No Reduction in Workforce for Oman’s Oilfield Sector

No Reduction in Workforce for Oman’s Oilfield Sector

Mass redundancies in the Omani oilfield industry have been so far avoided by the Ministry of Manpower, according to the Oman Daily Observer

Omani oil prices have collapsed almost by 60% since the start of the calendar year and is threatening mass upheaval in the Sultanate’s oil and gas sector. Furthermore, a number of high profile companies, including Petroleum Development Oman (PDO), have announced cutbacks in spending.

According to the head of the Oil & Gas Sector Labour Union (OGSLU), Said Ahmed Al Mahrouqi, companies threatening layoffs of Omani workers are being urged to hold out a little longer until alternative opportunities present themselves.

Speaking to the Observer, Al Mahrouqi said, “In terms of job losses, the situation is generally under control for now, but we don’t know what is in store in May and after Ramadan. If oil prices do not recover sufficiently, then we have reason to worry.”

Contractors that have no work at present are being urged to redeploy their national staff to other contractors, sighting Article 48 of the Omani Labour Law. Currently, the Supreme Committee has permitted private companies to negotiate salary cuts for Omani staff during the pandemic.



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