Local Content in Timor-Leste
During 2016, a Bayu-Undan Consolidated Local Content Plan was developed. It involved close engagement with the Autoridade Nacional do Petróleo e Minerais (ANPM), for alignment and endorsement. The purpose of the plan is to apply, in a consolidated approach, a series of enhanced local content principles, processes, and activities by which Timor-Leste content is considered throughout Bayu-Undan activities to deliver further increases in local content. CconocoPhillips’ local content strategy is to go beyond the requirements in the Bayu-Undan production sharing contracts (PSC) and develop and implement opportunities to maximise and further enhance Timor-Leste local content.
Goods and Services
A compendium of measures that aim to improve and increase local content is outlined in the Bayu-Undan Consolidated Local Content Plan as an enhanced approach to Goods and Services. These include: enhanced engagement with suppliers, application of local content principles in developing the procurement strategy; and focused efforts in targeted procurement. ConocoPhillips is committed to continue our increased engagement with potential suppliers, to help them understand our requirements and help us keep abreast of their capacity, as it develops.
The enhanced approach of the Bayu-Undan Consolidated Local Content Plan incorporates an assessment of the scopes of works and identification of potential for local content at an earlier stage, prior to negotiating the contracts, for more efficient local content creation and delivery.
ConocoPhillips advises Timorese suppliers of requests for expressions of interest (EOIs) for upcoming tenders for goods and services in support of Bayu-Undan operations by advertising in two Timorese newspapers having national coverage. The EOI administrative process is managed by ConocoPhillips’ Dili office. Through our discussions with the ANPM about the Bayu-Undan Consolidated Local Content Plan, we have further enhanced the local supplier notification process. Commencing in 2017 our Dili office also advise Instituto de Apoio ao Desenvolvimento Emprezarial and the Chamber of Commerce & Industry Timor-Leste when EOIs are published and provide them with copies of EOIs.
We also publish the current and past EOIs on the website to further improve accessibility.
The enhancements also include identifying opportunities for targeting/unbundling work scopes that could be satisfied by existing Timor-Leste supplier capabilities, or by working with selected medium size potential Timorese suppliers to build their capacity.
Additionally, ConocoPhillips has established a fit-for-purpose supply base in Dili as a logistical enabler to increase local goods and services provided to Bayu-Undan, initially addressing targeted procurement for catering supplies.
Employment and Training
Since the commencement of Bayu-Undan activities, ConocoPhillips has incorporated employment and training programs in its work scopes, to create opportunities for Timor-Leste nationals to increasingly develop skills, not only for petroleum activities, but to develop skills that are also transferable to other areas of economic development. Our growing number of training and employment programs seek to help build local capacity in ways that are relevant to Timorese people and communities. At the outset of our activities in the Timor Sea we began to develop training programs that prepare local trainees for the dynamic and technically challenging oil and gas environment, and beyond.
As the Bayu-Undan project has developed, so too have our training and employment programs. Over the past 15 years we have worked together to deliver programs that integrate local culture and needs, and develop the specific skills, competencies and experience needed for employment in the petroleum sector. The well-being of our employees and trainees is paramount to us, and all training and induction programs include health and safety components. All ConocoPhillips employees have access to and are provided with a structured Learning and Development pathway and Career Development opportunities.
The Bayu-Undan project has directed in excess of $49.2 million dollars to training and employment programs. There are now over 325 Timor-Leste nationals training and employed on the Bayu-Undan project as ConocoPhillips employees and contractors, both on and offshore (as of 31 December 2016). Our offshore operations have always embedded the implementation of training and capacity building programs to develop the skills, competency and knowledge required for offshore roles. This has resulted in 32% Timor-Leste nationals in our offshore workforce composition. This proportion is forecasted to increase to over 40% by 2018. Most of this workforce is at semi-skilled level and continue to expand their knowledge base and build core experience as enablers of career progression and demonstrated industry experience.
View the ConocoPhillips Employment and Training Factsheet here
We also work closely with our major contractors to develop local training and employment opportunities. These contractors share our commitment to create more of these opportunities and include Clough AMEC, CHC, ESS/Compass Group, Oceaneering, Seafox, SDV, KT Maritime, Wood Group, MMA and Subsea7.
We see these opportunities as a springboard for local capacity building and employment. Our investment in training and development not only provides a pathway to employment through the Bayu-Undan project, but also employment opportunities in the broader petroleum sector and financially secure career paths worldwide.
Examples of training and development programs include:
- ConocoPhillips has an Engineering office in Dili to support the Integrated Operations Service Centre (IOSC) engineering teams and support further training and development of Timorese Engineers. In addition to working on Bayu Undan engineering, all Dili- Based engineers are now commencing work on Darwin LNG engineering issues. This is expanding their knowledge to LNG plant facilities.
- ConocoPhillips established a Graduate Internship Program for Timorese nationals in 2014. During the first phase of this program, which is aimed at developing the skills of recent Timor-Leste university graduates to enhance their competitiveness for future employment, twelve (12) Timorese attended a 6-month “Foundational Skills” course customised by ConocoPhillips and delivered through Charles Darwin University; with the second phase commencing in May 2015, when five (5) participants in the initial training stage were given the opportunity to undertake a 12-month placement within ConocoPhillips functions, based on performance criteria. The five (5) interns received mentoring by experienced functional experts and were provided with real on the job experience and further English language development to strengthen their employability skills. The individuals were placed in Engineering, Exploration, Projects and Health, Safety and Environment departments, and provided with insights into other areas like Supply Chain, Human Resources, Commercial and Finance, through a customised 2-week training program. On conclusion of the program in mid-2016, a number of the interns were offered roles in Dili and in Perth.
- Our contractor, Clough AMEC has established an Operations & Maintenance Core Crew Trainees program through the local content plan in their contract. Eighteen (18) Timorese nationals, who were trained in the Philippines on the Cert II in Mechanical and Electrical, are now in their offshore traineeship roles, as part of the Operations and Maintenance department offshore (core crew). The trainees have been assigned to each of the facilities. The trainees will rotate to gain further experience.
- Our catering contractor ESS/Compass Group implemented a structured training program for Timor-Leste cooks and Offshore Unit Managers. Additionally, 12 trainees completed Certificate III in Hospitality and gained further exposure to kitchen and operational aspects at sites in Australia. As a result of the capacity development conduct over multiple years the offshore manning of catering services is almost entirely Timorese, with the plan for it to be 100% Timorese by 2018.
- Our helicopter contractor CHC supported 4 Timorese to complete the Civil Aviation Safety Authority B1.3 course through the local content plan in their contract. In 2016, they received their license, a major achievement, as these are the first Timorese licensed aircraft maintenance engineers.
- Other intensive trainee programs are being implemented in engineering, technical support trades such as rigging, scaffolding, painting/blasting, and marine deck crews; and in support functions such as logistics and administration.
- Training and employment opportunities are also developed through our onshore projects such as our temporary transit and heliport facility located at the Nicolau Lobato International Airport in Dili. Heliport operations facilitate crew transfers to the offshore platforms, with up to 500 crew members transferring each month. The heliport employs 22 Timor-Leste nationals including assistant engineers, an assistant base manager, ground handling staff, a crew transit coordinator, security staff and additional support roles.
As the Bayu-Undan project has developed and the petroleum sector in Timor-Leste has grown, we have seen a multiplier effect in income and employment. Over time, the increased presence from our contractors and service providers has led to growth in employment opportunities in supporting industries. This multiplier effect continues to build a solid platform for future economic development in Timor-Leste