COMMON TYPES OF PFD (OFFSETS)
In Oman, Offsets are referred to as Partnership for Development (PFD) and are divided into Direct PFD and Indirect PFD.
Direct PFD: The scope of the PFD Project is directly related to the original contract awarded. For example, a contractor awarded Oil Rigs contract carries out a project to manufacture some components of the purchased equipment e.g. setting up a rig tools manufacturing in Oman.
Indirect PFD: The scope of the PFD Project is not directly related to the original contract awarded. For example, a contractor awarded Well Services contract carries out a project for setting up a medical instruments factory in Oman.
|Research and Development or Innovation||Support and Grows SMEs|
|Technology Transfer||Technology Transfer|
|Training, Transfer of Skills||Training, Transfer of Skills|
|Licensed Production||Licensed Production|
|Foreign Direct Investment||Foreign Direct Investment|
|International Best Practice||International Best Practice|
|Manufacturing Facility||Manufacturing Facility|
PFD has a number of benefits to the economy including:
1. Transfer of technology into the local economy, through set ups of manufacturing facilities, factories, etc. hence stimulating ECONOMIC GROWTH and enriching social life.
- Direct procurement of technology most of the risk due to failure of the technology lies on the purchaser.
- With offset much of the risk is on the supplier or contractor on his reputation hence he is more encouraged to ensure that the transfer is successful.
2. To improve military capabilities.
3. Creates or enhances local skills hence adding to the Human Resource skill base.
4. Creates new jobs hence improving employment opportunities.
5. Facilitates foreign purchases (helps to overcome protectionism).