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Local content success strategies: Ghana Petroleum Summit, April 2015

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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. 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. 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. 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. 4. Ghana Oil & Gas Summit | Accra, Ghana | April 2015 four strategies for Local Content Success Social value imperative applies across industry, sector & geography
  5. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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