Treacy Roberts, ExxonMobil, USA Elizabeth Wild, BP, UK Maria Bernada Zapata Martinez, Repsol, Spain Francois Breant, Total, France Vincent Bordmann, Total, France Estella Nucci, IPIECA Elena Oskolskaya ExxonMobil, USA Upstream National Content Manager Developing a Local Content Strategy – Guidance Document by IPIECA Forum 23: Social Responsibility requirements for financing energy projects
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Treacy Roberts, ExxonMobil, USA Elizabeth Wild, BP, UK
Developing a Local Content Strategy – Guidance Document by IPIECA. Elena Oskolskaya. Upstream National Content Manager. ExxonMobil, USA. Treacy Roberts, ExxonMobil, USA Elizabeth Wild, BP, UK Maria Bernada Zapata Martinez, Repsol, Spain Francois Breant, Total, France - PowerPoint PPT Presentation
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Treacy Roberts, ExxonMobil, USA
Elizabeth Wild, BP, UK
Maria Bernada Zapata Martinez, Repsol, Spain
Francois Breant, Total, France
Vincent Bordmann, Total, France
Estella Nucci, IPIECA
Elena Oskolskaya
ExxonMobil, USAUpstream National Content Manager
Developing a Local Content Strategy – Guidance Document by IPIECA
Forum 23: Social Responsibility requirements for financing energy projects
Introduction
Guidance Document Objective:
• Provide guidance on development, implementation and management of sustainable
local content strategy to local content practitioners in oil and gas companies
Methodology:
• IPIECA Local Content Task Force began in
2007
• Initial focus on defining local content evolved to
a high-level guide
• Interviews were conducted with practitioners
from several oil & gas companies
Local Content
Definition:
• Local Content is defined as added value brought to a host nation through:
0 Workforce development: employment and training local workforce
0 Supplier development: procuring supplies and services locally and developing
local supplier capacity
Rationale:
• Meet local content regulatory requirements
• Enhance engagement with stakeholders
• Contribute to sustainable economic growth
• Achieve long-term value while
demonstrating social responsibility
Outline of Guidance Document
The guidance is divided into three sections:
Part 1—Introduction: drivers and objectives of an effective local content strategy
Part 2—Developing capacity: detail on developing the primary components of a local content strategy, such as building local workforce and supplier capacity
Part 3—Implementing and sustaining local content: key issues that practitioners can consider to ensure successful implementation of a local content strategy
Part 1 – Local Content Strategy Development
• Key drivers of successful strategy:
0 Local context
• Understand demand-side requirements, the supply-side capabilities, and any barriers that limit local participation
0 Regulatory requirements
• Address regulatory driven targets for
local content development
0 Business expectations
• Identify strategic and commercial
reasons for investing in local content
0 Stakeholder expectations
• Define internal and external stakeholders and their objectives
Part 2 – Capacity Development
• An effective local content program focuses on local workforce and local
supplier capacity building
• Key approaches to workforce development:
� Employment policies
� Training and skill development
� Investments in education
� Construction phase employment
• Strategies to promote local supplier development:
� Direct procurement of local goods and services by oil and gas companies
� Indirect procurement by companies’ major contractors
Part 3: Implementing and Sustaining Local Content
• Effective internal organization and coordination are two elements
successful strategies have in common
• Close collaboration with other stakeholders play a key role in developing
an effective local content strategy
• Infrastructure is crucial to sustainability of
local content plans and activities
• Appropriate measurement process that
allows monitoring performance against
objectives and encourages continuous
improvements should be built in every plan
Summary
• Local content has become a strategic issue for the oil and gas industry – a comprehensive strategy is recommended to address associated opportunities and challenges
• Key success factors for local content strategy
implementation are:0 Contextual analysis0 Starting early0 Long-term perspective0 Good communications
• Local content programs are worth the effort, providing strategic and commercial benefits for the company, and economic growth and sustainable development for the host nation
the global oil and gas industry association
for environmental and social issues
www.ipieca.org
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