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Initial production is expected to start with 100 wellheads annually, with a target of reaching 500 wellheads per year over the next five to seven years
MUSCAT: Omani oilfield services company, Hema Energy, in a move set to strengthen Oman’s energy manufacturing capabilities, has entered into a significant agreement with China’s Shengji Group to construct and operate a wellheads manufacturing facility in Oman. Aimed at advancing local content and supporting Oman’s Vision 2040 goals for industrialisation, this partnership represents a crucial step towards a self-sustained supply chain for Oman’s energy sector.
Azzan Moghrob Asmi, Acting Group Managing Director of Hema Energy, shared insights on the collaboration in an exclusive interview with Oman Observer, highlighting the strategic motivations and potential impact of this factory on Oman’s economy.
“Hema and Shengji Group have a strong partnership that goes back more than seven years,” Asmi explained. “For the past year, we’ve been exploring options to establish a facility that aligns with our local content objectives, concentrating on essential, in-demand products for the Omani market.”
FULFILLING LOCAL DEMAND AND BEYOND
The planned factory will focus on producing low to mid-pressure wellheads, with capacities ranging from 2000 to 5000 psi (pound per square inch). Initial production is expected to start with 100 wellheads annually, with a target of reaching 500 wellheads per year over the next five to seven years. The facility’s eventual goal is to meet Oman’s domestic demand and venture into exports.
“Local content has become a priority across various sectors in Oman,” said Asmi. “This initiative will enhance supply chain responsiveness, ensuring that wellhead components are readily available within the country. Additionally, we’ll be able to stock critical spare parts locally, reducing downtime for end-users.”
The project is also expected to generate job opportunities for Omani citizens, which will contribute to workforce development within the energy sector. “One of the most significant outcomes of this facility will be the openings created in the job market, particularly for Omanis,” Asmi added.
COLLABORATIVE INVESTMENT AND ROLES
According to Asmi, Shengji Group will serve as the technical partner, providing its expertise in wellhead manufacturing, while Hema Energy will act as the local arm, facilitating market access and liaising with local stakeholders. “We’re both investing in the facility based on our respective equity in the project,” he noted. “Shengji will bring the ‘know-how,’ while Hema Energy will play a crucial role in market penetration, helping to establish this facility as a key local supplier.”
The collaboration will bring economic benefits as well. By keeping production and cash flow within Oman, the facility aims to enhance cost efficiencies over time, allowing the locally made product to compete on price with imports.
SUPPORTING VISION 2040 AND FUTURE EXPANSION
Aligning with Oman’s Vision 2040 goals, the wellheads factory is poised to play a key role in the country’s industrialization efforts. “The energy sector is critical to Oman’s economy, and establishing local production capabilities is essential for sustainability,” Asmi emphasised. “While our primary focus is to serve Oman, we are also looking ahead to exporting our products in the future.”
Hema Energy is already taking steps to integrate environmentally friendly processes at the new facility. “Currently, we manufacture flanges in our Oman Flanges facility, which covers about 50% of the wellhead production process. We’re optimizing efficiency and reducing environmental impact, aiming to move toward nearly zero waste,” Asmi explained. Future plans include expanding the facility to incorporate forging capabilities, which will further reduce waste and support sustainable manufacturing.
CHALLENGES AND PROSPECTS
Asmi acknowledged that there are regulatory challenges involved in gaining approval for the locally made products. “Registering our products with clients and achieving official approval could take an average of two years,” he pointed out. “The rest are administrative processes that we are prepared to handle.”
Looking to the future, Asmi envisions a strong reputation for Hema Energy within the industry. “Our ultimate goal is to leverage Oman’s free trade agreements with the USA and Singapore for exporting,” he said. “We see this project significantly elevating our brand.”
Asmi also hinted at more developments in the pipeline, revealing that Hema Energy is close to finalizing two additional agreements. “We’re working on bringing other long-standing products into the local market under the ‘Made in Oman’ label,” he shared, underscoring the company’s commitment to enhancing Oman’s industrial base. |
