At a press briefing following a recent board meeting of the federation, Sayyid Assad stated that the federation’s administrative and organisational set-up has to be reviewed initially which may necessitate the increase of members to the board to 20, with an allocation of 10 members to look after each of the two sports - equine and camel.

Experience and specialisation would be the criteria for selection to the board and professionals would be sought to advice on the expansion of activities. Sayyid Assad added that members of each group (equine or camels) would meet separately to discuss matters of concern while it was optional for any board member to attend meetings of the other group. Ultimately, when each of the sports achieves its full standing they may be administered separately.

Sayyid Assad also stated that His Majesty Sultan Qaboos bin Said had graciously approved the establishment of three grounds in Al Duqum, A1 Jazir and Mahout in the central region. These grounds and others to be established in the future would include shops as well as services rendered facilities to cater to families and children. A committee had already visited the southern region and discussed with the minister of state and governor of Dhofar means for activating equestrian sport, registration of horses and camels and the selection of sites for two grounds, one for camel racing and other for horse racing.

The federation is now looking forward to active participation from the private sector in sponsoring events. However, companies should not dictate conditions to the federation and convert the Sultanate’s national heritage into commercial enterprise through inappropriate advertising and to thwart this some measures of control were already underway.

Source-Times of Oman

MUSCAT - The government of Oman is understood to have decided to divest its stake in Al Maha Petroleum Products Marketing Company LLC, the marketing arm of Oman Refinery Company. At present, Al Maha Petroleum, believed to be a future force to reckon with in Oman’s oil industry, has only two shareholders - government of Oman and ABS Lubricants Abu Dhabi - holding 65 per cent and 35 per cent stakes, respectively, in Al Maha’s equity.

Sources said the government has already appointed Al Mawarid Securities Company SAOG, one of the leading financial services companies in Oman, to lead-manage the disinvestment programme.

It is learnt that the company has signed an agreement with the Ministry of Finance last week for the proposed disinvestment programme.

Al Maha Petroleum will go public once Al Mawarid Securities Company - the lead-managers and financial-advisers of the disinvestment programme - completes the valuation process and other necessary formalities.

Subsequent to the public issue, Al Maha shares would be listed on the Muscat Securities Market (MSM).

Before Al Maha came into existence, all the products of the Oman Refinery Company were marketed through the Shell and BP retail networks. Though Al Maha was established in June 1993 in accordance with a Royal Decree, it formally inaugurated its first filling station only in September 1994.

Subsequently, in September 1999, the marketing division of Oman Refinery Company - Al Maha - was formally separated from Oman Refinery Company and established an independent entity - Al Maha Petroleum Products Marketing Company LLC to exclusively distribute petroleum products. Al Maha has a seven-member board of directors, with the minister of oil and gas as chairman.

Besides being in the retail business, Al Maha has also become a prominent supplier of fuel and lubricants to a number of government bodies including ministries, local and international companies operating in Oman.

Al Maha’s clientele include Ministry of Electricity and Water, Royal Air Force of Oman, Ministry of Defence, Royal Oman Police and Petroleum Development Oman.

Moreover, within a short span of eight years, Al Maha has achieved a significant position in the aviation-fuel segment as well with the aviation-related line-up growing considerably.

The company has also opened a number of Marina fuel stations and launched its own brand of outboard lubricants known as ‘Al Bahaar’ to cater to the needs of local fishing industry.

According to available figures, of the 80 retail outlets, 18 stations are located in Muscat, 17 in Al Batinah, three in Musandum, four in Dhahirah, eight in Dakhliyah, 12 in Sharqiyah, seven in Al Wusta and 11 in Dhofar.

Till 1993, BP Oman and Shell Oman were the only two licensees in the retail market.

With the entry of Al Maha, the number of companies engaged in the marketing and distribution of fuel and lubricant products rose to three.

Though an up-to-date data on the market share of these companies is not available, Shell Oman is believed to the largest, in terms of market share, followed by BP Oman and Al Maha. Shell Oman has 116 retail service stations and Al Maha over 80. Sources said the number of Al Maha filling stations is likely to touch 90 by December-end this year.

Subsequent to the establishment of Al Maha, the government had imposed a moratorium on further expansion of filling stations by the other two players. It was estimated that the local retail market had been growing at a compounded annual rate of over four per cent over the last few years. In July 1997, Shell Oman Marketing Company divested 51 per cent of its capital to local investors. Of the total, 40 per cent of shares was floated on MSM, while the remaining 11 per cent reserved for existing Omani shareholders and service station dealers. BP Oman followed a similar strategy with an offer to the public in August 1998.

Subsequent to the public issues of BP Oman and Shell Oman, both the companies were given 10-year licenses to market petroleum products in lieu of an one-time fee and an annual charge.

All refined products used to be imported into Oman, until 1982 when the Oman Refinery at Mina Al Fahal came on stream. Over the years, Oman Refinery increased its capacity to meet the market needs. In August 1996, an agreement was signed with BP to provide technical services to the refinery, which will be upgraded, but no large expansion is planned in the Mina Al Fahal industrial area. A second refinery in Sohar, which is expected to be completed by 2003 will be a catalytic cracker unit with a 75,000 barrels per day capacity. Some lubricants are still imported into Oman, but the lubricants blending plant at Mina Al Fahal, which is operated by Shell Oman, has been able to supply most of the Sultanate’s needs as well as exporting to neighbouring countries.