development, and stimulates
productivity in Oman’s economy”.
The ICV requirements are,
1) Local purchase content of minimum 25%
2) A minimum Omanisation level of 30% at all levels of the organization
3) Training effort for a number of Omani in excess of 15% of those Omani

employed (excluding owner employees)
2.2. The contractor shall within 45 days from the effective date submit the draft ICV plan for owner
approval. The ICV Plan shall constitute an elaboration of each of the ICV components
stipulated herein in Articles 3.1 to 3.8 in conjunction with Tables A to H in Appendix A, which
are to be completed by the Contractor.
2.3. Contractor shall submit their ICV Plan as a single, stand-alone, document containing all
responses and supporting and qualifying information, and including completed Tables A to H
within the relevant section of the ICV Plan.
2.4. All costs associated with delivering the ICV Plan shall be deemed to be included within the
Contractor’s base bid price.
2.5. Contractor shall maintain a true and auditable set of records pertaining to the ICV Plan,
including the assumptions and calculations used to generate the figures entered into Tables A
to G.
2.6. Owner shall have the right to verify and audit the information contained in the ICV Plan in
accordance with the standard terms and conditions contained in the ICV Exhibit (“Exhibit X –
ICV”).
2.7. In case of any variations in scope of work and/or contract value, whether plus or minus, the
overall originally committed ICV value will be measured as a percentage of the original contract
value, or as per agreed between contract parties.


3. INSTRUCTIONS TO PREPARE ICV PLAN

3.1. Overview
Contractor shall provide a concise overview of their detailed ICV Plan summarising the level of
ICV the Contractor proposes to deliver in execution of the Contract, and any compelling
strategies or programmes that the Contractor wishes to draw to the attention of the Owner.
3.2. Investments in Fixed Assets in Oman
 The Owner aims to maximise ICV during the execution of the Contract and beyond.
Investments by the Contractor in operational offices, manufacturing facilities, service
facilities or other fixed assets related to the oil and gas industry in Oman is key to
achieving this objective.
 Contractor shall complete Table A in Appendix A describing in detail (i) past capital
investments made by Contractor to purchase, construct or rehabilitate fixed assets in
Oman over the last three (3) years in relation to the development of the Oman petroleum
industry (e.g., transport-related, logistics-related, manufacturing facility, repair and
maintenance facility, office/depot construction/ refurbishment, physical infrastructure,
training centres, research establishments); and (ii) planned capital investments to be
made by the Contractor in similar fixed assets over the next three (3) years.
 Contractor shall include in Table A only those past investments in fixed assets made
directly by the Contractor from its own, or raised, capital, and that are included within the
Contractor’s Balance Sheet. For clarity, Contractor is to exclude from Table A any
capital investments in fixed assets that have been (or are planned to be) directly
charged to the Owner, in whole or in part. Contractor shall also exclude from Table A
expenditures by the Contractor on corporate social responsibility projects, unless in the
form of capital investments in fixed assets intended explicitly to increase ICV, as defined
in Article 2.1. Further, the Contractor shall exclude from Table A investments in fixed
assets included in the information submitted in Table G in relation to support for national
institutions.
 Contractor shall provide evidence that relates the Company Balance Sheet to the figures
stated in Table A for past three (3) years’ investments in Oman. Contractor shall
provide information clarifying the likelihood that the figures stated in Table A for future
investment over the next three (3) years will be realised.
3.3. Omanisation in the Workforce
Contractor shall complete Table B in Appendix A with figures for the total level of
Omanisation to be utilised by Contractor and 3rd Party Sub-contractors in execution of the
Contract, as Headcount, Man-hours and USD$ Compensation, for the following categories of
job position (see Definitions):
1. Senior Management
2. Professional


3. Supervisory
4. Skilled
5. Semi-skilled
6. Unskilled
 Should the Contractor not to provide hourly rates in Table B, the Owner will consider its
input as zero and therefore will lose any potential ICV credit out of that area.
 Where Contractor is to involve Omani citizens residing outside Oman in the execution of
the Contract, these may be included in Table B. In its overall ICV Plan document,
Contractor shall clarify which figures, or proportion of figures, in Table B relate to
overseas Omanis.
3.4. Omani Recruitment, Training and Progression
Contractor shall describe details and attach documentation of their proposed programme of
recruitment, training and progression of Omani Nationals during the term of the Contract in the
different categories of job positions given in Article 3.3. Contractor shall provide evidence of a
well-structured and sustainable recruitment and training programme for each category of
position covered by the scope of the Contract, including:
(i) outreach activities and procedures for maximizing the direct hiring of Omani Nationals;
(ii) career paths for Omani Nationals, in particular progress into Senior Management,
Supervisory and Skilled positions over the Contract term; performance review
programmes; coaching and mentoring programmes, and succession of Omanis into
expatriate positions;
(iii) skills training of Omani Nationals during the term of the Contract (whether trained in
Oman or overseas), including: key skill sets for development identified by the
Contractor; training programmes covering formal training and on-the job training e.g.
apprentice scheme; cooperation with local training schools; the courses to be delivered;
the anticipated number of participants; the duration of courses; and the qualifications to
be attained;
(iv) post-training employment opportunities in the oil and gas industry in Oman and
overseas, and how the Contractor will assist its Omani National employees in
discovering these opportunities (e.g., through targeted programmes, public database of
skills and experience).
Contractor shall complete Table C in Appendix A with the number of training hours provided
to Omani Nationals utilized in execution of the Contract during the Contract term. Contractor
shall include in Table C training hours both on-the-job and class-room training (e.g., induction,
EHS/HES and technical and professional skills, internships and apprenticeships (scholarships
are not to be included)).
Local Sourcing of Goods


 Contractor shall complete Table D1 in Appendix A with all Made-in-Oman materials,

products, commodities and equipment to be utilised in execution of Contract, and
indicate the billed rate of spend on each item (see Definitions).
 Contractor shall list at least five items under each selected category in Table D1 in
Appendix A. Contractor is also encouraged to list as many items per category as
applicable.
4. LOCAL SOURCING OF GOODS
The following are sources of information concerning the availability of local products and
services in the Oman market:
1) MoCI – Ministry of Chamber and Commerce
2) PAIPED – Public Authority for Investment, Promotion and Export Development
3) PEIE – Public Establishment for Industrial Estates
4) PASMED – Public Authority for SMEs Development
 Contractor is eligible to include within table D1 any anticipated expenditure on Made-in-

Oman goods to be utilized in execution of Contract that the Owner has already
committed to use through a Frame Agreement, Term Agreement or similar “ring-fenced”
arrangement.
 Contractor shall complete Table D2 in Appendix A with the total amount to be paid for
all Non-Made-in-Oman goods (materials, equipment, products and commodities) to be
sourced from either Nationally-registered Suppliers or Foreign-registered Suppliers
to be utilized in Contract execution, and indicate the billed rate of spend on each item
(see Definitions).
 Contractor shall list at least five items under each selected category in Table D2 in
Appendix A. Contractor is also encouraged to list as many items per category as
applicable.
4.1. Local Sourcing of Sub-Contracted Services
Contractor shall complete Table E in Appendix A with the amount paid for services that are to
be sourced from 3rd Party Nationally-Registered Sub-contractors for utilisation in execution of
the Contract. For clarity, only those services used in Contract execution that are provided by
3rd Party Nationally-Registered Suppliers are to be included in Table E.
4.2. Development of 3rd Party National Suppliers
Owner shall describe details and attach documentation of its proposed programmes of support
to develop the capabilities of 3rd Party National Suppliers of goods and services. Contractor
shall provide evidence of (a) short-term programmes during the term of the Contract that
underpin the percentage levels of Omanisation, Made-in-Oman goods and expenditure with

National Suppliers committed in Tables D and E, and (b) longer-term programmes post-
Contract execution that contribute to greater levels of ICV being retained in the Omani
economy through expenditures in the oil and gas sector. The Contractor’s response shall
cover:
(a) Short Term Participation of 3rd Party National Suppliers during Contract execution:
(i) communication of information through appropriate communication channels that

alerts National Suppliers to tender opportunities, and provides real-time support in
how to navigate the vendor registration, pre-qualification and tendering process;
(ii) upgrading National Suppliers and partners to meet project and international
standards for capability, capacity, HES and quality through improvements in
operational process, efficiency and quality assurance;
(iii) skills training and competency development of employees of National Suppliers and
partners;
(iv) towards the end of the Contract period, support for the best-performing National
Suppliers to access other opportunities and markets; and
(v) collaboration with other organisations, such as other operators and contractors,
public institutions and non-governmental organisations.
(b) Longer-Term Development of 3rd Party National Suppliers post Contract execution:
(i) introduction of new technologies and development of Oman’s export

competitiveness;
(ii) establishment of new National Suppliers, with a focus on manufacturing/production;
(iii) attraction of foreign companies to establish value-adding facilities in Oman;
(iv) facilitation of strategic alliances/partnerships/consortia that enable National

Suppliers to competitively win more work and move up the value chain;
(v) programs with a special focus on developing SMEs; and
(vi) collaboration with other organistions, such as other operators and contractors, public
institutions and non-governmental organisations.
Contractor shall complete Table F in Appendix A with values monetising the level of support
as actual or in-kind expenditure. Contractor shall describe the expected outcomes of the
proposed programmes. Contractor shall include in Table F only those anticipated expenditures
to be made directly by the Contractor from its own financial resources. For clarity, Contractor
is to exclude from Table F any expenditures on supplier development planned to be directly
charged to the Owner, in whole or in part.


4.3. Development of National Training, Education and R&D Institutions in Oil and Gas
Contractor shall complete Table G in Appendix A with a description of their past and
proposed programs to develop the capability and capacity of Omani public and private
institutions, as follows:
(i) vocational and technical training institutions (including scholarships);
(ii) tertiary education establishments, e.g., teaching part of universities (including

scholarships);
(iii) national R&D institutions, e.g., research part of universities, investments in research
centres (excluding fixed assets already included in Table A).
Contractor shall complete Table G with values that monetise the level of this support (not
charged to the Owner or other party) as actual or in-kind expenditure. Contractor shall
describe the expected benefits to Oman of this support, e.g., in number of citizens benefiting;
new research capability, new technologies developed.
5. EVIDENCE OF OMANI ORIGIN FOR GOODS

5.1. The Contractor shall be required, at its own expense, and shall require its sub-contractors and
suppliers to obtain assurance that commitments to expenditure on Made in Oman Goods
included in Table D1 are assigned to, and only to, products, materials and equipment that are
included in the List of goods of Omani origin issued by the Ministry of Commerce.
5.2. The Owner reserves the right to request copies of such assurance obtained by the
Contractor to support ICV claimed in any subsequent ICV performance reports submitted by
the Contractor.
6. ICV MONITORING AND REPORTING

6.1. Within forty five (45) days from the Effective Date of the Agreement, Contractor shall prepare a
comprehensive ICV plan including a Reporting Schedule for owner approval (to be
proposed by the contractor part of Appendix A). This Schedule shall detail the planned ICV
activities and timeline (i.e., milestones) for key deliverables of the ICV Plan, for approval by the
Owner. For this purpose, the Contractor shall detail milestones on a quarterly basis that,
when delivered across the full period of contract execution, achieve all commitments made in
the approved ICV Plan, inclusive of the commitments made in Tables A to G (ITT Attachment X
– ICV). For clarity, the agreed Reporting Schedule shall be fully consistent with the approved
ICV Plan.
6.2. In accordance with the approved ICV plan , the Contractor shall provide an ICV contract
performance report to the Owner on a quarterly basis from the Effective Date of the
Agreement detailing performance in delivery of commitments in the ICV Plan directly
associated with contract execution, namely progress against commitments to: (i)
Omanisation in the workforce (Table B); (ii) training of Omanis (Table C); (iii) expenditure on
local goods and 3rd party services (Tables D and E); (iv) short-term support for participation of


3rd Party National Suppliers in contract execution (Table F – short-term). Contractor shall use
for this purpose the reporting templates provided in Appendix C: Quarterly ICV Contract
Performance Reporting Template and Appendix D: Quarterly ICV Sub-Contract
Performance Reporting Template.
6.3. At the time of submission of the final invoice for execution of the Agreement, Contractor is to
provide a whole of contractor ICV performance report detailing (i) overall progress in
Omanisation of the Contractor’s workforce and expenditure on local goods and services, and
(ii) delivery of longer-term commitments made by the Contractor in the ICV Plan, namely:
future investments in fixed assets in Oman (Table A); long-term development of National
Suppliers (Table F – long-term); and support to national institutions to develop the Omani Oil
and Gas Sector (Table G). Contractor shall use for this purpose the reporting templates
provided in Appendix E: Whole of Contractor ICV Reporting Template.
6.4. At any reasonable time during the term of the Agreement and for two years thereafter Owner
may request Contractor to provide a whole of contractor ICV performance report as detailed
in Article 4.3 above.
7. OWNER RIGHT TO VERIFY AND AUDIT

7.1. During the term of the Agreement and for two years thereafter, Contractor shall maintain and
preserve, and as required shall cause its sub-contractors and suppliers to maintain and
preserve, a true and accurate set of records pertaining to the approved ICV Plan (Appendix
A), including, but not limited to, the assumptions and calculations used to generate the
commitments made in Tables A to G.
7.2. Without limiting any of Owner’s rights under the Agreement, at any reasonable time during the
term of the Agreement and for two years thereafter, the Owner shall be allowed access to
Contractor's records for purposes of verifying the commitments made in the approved ICV
Plan (Appendix A).
7.3. Without limiting any of Owner’s rights under the Agreement, during the term of the Agreement
and for two years thereafter, Contractor shall maintain and preserve, and as required shall
cause its sub-contractors and suppliers to maintain and preserve, a true and accurate set of
records pertaining to the information provided in the Contractor’s quarterly ICV contract
performance reports and whole of contractor ICV performance report.
7.4. Without limiting any of Owner’s rights under the Agreement, at any reasonable time during the
term of the Agreement and for two years thereafter, the Owner shall be allowed access to
Contractor's records for purposes of an audit of the information provided in the Contractor’s
quarterly ICV contract performance reports and whole of contractor ICV performance
report
8. NON-CONFORMANCE
8.1. Non-conformance by the Contractor in delivering the agreed milestones in the approved ICV
Reporting Schedule (Appendix A) shall trigger the following non-conformance and corrective
action process (Articles 8.2 to 8.5).


8.2. The Contractor shall ensure that the Owner is promptly notified of any such ICV non-
conformance, and the corrective measures the Contractor has already, or intends, to put in
place to deliver the associated milestones.
8.3. Owner shall approve corrective measures to be implemented by the Contractor, and the time
line for their delivery.
8.4. The Contractor shall maintain an ICV non-conformance register against delivery of the
approved ICV Reporting Schedule. This register shall be kept up to date and shall summarise
the status of all non-conformance and progress of associated corrective actions. The non-
conformance register shall be reported to the Owner as part of the Contractor’s quarterly ICV
contract performance reports and whole of contractor ICV performance reports.
8.5. If Contractor fails to implement the approved and agreed-upon corrective measures, or if
Contractor fails to make reasonable endeavours to remedy such ICV non-compliance, then
Owner shall have the right to deem such non-compliance as a Contractor Default, as that term
is defined in the Agreement.


APPENDIX A – ICV PLAN
Appendix A-ICV
plan.xlsx


APPENDIX B - DEFINITIONS
“Owner” means the operator issuing the tender.
“Contractor” means the party invited to bid for a specified Contract.
“ICV” means In-Country Value and is defined as “The total spend retained in country that benefits
business development, contributes to human capability development, and stimulates productivity in
Oman’s economy”.
“ICV Plan” means a plan prepared by the Contractor and delivered as part of Contract execution. The
Plan sets forth strategy and actions aimed at the participation of Omani nationals and local goods and
services, and in the development of local assets, skills, suppliers and institutions associated with the oil
and gas sector in Oman.
"Omani National” means holder of Omani citizenship.
“Nationally-Registered Supplier” means a supplier of goods and services that is a Company,

subsidiary or branch incorporated under Omani law in Oman and/or registered to operate in Oman
under a renewable license; and whose offices or facilities associated with producing manufactured or
assembled goods or providing services to the Owner are located in the Sultanate of Oman.
“SMEs” means Small and Medium Enterprise and are defined as below:
Company Size Number Annual Turnover

of Employees (R.O.)
Micro 1 to 4 Less than 25,000
Small 5 to 9 25,000 to 250,000
Medium 10 to 99 250,000 to 1.5 Million
“Foreign-Registered Supplier” means a supplier of goods or services that is a Company, subsidiary

or branch not incorporated under Omani law in Oman and/or registered to operate in Oman under a
renewable license.
“3rd Party Sub-Contractor/Supplier” means a 2nd tier sub-Contractor or supplier, or a partner/alliance

Company, who provides services or goods to the Contractor for utilisation in Contract execution.
"Senior Management" means a member of the decision-making executive of a function within

Contractor or sub-Contractor Company.
"Professional" means an individual who has completed related tertiary education and achieved status
within a professional body. Includes chartered engineers and accountants, lawyers, architects,
procurement professionals. Engineers who are also middle managers should be categorised as
“Professional”, not “Supervisory”.


"Supervisory" means a worker who manages a team of at least two subordinates (but who is not
considered part of the Senior Management team, nor a Professional). Supervisors include
construction foreman, equipment overseers, business administration team leaders, etc.
"Skilled" means a worker with a high level of technical expertise accumulated over a number of years
(but not a member of a recognised “profession”). A skilled worker may have attended a Technical
College or learned their skill via a formal apprenticeship or on-the-job over a number of years.
Includes: electricians, scaffolders, welders, crafts, business admin, personnel assistants, computer
programmers, equipment and machinery operators.
“Semi-skilled” means workers with a skill set acquired in a short space of time (a few weeks or
months). Following short periods of training a casual labour may become semi-skilled. Semi-skilled
positions include secretaries, drivers, meet and greet services, fencing, block laying, basic construction
skills, etc.
“Unskilled” means casual labour with no skills required and not yet trained, other than in initial
workplace induction and HES.
“Headcount” means the number of full-time equivalent employees or in-house Contractors/agency staff
within the Contractor or 3rd Party Sub-Contractor who will be involved in execution of the Contract.
“Man-hours” means the number of hours of work undertaken in execution of the Contract (For clarity,
only the actual hours written, or to be written, to Contract execution are to be included).
“USD$ Compensation” means the sum of Manhours multiplied by associated All-Inclusive Average
Hourly Rate.
“All-Inclusive Average Hourly Rate” means the average hourly rate of pay for a particular category of
job position (e.g., skilled, semi skilled), including: base pay rate/hour, overtime increment on base rate,
social taxes, overheads on base rate (or at a flat/fixed rate), benefits, and profit margin.
“Made-in-Oman good” means a product, material or equipment that is included in the List of goods of
Omani origin issued by the Ministry of Commerce.
“Fixed Asset” means the long-term, tangible assets used in the oil and gas business in Oman such as
properties, plants and equipment. Examples of fixed assets are lands, buildings, manufacturing
facilities and equipment, repair and maintenance facilities, office equipment, and vehicles.
“Billed Rate”: means the quoted price or cost of goods or services provided by a contractor in a free
market. For example, it can be the full value of a labor-hour, including all overhead, burden, and profit.


APPENDIX C: QUARTERLY ICV CONTRACT PERFORMANCE REPORTING TEMPLATE
Appendix C-Quaterly
ICV report template Rev 0 -.xlsx


APPENDIX D: QUARTERLY ICV SUB-CONTRACT PERFORMANCE REPORTING TEMPLATE
Appendix D-Quaterly
ICV report template for sub-contractor Rev 0 -.xls


APPENDIX E: QUARTERLY REPORT OF FIXED ASSETS, NATIONAL SUPPLIERS, INSTITUTIONS

TEMPLATE
Appendix E- Quarterly
ICV report on Fixed assets, National Suppliers and institutions.xlsx

Appendix C: Orpic Security Plan
20

C8.5 - SITE SECURITY REQUIREMENTS
CONTENTS
1.0 SITE SECURITY PLAN ............................................................................................................................ 2

2.0 LIST OF LEGAL REQUIREMENTS: ........................................................................................................ 5
3.0 PROJECT PLANNING, CONTROL AND COMMUNICATION ................................................................ 6
4.0 ATTACHMENTS ....................................................................................................................................... 6


1.0 SITE SECURITY PLAN
1.1 The Contractor shall develop a Site security plan (Site Security Plan) to ensure that the
Contractor and each Subcontractor complies with all of the Owner’s security requirements. The
Site Security Plan shall be developed and operated in conjunction with the HSSE Plan and in
accordance with all applicable Laws and regulations (including, but not limited to, the laws,
regulations and requirements set out in paragraph 2.
The Contractor shall:
a) control all activities on each construction Site in respect of the movement of personnel,
vehicles and Materials in order to prevent loss, the interruption of work and prohibited
activities;
b) provide an efficient and competent security force to secure the Site and control the
movement of Goods and personnel through the field construction gate on a 24 hour basis;
c) provide accommodation and equipment that ensures the security force is mobile, has
proper communication equipment, and presents a smart and distinguishable appearance
with uniform apparel;
d) provide suitably qualified personnel for the senior security force positions; and
e) coordinate its security program with the Owner.
The Contractor shall ensure its Subcontractors and Vendors comply with all applicable security
Laws and regulations, including the Owner’s security requirements. Such compliance shall not
relieve the Contractor of its responsibility for maintaining proper security nor shall it be
construed as limiting the Contractor’s obligations to undertake, as required, any reasonable
action to establish and maintain secure conditions at the Site.
1.2 Security Management
The Contractor shall implement a security management system (Security Management

System) to assess and mitigate the losses associated with security issues. The objective of the
Security Management System shall be to:
a) protect personnel, property, information and the reputation of each of the Owner, Contractor
and Subcontractors;
b) minimize economic losses and business interruption; and
c) safeguard the integrity and reputation of the Owner and its Affiliates.
1.3 Security Policy
The Contractor shall have a written policy and strategy for security, dated and signed by an
authorised representative of the Contractor (Security Policy). The Security Policy shall:
a) cover Project specific issues and be clear, concise and motivating;

b) stress the importance of individual responsibility and ensure that the Contractor’s activities
are conducive to the long term operation of the Facility;
c) ensure compliance with all relevant local, national and international Laws, regulations and
standards;
d) implement relevant response plans and procedures to minimise the impact of any security
incident; and
e) develop individual and collective security awareness and responsibility, including the
consideration of security in business decisions.

All Contractor’s Personnel shall be issued with a copy of the Security Policy.
The Contractor shall advise the Owner of any decisions it makes or is intending to make in
respect to the engagement of a government, independent or private security firm. The
Contractor shall not engage any such security firm without the Owner’s approval.
The Contractor shall be fully responsible for supervision of its personnel to ensure that they
strictly adhere to all applicable security requirements.
The Contractor shall ensure that the security systems of Subcontractors are consistent with its
own and the Owner’s and may allow Subcontractors to apply their own procedures provided
they are consistent with the procedures of the Contractor and the Owner. This however, does
not relieve the Contractor of any responsibility in respect of a Subcontractors’ failure to exercise
proper security procedures.
1.4 Security Management System
The Contractor shall have a formal system for management of security (Security Management
System). This Security Management System shall be documented, fully implemented and
effective in achieving the aims and objectives of the Security Policy. The Security Management
System shall define the security management elements to be implemented, including but not
limited to, the security organisational structure, resources, plans, and procedures.
The Security Management System shall consist of comprehensive policy to ensure full
compliance with all Laws and regulations listed in paragraph 2 below. The Security
Management System shall define the responsibilities of all personnel who manage, perform and
verify compliance with these requirements. All personnel are responsible for ensuring that
activities are undertaken in accordance with safe working practices and Project security, safety
and environmental engineering requirements.
1.5 Security Management Plan
The Contractor shall develop a security management plan (Security Management Plan) for all
areas where the Works are to be performed and for the transportation of all components
between work areas. The Security Management Plan shall make specific reference to each
stage of the Contract, and to the particular security requirements at the Site and each work
area. Written contingency plans and procedures, identifying instances where security
precautions should be taken, shall be included which cover all stages of the Works. The
Contractor will be responsible for demonstrating to the Owner that all security risks which fall
under Contractor’s responsibility have been reduced to a level that is as low as reasonably
practicable.
The Security Management Plan shall address the following requirements for each individual
asset:
a) People: the Contractor shall have a program in place to create security awareness for all of
the Contractor’s Personnel and associated staff, as well as the Owner’s Personnel and

associated staff. The program shall set out appropriate protection measures in respect of
the Works, including any work undertaken at the Owner’s and Contractor’s Site offices;
b) Property: the Contractor shall ensure that material assets (e.g. offices, installations, field
sites) are secure. These measures will include perimeter security, access control, vital point
protection and communications;
c) Information: the Contractor shall safeguard all information including that in electronic or
written format. The Contractor shall ensure the confidentiality, integrity and availability of
information, including proprietary information, in all locations including the Contractor’s own
premises. Any actual or suspected attempts to subvert the Contractor’s bid tender process
must be reported immediately to the Owner; and
d) Reputation: the Contractor shall ensure that it will not adversely affect the reputation of the
Owner at any stage of the Project.
1.6 Security Procedures
The Contractor shall have written security procedures (Security Procedures) available that
shall be made familiar to all Contractor’s Personnel and shall be available in the working
language of such personnel and in English. The Security Procedures shall define the
Contractor’s control and implementation of all security aspects including, but not limited to:
a) Security Incident Reporting and Investigation: all security breaches shall be promptly
reported to the Owner within twenty-four (24) hours of occurrence. The Contractor may be
required to file formal reports of such breaches or assist local authorities in the investigation
of such breaches;
b) Security Emergency Response Procedures: the Contractor shall develop appropriate
emergency response procedures covering all potential security risks associated with the
performance of the Works. The procedures shall include but are not limited to procedures
to respond to security emergencies such as bomb threats, kidnapping, extortion, civil and
industrial unrest, community disturbance and evacuation. The Contractor shall provide the
Owner with a copy of its emergency response procedures that are applicable to the
Contract; and
c) Searches and Security Checks: the Contractor shall be responsible for ensuring that all
Contractor’s Personnel, while engaged in the performance of the Contract at the work areas
and the Site, are not at any time in possession of, do not take or have taken prohibited
substances (which includes, but is not limited to alcohol, drugs (other than for medical use),
drug utensils, firearms, ammunition, all other weapons, explosives and all kind of gasses).
To prevent the presence of prohibited substances at the work areas and the Site, the
Contractor shall introduce procedures to carry out searches and security checks of
personnel and personal effects. Searches and security checks shall be carried out as
required by the security threat assessment. Security checks shall be made prior to
personnel entering the work areas or the Site and prior to personnel boarding transport (e.g.
vessels) to and from offshore locations.
1.7 Security Review and Inspection by the Owner
The Owner will review the Contractor’s compliance with the Security Management Plan on a
regular basis and will carry out milestone reviews and close-out reviews in close cooperation
with the Contractor.
The Owner may carry out security inspections of the work areas and the Site. The Owner
reserves the right to shut down the Contractor’s Works if any significant security breaches are
found. The Contractor will not be permitted to resume the Works until such practices or


conditions are corrected. All costs and schedule impact incurred for all such corrections shall
be borne by the Contractor.
The Contractor shall implement all agreed recommendations from such security inspections
within a time mutually agreed between the Owner and the Contractor. The Contractor shall
include in Subcontracts the right of access for the Owner as described above.
The Owner reserves the right to include Owner nominated security personnel, at the Owner's
cost, to work with the Contractor’s security team at work areas and the Site. The Contractor
shall provide rights of access for the Owner nominated security personnel.
2.0 LIST OF LEGAL REQUIREMENTS:
2.1 During the course of construction, Pre-Commissioning, Commissioning and Initial Acceptance
hand-over, the Contractor and each Subcontractor will conform to and respect all:
a) construction health, safety, security and environmental policy/legislation/codes of practice;

b) government state Laws;
c) public authority requirements;
d) public health requirements;
e) local customs, fiscal and social legislation and practices; and
f) Owner’s codes of practice.
2.2 The following security system regulations and requirements shall be followed:
a) Security System for Oil and Gas Facilities;

b) Access Control System and CCTV;
c) Scope Of Work for Providing Security Services (24/7 - Administration Services);
d) Close Circuit TV System (CCTV); and
e) Perimeter Protection.
2.3 The following legal requirements are applicable for the Project from Omani Ministerial Decisions
and
Royal Decrees:
a) RD 114/2001, ‘The Law on Conservation of the Environment and Prevention of Pollution;

b) MD 37/2001, ‘Regulations for the control and management of ozone depleting substances
(ODS);
c) RD 46/95, Regulations on the handling and use of chemicals;
d) MD 80/94, Issuing Regulations for Noise Pollution Control in the Working Environment; and
e) MD 286/2008.
2.4 The following required permits shall be obtained by the Contractor:
a) work permit from Sohar Industrial Port Company;

b) plot handover certificates from Sohar Industrial Port Company;
c) initial license for Security and Safety of company from the Directorate General of Civil
Defense, Royal Oman Police;
d) chemicals permit for handling, storage and transportation of hazardous chemicals; and
e) permit for storage and handling of radioactive/explosive materials.


2.5 The following Project and client procedures and specifications shall be followed:
a) QRAs reports (include any amendment to the reports);

b) rapid risk assessment report;
c) fire protection philosophy and specification;
d) design basis for firewater protection system;
e) general specification for building fire protection system;
f) HSSE Plan;
g) general specification for Plant noise control;
h) general specification for equipment noise control; and
i) specification for ergonomic study.
3.0 PROJECT PLANNING, CONTROL AND COMMUNICATION
The Contractor shall establish a system that governs planning, control and communication
requirements for the Project. Planning of the overall HSSE activities is to be carried out in line
with overall Project planning. Records of Project-based HSSE communications will be
maintained together with Project documentation, including minutes of meetings with HSSE
items on the agenda. All Project HSSE documentation will be subject to the standard document
control procedures applied to the Project.
4.0 ATTACHMENTS
[This section shall include all applicable standards as attachments hereto.]

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Oman Oil Refineries and Petroleum Industries Co.

Sohar Refinery, PO Box: 282

Social Impact Assessment Report

HMR ENVIRONMENTAL ENGINEERING CONSULTANTS

Section 1. Introduction ..................................................................................................................... 6

Project overview .................................................................................................................................. 8

Purpose of the Social Impact Assessment (SIA) ............................................................................... 10

Project Description ............................................................................................................................ 11

Project location .................................................................................................................................. 12

NGLE Plant ................................................................................................................................... 12

Petrochemical Complex (PC) in SIPA .......................................................................................... 12

Project Affected Population Centres ................................................................................................. 13

Section 2. Socio-Economic baseline .............................................................................................. 15

Petrochemical Complex .................................................................................................................... 15

Pipeline Route ................................................................................................................................... 28

NGLE Plant ....................................................................................................................................... 35

Stakeholder Identification & Analysis .............................................................................................. 39

Section 3. Impact Assessment ........................................................................................................ 40

Petrochemical Complex .................................................................................................................... 41

Pipeline Route ................................................................................................................................... 42

NGLE Plant ....................................................................................................................................... 43

Section 4. Management plans ......................................................................................................... 50

Social Management Plan ................................................................................................................... 50

Section 5. Monitoring programs ..................................................................................................... 54

Table 1: Population along Pipeline ....................................................................................................... 14

Table 2: Population along Pipeline ....................................................................................................... 14

Table 2: Villages within 5 km of Sohar/Liwa Plant (2010 data) .......................................................... 15

Table 3: Population Distribution of Liwa and Sohar (2010 data) ........................................................ 16

Table 4: Health Facilities in Liwa/Sohar Wilayat ................................................................................. 20

Table 5: LPIC Project Stakeholders ...................................................................................................... 39

Table 6: Construction impact assessment ............................................................................................. 44

Table 7: Operation impact assessment .................................................................................................. 46

Table 8: Social Management Plan for LPIC ......................................................................................... 51

Figure 1: Map of Oman ........................................................................................................................... 6

Figure 2: 2014 Population Statistics ....................................................................................................... 7

Figure 3: Overview of LPIC Project Location ........................................................................................ 9

Figure 4: LPIC Project Timeline ............................................................................................................. 9

Figure 5: Sohar Industrial Port Area ..................................................................................................... 13

Figure 6: 2015 Elections to Oman Consultative Assembly .................................................................. 19

Figure 7: Petrochemical Complex and Surrounding Villages............................................................... 20

Figure 8: Al Batinah Coastal Study Area.............................................................................................. 22

Figure 9: Fish Landed by Traditional Fisherman .................................................................................. 24

Figure 11: Pipeline Route and Surrounding Villages ........................................................................... 28

Figure 12: Typical Nomadic Tribe in Central/South Oman .................................................................. 29

Figure 13: Tribal Center at Haima ........................................................................................................ 30

Figure 14: Engagement at Al Jell and Dhawaher Al Tawi ................................................................... 32

Figure 15: Vist to As Saqah and Kashishal Al Milh Villages ............................................................... 33

Figure 16: Images from Consultations along Pipeline Route ............................................................... 35

Figure 17: NGLE Plant and Surroundings ............................................................................................ 37

Appendix A: Stakeholder Engagement Management Plan

Appendix B: Camp Management Plan

Figure 1: Map of Oman

The 2014 official population numbers per region is illustrated below2.

Figure 2: 2014 Population Statistics

 Access to publically available information in Oman is a challenge. In particular, socio-

economic figures (i.e. no village/community level details). Only government organizations

 Rapid Rural Assessment: Orpic conducted a windshield survey to capture visual

Figure 3: Overview of LPIC Project Location