Digital initiative launched to develop supply chains in energy sector

Business Wednesday 01/July/2026 16:25 PM
By: ONA
Digital initiative launched to develop supply chains in energy sector

Muscat: The Ministry of Energy and Minerals has launched an initiative to develop integrated digital solutions for supply chains in the energy sector, a strategic move aimed at enhancing expenditure efficiency and improving procurement and contract management in one of the Sultanate of Oman's largest economic sectors, where average annual spending on supply contracts exceeds OMR4 billion.

The initiative was launched during the inaugural meeting chaired by Mohsen Hamad Al Hadrami, Undersecretary of the Ministry of Energy and Minerals. Petroleum Development Oman (PDO) has been entrusted with leading the project as a precursor to its future expansion to include energy companies and integration with relevant government entity systems.

The initiative comes at a time when the energy sector's supply ecosystem manages a network comprising over 6,000 supplier and contracting companies, alongside the issuance of more than 600 tenders annually across various specialisations. This makes digital transformation in supply chain management a critical factor in enhancing operational efficiency and improving transparency and governance standards.

The new digital ecosystem aims to provide comprehensive visibility into supply chain movements within the sector, strengthen data analytics and risk management capabilities, and support data-driven decision-making. It also leverages artificial intelligence technologies to convert operational data into actionable indicators and insights that assist stakeholders in improving performance and streamlining procedures.

Furthermore, the initiative includes the development of digital tools to measure and track the contribution of local content in projects and contracts, enabling more precise assessment of Omani companies' participation in sector-related economic activities and expanding opportunities for local suppliers and contractors within the supply ecosystem.

The Ministry aspires to develop a digital marketplace for sector-related products and services, enabling supplier companies to showcase their capabilities and offerings within a more transparent and competitive environment, thereby supporting business growth and enhancing the participation of national enterprises in investment and operational opportunities. The project is expected to contribute to the development of national capabilities in technical fields related to supply chains through the engagement of Omani companies in developing technical components and digital solutions, alongside the localisation of data analytics, change management, training and operational support services.

The initiative aligns with the objectives of Oman Vision 2040 concerning the enhancement of national economic competitiveness, the improvement of the business environment, the promotion of local content and the expansion of digital technologies' contribution to the development of vital economic sectors.

Participants in the meeting affirmed that project implementation will proceed through phased stages focused on delivering sustainable value to the energy and minerals sector and the national economy. Further details will be announced as implementation progresses.

The meeting was attended by Dr. Aflah Said Al Hadrami, Managing Director of Petroleum Development Oman, Eng. Moosa Badr Al Shariani, Director of the Integrated Supply Chain at Petroleum Development Oman and a number of officials.