Lessons Learned from Diverse Perspectives Developing Future Operations: Sakhalin, Eastern Canada, and Malaysia (National Content / Supplier Development Story)
- Natalie Stirling-Sanders (ExxonMobil Global Services Company)
- Document ID
- World Petroleum Congress
- 21st World Petroleum Congress, 15-19 June, Moscow, Russia
- Publication Date
- Document Type
- Conference Paper
- 2014. World Petroleum Council
- 0 in the last 30 days
- 53 since 2007
- Show more detail
Dialogue respecting local supplier and workforce participation in petroleum development has evolved in recent years. Discussion of “win/lose” propositions has been replaced by dialogue and policy reflecting the reality that interests of local communities, governments, NOCs and IOCs are more aligned than different, and in many respects, symbiotic. Effective strategies allow investment to generate broad and sustainable economic development.
Undeniable, however, is the growing need to be competitive. Governments and NOCs are focusing on competiveness of workforces, suppliers and taxation regimes. IOCs are seeking efficiency, security of supply and cost reductions in their supply chain and global competitiveness in safety, quality, business conduct and environmental protection. Increasingly, stakeholders recognize short-term thinking and last minute planning will yield sub-optimal results. Countries optimizing for success are focusing on establishing workforce and supplier capacity years in advance and at a realistic and sustainable pace. Further, there is an enhanced understanding that a successful approach in one location may not work in another, even when underlying differences are not discernible.
Finally, respecting the need to be competitive, countries on the leading edge of this debate are carefully considering the risks and costs of complex and prescriptive local content policies, taking a more supportive and collaborative position. Russia, Malaysia and Canada have all realized significant successes in supplier and workforce development spurred by their oil and gas sectors; and while there are similarities in their approaches, there are differences. Analysis of their approaches to local content reveals lessons for those about to embark on this journey and those adapting their strategies in response to dynamic shifts in the market as well as the socioeconomic environment. However, the real lesson is that in a fast-paced and highly competitive global economy, stakeholders that embrace “continuous improvement”, adapt quickly and understand the value of a collaborative relationship in a competitive environment will reap the rewards and will sustain the supply of energy for years to come.
|File Size||243 KB||Number of Pages||4|