Slides from a keynote presentation to the 2015 Ghana Oil and Gas Summit (April 2015, Accra, Ghana). A discussion on the growing social demands on business and how local content can be a key tool to enable efficient delivery of local value through investments and operations.
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Local content success strategies: Ghana Petroleum Summit, April 2015
1. Four Strategies for
Local Content Success
Wayne Dunn
Professor of Practice in CSR (McGill)
President & Founder
CSR Training Institute
info@csrtraininginstitute.com
www.csrtraininginstitute.com
Ghana Oil & Gas Summit
Wednesday April 22, 2015
Accra, Ghana
2. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Presentation Objective & Outline
• Global perspective on local
content pressures
• Local content challenges
• Local content strategies
• Resource Materials
• Discussion
3. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
2015 is not an easy time
for the petroleum industry
• Bottom of the cycle
• High costs
• Low prices
• Increasing social
demands
• Increasing environmental
requirements
• Global legacy issues
• Expanding regulatory
requirements
• Expanding compliance
requirements &
expectations
• How to meet social,
environmental &
shareholder expectations
Need to innovate
Need to collaborate
4. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Social value imperative
applies across industry, sector & geography
5. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Demands/Involvement
Growing Social Demands
1. Consultation
(formal/informal, history,
structure, FPIC, closure)
2. Access to land (who/how
approved)
3. Benefit sharing (what’s in it for
everyone)
4. Project approval (who
approves? when? how?)
5. Environmental monitoring
6. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Challenges
• Remote locations with little or no
experience with industrial employment
• Limited infrastructure to provide training
and support to assist potential workers
with the transition to industrial
employment.
• Limited technical skills and business
management skills (employees &
suppliers).
7. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Challenges (continued)
• Unrealistic expectations (government and
communities)
• Low literacy and household economies are
often subsistence based.
• Hard to make the right hires. Overwhelming
response to employment opportunities.
• Programs to facilitate local content development
are under-resourced and focus on short-term
impacts rather than the structural issues that
can create sustainable longer term impacts.
8. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Challenges (continued)
• There are no economic vehicles in the local economy
that can enable effective participation in the larger
contracts and opportunities.
• Locally owned businesses lack the financial, operational and
management capacity to compete for larger contracts, even
with extensive support and assistance from the
project/company.
• The bulk of the overall value of contracts for goods and
services cannot be broken down to a size that can be digested
by local businesses and entrepreneurs.
• This means that by default the local economy is effectively
prohibited from participating in the lion’s share of
opportunities other than as sub-contractors.
9. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Strategies
1. Think Cap Ex when budgeting
• Life of project benefits
10. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Strategies(continued)
2. Pre-employment
training
• Basic skills/orientation to
industry and industrial
employment
• Qualified & pre-screened
pool for hiring
11. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Strategies(continued)
3. Invest in education
& training
institutions
• Local training infrastructure
is critical
• Government needs to have
capacity to collaborate (may
take training)
12. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Local Content Strategies(continued)
4. Development
Corporations
• Vehicle & strategy to match
capacity to opportunity
• Enable professional
management and broad
participation
13. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Development Corporation Example
Kitsaki Development Corporation
• Northern Resource Trucking Limited Partnership (trucking and transportation)
• The La Ronge Motor Hotel Limited (Hospitality and accommodation)
• Kitsaki Meats Limited Partnership (specialty food products)
• La Ronge Industries Ltd. (agriculture production
• First Nations Insurance Services Ltd. (insurance and financial services)
• Athabasca Catering Limited Partnership (catering and hospitality)
• Dakota Winds Kitsaki Mechanical Services Ltd. (plumbing, heating, refrigeration,
and mechanical services)
• Wapawekka Lumber Limited Partnership (timber and forestry)
• Keewatin/Procon Joint Venture (contract mining, surface and underground)
14. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Some Resource Material
• Four Strategies for Local Content
Success
• Cameco Case Study
• Kitsaki Development Corporation
Case Study
Email wayne@csrtraininginstitute.com
if you want copies
15. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Presentation Objective & Outline
• Global perspective on local
content pressures
• Local content challenges
• Local content strategies
• Resource Materials
• Discussion
16. Ghana Oil & Gas Summit | Accra, Ghana | April 2015
four strategies for
Local Content Success
Discussion, Questions, Debate…
Wayne Dunn
Professor of Practice in CSR (McGill)
President & Founder
CSR Training Institute
info@csrtraininginstitute.com
www.csrtraininginstitute.com
Canada: +1.250.701.6088
Ghana: +233.54.110.7974