Renforcement des capacités dans le suivi des contrats, Trond Kubberud, IPAN


Published on

International Oil and Gas Resource Management Seminar, April 27-30, 2008; held in Libreville, Gabon

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Renforcement des capacités dans le suivi des contrats, Trond Kubberud, IPAN

  1. 1. Capacity Development Trond Kubberud Partner & Managing Director
  2. 2. What do you want? <ul><li>Responsible Resource Management </li></ul><ul><ul><li>Efficient exploration (Discover resources at lowest possible cost) </li></ul></ul><ul><ul><li>Profitable development (High rates of recovery at low aggregated cost) </li></ul></ul><ul><li>Maximize the aggregated pie, not your share or short term </li></ul><ul><li>Attract the best qualified companies and offer them what they need, but not more </li></ul><ul><li>Consider economy of scale and economy of scope </li></ul><ul><li>High standards for health, safety and environment etc </li></ul><ul><li>Optimize petroleum resources role in national energy supply </li></ul><ul><li>Manage the petroleum sector’s impact on the national economy </li></ul>April 2008 Trond Kubberud - Libreville
  3. 3. Philosophy <ul><li>The mining philosophy: The discoverer owns (governments should keep away) </li></ul><ul><li>The resource management philosophy: The country is the owner of the resources (companies do a job for the country; the government has the ultimate responsibility for the management of the resources) </li></ul><ul><li>The government has to organize the sector for responsible and efficient resource management </li></ul><ul><ul><li>Align economic incentives for oil companies with the objectives of the national petroleum policy </li></ul></ul><ul><ul><li>Develop thrust and co-operation between companies and between the industry and the government </li></ul></ul><ul><ul><li>Train government agencies for timely decisions </li></ul></ul>April 2008 Trond Kubberud - Libreville
  4. 4. Challenges <ul><li>Efficient exploration </li></ul><ul><ul><li>Systematic licencing </li></ul></ul><ul><ul><li>No blocking of areas </li></ul></ul><ul><ul><li>Public information </li></ul></ul><ul><li>Efficient development </li></ul><ul><ul><li>Partners </li></ul></ul><ul><ul><li>Economic incentives </li></ul></ul><ul><ul><li>Technical government competence </li></ul></ul><ul><ul><li>Government to arrange for economy of scale and economy of scope </li></ul></ul><ul><li>Secure income </li></ul><ul><ul><li>Insight in marketing </li></ul></ul><ul><ul><li>Control revenues </li></ul></ul>April 2008 Trond Kubberud - Libreville
  5. 5. The National Oil Company Model April 2008 Trond Kubberud - Libreville Ministry National Oil Company IOC IOC IOC Title to Oil
  6. 6. Norwegian Model April 2008 Trond Kubberud - Libreville Ministry National Oil Company Directorate IOC IOC IOC Resource Management
  7. 7. Norwegian system today April 2008 Trond Kubberud - Libreville Min of Petroleum and Energy Petroleum Directorate Gassco Statoil/Hydro Petoro Min of Environm Pollution directorate Ministry of Finance Petroleum revenue service Min of Labour Petroleum safety directorate Labour directorate
  8. 8. The spin offs April 2008 Trond Kubberud - Libreville 1961 1980 Committee Petroleum office Petroleum department Statoil, Petroleum Department Petroleum Directorate Ministry of petroleum/2 petroleum departments, Statoil, Petr. Dir. Political strategy
  9. 9. The spin offs April 2008 Trond Kubberud - Libreville 1980 2008 Min of petroleum/ 2 petroleum departments, Statoil, Petr. Dir. Political strategy Min of petr/ 2 petr depart-ments, Statoil, SDØA Petr. Rev service Safety under Min of labour Petr. Dir. Ministry of Petroleum/ 2,5 Petr. Dep, Min of environment, Min of Finance, Min of labour, Petr. Dir, Gassco Petoro, Petr safety direc, Pollution direc, Oil revenue service,
  10. 10. Learning <ul><li>International advisors and consultants </li></ul><ul><li>Study missions </li></ul><ul><li>Scolarships </li></ul><ul><li>New fields and courses at the universities </li></ul><ul><li>Training of people required from foreign companies </li></ul><ul><li>Internships </li></ul><ul><li>Hire Norwegians and buy Norwegian requirements </li></ul><ul><li>Learning buy doing – on the job training </li></ul><ul><li>Observations </li></ul><ul><ul><li>All governments recruited top people with integrity, universal thrust and confidence during the early phases </li></ul></ul><ul><ul><li>Limited salary differences in Norway </li></ul></ul><ul><ul><li>Well educated population </li></ul></ul><ul><ul><li>Relevant industries before </li></ul></ul><ul><ul><li>Petroleum officials offered slightly higher salaries </li></ul></ul>April 2008 Trond Kubberud - Libreville
  11. 11. Control mechanisms <ul><li>Partner audit, including Norwegian companies, also state- owned </li></ul><ul><li>Petroleum directorate and Ministry reviewing development plans and operating costs </li></ul><ul><li>Norm price for oil (no extra taxing) </li></ul><ul><li>State company and Ministry involved in gas sales and approving gas contracts </li></ul><ul><li>All companies required to produce financial statements on a stand alone basis in Norway and subject to review by certified public accountants </li></ul><ul><li>Independent petroleum revenue service </li></ul>April 2008 Trond Kubberud - Libreville
  12. 12. Norwegian experiences <ul><li>Efficient exploration, development and operations main objective </li></ul><ul><li>Relationship between companies and government </li></ul><ul><li>Aligning company incentives with policy objectives </li></ul><ul><li>Government responsibility to establish the basis for handling economy of scale and economy of scope </li></ul><ul><li>Balance competition and cooperation </li></ul><ul><li>Recruite the right people </li></ul><ul><li>Capacity development takes time </li></ul><ul><li>Study, pick and develop your own way based on your point of departure and objectives (probably no ”worlds best practise” or ”perfect model” that can be copied) </li></ul>April 2008 Trond Kubberud - Libreville
  13. 13. You need <ul><li>A consistent petroleum policy consistent with other policies </li></ul><ul><ul><li>Rules </li></ul></ul><ul><ul><ul><li>Treaties </li></ul></ul></ul><ul><ul><ul><li>Legislation </li></ul></ul></ul><ul><ul><ul><li>Contracts </li></ul></ul></ul><ul><ul><ul><li>Standards </li></ul></ul></ul><ul><ul><ul><li>Guidelines </li></ul></ul></ul><ul><ul><li>Implementing machinery </li></ul></ul><ul><ul><ul><li>Government </li></ul></ul></ul><ul><ul><ul><li>Ministries </li></ul></ul></ul><ul><ul><ul><li>Directorates </li></ul></ul></ul><ul><ul><ul><li>Companies </li></ul></ul></ul><ul><li>Qualified people and organizing them efficiently </li></ul>April 2008 Trond Kubberud - Libreville
  14. 14. Scheme dec 07 Trond Kubberud - Ramallah Parliament Government Directorate State Companies Ministry Private Companies Act Regulations Standard Contracts Decisions Other Ministries
  15. 15. Reporting in Norway <ul><li>Seismic, well and production data to the Directorate </li></ul><ul><li>Production data to the Ministry (slightly aggregated) </li></ul><ul><li>Cost data to the Ministry, the Directorate and the Revenue Service </li></ul><ul><li>Sales data to the Ministry and the Revenue Service </li></ul><ul><li>Development plans to the Ministry and the Directorate </li></ul><ul><li>Labour data to the Labour Directorate </li></ul><ul><li>Statistical data to Statistics Norway and the Ministry </li></ul><ul><li>Balance sheets and profit and loss accounts to the National Company Register </li></ul><ul><li>Tax income forms to the Revenue Service and the Ministry </li></ul><ul><li>HMS data to the Polution Authority, Labour Directorate and the Ministry </li></ul>April 2008 Trond Kubberud - Libreville
  16. 16. Special features in Norway <ul><li>All information except for business secrets open to the public </li></ul><ul><li>Sufficient aggregated information available for everybody to control consistency in numbers </li></ul><ul><li>All money paid to Ministry of Finance (MoF agencies) </li></ul><ul><li>Special legal provisions for the Ministry to receive statistical data and tax data </li></ul><ul><li>Ministry forecasts based on the Ministry computing pl-accounts and balance sheets for every oil company. Ministry required to explain deviations </li></ul>April 2008 Trond Kubberud - Libreville
  17. 17. Required Competence <ul><ul><li>Geology </li></ul></ul><ul><ul><li>Development of petroleum fields </li></ul></ul><ul><ul><li>Depletion strategies </li></ul></ul><ul><ul><li>Data management </li></ul></ul><ul><ul><li>Economics and finance </li></ul></ul><ul><ul><li>National and international law </li></ul></ul><ul><ul><li>The petroleum industry </li></ul></ul><ul><ul><li>The oil services industry </li></ul></ul><ul><ul><li>Oil market </li></ul></ul><ul><ul><li>Gas markets </li></ul></ul><ul><ul><li>Energy markets </li></ul></ul>April 2008 Trond Kubberud - Libreville