Petroleum Development Oman

Case Studies 29 Sep 2015

About Petroleum Development Oman

Petroleum Development Oman (PDO) is the foremost exploration and production company in the Sultanate of Oman. PDO accounts for more than 70% of the country’s crude oil production and nearly all of its natural gas supply. The company is owned by the Government of Oman (with a 60% interest), along with Royal Dutch Shell, Total and Partex. PDO operates around 130 producing fields, close to 6,000 producing wells, a workforce of 7,700 and more than 60,000 contractors. The company’s annual travel spend is worth 9 million USD.

Here's how we made it possible...

Background

FCm Oman was invited to tender for the PDO business, which has historically been held by a couple of travel agents who had dominated Oman’s travel sector for over 30 years. These providers had looked after the PDO business for alternative 5 year contract periods. FCm demonstrated their technical capabilities and extensive understanding of PDO’s objectives, before being officially awarded the business.

Challenges

Due to the previous ad-hoc approach to PDO’s travel, they did not have a clear picture of their actual travel spend. This was compounded by poor reporting processes and a lack of solid policies to guide travel authorisation and expense management. Therefore the key challenges for PDO and FCm were to gain insight into the travel spend, to consolidate the entire travel program across all locations and to control expenses. FCm’s goal was to deliver transparency and to leverage PDO’s volumes to secure more competitive supplier deals.

Our Solution

The first priority for FCm Oman was to gain a thorough understanding of PDO’s travel requirements, existing policies and behaviours.

Reporting and transparancy

FCm gathered essential information on refund procedures, frequently used airlines, hotels and car rental companies. MIS reports were used to identify where PDO could minimise their spend on a daily, weekly and monthly basis – giving PDO access to this data for the first time. While the implementation of FCm’s Travel Management System gave PDO a new found clarity and transparency.
 

Online Booking Tool to drive compliance

FCm introduced an Online Booking Tool (OBT) with profiles of over 5000 employees and their families. This records travellers’ passport numbers, visa details, visa expiry dates, passport expiry dates, PDO crew rota dates and much more, along with PDO’s travel policies. The OBT has brought traveller behavior into line with the company’s travel policies, while delivering increased savings for PDO. The OBT also streamlined travel booking and approval processes, along with identifying justifications for overrides.
 

Measurable results

FCm introduced and set KPI’s to enhance and monitor their service levels, including factors such as turnaround time, number of options per booking, savings compliance and adherence to travel policies.
 

Results

In the 12 months after FCm Oman was awarded the tender, they successfully:

  • Implemented travel services representing 100% of PDO’s travel spend  consolidated PDO’s travel program to deliver greater policy adherence and smarter buying
  • Delivered savings of $500,000 in the first six months and a further $700,000 during the second half of the first year
  • Demonstrated a 10% saving within the first 12 months alone, while also delivering savings on hotels, car hire and other verticals.

Petroleum Development Oman's response

“The business intelligence uncovered by FCm’s comprehensive reporting solution has really made a difference to our business. The data coupled with the expertise of our account manager really opened up our eyes and has given us a solid basis to make informed decisions resulting in significant savings in our travel category.”
Mouza Al Mahrouqi,
Head of shared services,
Petroleum Development Oman.