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Training, a key component of capacity building

Presentation delivered by Colin McLean at the second PIEA Upstream East Africa Summit in Nairobi, October 2013. The presentation is a look at the broad issues which challenge hydrocarbon industry growth in the region and the important role of training in tackling the problems.

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Training, a key component of capacity building

  1. 1. Training, a key component of capacity building The role of industry specific training in the East African upstream hydrocarbon industry
  2. 2. Background – who are Effective Training International? • Private company; specialist oil and gas Health & Safety training provider, based in Co. Donegal, Republic of Ireland • OPITO, IRATA, RUK & GWO accredited • Trading since 2008, now Ireland’s leading oil industry training company • Experienced, flexible and dedicated team • Actively looking for opportunities to work with companies in East Africa
  3. 3. Potential size of East African oil and gas fields
  4. 4. East African Populations Country population 2013 projected population 2020 Ethiopia 95,045,679 118,396,876 Kenya 44,611,813 54,661,024 Madagascar 23,042,300 28,621,189 Mozambique 25,965,554 31,515,871 Tanzania 49,483,005 62,076,782 Uganda 37,828,742 49,009,258
  5. 5. How many people could be employed? • UK, 2011 • 171,000 people employed in the UK oil and gas sector • Around 7% of the industrial workforce • 52,300 travelled offshore to work • BUT: this is a mature market (40 years) • Kenya, 2020 projection • Population size will be roughly similar to UK • 7% of projected industrial workforce in 2020 = 165,000 • Unlike UK the wells are both onshore and offshore • New market, rate of potential growth is an issue
  6. 6. Typical roles on an offshore rig
  7. 7. What jobs will be created? Welders, accountants, crane drivers, divers, real estate sellers, electrical engineers, security guards, cooks, road engineers, banksmen, painter/blasters, HVAC engineers, medics, ballast engineers, helicopter pilots, gardeners, riggers, OIM, Toolpushers, roughnecks, recruiters, trainers, office managers, salespeople, estimators, shipyard repair crews, railway train drivers, mud loggers, scaffolders, mechanical designers, ships captains, taxi drivers, geologists, weather forecasters, HGV drivers, entrepreneurs, bankers, translators, and the list goes on……………………………….
  8. 8. Why is training necessary? • To provide the oil companies with the trained labour force they require • Give well paid, long term jobs to indigenous people • Help to retain some of your most talented people in the country • Advancement of individuals, companies and communities • Increased ’ownership’ of the countries natural resources • Improve the base levels of transferable skills which benefits other sectors in the economy
  9. 9. Education vs. training: the challenges • Do EA countries need more education or training? • They need both – and quickly! • Let us consider ‘training’ as vocational education. • To fully engage with the oil industry jobs market the workforce requires basic education, vocational training and/or further education • Secondary education levels are going to be an issues for the region as countries seek to build human capacity • Technical institutes have a huge role to play in providing the training necessary to meet oil industry demands
  10. 10. Current vocational training in Kenya • Approx. 500 youth polytechnic schools in Kenya currently and more are being adding more rapidly • Danger of quantity ahead of quality • Technical training MUST be aligned with the markets requirements! • A welder is just a welder – right? • Wrong – oil sector welders require specific training to meet international performance standards • Vocational training is a stepping stone to oil industry employment and must be aligned with oil industry needs
  11. 11. • Operating for more than 30 years, OPITO is an industry owned, not-for-profit, standard setting body • Committed to improving Safety and Competence in the Industry • OPITO Standards are driven by the needs of industry through industry workgroups, once standards are agreed they are delivered by the learning supply chain, this process is quality assured by OPITO. • All OPITO-Approved training providers are audited annually by OPITO. • All OPITO certificates are entered into the ‘Vantage’ database system, the Oil & Gas Industry can access ‘Vantage’ (on-line) to check authenticity of training records. About OPITO
  12. 12. OPITO training centres
  13. 13. State vs. Private • Training Centres are necessary but somebody needs to pay for them • Should this be the state or Private Sector? • Different models in other regions, no ‘right’ solution • PPP worth considering as an option • Vocational training centres are not expensive but are vital
  14. 14. Specialist 3rd level education • The is a world shortage of university graduates in the oil industry • It will be difficult for East African countries to rapidly develop the necessary courses and attract faculty • Building links with existing universities in other regions could be the best option for this regions premier universities • Technology advances are providing increasing numbers of opportunities for graduates • The oil industry has a poor record of attracting graduates – a chance for East Africa to show the way?
  15. 15. Full engagement with the oil sector • Anything less than full engagement with the oil industry will reduce or even nullify the potentially positive effects of training for the country • The specific requirements of the industry need to be understood by the decision makers in each country • That will happen only when both parties communicate effectively. Listening is just as important as talking • Start that process now! The window of opportunity is narrow and closing every day.
  16. 16. In summary…………… • Oil changes countries • Capacity building in the oil industry sector and its supply chain are key to the future of the countries in the East Africa region • Governments must fully engage with the sector and develop policies which mesh peoples’ desires with industry requirements • There is a small window of opportunity which should be grasped by all parties • Honesty, integrity and flexibility are precursors to open communication and success for all concerned
  17. 17. Summary (continued) • Secondary education levels are a necessary basic requirement • Industry specific as well as general vocational training courses will be required to meet demand • OPITO accredited training facilities must be considered as part of a wider training plan • Universities should start to build links with those outside the immediate region and develop industry specific degree courses • The future is bright if governments and oil companies aim for a ‘win/win’ and maximise the opportunities for both.
  18. 18. Thank you for your attention

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