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BIODIVERSITY C APACITY BUILDING C L I M AT E C H A N G E COMMUNITY DEVELOPMENT F U E L S A N D T R A N S P O R TAT I O N H E A LT H HUMAN RIGHTS OIL SPILL RESPONSE TR ANSPARENC Y
International Petroleum Industry Environmental Conservation Association 5th Floor, 209215 Blackfriars Road, London, SE1 8NL, United Kingdom Telephone: +44 (0)20 7633 2388 Facsimile: +44 (0)20 7633 2389 E-mail: info@ipieca.org Internet: www.ipieca.org
IPIECA 2006. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior consent of IPIECA. The information in the case studies was accurate at the time of printing. This publication is printed on paper manufactured from fibre obtained from sustainably grown softwood forests and bleached without any damage to the environment.
Contents
Introduction
IPIECA Foreword Chris Morris, IPIECA General Secretary A global business view Guy Sebban, Secretary General, International Chamber of Commerce A partnership perspective Ros Tennyson, Director, Development Partnership Solutions International Business Leaders Forum
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2 2 3
Background and purpose of this publication Sustainable development progress through partnerships Benefits of working in partnership Practical tips for effective partnerships Key to the case studies:
Colour-coded matrix listing all 40 case studies by theme and title, and indicating the partners, geographical level, location and oil company involvement
4 6 8 10 14
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16 32 48 58 68 74 82 86 92
A guide to resources
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Introduction
IPIECA Foreword
The past decade or so, particularly since the World Summit on Sustainable Development in 2002, has seen the formation of a number of multistakeholder partnerships to contribute to sustainable development goals. In this context, IPIECA decided to compile a number of case studies to draw out the lessons learned and explore the benefits and challenges of working in partnership in the oil and gas industry. The case studies reflect a growing recognition that oil and gas companies can better achieve sustainable development goals by working with others. Companies are indeed collaborating increasingly with a range of partners including other business entities, government agencies, non-governmental organizations, community-based organizations, and academic research institutes. Forty case studies, consisting of 32 company case studies and 8 industry-wide partnerships, highlight work in the areas of biodiversity protection, climate change, air quality, oil spill response, the provision of health care and education, and community capacity building. The 40 case studies offer an opportunity for oil and gas companies to better understand the process of partnering. In addition, the process of developing and writing the case studies represented a learning journey for all involved. By working with Chris Morris IPIECA General Secretary the Partnering Initiative on case study writing guidance, we were able to ask the right questions to draw out a balanced voice of the partners as well as tease out the learnings from the partnering process. The publication looks at how partnerships have evolved, what can be learned about a collaborative process and what the future of working in partnership might look like. Partnership benefits include: stepping more rationally and safely into the field of sustainable development; delivering higher quality project outcomes; promoting the sustainability of projects; and contributing to the communities within which the oil and gas companies operate. Moreover, working in partnership is not always an easy option and, in some cases, will not necessarily be a unique solution. A wealth of lessons are to be found throughout the 40 case studies included in the publication; they comprise a body of evidence that can usefully be analysed to inform other collaborative efforts. We hope that all those who are, or are likely to become, involved in a partnership will find this publication useful, and we look forward to the oil and gas industry making a continued contribution to sustainable development.
NGOs and governments are often the only organizations on the ground in least developed countries which have credibility and in-depth local understanding. On the other hand, business is often the only source of technological and managerial know-how, with financial means and access to a supply chain, that crucial resources communities can now tap to achieve long-term, complex projects. Rebuilding after the 2004 Asian tsunami is a case in point. Partnerships offer one of the best ways for oil and gas companies to assure the sort of stable operating environments necessary for underdeveloped areas to attract further investment and grow the local economy. But forging a partnership among actors who have diverse interests is a major challenge for the workability of this arrangement. It will take time and commitment by business, NGOs and governmental organizations to build trust, essential to any long-term business relationship. The first few years have shown there is scope to streamline and therefore to speed up the creation of these arrangements. At the same time, there is also an ongoing need to share best practices, to ensure the ultimate success and durability of the partnership model. Guy Sebban Secretary General, International Chamber of Commerce
A partnership perspective
For more than 15 years, the Prince of Wales International Business Leaders Forum (IBLF) has been dedicated to promoting responsible business practice by working together with business to evolve new mechanisms for systematic business engagement in sustainable development. Increasingly such engagement has been through the setting up and management of multi-sector partnershipsand some notable successes have been achieved. It is a new and exciting paradigm, but it is rarely easy for partners to work in new ways with non-traditional partners. This may be requiring approaches and skills that are well beyond their day-to-day business relationships. It requireson all sidessome radical re-thinking, a considerable investment of time, some changes in behaviour and a willingness to take a level of risk in meeting old challenges in new ways. The extractive industries have beenand continue to beleaders in this field. There is only ever one reason to enter into a cross-sector partnering arrangement: because you (as a sector or an organization) recognize that you simply cannot achieve your sustainable development goals alone. This is the single driving force behind successful partnerships and it is this that keeps good partnerships highly focused and highly productive. However, there are characteristics that seem to underpin all effective cross-sector collaboration: a commitment to partnering as a mutually beneficial arrangement; increasing openness and transparency in the day-to-day working relationship; a sense of shared ownership and engagement between partners; and a willingness to build individual and organizational capacity to work across traditional sector boundaries. We appreciate the way the oil and gas sector has engaged in a wide range of collaborative arrangements with all sectors and feel confident that (as these case studies demonstrate) there are invaluable lessons not just for the oil and gas industry but far beyond to other sectors that still lag quite far behind. Ros Tennyson Director, Development Partnership Solutions, International Business Leaders Forum
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The United Nations Conference on Environment and Development, held in Rio in 1992, initiated much debate on the role of different actors in society. A key message from this conference was that sustainable development would only be achieved if all nations and all sectors of society find effective means of working together. The IPIECA publication, Technology Cooperation and Capacity Building: Contribution to Agenda 21 (produced in association with UNEP in 1994) picked up on this theme, highlighting an evolution in oil and gas industry cooperation with stakeholders: from being narrowly focused on technology cooperation to embracing broader sustainable development goals. In 2002, the Johannesburg World Summit for Sustainable Development (WSSD) recognized that multi-stakeholder partnerships are essential for
The joint UNEP/IPIECA publication Technology Cooperation and Capacity Building: Contribution to Agenda 21 shows how cooperation with stakeholders has evolved to embrace broad sustainable development goals.
implementing sustainable development goals. Governments formally endorsed the view that business has a role to play and business agreed that they were part of the solution. A report on the oil and gas industrys contribution to sustainable development was published in 2002 in the joint
Partnerships in the oil and gas industry why, where, what and who
The joint OGP/IPIECA publication The oil and gas industry from Rio to Johannesburg and beyondContributing to sustainable development (2002) demonstrates how the oil and gas industry is helping to produce more affordable, accessible and cleaner energy in ways which are responsible and ethical, and within acceptable limits of environmental impact.
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OGP/IPIECA publication The oil and gas industry from Rio to Johannesburg and beyondcontributing to sustainable development (pictured on page 4). The past decade has seen a step change in the number of multi-stakeholder partnering initiatives in the oil and gas industry. This publication consciously adopts a broad understanding of the concept of multistakeholder partnership to recognize the value that can be brought by different variations on the partnering set-up. In this context, the publication explores partnerships that are variously research, policy or product driven; that involve different combinations of NGOs, governments, international governmental organizations, community groups, and oil and gas companies; that encompass varying degrees of contractual obligation; and that span from 2 to 200 participants.
The 40 case studies that make up this publication have been selected to reflect a diversity of experience from 19 IPIECA member companies and associations, and to cover a broad range of sustainability challenges and themes. The partnerships were selected for their ability to draw out the lessons that the partners learned through their collaboration and to identify what key ingredients may contribute to a partnerships effectiveness. Through recording the experiences of the partners, this publication aims to document the progress that is being made towards sustainability goals by the oil and gas industry and its partners, and to explore how partnering mechanisms have evolved during this period. It is hoped that, through frank examination of the partners lessons learned, this publication will serve as a useful learning tool for others embarking on multi-stakeholder partnerships.
The case studies in this publication show multi-stakeholder partnerships enabling greater progress towards sustainable development goals than could be achieved by any of the partners acting alone. The eight industry initiatives profiled within this collection (in summary opposite) reveal an extensive range of objectives and achievements: from delivery on technical targets (lead phase out, flaring reduction) to innovative research and development projects (carbon capture project, Well-to-Wheels study) to policy collaboration (oil spill preparedness, revenue transparency, human rights, biodiversity). This impression is reinforced by the 32 company partnerships included in this publication (indicated opposite by the broken lines). The 40 case studies contained in this publication are grouped into 9 main themes and meet a range of challenges from long-term global issues to an assortment of more local socio-economic concerns: healthcare, transport needs, sustainable jobs and livelihoods, and community development.
Biodiversity
The Energy and Biodiversity Initiative has developed a guidance tool for integrating biodiversity conservation into upstream oil and gas development that is broadly accepted by industry and the NGO community. Participation by both NGOs and companies brought credibility to the partnerships outputs in the eyes of both parties.
Since the launch of the partnership in Africa in 1995, 16 African countries have ratified the OPRC convention.The IMO/IPIECA Global Initiative is an umbrella programme under which the partners bring together relevant national/regional actors from both government and industry to develop and implement sustainable oil spill contingency plans and promote the ratification of oil spill-related international conventions.
In December 2005, the PCFV celebrated lead phase out in subSaharan Africa.This was a goal jointly set in 2001 by the partners (governments, automotive industry and the oil and gas sectors represented by IPIECA) and jointly achieved through partnership, in recognition that no one sector could individually bring about cleaner fuels in developing countries. UNEP support was instrumental to the success of this partnership.
A key output from the partnership between the European downstream oil industry, the European auto manufacturers and the EC joint research centre was the Well-to-Wheels study.This study has been used as a basis for discussions and policy recommendations in many forums.The collaborative process brought increased mutual understanding to the partners as well as sound facts and figures to inform a debate that had been dominated by emotive and ill-founded assertions.
The CCP partnership enables industry experts to work with government agencies to develop technologies to reduce costs and improve efficiencies of CO2 capture, and to demonstrate that storage can be safe and secure. A key achievement of the partnership has been to integrate stakeholder dialogue into an advanced research and development project, and hence address some of the concerns of NGOs and policy makers.
Capacity building
Climate change
Health
Transparency
Since its inception in 2002, the GGFR partnership has developed a global voluntary flaring and venting standard that has gained broad global acceptance.The partnership, involving governments, oil and gas companies and neutral broker the World Bank, also assists countries to implement this and other global programmes at a national level.
Human rights
Community development
This collaborative effort among oil and gas companies, NGOs and governments has succeeded in bringing wide acceptance that knowing what governments receive, verified by what companies pay, is a critical first step towards holding decision makers accountable for the use of those revenues.The voluntary nature of this initiative has been critical to its success, as has the buy-in from resource-rich countries who gain ownership in this way.
The Voluntary Principles for Security and Human Rights partnership has enabled government, industry and NGO partners, sometimes in opposition to one another, to identify common interests and work together constructively to address security and human rights concerns at a global level. Levels of trust between the partners have improved over the past five years and work continues to support companies in implementing the principles.
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The challenges of sustainable development in the oil and gas sector frequently pivot around competing interests. The industry is working with other stakeholder groups at all levels all over the world to address these challenges. Each partnership is unique, shaped by the demands of the common task and by the individual needs of the partners: the forty case studies brought together in this collection show forty different circumstances for working in partnership. That said, looking across the whole set of case studies, some common benefits and pitfalls of working in partnership can be identified.
to act alone. In some cases, when the partnering project objectives align with the governments national strategy and when ministry staff are integrated in all phases of the project, benefits can result for all parties.
issues, something no single company or government could conceivably achieve alone. But partnerships are only a good thing if they work, and will only continue to work if they are shown to deliver benefits. It is important to recognize that partnerships are not always the right answer and that, in some cases, there may be a need to focus on building trust and better stakeholder relations before moving to partnership activities. Partnering works because it involves an appreciation and leveraging of differing but complementary competencies, but it can take much longer to deliver outcomes. It is therefore important for partners to focus on areas either where the desired outcomes cannot be attained except through partnership, or where particular benefits will be derived from the process of partnering.
Partnership drivers
The actual drivers for entering into multi-stakeholder partnerships are many and varied. Through the case studies, there are examples of long-term strategic partnerships providing a mechanism for initiating targeted projects, tackling challenging global issues and responding to situations where relationship building is more important than project outcomes. The drive to partner is not only one-way. Increasingly as the mutual benefits are more visible and measurable, the NGO community, academia and other parts of civil society are seeking partnerships with the private sector.
Practical tips:
Since partnering involves high transaction costs (time, human resources), partners should focus on those activities that can
be accomplished only through partnering, or where the partnering process can deliver particular benefits.
Dont avoid high risk partnerships but be clear about why the risk is worthwhile. The organization that first perceives common possibilities should be prepared to invest more time and resources during
partnership exploration until others see the full value of their involvement.
Partner selection
There is growing awareness of the need to select partner organizations carefully to access the appropriate array of resources and competencies neededand, equally importantly, to identify the appropriate representatives in terms of skills, status and organizational role from within the organizations. An increasingly competitive environment, when even NGOs sometimes compete for corporate partners, also suggests the need for a careful partner selection process. There is increasing recognition that thought should be given to sustaining the partnership activities beyond the life of the partnership itself. Therefore, it is important to attract certain types of partnerssuch as government authoritieswho will go on to assume responsibility for sustaining or scaling up project outcomes once the initial resources supporting the partnership comes to an end.
Practical tips:
Take time to identify the right organizations to work with in terms of skills, profile and organizational role: community
groups and other beneficiaries can help to ensure wider local support; government partners can help to ensure long-term sustainability; NGOs and IGOs can often offer independent scrutiny of process and research outcomes.
Ensure the right individuals are representing the partner organizations within the partnership (i.e. with the appropriate level
projects.
Be realistic about working as an equal partner with government agencies. A systematic selection process can be used and will help clarify what is required from each partner.
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Partnership building
The first phase of engaging in partnership is often characterized by a high degree of enthusiasm and goodwill. Building on this initial commitment and creating a strong foundation better equips partnerships to meet challenges at later stages. Equally, many of the partnerships in this publication functioned well simply by drawing on the relationship management skills of experienced staff within the partnering organizations.
Practical tips:
Ensure all partners invest in the partnership so that equity exists between the partners. At an early stage, provide opportunities for partners to learn about each others organizations so that:
a) the partnership benefits from sectoral diversity; b) the partners are clear about each others individual aims in joining the partnership (as well as the common objective); and c) partnering structures take account of different partners needs, in particular the cash flow needs of some smaller organizations.
Clearly define the partners roles and expected outputs from the start and at all stages of the partnership. Do not underestimate the time it takes to build robust working relationships or rush the transition from partnership
initial transaction costs may be offset by time saved later if the partnership starts off on a sound footing.
Use of partnership champions within and outside the partner organizations can be helpful for promoting the partnership to
Practical tips:
Ensure there are some early and concrete win-wins for the partners to maintain motivation and momentum within the
partnership.
Use of small teams and subgroups working within a bigger partnership can deliver some aspects of a project quickly, maintain
high levels of creativity and build a wider sense of ownership of the whole.
Continue to build partnering and delivery capacity during the life of the partnership. Agree on external relations positions and strategies that fit for all partners. Provide for regular contact between the partners so that any partnership challenges can be addressed before they cause problems. Prepare for resolving differenceswhich inevitably ariseby agreeing on appropriate dispute resolution procedures and
grievance mechanisms.
Be prepared to renegotiate the terms of partner engagement if required. This possibility needs to be planned for.
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Practical tips:
Agree and articulate a set of performance indicators in the early stages of the relationship. Assess the lessons learned for partner organizations from the partnering process.
Practical tips:
Collaborative projects have room for both a contractual and a partnership approach; organizations may have to make a
should be paid to balancing which aspects are contractually based and which come under the partnership relationship.
Partnerships are likely to involve memorandums of understanding (MOUs), agreed project plans and other forms of written
agreements. These should be distinguished from specific aspects of work that a partner delivers under contract.
Partnerships need clear accountability mechanisms:
a) between the partners for the partnership as a whole; and b) for the delivery of specific pieces of work.
Keep paperwork simple, understandable and as flexible as possible.
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Practical tips:
Pay care and attention to the exit aspects of a partnershipequally when key individuals or organizations are departing
during the life of a partnership or when the partnership itself is being terminated.
At the end of a partnership (or when an individual or organization leaves the partnership), ensure shared credit and joint
Expertise from The Partnering Initiative assisted greatly in drawing together the hints and tips contained in this section.
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Key words
environmental management systems; integrated planning endangered species protection; project funding mechanism pipelines; sustainable resource use; educational and social development; EBI integrated planning; guidance products; informal network post-partnership marine ecosystems; scientific research environmentally protected areas; in-country capacity building sustainable management and tourism; stakeholder engagement sustainable livelihoods; education and outreach; marine protected areas infrastructure; community economic development; skills transfer international monitoring and audit practices; transparency; good governance biodiversity; community development; health; oil spill response and planning pipeline construction; emergency medicine; training gas field development; geological risk; R&D; external verification development of local workforce; training; stakeholder engagement sustainable resource use; sustainable livelihoods; partnership KPIs institutionalization of NGO consultative partnership technical research programme; carbon mitigation; CO2 capture and storage greenhouse gas emissions; energy technology; research capacity building risk-based evaluation tool; R&D; intellectual property management gas flaring and venting reduction; voluntary industry standard air quality; research and technology development; EU policy support NGO intermediary; participatory model; capacity building; transferable model participatory model; womens empowerment; vocational training income generation; capacity building; health; education; water resources community economic development; education rural electrification; transferable model demonstration project; transportation; hydrogen technology; energy efficiency transport safety standards; economic development; training; global compact air quality; vehicle emission controls; gasoline and fuel quality; UN umbrella safe work practices; cooperative regulatory environment; education; outreach maternal and child health; community education; capacity building community health; education and outreach; product distribution community health; capacity building; sustainability assurance voluntary guidelines; risk assessment; in-country working groups human rights; legal training contingency planning; regional cooperation; international conventions international exercise; global initiative; awareness raising and capacity building oil spill training and exercises; national planning and international cooperation revenue management; reporting and validation; voluntary initiative revenue management and transparency; consensus decision making; EITI
Developing a Biodiversity Action Plan in Peru The Energy and Biodiversity Initiative Environmental Preservation in the Arabian Gulf Monitoring and assessment of biodiversity in Gabon The Port-Cros National Marine Park, France Marine Biodiversity and Coastal Livelihoods Project in Indonesia Expanding a water pipeline network in Egypt Building NGO capacity for pipeline monitoring in Azerbaijan Sustainable development in the Gulf of Paria, Venezuela
Capacity building Climate change Community development Fuels and transportation Health Human rights Oil spill response
Transparency
The Emergency Medicine Development Initiative in Azerbaijan The Ormen Lange Slide Risk Project Oil Industry Workforce Development in Yemen Sustainable harvesting of biodiversity resources in South Africa The development of a strategic relationship The Carbon Mitigation Initiative The Global Climate and Energy Project The CO2 Capture Project The Global Gas Flaring Reduction Partnership The Partnership for Fuels and Vehicles Research The Oro Community Development Trust in coastal Nigeria Vocational training and sustainable livelihoods for women in Pakistan The Bhit Rural Support Project in Pakistan An education and rural development programme in Patagonia Rural electrification in Morocco Floridas first hydrogen energy station Strengthening the hydrocarbon road transport sector in Madagascar The Partnership for Clean Fuels and Vehicles The Alliance Programs Safe Tank Alliance The prevention of mother-to-child transmission of HIV/AIDS The use of insecticide-treated bednets in malaria prevention The Bioko Island Malaria Control Project The Voluntary Principles on Security and Human Rights Human rights training of Sharia judges in Nigeria Action on oil spills: the IMO/IPIECA Global Initiative Oil spill response exercise in Martinique The National Oil Spill Control and Contingency Plan in Malaysia The Extractive Industries Transparency Initiative Revenue Transparency in Azerbaijan
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Partners:
GOV = government IGO = intergovernmental organizations NGO = non-governmental organizations O&G = multiple oil and gas B&I = business and industry RI = research institution COM = community groups
Partners
NGO O&G RI NGO GOV NGO COM NGO O&G GOV RI RI GOV NGO RI COM NGO GOV O&G B&I COM O&G NGO GOV IGO NGO RI COM GOV NGO B&I GOV RI GOV RI NGO B&I NGO B&I RI B&I RI GOV IGO O&G RI GOV O&G IGO O&G B&I NGO O&G COM GOV NGO GOV NGO O&G NGO GOV NGO B&I GOV B&I GOV IGO B&I RI GOV IGO NGO O&G B&I GOV NGO O&G GOV NGO RI GOV NGO GOV NGO O&G RI NGO COM NGO IGO O&G GOV IGO O&G GOV O&G GOV NGO O&G GOV O&G
Level
national international national global regional local local local/provincial local national local/national/international local regional national regional local/provincial global global global global regional local local/provincial local local/provincial national national global/national global national national regional local global national global regional regional global global/national
Location
Europe Russia South America global Arabian Gulf Africa Europe Southern Asia Africa Caspian South America Caspian Europe Middle East Africa global global global global global Europe Africa Southern Asia Southern Asia South America Africa USA Africa Africa USA Africa Africa Africa global Africa global Caribbean Southern Asia global Caspian
The companies
Eni ExxonMobil Hunt Oil Industry Saudi Aramco Shell Total Chevron BG BP ConocoPhillips Hess Hydro Nexen Shell Shell BP ExxonMobil Industry Industry Industry/CONCAWE Nexen BHP Billiton Eni Repsol YPF Total Chevron Total Industry/IPIECA API Eni ExxonMobil Marathon Industry Statoil IPIECA members Clean Caribbean Petronas Industry BP
Page no.
16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 89 90 92 94
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Eni E&P Division and Shell Italia E&P established a working group that, in 2003, launched the AgriBioDiversity project, a multipartner collaboration for biodiversity monitoring in the ecologically sensitive area of Val dAgri, southern Italy.
Key partners
Eni Exploration & Production Division EniTecnologie Fauna & Flora International (FFI) Laboratorio Gruppi Sanguigni Shell Italia Exploration & Production University of Basilicata The World Conservation Union (IUCN)
Background
Biodiversity monitoring facilitates evaluation of the status of ecosystems and the impact of human activities upon them. The oil and gas industry recognizes the importance of biodiversity conservation and is fully aware of potential impacts at all stages of E&P projects. In this respect, focusing on biodiversity and developing best practices to manage and reduce the impactsand the associated reputational risksof development projects have become key issues for the industry. Val dAgri is a biodiversity-rich and ecologically sensitive area in southern Italy. Part of the area is a national park containing some EU sites of Community Importance and of protected flora and fauna. As the operator of the Val dAgri concessions, and in collaboration with its partner Shell Italia E&P, Eni E&P invited a number of organizations with complementary skills and roles to take part in a multidisciplinary working group to explore biodiversity issues in the area. In 2003, the working group set up the AgriBioDiversity project to address the biodiversity issues that it had identified.
consultations with representative stakeholders, to identify issues of significance to the local community. The monitoring is carried out at both landscape and site-specific levels to better understand the environmental and socio-economic changes in the area, identify their drivers and evaluate the potential impacts of oil operations that need to be addressed, mitigated and avoided in the future. One report has so far been produced describing the results of the monitoring programme, the site visits and the stakeholder consultations. The outcomes of the AgriBioDiversity project are to be incorporated into operating best practices in the Val dAgri concessions, as well as into the wider Eni and Shell organizations, and will also contribute to the EBI trials.
in the local scientific community. FFIs involvement has provided an independent verification and certification of: i) the approach and methodology adopted; ii) the quality of the protocols developed; and iii) the experimental data collected. Supported by the Laboratorio Gruppi Sanguigni, a stockbreeders cooperative, the University of Basilicata is responsible for the fieldwork activities and participates with a team of 15 people. The universitys team has also been crucial in understanding and analysing the social context of the Basilicata region, and in optimizing the process of stakeholder engagement.
suggestions from the stakeholders to be incorporated, as appropriate, into the design of the monitoring protocols. 5. Local stakeholder engagement demonstrates respect for the local communitys views and resulted in greater inclusion of the local community in the AgriBioDiversity project, and increased community ownership of the project and its outcomes.
Lessons learned
In setting up the project, the partnership faced the following issues: The need to engage with biodiversity both strategically and operationally. The projects high national and international visibility. The attention of national NGOs that recognize the ecological significance of Val dAgri. The regions complex socio-economic context. The reputational risk in the event of failure. The partnership work sought to address the above issues, and in the process the following key lessons resulted: 1. Knowledge of biodiversity is a tool for evaluating how an oil company performs and how to minimize the impacts of E&P activities. This knowledge emerged from the integrated vision of the various perspectives (business, ecological and social) of the partners in addressing biodiversity. 2. A long-lasting and effective partnership between organizations with different backgrounds requires clearly defined roles and tasks from the start, as well as ongoing monitoring of progress through meetings and corporate reviews. 3. Regular meetings of the project team give each member the opportunity to address the partnership challenges as they arise. 4. Holding local stakeholder consultations at regular intervals throughout the project enables useful
Conclusions
Building and carrying out a multi-partner project has not been and is still not an easy task. It is a learning process towards how best to integrate differing expertise, cultures and value systems. Having a common goal to address biodiversity helped to guide the process and integrate all the partners contributions. A fundamental step was the understanding that the fieldwork activities needed to be designed so that the resulting information would improve company practices and biodiversity protection, help with risk management and lead to other opportunities for the partners to work together. This successful experience suggests a working format for partnership that can be applied in other operational contexts worldwide to address biodiversity issues.
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In 1995, partners ExxonMobil Foundation and the National Fish and Wildlife Foundation established the Save The Tiger Fund dedicated to supporting the conservation of the worlds remaining wild tigers.
Background
Key partners
ExxonMobil Foundation National Fish and Wildlife Foundation
At the beginning of the 20th century, an estimated 100,000 wild tigers were living in Asia, from Siberia in the north, to Sumatra and Bali at the southernmost reach of their known range. A century later, fewer than 5,000 of the big cats remain in the wild. In 1987, trafficking of all tiger species was banned by the Convention on International Trade in Endangered Species of Wild Fauna and Flora. Despite the treaty, however, many dangers still threaten the worlds tigers. Loss of habitat, poaching and illegal trade in tiger skins and parts for use in clothing, folk medicine and other purposes pose the most significant threats to the animals survival. ExxonMobil has been associated with the tiger since the early 1900s, when the cats image first symbolized the oil companys (then Exxons) products. In 1992, the company began supporting efforts aimed at ensuring the wild tigers continued existence. Around this time, the company began looking for a partner with a history of collaborating effectively with the private sector and investing strategically in conservation. In response to this objective, Exxon approached the National Fish and Wildlife Foundation (NFWF), a private non-profit organization established by the US Congress in 1984. Thus began the partnership between the NFWF and ExxonMobil Foundation.
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Mills, a veteran environmentalist, credits ExxonMobil for its commitment to saving tigers. The companys been willing to support the Save The Tiger Fund and go in this new critical direction through CATT, Mills says. I believe its especially commendable in the corporate world.
Progress
Since its inception, the STF has awarded 284 grants totalling more than $14 million to support tiger-focused projects in 13 of the 14 countries where wild tigers are known to exist. Worldwide, STF grants represent nearly one-third of all funds invested in tiger conservation efforts by NGOs. According to Dr Mahendra Shrestha, the STF director, to save tigers in the wild, we have to work with people who live with the tiger. In our recent field visits in Nepal, Dr Shrestha adds, we heard from men and women who expressed great appreciation for the programmes that have developed as a result of STFs community support efforts, such as savings and credit operations, milk producers cooperatives and eco-tourism businesses. These projects demonstrate the added benefits that can accompany habitat restoration in cooperation with local communities. The STFs strategy of encouraging cooperation and communication among diverse groups, seeking advice from experts, promoting partnerships, delivering effective conservation strategies, building local conservation expertise and linking community benefits with conservation has been vital to its success. Because of the efforts of the STF and its partners, organizations are working together to stabilize the relationship between people and wildlife. Tiger habitats are being protected and rebuilt. Poachers are being persuaded to become tiger guards. Additional legislation has been passed to reduce the international trade in tiger parts, and other actions are strengthening law enforcement. Awareness campaigns are also being launched to gain public support.
efforts of this type, the development of a good investment evaluation process is still evolving. Therefore, STF continues to make investments specifically designed to improve both the data used for decision makingsuch as updates on tiger habitat assessments and enhanced tiger census information and the evaluation methodology. It is also nearing the completion of a rigorous review of all of its project investments, which will provide STF with invaluable learnings for future investment decision making. These factors, along with the wisdom and expertise that the Council brings, are resulting in constant improvements in meeting this challenge. Perhaps the greatest challenge is attracting additional funding partners. Sustained funding is essential given the long-term, multilateral and complex nature of tiger conservation. Creating both a stable and an expanding funding base with partners that reflect a broad donor community with sufficiently similar priorities and practices is an ongoing challenge.
Conclusions
Despite the ongoing challenges, hopeful signs point to better prospects for wild tigers. They are being brought back from the edge of extinction, and nearby communities are increasingly reaping the benefits that come from protecting the tigers and their habitat. While working to protect tigers in the wild remains the most important aspect of the NFWFExxonMobil Foundation partnership, the partnership has also led to improved communications with like-minded environmental groups.
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Challenges
Allocating available funds to ensure maximum benefit is one of the challenges of operating within the STF partnership, particularly in light of the difficult nature of tiger conservation. Unfortunately, as with many
Hunt Oil, the operating partner for Peru LNG, is working with local communities, the Peruvian government, NGOs and biodiversity consultants to promote sustainable resource use and conservation along the route of a proposed natural gas pipeline through the Andes.
sustainable development by funding projects in line with Perus national biodiversity strategy and other conservation programmes.
Background
Key partners
Hunt Oil Company National Council for the Environment, Peru (CONAM) Walsh Peru 35 community-based organizations Panel of local, national and international special interest groups, provincial government representatives and local universities
Peru LNG is proposing a natural gas liquefaction project, which includes the construction of a 400-km pipeline to carry natural gas across the Andes, from the Camisea fields in the rainforest, to the proposed terminal site on the Pacific coast near Caete. The pipeline project will transect four ecological regions and several political regions. Approximately half of the identified area of influence has primarily indigenous populations comprising around 68,000 inhabitants. The United Nations Environment Programme (UNEP) has designated Peru as a megadiverse country. Most of its natural resources are located in rural areas, and communities rely heavily on them for their livelihooda dependency that often leads to pressures on biodiversity conservation. Unsound agricultural and grazing development, heavy poaching of vulnerable species and threats to the conservation of valuable resources, such as medicinal plant species, and to traditional knowledge are increasing problems. Locals are seeking the assistance and expertise of government and other organizations in addressing these issues. Hunt Oil (Peru LNGs operating partner) formed a partnership with Perus National Council for the Environment (CONAM) to pursue the common goal of
Communicating with community leader from the Ayachucho region of Peruvian Andes
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THEME: Biodiversity PARTNERS: GOV NGO COM LEVEL: national LOCATION: South America
organizations themselves made decisions by consensus in communal sessions in the traditional Incan way and used this form in the meetings. In spring 2005, Peru LNG initiated an Environmental and Social Impact Assessment for the pipeline project. Additional specific biological and social data were collected along the length of the pipeline.
Lessons learned
The partners need to understand the positions and
viewpoints of the various stakeholders. When identifying key species requiring conservation, international NGOs tend to focus on high-profile or flagship species, such as the Andean condor, while locals might select species with spiritual, economic or medicinal value. Even among the NGOs, priorities vary widely depending on the geographical area. The different opinions indicate that coordination of conservation goals may not always be possible. To maximize resources, Peru LNG and CONAM have sought to build partnerships with NGOs or other organizations that have objectives and perhaps ongoing initiatives that align with the partnership goals for biodiversity conservation. They have also looked for organizations that have established relationships with the communities and that the local people trust. CONAM and the communitybased organizations have been helpful in identifying past partnerships that could be built onor, conversely, avoided if they had a poor track record with the community or had mismanaged funds. Managing the expectations of the various stakeholders is an ongoing challenge. Educating local community members and working with them to establish mutually agreeable and realistic targets are important first steps to correcting any misperceptions of the capacity of a Biodiversity Action Plan. Developing an early partnership with government, NGOs and local stakeholders allows multiple views to shape the BAP, improving interaction throughout the process and allowing effective working relationships to be built on trust. Priorities and targets were agreed early on, allowing for greater focus and coordination among all parties.
through partnerships that directly involve the community, enhance cultural traditions and provide some type of a benefit to the local stakeholders. Ensuring buy-in from the communities and their active participation in a project right from the start increases the likelihood of the project becoming self-sustaining, leading up to the time when the sponsor exits the programme.
Children at a community workshop in the area near the proposed pipeline right of way in the Peruvian Andes
Conclusions
Partnerships are a useful means to maximize available resources, and they permit greater outreach and improve the exchange of information with local communities, local organizations and NGOs. Such partnerships are likely to be most effective when oil companies work with experts and organizations that understand the cultural and social differences of each community, and that have established working relationships based on trust and goodwill. Coordinating programmes through multi-partner initiatives requires the partners to work outside their comfort zone through consensus building to draw in other perspectives and consider a range of cultural viewpoints. A consensus approach will broaden the oil companys objectives and perspective. Although this collaborative partnership required a great deal of effort in the early stages of BAP development, the model works, and Peru LNG and Hunt Oil are likely to replicate it in similar initiatives in South America and beyond.
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The Energy and Biodiversity Initiative is a partnership of four energy companies and five conservation organizations created to develop and promote practices for integrating biodiversity conservation into upstream oil and gas development. After four years the formal partnership came to a close, but partners continue more informally to explore opportunities to be a positive force for biodiversity conservation within the oil and gas industry.
Key partners
BP Chevron Conservation International Fauna & Flora International The Nature Conservancy Shell Smithsonian Institution Statoil World Conservation Union
Background
Oil and gas exploration, production and transmission are increasing in sensitive ecosystems of concern to conservation organizations. The Center for Environmental Leadership in Business (CELB) at Conservation International (CI) initiated a collaborative effort among multiple energy companies and conservation organizations to improve biodiversity conservation in oil and gas operations. CELB approached two distinct communities: energy companies committed to improving their biodiversity conservation performance and conservation organizations with field experience working with the energy industry. After two years of discussions, the Energy and Biodiversity Initiative (EBI) was formally created in 2001 as a partnership.
major commitment of senior staff involvement. All participants equally shaped and developed EBIs objectives, structure and outputs through a dynamic and inclusive dialogue. Agreeing on objectives was a lengthy process, in part because only a general mission statement was defined at the outset. The EBI evolved over four years. Phase 1 focused on developing recommendations, tools and guidance on key topics. Phase 2 piloted, disseminated and promoted industry application of the EBI products. At the end of Phase 2, the group concluded that the principal purpose of the partnershipdevelopment and launching of the guidancehad been achieved. Rather than continuing EBI as a formal entity, partners agreed to maintain an informal network to continue contributing to dissemination and use of the products.
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However, this approach left EBI open to accusations of elitism, plus some members think that the lack of diversity may have made selling the EBI products1 to some potential users more difficult. Developing outputs by committee brings both benefits and challenges. Joint writing of the EBI products by the partners led to a strong sense of ownership. However, finding adequate time to plan and produce the products was a significant challenge for all involved. Furthermore, the need to bring in consultants to help finalize the EBI products maintained the project schedule, but also introduced significant unforeseen costs that had not been built into the budget. Outreach and dissemination plans should be defined as early as possible. Although the participants developed engagement and communication plans to disseminate information and consult relevant parties, some partners think these efforts have not been wholly successful. Earlier development and implementation of an outreach strategy, including enhanced stakeholder engagement, might have strengthened EBIs credibility with some stakeholders and facilitated product dissemination and uptake. Multi-partner initiatives can be effectively selfregulating if certain criteria are met: Flexibilitya willingness to give and take was essential for group consensus decision making. Transparencyprogress in the EBI work plan was simply monitored by regular meetings and formal and informal dialogue. Continuitymaintenance of a consistent core of key staff from all member organizations strongly contributed to supporting a high level of trust and understanding among partners. Commitmentwillingness by each member to persist through times of uncertainty and discomfort enabled a successful outcome. Coordinationselecting one organization (i.e. CI-CELB) to act as Secretariat provided focus, accountability and more timely execution of deliverables.
a continued positive impact. The EBI has been the springboard for new relationships outside the original partnership that can help maintain EBI momentum in the wider oil and gas industry. EBIs work has been taken up by more companies and conservation organizations, particularly through the IPIECA-International Association of Oil & Gas Producers Biodiversity Working Group.
Conclusions
Developing guidance and recommendations in a joint industry-NGO initiative builds on intellectual capital and promotes greater buy-in from both sectors. However, the EBI experience indicates that even a major bi-sector partnership with multiple partners can face problems in influencing wider industry and NGO communities. The EBI has been successful in further catalysing and supporting interest in, and attention to, biodiversity conservation in the energy sector. It has contributed to EBI member companies and other companies incorporating biodiversity more extensively in their policies, management systems and processes. The EBI represents an innovative and nonadversarial approach that has delivered robust outputs with positive potential impact far beyond that achievable by individual participants. The interorganizational benefitsbuilding constructive relationships, understanding the motivations or behaviour of other organizations and exchanging informationhave added value beyond development of the EBI products themselves.
23
Saudi Aramco is working with its academic and government partners over the long term to research, protect and restore the marine ecosystem of the Arabian Gulf.
Key partners
King Fahd University of Petroleum & Minerals, Research Institute (KFUPM/RI) Ministry of Agriculture, Kingdom of Saudi Arabia National Commission for Wildlife Conservation and Development Saudi Aramco
Background
The Arabian Gulf is a major source of food, as well as of two of the most precious and coveted resourcesfresh water and oil. The Gulf is also a highly productive body of water with extensive coral reefs, seagrass beds, and other marine plant and animal habitats. However, this rich and diverse ecosystem is experiencing physical and climatic stresses. Population growth and industrial development, and the resulting increases in recreational and commercial activities, have added to the stresses on the natural resources. An understanding of the mechanisms of environmental impacts on the Gulfs ecosystem is therefore required to allow for rational development and exploitation of resources. Saudi Aramcos early environmental stewardship of the Gulf started more than 30 years ago and was demonstrated in its two publications on the marine environment, Biotopes of the Western Arabian Gulf and Coral Fauna of the Western Arabian Gulf. The company continues to treat the marine ecosystem with the utmost care and respect.
Marine scientists from KFUPM/RI studying coral reefs and other benthic organisms in the Arabian Gulf
capabilities and to respond to the companys and the Kingdoms marine environmental concerns. The Marine Environmental Studies programme consists of marine projects designed to be implemented in discrete phases, each phase spanning five years and having a distinct set of research topics. The first phase (198489) of the programme established baseline biological conditions in the coastal bay areas and produced comprehensive oceanographic measurements in these areas. The scientific findings revealed both the biodiversity and the socioeconomic significance of the bays, which are fishing and nursery grounds for shrimp and other commercial species. The collected information also helped in clarifying the causes and consequences of various changes in the Gulf.
The Gulf is a highly productive body of water with extensive coral reefs.
During the second phase (199094), more specific investigations were carried out on operational impacts, in particular those associated with dredging, landfilling and marine discharges, as well as the construction of offshore structures. Two key aspects of this phase were the study of near-shore coral reefs and the development of oceanographic computer models. As part of Saudi Aramcos marine environmental partnership with KFUPM/RI, the company funded development of extensive habitat maps of the Gulf coastline from Kuwait to Tarut Bay. These maps have been widely distributed in the country and were the subject of an appreciation certificate received from the Arab League acknowledging Saudi Aramcos efforts in Integrated Environmental Management and Development of Coastal Areas. During the third phase (19952000), the partnership programme directly addressed the Kingdoms environmental objectives for the protection of the marine environment. Both Saudi Aramco and KFUPM/RI concurred on the scientific and practical significance of the reorientation in the research agenda. Investigations during the third phase focused on water-quality monitoring, transplantation of mangrove seedlings, primary production estimates and coral reef monitoring. The work is continuing in the programmes fourth phase (200106). The coral reef monitoring that began in the third phase of the Marine Environmental Studies programme is to continue over the long term. The monitoring of the coral reefs in the Saudi waters of the Gulf consists of periodic photographic documentation of coral cover and diversity. Fish and invertebrate populations along transects in the reefs are also periodically counted and identified.
Students from local schools transplanting mangroves on the Ras Tanura coastline
mostly be attributed to landfilling for land reclamation. Because Saudi Aramco recognizes the importance of near-shore intertidal and shallow subtidal habitats to fisheries production in the Kingdom, the company has taken a special interest in ensuring the integrity of these sensitive mangrove areas. These are the habitats most likely to be impacted from an inadvertent oil spill. As part of its ongoing commitment to the environment, Saudi Aramco has adopted policies designed to protect mangroves. In addition to largescale studies of existing mangroves in sheltered bays and along the coastline, the company initiated efforts to investigate the feasibility of transplanting mangroves to various coastal areas where they once grew or where none previously existed. A transplantation project with other partners, primarily the National Commission for Wildlife Conservation and Development and the Ministry of Agriculture, has met with great success. An outreach programme educated the community about the mangroves, and organized and carried out mangrove transplant campaigns. More than 500 schoolboys, boy scouts and families helped transplant thousands of mangrove seedlings along the Gulf coastline. As a result, the few remaining stands of mangrove trees of 10 years ago have become a flourishing area of thousands of trees.
Conclusion
Saudi Aramco recognizes the value of working in research and community-based partnerships to restore and protect the marine ecosystem of the Arabian Gulf.
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Shell and the Smithsonian Institution Monitoring and Assessment of Biodiversity Program are working together to increase understanding of biodiversity in an energy development area in Gabon, building on a relationship that began in Peru in 1995.
innovative partnership. In 1999, the way forward was defined, with the Shell Foundation agreeing to sponsor/co-finance work by SI/MAB in 200005 as part of the piloting of the innovative business-research model in the Gamba Complex of Protected Areas in southwest Gabon. The Gabonese government also provided critical support to the initiative.
Key partners
Shell Foundation Shell Gabon Shell International Smithsonian Institution Monitoring and Assessment of Biodiversity Program (SI/MAB)
Background
The capacity to develop energy resources without harming biodiversity is increasingly necessary as exploration and production activities in critical biodiversity habitats become more frequent. Shell recognizes that effective planning for biodiversity conservation requires more than a standard company-consultant relationship. In 1995, Shell Prospecting and Development Peru (in conjunction with Mobil Exploration and Production Peru) invited the Smithsonian Institution Monitoring and Assessment of Biodiversity Program (SI/MAB) to assist with biodiversity assessment and monitoring at a major natural gas field in the Camisea region of Peru. Shells willingness to listen to and act on advice, coupled with a clearly stated desire to improve operations, helped overcome SI/MABs initial reservations about working in partnership with an oil company. In 1998, Shell withdrew its interest in the Camisea concession, by which time SI/MAB had completed several comprehensive baseline biodiversity assessments and trained a large number of Peruvian biologists. The quality of the resulting data and SI/MABs training convinced Shell that continued development of the relationship was worth exploring. The Shell Foundation then came to the table, bringing with it the capacity to support development of an
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and was satisfied with the outcomes before committing to the next phase. As expected, significant issues and challenges arose. Some of these have been resolved, and some have not: SI/MABs credibility and reputation were questioned when it began working with industry. Shell Gabon initially viewed the relationship as a standard contractor arrangementthe partnership idea was innovative and took time to define. The partners operate within two quite different value systems; at times there is a clash between maintaining an objective, science-based approach (SI/MAB) and managing operational issues and time constraints (Shell). Continuity and momentum of the partnership are negatively affected by changes in staff position and responsibilities. Such changes are more common in Shell, where staff redeployment is standard practice. New staff often require nurturing before they reach the same level of understanding and enthusiasm as the staff they have replaced. Despite the excellent fieldwork, the comprehensive resulting data and the applied research in 200405, using this information to modify operations, improve biodiversity protection and reduce the operational footprint has so far proven difficult. Lessons have been learned as a result of the challenges and of the increased understanding between the partners over time: Define the timing and format of outputsensure every partner understands what each output will be used for. Clearly define the role of each partner from the outset.
organizations to better understand their expectations, requirements and organizational culture. Take time to anticipate as many potential issues and challenges as possible, particularly those related to the expectations of each partner. At an early stage, establish governing principles and performance indicators to assess the partnership process (not just the outcomes) and give an early indication of potential issues. Exposure to knowledge can generate real change in energy companies when the knowledge is delivered in an easily understandable form at the appropriate time, and when there is interest to use the information. A champion is needed to push the biodiversity agenda within the operational company and help embed biodiversity in the way that the company conducts its business. Partnerships between organizations with different cultures are hard work but ultimately deliver multiple benefits.
Conclusions
Since its beginnings in Peru in 1995, the partnership has continued to develop, becoming one of Shells longest and most involved relationships with a research/conservation organization. With time and hard work, the Shell-SI/MAB partnership has gone a long way to being a successful partnering relationship. Despite the challenges the partnership has faced, the proof of its success is the commitment to continue the SI/MAB-Shell Gabon relationship beyond 2005. Ultimately, the goal is for Shell to build on what it has learned from this partnership and transfer experience and knowledge to other Shell operations and the industry in general. SI/MAB has also been invited to discuss potential biodiversity-industry projects in Russia and Venezuela.
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The 13-year partnership between the Total Corporate Foundation for Biodiversity and the Sea and the Port-Cros National Park has spawned a number of partnerships and programmes to enhance biodiversity conservation and sustainable management of the protected marine area around the island of Port-Cros in southern France.
Background
Port-Cros, a tiny island off the Mediterranean coast of France, is home to the Port-Cros National Park, Europes first national marine park. Created in 1963, the park encompasses all of Port-Cros, the sea around it and some of the mainland coast, and is a protected area of outstanding and representative biodiversity. The park works to conserve marine and coastal life and raise public awareness of the diversity of fauna and flora in and around the sea. It also assists the Coastal Protection Agency with the scientific and technical management of the wetlands in the salt pans on the nearby coast at Salins dHyres, the site of the old salt mines. Each year, the national park has around one million visitors. A major focus of the work is to help these visitors enjoy the beauty of the park, provide them with informative brochures, raise awareness of the ecosystems sensitivity and promote behaviour change over the long term.
all stakeholders can enable successful conservation and sustainable management of a complex marine and coastal ecosystem subject to multiple conflicting interests, such as those of fisheries, tourism and local communities. The local, national and international partners have a range of reasons for participating in the partnership work. For example:
Key partners
City of Hyres, France Coastal Protection Agency (Conservatoire du littoral), France Conseil Gnral des Alpes de Haute Provence Conseil rgional Provence-Alpes-Cte dAzur Ifremer (French Research Institute for Exploitation of the Sea) National Oceanography Centre, Southampton, UK Port-Cros National Park (Parc national de Port-Cros), France Total Corporate Foundation for Biodiversity and the Sea Users of the park (e.g. anglers, divers) The World Conservation Union (IUCN)
City of Hyres
Hyres, on the mainland across from Port-Cros, supports the partnership work, not least because a wellmanaged park can be a draw for sustainable tourism in the region and provide a source of income for the city.
The partnership
The Port-Cros National Park has been a major partner of the Total Corporate Foundation for Biodiversity and the Sea since 1992. The partners objective is to show that a strong partnership with a common vision and involving
Park users
The anglers interest is in protecting sustainable fishing resources, while the divers interest is in maintaining the remarkable beauty of the underwater biodiversity so that they can continue to operate their diving businesses. The success of the partnership has resulted from the national parks long-term efforts to involve local stakeholders in the management of the park and to build new behaviours among them. For example, the park has encouraged divers to restrict their dives to certain areas. Diving guidelines were first created on a voluntary basis, and after about 10 years, in response to divers wishes, were regulated and translated into legal obligations. Diving is now only permitted within designated areas of the park.
Total
THEME: Biodiversity PARTNERS: GOV NGO RI COM LEVEL: local LOCATION: Europe
The symposiums have given participants the opportunity to present projects and programmes including, for example, the Census of Marine Life programmea growing network of researchers engaged in a 10-year initiative to assess and explain the diversity, distribution and abundance of life in the oceans. Publishing and distributing the proceedings of each symposium is widening the network of stakeholders and creating additional opportunities for engagement. As the UK National Oceanography Centre reported, sharing experiences has resulted in identification of synergies, commonalities and new partnerships. In this regard, the Total Foundation will be participating in the Census of Marine Life programme notably with the UK National Oceanography Centre, specifically through the Biogeography of Deep-Water Chemosynthetic Ecosystems project, one of 14 field projects in the programme. The fourth Port-Cros Symposium is planned for 2007 on the theme of marine biodiversity and climate change.
Caulerpa Taxifolia
Conclusion
The partnership has made excellent progress in biodiversity conservation, and its work demonstrates environmental management that benefits all stakeholders. The achievements of the partnership are a source of inspiration and suggest a model for conservation in marine and coastal ecosystems that is replicable elsewhere.
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In 2002, Unocal (now a subsidiary of Chevron) and The Nature Conservancy launched a partnership in East Kalimantan, Indonesia, to build local conservation capacity, promote sustainable livelihoods and protect the regions valuable natural resources.
Key partners
The Nature Conservancy Unocal (now a subsidiary of Chevron) Unocal Foundation
Background
East Kalimantan is home to some of Southeast Asias last remaining lowland rainforests, which host diverse primates including the orangutan. With 34,000 miles of coastline, the islands and waters of Indonesia are also at the heart of the worlds coral triangle, representing 75 per cent of the worlds known corals. Rili Djohani, Director of The Nature Conservancys Indonesia Program, explains: The coral triangle has the most coral diversity in the world. For a marine biologist this is a paradise. For a first-time diver, its like being on another planet. Indonesias seas and forests offer a natural and abundant source of capital that feeds the needs of the Indonesian people, the region and the world, providing timber, seafood, oil, gas, coal and minerals, including copper and gold. The forests, seas and coral reefs also provide vital services: absorbing greenhouse gases, producing oxygen and clean drinking water, and buffering the coasts. In such a vast place, Djohani adds, the threats are correspondingly large. Two of the biggest threats are illegal logging and destructive fishing practices. But another threat is more basic: overexploitationoveruse of coastal resources (especially fish and coastal vegetation) to meet the needs of a growing population.
The economic realities for East Kalimantan communities present challenges. In response to local and foreign demand, giant sea-turtle eggs, for example, bring up to US$17 each, a significant amount of money in that region. What equally appealing incentives can conservation offer residents? How can local communities develop more sustainable economic options for wealth generation? In biodiversity and environmental conservation, how can business be part of the solution?
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Mark Godfrey/TNC
include counting manta rays, monitoring turtle nesting areas and disseminating conservation materials. After assessing the partnership in 2004, the partners renewed investments.
Dense foliage, driftwood and palms line the coast of Kakaban Island in the Derawan island chain
and competence, and provided an opportunity for candid discussion. Community residents may not necessarily distinguish between business and NGOs. Both need to earn and keep community acceptance. Communities want employment opportunities, and many believe their livelihoods may be threatened by conservation activity. Local governments also want direct, immediate community benefits. In the partnership, the company and the Conservancy jointly face these issues. Unocal employee Adji Setijoprodjo helped focus attention on these sensitivities: We do not pretend to have the answers, but deliberate efforts to engage communities are vitally important and help ensure long-term success. As one company employee reflected, three years is not enough time to address these complex challenges. But there are meaningful actions to take, and they provide stepping stones to ultimate success.
Mark Godfrey/TNC
Above: the coast of Sangalaki Island in the Derawan island chain Below: fishing village on Derawan island
Conclusions
Conservation actions in Indonesia provide hope and perhaps models. Governments, businesses, local communities and NGOs are developing ways to manage resources that are ecologically sound, socially responsible and economically viable. The challenge for us always is to make people think in a larger context than just their own reef in front of the island, notes the Conservancys Djohani. So the idea is to have lots of dialogue on how we can implement effective management for this large marine protected area. Perhaps most promising, from each of these successful projects emerges a new generation of conservation leaders.
Mark Godfrey/TNC
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A partnership between Egyptian LNG and the Behera Water and Drainage Company led to an enlarged water distribution network that provides mutual benefits to the companies and the residents of the surrounding towns and villages.
Key partners:
Behera Water and Drainage Company Egyptian LNG General Authority for Foreign Investment, Egyptian government Governorate of Behera Towns of Rashid, Idku and El Mahmoudia, and six villages
Background
Egyptian LNG (ELNG) is a liquefied natural gas (LNG) company which operates in the governorate of Behera in Egypt. The company has five shareholders: BG Group (35.5 per cent); Petronas (35.5 per cent); Egyptian Gas Company (12 per cent); Egyptian General Petroleum Company (12 per cent); and Gaz de France (5 per cent). ELNGs plant near the town of Idku, on the Mediterranean coast east of Alexandria, required a secure and reliable source of clean water for its production process, domestic utilities and fire emergencies. Because the volume of water required was not available on site, ELNG studied various options to acquire the water. It considered extracting groundwater and treating waste water but, after some deliberation, these options were abandoned owing to a combination of technical, economic and socioeconomic factors. The company then approached the municipal water facility serving the region, the Behera Water and Drainage Company (BWADC), about drawing water from the municipal system. It was soon determined that the municipal water distribution network lacked capacity to supply ELNG with the volume of water needed for its industrial operations. The same distribution constraints were also preventing BWADC from supplying sufficient water to the residences and businesses in the communities near the ELNG facility. BWADC was already working to expand the entire water system. It had recently used a grant from the Hungarian government to upgrade the systems main treatment station at Edfena, 12 km away on the Nile River, as a first step in addressing the shortage. But the necessary upgrades to the pipelines in the distribution network were not in the budget for at least five more years. As a result, the new potable water capacity was trapped at the treatment station and could not be
distributed to either ELNG or the under-served communities. ELNG saw an opportunity to partner with the municipal water company for a common purpose. The LNG company had determined that building a 315-mm polyethylene pipe would supply its needs. However, to improve supply to the nearby towns and villages, a 12-km, 700-mm cast iron pipe was installed with a 315-mm polyethylene pipe spur off this into the LNG plantat an additional US$1.5 million for the oversized pipe. BWADC was eager to lay the pipeline and alleviate the water shortage, but the total project cost of $4.8 million plus taxes was greater than ELNGs allocated budget. After extensive negotiations, which included the governorate of Behera, an agreement was reached. ELNG agreed to pay the full $4.8 million, while the municipal water company agreed to contribute the engineering and construction workers, the machinery and the costs of applying for legal permits for the project as well as ongoing maintenance of the pipe. The partnership also secured a large tax advantage on the imported iron pipe. The Egyptian governments General Authority for Foreign Investment had designated ELNGs facility as a Free Zone, entitling ELNG to import certain manufactured goods into the country tax free, as long as the goods were for use at its facility. ELNG and BWADC worked jointly with the foreign investment authority to explain that the imported iron pipe was primarily for ELNGs use, with extra benefits for the surrounding communities. The iron pipe was subsequently exempted from taxes that would have pushed up the cost of the pipe by 50 per cent, and the project became financially viable for both parties. The project enjoyed significant regional media coverage, especially when the Behera governor presided over the signing of the water supply agreement. Newspapers published articles about the successful public-private partnership, and interviews with instrumental individuals were broadcast on television and radio. Two hundred jobs were created during construction and ongoing maintenance. Technical, project management, and health, safety and environment (HSE) skills were transferred from ELNG to BWADC employees and their subcontractors during the planning and
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THEME: Capacity building PARTNERS: GOV O&G B&I COM LEVEL: local LOCATION: Africa
construction phases. Ongoing maintenance of the pipeline is to be performed by BWADC, reinforcing the skill transfer process. In addition, permits for river and railway crossings were granted on time, as the authorities recognized the positive outcomes of the project and were eager to assist. The work was completed ahead of schedule and below the approved budget. The project has increased the water supply to the nearby towns and villages by 50 per cent, benefiting 405,200 end users.
This was also the first public-private partnership that both parties had entered into, and it took extra time to reach agreement on a unit price for water over the 20-year project life, given that rates would escalate with inflation and because each party had different pricing methods and expectations. Despite these complications, the dialogue and negotiations persisted, and a fruitful project was eventually realized to the satisfaction of both parties.
Conclusion
Through extensive negotiation and cooperation, the partnership managed to efficiently divide the project responsibilities between the public and private sectors to the mutual benefit of all involved. Besides an expanded water supply, the project delivered significant socioeconomic benefits such as good jobs and the transfer of skills.
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In Azerbaijan, BP and the Open Society Institute-Assistance Foundation are working together to support national NGOs capacity development through facilitated monitoring and audit of the Baku-Ceyhan-Tbilisi and the South Caucasus Pipeline projects.
good governance and transparency in the use of national resources. The partners signed a Memorandum of Understanding (MOU) and commenced the NGO Monitoring Programme in April 2004.
Key partners
BP Open Society Institute-Assistance Foundation Local NGOs
Background
The Baku-Tbilisi-Ceyhan (BTC) project represents a US$3 billion investment to unlock energy from the Caspian Sea, with the construction of a 1,768-km oil pipeline from Azerbaijan, through Georgia and on to Turkey, for onward delivery to world markets. The South Caucasus Pipeline (SCP) runs parallel to the BTC pipeline and will transport gas from the Caspian Sea to the Georgia/Turkey border. BTC (and SCP to a lesser extent) has been subject to an unprecedented degree of monitoring by international and national bodies wishing to assess the projects openness to public scrutiny and compliance with international standards. BP initiated a partnership with the Open Society Institute-Assistance Foundation (OSI-AF) to provide training, mentoring and facilitation to the NGOs doing the monitoring in Azerbaijan. OSI-AFs main goal is to foster the transition of a closed society to a more open one. Farda Asadov, OSI-AFs executive director, explains: In Azerbaijan our aim is to increase civil societys involvement in the democratic process and to oversee
The BTC pipeline runs from Baku in Azerbaijan, through Georgia and on to the Turkish Mediterranean port of Ceyhan.The SCP pipeline follows the same route as far as the Georgia/Turkey border.
RUSSIA
KAZAKHSTAN
Novorossiysk
BULGARIA
CASPIAN Supsa
Baku
ACG
TURKMENISTAN
Sangachaly
Ceyhan
IRAN
MEDITERRANEAN SEA
CYPRUS
SYRIA
IRAQ
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THEME: Capacity building PARTNERS: O&G NGO LEVEL: national LOCATION: Caspian
local communities are aware of the avenues to communicate their concerns to the company; increasing and focusing efforts to address community concerns about pipeline safety and security; and strengthening efforts to procure goods and services locally. Each party contributed significantly to the process: OSI-AF was the facilitator and an independent and well-informed link with civil society and BP; the NGO representatives provided a local perspective on how BP could improve its performance and establish broader links with civil society; and BP contributed project management skills and the information the NGOs required to play a constructively critical role. A new cycle focusing on the South Caucasus Pipeline (SCP) was launched in August 2005 to promote transparency, to identify opportunities for improvement in how BP manages the environmental and social impacts of its investments in Azerbaijan, and to introduce NGO representatives to the principles and practice of auditing. The aim is to build local capacity to audit large infrastructure projects such as BTC and SCP.
roles and responsibilities, improving the selection criteria for new participants and enhancing OSI-AF management capabilities.
Conclusions
The BP and OSI-AF partnership continues to evolve. It has required time and hard work on the part of all involved to make the partnership a success, but it represents a good example of how international companies and national NGOs can work together towards a mutually advantageous goal. The capacity-building element of the programme has resulted in the emergence of an advanced group of civil society representatives that will use their skills for other initiatives. Examples of projects where NGOs will apply their knowledge are the EUs European Neighbourhood Policy Civil Society Forum and OSIs Revenue and Civil Society participation in the Extractive Industries Transparency Initiative (see the EITI case study on page 92). As Julie McCarthy, director of OSIs Revenue Watch programme, indicates, The NGO Monitoring Programme, while by no means perfect, is certainly one of the best examples to date that civil society, extractive industries and the host government can point to as a mutually beneficial endeavour. BP can attempt to replicate the monitoring programme in other key countries of operation.
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ConocoPhillips has lessons to share from conceptualizing, improving and implementing a sustainable development framework in collaboration and partnership with local and international stakeholders in the Gulf of Paria in Venezuela.
Progress
With the input of about 15 local and 40 international stakeholders, ConocoPhillips has conceptualized and executed more than 20 programmes in environmental, socio-economic and operational areas since 2000. In some cases, the collaboration has evolved into formal partnerships with resource-sharing agreements:
Key partners
Multiple local and international stakeholders, including:
Background
ConocoPhillips Venezuela and its partners discovered offshore oil resources in the Gulf of Paria, Venezuela, in 1999. Plans are to begin production in the near future and to remain in the area for more than 20 years. The Gulf of Paria is an environmentally sensitive estuarine region with high biodiversity. Communities including indigenous Warao and fishermen rely on the natural resources. Initial evaluations and meetings with stakeholders identified many needs among those living closest to the future oil operations, including incomegenerating opportunities, education, skills and basic services. However, the lack of an organized and empowered community, a high staff turnover rate within institutions and low capacity were seen as jeopardizing investments. Efforts in the 1990s to improve conditions heightened local expectations and communities became accustomed to infrastructure donations and handouts.
Communities ConocoPhillips Venezuela Conservation International (CI) Inter-American Foundation Ministry of the Environment and other government institutions United Nations Development Programme (UNDP)
Input from stakeholders and results of studies Our Locality Management Strategy Programme implementation
Building capacity
In 2003, ConocoPhillips partnered with the InterAmerican Foundation, and contracted the Synergos Institute and local consultants to address the long-term goal of encouraging local stakeholders to participate in the development of the Gulf of Paria. Organizations jointly assessed the communitys ability to identify regional priorities, summon interest groups, raise funds and allocate resources. In 2004, ConocoPhillips convened workshops to explore ways to increase community and institutional capacity and improve the
Stakeholder engagement, collaboration and partnering are central to ConocoPhillips approach to sustainable development in the Gulf of Paria.
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THEME: Capacity building PARTNERS: GOV IGO NGO RI COM LEVEL: local/national/international LOCATION: South America
quality of life in the gulf. Results of this participatory process are being used to refine the companys 200608 sustainable development investments.
Capacity
Partnership building is often challenging because of the differing capacity of those involved. Training and educational programmes can empower communities and local institutions to assume their roles in sustainable development.
Governance/operational differences
Intrinsic administrative and operational differences between NGOs, government institutions and companies can complicate working together. Organizations should remain flexible to the procedures of others.
Community participation
Community involvement is crucial to the long-term viability of investments, but communities are unlikely to participate unless they perceive benefits. Crosssector alliances structured around a local productive activity with rapid and tangible economic benefits are particularly successful at involving the community.
Champion
Establishing partnerships invariably requires a champion organization, usually the first to perceive common possibilities. This organization should be prepared to invest more time and resources during partnership exploration, until others see the full value of their involvement.
Institutional participation
Partnerships should not encroach on the role of the government; they should consider the government investment focusor gapsin deploying resources.
Conclusion
Partnerships depend on mutual understanding and trust, which naturally take time to develop. It is therefore crucial to select the right individuals capable of inspiring, leading and instilling a sense of shared purpose through frequent, preferably in-person, communications, while allowing the time needed to nurture lasting cross-organizational relationships. For more information on the partnership work see www.ConocoPhillipsParia.com
Roles
The roles and responsibilities of the different organizations need delineating early, to avoid misrepresentation, minimize redundancy and optimize resources.
ConocoPhillips has conceptualized and carried out more than 20 programmes in environmental, socio-economic and operational areas since 2000.
Commitment
Willingness to dialogue should not be mistaken for interest in partnering. Ownership and responsibility partially result from the contribution of resources (in kind, financial or other) commensurate with the size, nature and means of each partner.
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Hess, International Medical Corps and other partners are working together to improve emergency health care services for communities in and around the Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP) corridor in Azerbaijan.
The initiative was implemented in partnership with the Ministry of Health, the Ganja Executive Committee, the hospital and Ganja residents. The beneficiaries of the EMDI are the more than one million people living in Ganja and the surrounding districts. Additional beneficiaries are hospital staff, employees working near the BTC/SCP pipeline corridor and travellers on the new Silk Road from Baku to Tbilisi (Georgia) via Ganja.
Key partners
Hess First Medical Emergency Hospital No. 3, Ganja Ganja Executive Committee (governors office for the Ganja region) International Medical Corps Johns Hopkins University, Bloomberg School of Public Health and School of Medicine Ministry of Health, Azerbaijan
Background
In 2003, Hess approached International Medical Corps (IMC) to identify a project that would have a longlasting, positive impact on north-west Azerbaijan. The partners developed the Emergency Medicine Development Initiative (EMDI) to address road accidents and other emergencies, among the leading causes of morbidity and mortality in Azerbaijan.
Progress
Johns Hopkins University emergency medicine experts provided advanced training for the hospitals emergency medical team, as well as medical staff from McDermott (an engineering firm working on the pipelines) and doctors from the national landmine removal programme. The hospitals emergency department was completely rehabilitated and specialized equipment provided. Hesss support included developing project workplans, implementing civil works and construction, and obtaining the necessary government approvals. In contrast to many development projects where donors commit to funding technical support and training only, Hess funded the full spectrum of needs, including equipment and construction costs. Widespread consultation with local stakeholders in the community greatly increased the likelihood of long-term sustainability for the initiative, with local support leveraged from the very early planning stages. The local community provided 25 per cent of the project costs, including building materials, skilled and unskilled labour, transportation services and cash contributions.
An example of the improvement in the quality of the hospital wards at the Ganja hospital: the photograph immediately right shows one of the wards before the partnership project; the photograph on the far right shows how the wards look today.
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THEME: Capacity building PARTNERS: GOV NGO B&I LEVEL: local LOCATION: Caspian
NGOs working in Azerbaijan also contributed to the initiative. The high degree of local support encouraged the Azerbaijan government to recognize the value of the project, assist with the hospital renovation and revisit the national policy on accident care.
Conclusions
Hess and IMC worked in partnership with national and international agencies to raise the quality of emergency medical services at First Medical Emergency Hospital No. 3. They provided modern training, lifesaving equipment and medicines to a once-dilapidated emergency department that each year will benefit thousands of people living in north-west Azerbaijan. An important outcome of the EMDI is that its success has sparked greater interest in emergency medicine by other donors. As a result of the work of Hess and its partners, the United Stated Agency for International Development (USAID) approached IMC to design an expansion programme for the EMDI in partnership with corporate partners under USAIDs Global Development Alliance mechanism. In September 2005, Phase II of the EMDI was launched. A much larger project, its budget is US$2.1 million over two years. Funders are USAID, Hess, Unocal (Chevron), BP and the BTC/SCP Company. The scope of the work and the geographic coverage have also expanded, to cover five hospitals located along the BTC/SCP pipeline route, to create national emergency medicine training centres and to improve national policy on emergency medicine servicesin particular, ambulance and in-hospital care.
Challenges
The key challenge early on was to create a cohesive project team from culturally diverse organizations. Significant patience and team building were required during the first months of the initiative to create the necessary confidence and mutual respect to move the project forward and to cement the new working relationships. The project team also faced an initial learning curve in terms of financial reporting and project implementation. Some key hospital staff, for example, debated which parts of the hospital were priorities for repair and which equipment was essential to meet the projects objectives. In addition, there was some difficulty early on in securing assistance from regional health authorities, as well as in controlling expectations of both the regional government and the hospital administrators. Constant contact and close coordination between Hess, IMC, regional health authorities and hospital staff helped build confidence and trust. The arrival of building materials on site and the commencement of construction activities marked a key milestone, after which came significant support from government authorities and hospital staff.
Lessons learned
Including regional health authorities on the project team was fundamental to overall success. It not only helped with approvals to remodel the hospital, but also created government ownership and commitment to maintain the physical infrastructure and care for the new equipment. Similarly, securing buy-in and support from the hospital administrative team was also vital to the projects success. Since all major decisions were made as a team, the hospital staff rapidly acquired confidence in the overall direction of the project and increased their sense of ownership.
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Hydro and a group of universities, institutes and companies collaborated in order to better understand the geology and historical subsea slide mechanisms in the Storegga region on the Norwegian continental margin.
Key partners
British Geological Survey Geological Survey of Norway Hydro NORSAR Norwegian Geotechnical Institute Scandpower Svitzer University of Bergen University of Oslo University of Troms
Background
The Ormen Lange field is Norways second-largest gas discovery. It is located off the north-west coast of Norway within the scar of the Storegga Slide, which took place about 8,200 years ago and is one of the largest known submarine slides in the world. It created tsunamis that reached the coast of Norway, Scotland, and the Shetland and Faroe islands. When the Ormen Lange licence was awarded in 1996, knowledge about the Storegga Slide was limited. Also, the stability of the seabed in this area and the timing and number of slides were uncertain. Risk relating to development of the Ormen Lange field in the slide area had to be assessed before the development could be declared safe and feasible. Questions concerned the slope stability, the probability of a new large slide and the risk of tsunami. Hydro decided to resolve these questions through the Ormen Lange Slide Risk Project, a major joint effort between industry and academia that ran from 1997 to 2003. The project involved national and international research institutes and universities. Some parts of the project were included in the Norwegian Deep Water Programme, while other parts were performed in cooperation with EU-funded projects.
coring in fjords, lakes and bogs helped date earlier tsunami events. The study was complex, as many disciplines were involved, and its conclusions were vital for the development of the major gas field. The partners therefore established an independent verification team of experts to follow up on the work. SINTEF (the Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology) was contracted to establish and lead the verification team. The verification team had the freedom to deal with those items that it considered as most critical. On two occasions, the team was strengthened with additional members as new issues came into focus. The expert team comprised 17 individuals from 8 institutions in Europe, Canada and the USA.
were added when possible, the complex nature of the project represented a challenge with regard to knowledge transfer and update of new personnel, especially in the later stage of the project. 4. The partners operate with different types and levels of quality assurance and quality control systems that are generally incompatible. Introduction of a verification team proved to be useful in this connection. Main lessons learned from challenges during the project are as follows: It is important to avoid bottlenecks in the flow of information between the partners, not least when deadlines are tight. The expected output from each partner should be clearly defined at all stages. Exchange of information should serve a purpose. Intermediate and ad hoc specialized workshops or project meetings involving only a subset of the partners can be efficient ways of ensuring this exchange. The role of and efforts required from each partner should be clearly defined from the outset. The roles may have to be redefined if the scope of the work changes.
different cultures, which represented both a challenge and a source of mutual inspiration and exchange of skills.
Conclusions
The project was able to conclude that developing the Ormen Lange field was safe with respect to geohazards, and that the development would not cause unacceptable risk to third parties. The conclusions were verified by an international verification team comprising specialists in the relevant areas. The study was unprecedented as a field development site survey, not only in its size and its free exchange of data, but also in its use of external parties (the verification team) to guide the research. The project helped build expertise in academia as well as in the industry. This expertise is now applied to evaluate geohazards for other developments along continental margins. The results of the study have also been extensively disseminated via journal articles and conference papers, including special issues of selected journals. The development of Ormen Lange was dependent on a scientifically based and publicly accepted declaration that the area was safe from future slides. This assurance could only be achieved through a partnership, as no single academic institution had sufficient breadth of expertise. It was equally important that all questions that could be raised were raised and resolved within the project. The partnership ensured an open and transparent process between the academic institutions and industry.
Location of the Storegga Slide on the Norwegian Continental Shelf, with the slide fanning into the deep Norwegian Sea.The Ormen Lange field is located at the head of the slide scar.
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Canadian Nexen Petroleum Yemen has partnered with local and national governments to build the skills of Nexens employees, in the process developing Yemens oilfield expertise for the long term.
Key partners
Canadian Nexen Petroleum Yemen Consolidated Contractors Company Hadhramout Governorate, Republic of Yemen Ministry of Oil & Minerals, Republic of Yemen Occidental Peninsula Inc.
Background
Since Canadian Nexen Petroleum Yemens (Nexen) entry into Yemen in the early 1990s with its Masila Block project, a large-scale, multi-million-dollar oil exploration, development and terminal operation, the Yemeni workforce at this facility has grown to exceed expatriate employees and now accounts for more than 70 per cent of the operational workforce. Nexens partnership and profit-sharing agreement with the Ministry of Oil & Minerals included a development plan with the regional Hadhramout Governorate to enhance local economic growth and build the capacity of the local population. The partnership evolved from its origin in the profit-sharing agreement, to a process of engagement with local and regional stakeholders, to develop the capacity and capabilities of Yemens national oil industry and to involve them in the staged growth of national employees through what would become Nexens Yemenization programme.
Yemeni nationals now comprise 77 per cent of Nexens workforce (including contractors) at Masila, continuing an upward trend. In Yemen, Nexen employs almost 1,000 people.
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called the Individual Development Programme (IDP). The localization programme also seeks to enhance the professional development of Yemenis in the oil and gas industry in their country. In the IDP, every national employee has a tailormade plan that identifies the employees specific training and development needs. Each employees progress is monitored and mentorship is provided to guide that employees development. Upon successful completion, national employees may be promoted to replace selected positions held by expatriate staff. Nexen has training facilities at all three of its main locations: the central processing facility (CPF), the marine export terminal (Terminal) and the office at Sanaa, Yemens capital. The main Training Centre is located at the CPF and consists of a variety of classrooms as well as shop facilities. The Terminal and Sanaa facilities have multipurpose classrooms and computer training facilities. The training programme at Nexen has four levels: Level 1: The new trainee begins the technical courses and also enters an intensive English language instruction programme. The need for a single working language is emphasized for operational and safety reasons. Level 2: The trainee selects a discipline (operations vs. maintenance) and commences intensive study of theoretical and practical aspects of that discipline. Simultaneously, the Environmental Health & Safety department provides a full range of mandatory training. Level 3: The trainee is relocated to the relevant department and assumes the daily requirements of the job, with mentoring and supervision. Level 4: The trainee reaches the target level for Yemeni employees and can function independently in the position. Flexibility in the programme allows Nexen to reduce the length of training time considerably, if the trainees abilities allow for it. Not all training can be given at the training centres; some specialized training is held offsite or out of country as required, and often subjectmatter experts are brought in to conduct training. Periodic evaluations are done on the training programmes in Yemen, to ensure that they meet the standards and objectives set.
60
40
20
0
42
2000
2001
2002
2003
2004
THEME: Capacity building PARTNERS: GOV RI LEVEL: national LOCATION: Middle East
E N T R Y
PJQ
Low tech.
O R I E N T A T I O N
FJQ
PJQ
Low English
OJT
training
skills ladder
OJT
FT
FT
OJT
Far left: Nexens Individual Development Programme (IDP) has four basic levels: 1. Level 1: entry; 2. Level 2:training for a specific trade; 3. Level 3: on-the-job training; and 4. Level 4: individual development plan (IDP). Near left: the programme provides extensive handson practice, both in the workshops and the field.
With high unemployment and a minimum of technical opportunities in the area, recruitment is managed through an operating committee, to ensure fair and equitable allocation of positions to qualified individuals. Nexens human resources division works closely with the governorate and with the oil ministrys Yemenization manager to advertise, test candidates and fill positions as they become available. Taking this work further, in 1998 Nexen and its partners in the Masila Block project adopted a scholarship programme in Yemen designed to enhance national capacity by providing scholarships to Yemeni students to pursue post-secondary studies at Canadas University of Calgary or the Southern Alberta Institute of Technology, in disciplines that will positively impact economic development in Yemen. Upon graduating, these students return to Yemen to take on positions external to Nexen, filling both a societal need and building Yemens national capacity. The scholarship programme exemplifies the strong partnership between the government of Yemen, its people, Nexen and its Masila Block partners.
F U L LY J O B E X P E R E N C E D
localization will continue as long as Nexen is a partner in the Masila Block project.
Progress
Since the start of the Masila Block project in the early 1990s, the number of Yemeni nationals employed at Nexen has increased significantly. These employees are also more skilled and hold more responsible positions within the company. In Yemen, Nexen employs almost 1,000 people. For the continued success of the programme, Nexen and its partners conduct regular stewardship meetings and work from a business plan that is updated and approved annually. The increasing
Conclusions
The Yemenization programme helps ensure continued safe and effective operations, and is building an experienced oilfield workforce as a lasting legacy once Nexen completes the terms of its current productionsharing agreement with the Yemeni government. Nexens commitment to this programme has resulted in a positive and lasting relationship of trust and cooperation with the government of Yemen and its people.
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Through a fusion of conservation expertise, financial investment, business skills and long-term access to consumer markets, Shell and its partners are working in South Africa to conserve biodiversity, generate jobs, and improve the quality of life for local people through the sustainable harvesting and sale of flowers and associated products.
strategies through the sustainable use of natural resources. FFI introduced Shell to the project, and the company quickly recognized that a strong trading operation would support the conservation and community initiatives in Flower Valley.
Key partners
Fauna and Flora International Flower Valley Conservation Trust Fynsa (Pty) (Ltd) Marks & Spencer Shell Foundation Shell International Shell South Africa
Background
South Africas Cape Floral Kingdom is one of the worlds most botanically rich habitats, with nearly 70 per cent of the plant species found nowhere else on Earth. It is home to the heath-like fynbos (or fine bush) vegetation belt, the global record holder for floral diversity. However, the fynbos is at great risk from agricultural (for example vineyards) and urban development, commercial tree planting and invasive plant species. Reducing the pressure on this unique habitat in a way that could also deliver social and economic progress in a low-income, high-unemployment area was the challenge that the Flower Valley project sought to address. Between 1999 and 2002, with the support of various donors, Fauna and Flora International (FFI) purchased 1,338 hectares of globally important fynbos land including Flower Valley Farm, a pre-existing flower-harvesting operation. FFI then established the Flower Valley Conservation Trust (FVCT) to take on ownership and assess opportunities to link conservation and local economic development
THEME: Capacity building PARTNERS: NGO B&I LEVEL: regional LOCATION: Africa
in detail as the project developed. In the absence of initial targets, partners had to pay greater attention to communication and governance to keep the project on track. The absence of initial targets could be considered a major constraint to quantifying progress and optimizing the business/partnering process, but in reality it facilitated a flexible, ad hoc approach in the early stages, when the eventual outcomes from applying a commercial model in a development setting were still uncertain. As the uncertainties have diminished, key performance indicators have been developed for use in the second phase to monitor progress and assess how effectively the partnership is working. The creation of Fynsa gave rise to new commercial opportunities. However, the split also led to significant tensions between this new commercial entity and FVCT. In resolving these tensions, the partners learned a number of lessons: The four- to six-month period between the start of the negotiations and the transfer of the business aspects to Fynsa was too short, and appropriate agreements and management processes were not in place. Sufficient time to prepare and to develop trust is necessary before partners move from negotiation to implementation. The process of building a successful partnership should not be rushed or accelerated beyond its natural pace. The people initially brought in to manage Fynsa had little prior exposure to the project. A breakdown in the relationship with FVCT led to Fynsa agreeing to change its management and board leadership in January 2005. These changes have revitalized communications and brought extensive marketing experience and an entrepreneurial spirit to Fynsa. Successful roll-out is clearly as much about getting people with the right approach and style on board as it is about getting the management structure and plans in place before launching the partnership. The potential clashes between a public benefit conservation partner and a commercial partner used to a more aggressive and competitive environment were unforeseen. An exercise such as a SWOT (strengths, weaknesses, opportunities and threats) analysis of the partners could have
eliminated or reduced this potential and could also have formed the basis for partnership agreements detailing the roles and expectations of each partner. The tensions between FVCT and Fynsa highlight the difficulty other partners may face in controlling or influencing some partner interactions. In this case, the resolution of issues between FVCT and Fynsa was largely outside the direct control of Shell or the Shell Foundation.
Conclusions
The Flower Valley project has highlighted the strength of partnerships in developing and taking forward innovative approaches to conservationalone, none of the partners had the capacity or skills to successfully deliver the desired conservation and livelihood outcomes. The project also indicates that the private sector can provide business skills to help the conservation community achieve its goals hand in hand with social and economic development. Although the partnership is still developing, Fynsa is well positioned to become a strong player in the marketplace for sustainably produced goods. The partnership project has demonstrated the viability of a business model for resource conservation and sustainable livelihoods, with the potential for replication within and beyond South Africa.
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The partnersRoyal Dutch Shell and Living Earth Foundation have been working together on a range of sustainable development issues for the past 16 years and are now developing their partnership into a strategic institutional relationship.1
Over the past 16 years, Shell and Living Earth have extended their collaboration into three continents and nine countries, including South Africa, Northeast Russia and Alaska. This global relationship has allowed Living Earth to magnify its positive impact on communities and the environment, and has resulted in genuine business benefits for Shell.
Key partners
Living Earth Foundation Royal Dutch Shell
Challenges
Research into partnerships frequently indicates setbacks and difficulties. In the ShellLiving Earth relationship, activity and contact have been limited during some periods. Both partners have identified problems in the following areas:
Partnership working
Historically, the Shell group of businesses has tended to engage with other organizations on a contractual basis, rather than through a partnership approach. Effecting a transition to partnership working requires a shift in thinking, culture and working practices.
NigeriaSustainable Livelihoods programme (Shell Petroleum Development Corporation and Living Earth Nigeria Foundation): rattan cane being processed into fish baskets.
Competition
Shell has actively integrated a number of Living Earths suggestions. While this receptivity clearly indicates the NGOs contribution to the relationship, community development departments within Shell, which have a similar remit, have on occasion viewed Living Earth as competition.
Financial management
Shell deals in billions of dollars, rather than thousands, and pays its bills at long intervals, rather than monthly. While Shell has difficulty understanding the need for regular payments, especially when they are deemed to be small, Living Earth is reliant on such payments and consequently has difficulty managing its cash flow.
The terms institutional and institutionalization are used here to indicate several distinct but complementary processes: regularization, formal establishment of working principles and practices, and stability. For more on the ShellLiving Earth partnership work in Nigeria, see Simon Heaps book, NGOs Engaging Business: A World of Difference and a Difference to the World, published by INTRAC, Oxford, UK, in 2000.
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working with Shell, Living Earth now knows how to approach and talk to the private sector, plus it has become more adept at walking Shell employees through various processes. Roger Hammond, Living Earth Foundations development director, notes that with Shell we are working with a company that is willing to share risks and work with us to build solutions in real-life situations. We are not dealing with PR platitudes but are engaged in work that neither entity could achieve on its own. This is what we call partnership.
Organizational trust
Few people within Shell have the experience and understanding of either the concept or the practice of conducting a strategic relationship with an NGO. Shell acknowledges that some of its staff have reservations about Living Earth, finding it difficult to believe that an NGO can possess an informed or deep understanding of a large, multi-layered and complex company. The process of recognizing these problems has yielded recent changes in structure, focus and direction for the partnership.
Conclusions
As trust has developed in the partnership, both Shell International and Living Earth have become more appreciative of their partners strengths and weaknesses and more confident in questioning each others objectives, perspectives and approaches. The original patterns of working through individual projects are evolving into an institutionalized strategic relationship. The well-established practice whereby Living Earth provides external perspectives to Shell is likely to bring benefits at an increasingly high level of decision making. The following specific consequences can be envisaged: Shell will adopt an increasingly systemic approach to sustainable development in all of its work. Living Earths systemic approach will support better risk management. Shell will enjoy cost benefits with more effective planning and management from the outset. Shell International and Living Earths strategic institutional relationship will serve as a model for Shells local businesses.
GhanaLiving Earth facilitated Shell Ghana to work with a cluster of local stakeholders to establish a viable fish freezing business.This has resulted in positive environmental and social impacts.
Whats the catch? Many people are still very suspicious of NGO business partnerships, so focus on the impact of what you do together.
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The Carbon Mitigation Initiativea partnership between BP, the Ford Motor Company and Princeton Universityis seeking compelling and sustainable solutions to the carbon and climate change problem through a long-term research programme.
Key partners
BP Ford Motor Company Princeton University
Background
Scientific evidence points toward a future constrained by the consequences of a relentless increase in atmospheric CO2 concentrations. Continuing to use fossil fuels will require implementing new technologies on an unprecedented scale to capture and store the majority of the predicted 1,000 billion tons of carbon emissions this century. The new technical approaches must not only address atmospheric carbon and associated climate impacts, but also be environmentally benign and avoid prohibitive costs and disruption of energy consumption patterns. Solutions to this unique challenge must be delivered at an accelerated pace and in a way that the public accepts.
involvement across the supply chain. Ford brought a useful perspective on transportation issues, along with its technical knowledge on fuel cells, fuels and efficiency, and experience in product development. In October 2000, the three partners formed the Carbon Mitigation Initiative (CMI), its mission to develop new approaches to carbon management. Recognizing the complexity and longevity of the issues, both industrial partners made a substantial 10-year commitment, with BP contributing US$15.1 million and Ford contributing $5 million. Current work is focused via four groups: 1. The Carbon Capture Groupassessing the feasibility and potential costs of reducing carbon emissions from electricity, hydrogen and synfuels production, and exploring hybrid fossil-renewable energy schemes. 2. The Carbon Storage Groupevaluating the effectiveness and leakage potential of underground storage. 3. The Carbon Science Groupquantifying natural CO2 sources and sinks, and creating impact models for global carbon cycle management. 4. The Integration Groupassessing the economic and environmental impacts of carbon mitigation strategies, as well as synthesizing and disseminating CMI research.
Relationship building
As for most, if not all, flourishing partnerships, the successful development of CMI has relied on the growth of trust and respect between the partners. Developing trust takes time, and there are few, if any, shortcuts. As trust builds, an open, transparent and close working relationship develops, along with the mutual desire to ensure that each partner benefits.
seven wedges
historical emissions
flat path
0 1955
2005
2055
2105
scenarios using a variety of energy sources, including coal, natural gas, biomass and wind power. Rather than steer the research towards BP- or Ford-related interests, the industry partners have encouraged the groups explorations and have gained a broad perspective on the future of energy as a result. The partners have adopted a light-touch management style, relying on frequent informal contact and regular CMI team meetings, supplemented by annual progress reviews and formal reviews every three years for contract renewal purposes.
Conclusions
The complex subject matter, the nature of the specific sector partners and each partners way of collaborating have challenged the partnership. However, the partners common interests and their continuing desire to work together have contributed to overcoming the challenges. Partnerships are hard workthey rarely happen by accident, and if they do, they tend to have a limited life. CMI is entering its sixth year and continues to go from strength to strength. Successful partnerships can deliver exceptional results, and CMI has delivered innovative analyses and concepts that have contributed to industry and government thinking on solving climate change issues. The results are beyond what any partner could have achieved individually, highlighting the strengths of a well-managed partnership.
Over the next 50 years, about 200 billion tons of carbon emissions will need to be avoided to prevent a doubling of atmospheric CO2 and avoid the worst predicted consequences of climate change. CMIs stabilization wedges concept divides this amount into seven equal wedges that grow from zero now to mitigating 1 billion tons of carbon emissions per year by 2055. CMI researchers have identified 15 existing strategies including renewable energy, carbon capture and storage, efficiency improvements, and nuclear energythat each already have the capacity to reduce emissions by one wedge. The concept has proved a successful tool for communicating the scale of the mitigation effort needed and promoting discussion among stakeholders.
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An industry-academia partnership has established the Global Climate and Energy Project at Stanford University to research energy technology that addresses climate change.
Key partners
ExxonMobil General Electric Schlumberger Stanford University Toyota
Background
Reducing greenhouse gas emissions while simultaneously meeting the worlds growing energy needs requires innovative and cost-effective technology. To promote this objective, the Global Climate and Energy Project (GCEP) between Stanford University in the USA, ExxonMobil and three other companies (General Electric, Schlumberger and Toyota) has been established. GCEP seeks to mobilize the most creative research and development (R&D) processes in academia to accelerate the generation of breakthrough leads for advanced energy technologies with low greenhouse gas emissions. GCEP at Stanford University is the largest privately funded programme of academic research on energy technology to address climate change. ExxonMobil, General Electric, Schlumberger and Toyota plan to contribute US$225 million to the project over 10 or more years, with ExxonMobil providing up to $100 million. Stanford University is well suited to generate and explore innovative leads arising from fundamental science, and it has the wide range of expertise required. ExxonMobil recognizes the advantage of bringing independent, imaginative minds in academia into the effort, to complement its in-house R&D. In addition, an important by-product of working with academia is the ability to build strategic, long-term capacity. This occurs by refocusing traditional engineering disciplines to address long-term energy challenges and training a new generation of highly skilled students with enthusiasm to contribute to solutions in the coming decades.
emissions. According to Stanford Universitys President John Hennessy, GCEP is building a scientific foundation for creative solutions to bear on some of the Earths most daunting challenges. In establishing GCEP, all participants agreed on three principles that would be essential for its success in an academic setting: 1. Individual research programmes must be of the highest quality and directed at high-risk, highreward opportunities. 2. Full academic freedom is vital for everyone involved in the projectfaculty, students and others. 3. Results will be published in peer-reviewed literature and publicized widely. The partners worked to ensure that these principles were clearly expressed in the GCEP Agreement and continue to stress them as the project proceeds. GCEPs areas of research include the study of biomass, wind, solar and other renewable energies; advanced combustion; production and use of hydrogen; carbon capture and storage; advanced transportation; advanced materials; advanced coal; and power production, distribution and storage. In addressing these areas, researchers seek technological leads that may overcome current barriers to large-scale commercial applications, such as cost, performance, safety, environmental and regulatory compliance, and consumer acceptance. Stanford University is responsible for developing and managing GCEP research, using a variety of approaches to stimulate cutting-edge research, including visiting other institutions around the world and convening workshops on particular theme areas (for example advanced transport), to identify potential research leads and current barriers. Stanford then solicits step-out, breakthrough research proposals that are subject to a rigorous peer review and approval process. A unique aspect of GCEP is the creation of academic research at Stanford to evaluate the potential of the GCEP research portfolio in making a significant contribution to reducing future greenhouse gas emissions. This capability will enable research priorities to be readjusted within GCEP and throughout the
global research community, allowing the project to adapt and to focus on the most promising opportunities.
A GCEP graduatestudent researcher investigates more efficient combustion engines in the Advanced Energy Systems Laboratory at Stanford University.
Lessons learned
After three years, it remains a challenge to generate truly innovative research proposals with the potential for game-changing outcomes to energy technology on a global scale. In part, this occurs because the issues addressed have been under consideration for many years by many smart scientistsso potentially promising leads have already been explored in great depth. In addition, academic scientists typically compete for funding from sources with far more structured mandatesso they have become accustomed to framing proposals that are more conventional, incremental and likely to succeed. It requires significant ongoing effort to communicate GCEPs mandate to seek out high-quality, high-risk research with the potential for a major breakthrough.
Conclusions
A diverse set of research programmes are now under way, with more in the pipeline as the project evolves to a steady state level of activity. GCEP has galvanized a renewed interest by faculty and students in the role of advanced energy technologies to provide solutions to global challenges. GCEPs results are available to any interested party. In particular, ExxonMobil and the other GCEP partners will harvest promising research leads and, through their efforts and in collaboration with others, seek to turn leads into commercial technologies that can be deployed on a global scale. For more information on GCEP activities see http://gcep.stanford.edu
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An international group of energy companies, in conjunction with government agencies and in cooperation with educational institutions and NGOs, are pursuing technological breakthroughs for the capture and storage of CO2 .
Background
As the world demand for energy increases, with fossil fuels accounting for most of the energy generation, CO2 concentrations in the worlds atmosphere are expected to reach twice the pre-industrial level by the end of this century. A number of adverse effects, including global climate changes, could result. The potential risks associated with taking no actioncoupled with the length of time required to stabilize CO2 concentrations in the atmosphereargue for taking immediate action. No single technology is capable of providing a solution. Instead, a mix of approaches, including using alternative energy and more efficiently using conventional fuels, will be required. Another approach that is part of the solution is capturing CO2 from the combustion of fossil fuels and storing the captured CO2 underground. To look further at CO2 capture and storage, eight oil companies and three government agencies set up the CO2 Capture Project (CCP Phase I) in 2000.
Key partners
Companies: BP BR Petrobras ** Chevron ConocoPhillips** EnCana * Eni Norsk Hydro Shell Statoil * Suncor Energy Government agencies: European Commission The Research Council of Norway (Norges forskningsrd) UK DTI (Department of Trade and Industry) U.S. Department of Energy
1. Capture: evaluating and advancing specific capture technologies. 2. Storage: verifying the feasibility of underground storage, and developing improved monitoring and verification methods. 3. Economics: understanding and comparing the costs and benefits of various approaches to capture and storage. 4. Communications: building awareness of the technical developments among policy makers and interested stakeholders. 5. Policy: assessing the impact of proposed government policies and regulations on CO2 capture and storage. An independent Technical Advisory Board of private and public sector representatives unassociated with the participating companies objectively evaluates the research and guides the project teams developmental work. The CCP works with governments, industry, academic institutions and environmental interest groups, and subjects the products of its research to vigorous peer review. The programme has now entered Phase II.
CCP2 Programme Structure
Policy Team
Technology Providers
Progress
In Phase I the CCP developed a risk-based tool for evaluating the most appropriate storage sites, and also successfully integrated research and development of storage, monitoring and verification with the concerns of NGOs and policy makers. More than 200 capture technologies were evaluated for potential application to full-scale development. Phase I was completed in 2003 with the broad publication of its results, including a two-volume compilation of findings.
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THEME: Climate change PARTNERS: GOV IGO O&G RI LEVEL: global LOCATION: global
Phase II (200408) is focused on further development of cost-effective and versatile capture and storage technologies, with the objective of moving to operational demonstration in Phase III in 2009. The most promising technologies studied have shown large potential for cost-efficient capture of CO2 emissions and are adaptable for use in many of the worlds major emission sources. Pre-combustion capture is suitable for all fossil fuels, and also may produce enough hydrogen to open the way for a future hydrogen fuel-based economy.
maximum reduction 60 55% 50 cost reduction (%) 40 30 20 10 0 oxyfuel post combustion pre combustion 38% 29% 23% 14% 60% minimum reduction
The CO2 Capture Project (CCP) has under development new technologies that could reduce the cost of CO2 capture (from US$6080 to US$2030 per ton).
Lessons learned
Positive experiences in Phase I to date reveal some lessons for a large international partnership project: 1. A robust project management process and reporting system ensure that work is aligned with project objectives, information supports the proper allocation of financial and other resources, and the work of external contractors is monitored and directed appropriately. The use of teams focused on particular areas of responsibility is an effective way of monitoring contract work and providing timely direction. 2. Similarly, an effective technology review process ensures rigorous review at specific points, confirming that development is in line with project objectives and is focused on the most promising technologies. 3. An unbiased technological screening process provides NGOs with assurance that the technologies being pursued are the best available and are appropriate to the companies involved, and that the choice of technologies rests on a comprehensive and objective evaluation. The challenge of demonstrating that a better technology does not exist is analogous to the difficulty of proving a negative. Nevertheless, the presence of a Technical Advisory Board is useful to show a reasonable, scientific and economic rationale for the choice of technologies. 4. Communication skills are essential for team leaders, so that the CCP Executive Board receives the type and amount of information needed for timely and appropriate decisions. This is especially true for projects that involve advanced technology, when project review meetings could easily concentrate on discussing technical aspects, rather than on identifying the key issues requiring a decision. Government participation can help with financial support and with a projects credibility. However, participants must anticipate the governments requirements for reports and readily provide the information using prescribed formats. An effective intellectual property management programme can address participants concerns about the creation and ownership of intellectual property. Sharing findings through stakeholder meetings assists in clarifying public concerns about CO2 storage. Clear communication with external groups helps establish the relevance of technical approaches and choices.
5.
6.
7.
8.
Lessons learned include the need for the following: 1. More detailed and standardized objectives in contracts with external providers. 2. Cost considerations at the earliest stages of development projects to identify promising technologies as early as possible.
Conclusion
The work of the CCP demonstrates that public-private partnerships result in breakthroughs in technology development quickly through involvement of interested parties from all perspectives: technology users, policy makers and educational institutions. For more information on the CO2 Capture Project see www.co2captureproject.org
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Launched at the 2002 World Summit on Sustainable Development, the Global Gas Flaring Reduction Partnership supports the efforts of the petroleum sector to progressively reduce flaring and venting of natural gas associated with crude oil production.
1. commercialization of associated gas; 2. regulations for associated gas; 3. a voluntary standard for associated gas flaring and venting reduction; and 4. carbon credits. The GGFR programme contributes to poverty reduction and quality of life improvements by developing concepts for how local communities close to the flaring sites can use natural gas and liquefied petroleum gas (LPG) that may otherwise be flared. The programme has evaluated two opportunities for smallscale gas utilization in Ecuador and Chad.
Key partners
Governments: Angola Cameroon Canada Chad Ecuador Equatorial Guinea Indonesia Kazakhstan Khanty-Mansiysk Nigeria Norway United States Companies: BP Chevron Eni ExxonMobil Marathon Norsk Hydro Shell Sonatrach Statoil Total International organizations: World Bank
Background
When crude oil is extracted from the earth, natural gas comes to the surface as well. The gas is typically used to meet power and other operational requirements, with excess gas processed and sold if gas infrastructure and markets are nearby. In areas of the world lacking infrastructure and markets, the excess gas is usually flared or sometimes vented. The World Bank estimates that the annual volume of flared and vented natural gas is more than 150 billion cubic metres, or approximately the combined annual gas consumption of Germany and France. Greenhouse gas emissions from flaring are also about 13 per cent of committed emission reductions by developed countries under the Kyoto Protocol. For the past 20 years, global flaring levels have remained virtually constant despite successful efforts by individual governments and companies to use the associated gas and thereby reduce flaring. The overall effect of these efforts has been limited because of (1) the increase in global oil production and associated gas production and (2) the lack of regulatory and contractual structures, and the constraints on gas utilization, infrastructure and market development. The Global Gas Flaring Reduction Partnership (GGFR1) is a forum of governments of oil-producing countries, state-owned companies and international oil companies. The partnership aims to support national efforts to use the associated gas and to reduce flaring and venting. The GGFR steering committee approved a three-year work programme beginning in January 2003 and coordinated by a small team of World Bank staff and industry secondees based in Washington, DC. The work programme focuses on four areas of activity:
Benefits
A key attribute of the partnership is the diversity of partners, each bringing different experience and expertise. While all the partners recognize the need to address the flaring issue, they express several other reasons for joining the initiative. Company members note that GGFR is better able to engage with governments than industry associations, as it is coordinated by the World Bank. Being at the table brings broader recognition, as well greater influence on the partnerships direction and output. For instance, during the development of the GGFR voluntary flaring and venting standard, companies actively provided their input to ensure that the standard was both commercially realistic and aligned with their company policies and approaches. For some government partners, GGFR has supported the development of new policies on natural gas and related fiscal policies, while in other cases, it has helped countries achieve their flaring reduction objectives more rapidly. The government partners recognize that the World Banks position as a neutral broker enables it to bring the right stakeholders together. GGFR also provides a forum for governments to share regulatory approaches and learn from each other. Over the three years of the partnership, the focus has shifted to putting the global programmessuch as the voluntary flaring and venting standardinto practice in national initiatives and demonstration projects. For example, in Equatorial Guinea, GGFR has helped facilitate better collaboration between
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THEME: Climate change PARTNERS: GOV O&G LEVEL: global LOCATION: global
operators, the national oil company and the regulator. GGFR is also cooperating with several flare elimination demonstration projects in Angola, Algeria and Nigeria, to evaluate their potential to earn greenhouse gas credits through the Clean Development Mechanism (CDM).
Lessons learned
Effecting change in flaring and venting practices requires time, effort and persistence. GGFR has been most successful where there is country buy-in, highlevel support and an effective local partnership between government and industry, as well as ownership and leadership within the participating organizations. The process takes sustained effort over many years. As expected, the partnership has faced a number of challenges, which have raised some key issues and led to some lessons being learned: As the responsibility for gas flaring regulation may be fragmented or may overlap several ministries, it is important to identify the responsible counterparty within the host government. Government agencies need to play a leadership role in promoting and sustaining in-country gas utilization, commercialization and flare reduction initiatives. GGFR is reliant on the willingness of operators to cooperate and share gas volumes and technical information that may be commercially or politically sensitive. Care must be exercised in how the data is aggregated and used. Often, confidentiality agreements require all partners in a joint venture to give their approval before data can be released externally. To focus its limited resources efficiently, GGFR could do more to clearly define success and to assess the likelihood of success in each of its activities. GGFR could be more selective and prioritize which countries and projects have the greatest chance of achieving significant flare reductions. Some suggest that better engagement of environmental NGOs could bring more transparency and credibility to the partnership.
Conclusions
GGFR has been successful in raising the profile of gas flaring and venting as an issue and has organized two major flaring conferences. In July 2005, the G8 joint statement at Gleneagles, Scotland called for GGFR to be extended beyond 2006. There is broad acceptance of the flaring and venting standard and the collaborative approach it encourages. In certain circumstances, the CDM Executive Board may consider flare elimination projects acceptable for carbon credits. The partners recognize the role of the GGFR initiative in reducing gas flaring and venting. The GGFR partnership, and the voluntary standard in particular, have encouraged better cooperation among a broader set of stakeholders in addressing the issue. The partners also recognize that there is more work to be done and agreed in principle in November 2005 to extend the GGFR partnership for three more years beyond 2006. For more information on on the GGFR initiative see the GGFR website: www.worldbank.org/ggfr
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The European Council for Automotive R&D, the European Commissions Joint Research Centre and CONCAWE formed a partnership in 2000 to carry out joint studies on automotive fuels and vehicles.
Key partners
CONCAWE (oil companies European association for environment, health and safety in refining and distribution) EUCAR (European Council for Automotive R&D) JRC (Joint Research Centre, European Commission)
Background
In 2000, the European Commissions Joint Research Centre (JRC), which carries out extensive scientific and technical research in support of EU policies, was looking at developing its activities in the field of automotive fuels and powertrains. JRC approached the European Council for Automotive R&D (EUCAR) and CONCAWE (the oil companies European association for environment, health and safety in refining and distribution), and in that year the three organizations signed a Memorandum of Understanding for carrying out joint studies on topics of common interest. An association of European vehicle manufacturers, EUCAR carries out pre-competitive research on such topics as safety, future powertrains and advanced vehicles. EUCAR members represent the bulk of European automotive industry and include BMW, DaimlerChrysler, Fiat, Opel, Porsche, PSA PeugetCitron, Renault, Volkswagen and Volvo. CONCAWEs 23 full members, which own more than 90 per cent of the EU25 oil refining capacity, are BP, CEPSA, Chevron, ConocoPhillips, Dow, Eni, ExxonMobil, Hansen & Rosenthal, Hellenic Petroleum, Kuwait Petroleum International, Mazeikiu Nafta, MOL, Neste Oil, Petrogal, Nynas, OMV, PKN Orlen, Preem, Repsol, SARAS, Shell, Statoil and Total. The main purpose of the EUCAR/JRC/CONCAWE partnership is to generate scientific and technical information on the development of road vehicles and associated subjects. The motor manufacturers and the fuel providers can then develop consensus on the soundness of the technology, while the regulating authorities can use the information to support EU decisions and regulations. The partnership is managed by a Supervisory Board comprising two delegates from each of the three partners. The Board meets twice a year, or more often as the need arises.
From CONCAWEs perspective, the partnership is crucial to establish: a solid and shared technical basis to support future EU regulations on fuels and vehicles; a constructive working relationship between the oil industry and the automotive industry; and an effective working relationship between industry and JRC. In the words of Alain Heilbrunn, CONCAWEs Secretary General, the ongoing debate on alternative fuels is dominated by emotion and ill-founded assertions. The only correct way to proceed is through collaborative, in-depth technical work to bring sound facts and figures to the table.
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THEME: Climate change PARTNERS: IGO O&G B&I LEVEL: regional LOCATION: EU
customer Commission services such as the DG Transport and Energy and the Environment DG. For the specific purpose of the JEC WTW study, the partnership was extended with the use of two consultants. A coordination group arranged for external experts to review the study results.
A report update was released at the end of 2005, as part of the process of keeping the study evergreen.
Nexen, in partnership with Pro-Natura International (Nigeria), is working with five Local Government Areas in the Oron region of coastal Nigeria towards replication of a sustainable model of participatory community development.
Key partners
Nexen (on behalf of Oriental Energy) Oro Community Development Trust Pro-Natura International (Nigeria)
Background
Nigeria has significant oil revenues and significant social problems. Distribution of oil revenues has been at the heart of numerous community conflicts, especially in the Niger Delta. The traditional approach of petroleum companies designating specific host communities as recipients of community development assistance has often exacerbated these conflicts. A key challenge for petroleum companies doing business in the Niger Delta region is to find a more equitable and transparent approach to community support that will foster sustainable improvements in the well-being of communities in this region. In 2000, Nexen was approached by a prominent NGO, Pro-Natura International (Nigeria), to support a feasibility study on a community development initiative in Bayelsa State, adjacent to one of the oil companys offshore drilling prospects. In partnership with other petroleum operators, Pro-Natura had achieved notable success in Akassa, Nigeria, where community-owned and managed institutions (for example vocational training centre, medical laboratory, ferry, micro-credit scheme) have been sustained for more than 10 years. The feasibility study demonstrated the potential for replicating the Akassa programme in several communities across the Niger Delta region.
The Oron region has quickly adapted the Akassa model to fit its particular cultural circumstances. A Board of Trustees, transparent governance system and bank account have been established and are functioning, though are facing constraints in their operation. Nexen has provided start-up funding for the Trust and for its first confidence-building projecta 30-passenger water ferry from Oron to Calabar across the Cross River delta. To date, the ferry has been a successful commercial venture. It has provided safe passage to more than 7,500 people, and the community is examining the feasibility of expanding the operation to include a charter service. The Trust is also using the seed funding and ferry revenue to support other capacity-building initiatives such as institutional development workshops and agricultural expansion support programmes.
THEME: Community development PARTNERS: NGO O&G COM LEVEL: local LOCATION: Africa
Villagers trained through participating in previous programmes can serve as teachers in living universities, both for replicating programmes and for educating others in government, industry and other sectors.
The OCODET project offered additional lessons: Although some oil companies operate under severe time constrains, ample time must be allocated to community participation and awareness programmes to overcome suspicion and mistrust. To protect their reputation for effective facilitation, partnering NGOs must be certain that an enabling environment, notably adequate time and sustained funding, exists for their work. Volunteerism is a hardship in poor communities and can result in disproportionate and insufficient participation by elites and those living outside the community. Paid key positions in community institutions are critical. Managing the expectations of community members is a continuing constraint. Bureaucratic procedures of the government, other institutions and industry can create excessive delays, with lasting and widespread impact.
Conclusions
The partnership with Pro-Natura has provided Nexen with excellent opportunities to test its capabilities to put its corporate social responsibility principles into practice in a conflict-torn area of West Africa. By all accounts, this modest experiment has been a success so far, giving Nexen and Pro-Natura encouragement to seek other opportunities to apply the participatory community development model elsewhere.
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BHP Billiton, the Canadian International Development Agency, the Child Development Organization and the Women Skills Development Organization have facilitated a process for promoting womens empowerment through income generation and socio-economic development in southern Pakistan since 2001; the partnership work has benefited the wider community.
Key partners
BHP Billiton Canadian International Development Agency (CIDA) Child Development Organization (CDO) Women Skills Development Organization (WSDO)
Background
Income-earning opportunities are few and far between for the poor of Dadu district in southern Pakistan. Agriculture is the main source of income, but unreliable rainfall, particularly during the drought of the past years, and an inadequate irrigation system mean that most people are unable to survive on agriculture alone. Most families have come to rely on men migrating for seasonal labour work in towns nearby or cities further afield. Women often seek additional income through selling handicrafts or rope made from local materials, but lack proper linkages to market these products. The severe economic pressures on families are a major constraint to improving their health and sending their children to school. Through its community development programme, BHP Billiton has worked closely with its partners and local communities in contributing to sustainable development in the district of Dadu. The programme aims to empower local people through social mobilization and institution building. It provides access to the basic facilities of life, and targets specific problems in the four areas of health, education, livelihood support and provision of basic infrastructure.
Sartiyoon Silai Karhai Markaz Vocational Training Centre in the town of Johi, to encourage women to learn such skills as embroidery, sewing and tailoring for income generation. A participatory review of the vocational training centre in 2003 identified that some of the women attending the courses had the potential to take their income-generating activities to a higher level, given the appropriate training and support. To broaden partnership participation in the initiative and increase international stakeholder engagement in the area, BHP Billiton signed a partnership agreement with the Canadian international Development Agencys (CIDA) Program for the Advancement of Gender Equity. In 2004, the partners initiated the Sustainable Livelihoods for the Women of Johi Project. The objectives of the project are to: enable women to earn an independent income; improve the standard of living for womens families; improve the status of women within their households and the wider society; and enhance the economic and social well-being of the community.
The Sustainable Livelihoods for the Women of Johi Project has brought opportunities for greatly improved standards of living, and economic and social well-being of the community.
The Sartiyoon Silai Karhai Markaz Vocational Training Centre and the Sustainable Livelihoods for the Women of Johi Project
In 2000, BHP Billiton established a relationship with a small local NGO, the Child Development Organization (CDO), as an implementing partner for its projects in the Dadu district. In 2001, the partnership set up the
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THEME: Community development PARTNERS: GOV NGO LEVEL: local/provincial LOCATION: Southern Asia
environment for the achievement of sustainable community development. The role of NGOs is integral in participatory community development, as they can act as a mediator between the local community and the corporate sector. Finally, a key lesson for BHP Billiton is that it cannot fulfil all the expectations and requirements of the local communities where it operates. Therefore, it is important to work closely with donor organizations in assisting them to play their part in development of the area.
Conclusions
The livelihood projects resulting from the BHP Billiton, CDO, CIDA and WSDO partnerships have improved access to livelihood opportunities for local households, and to income-generating activities for women in particular. Given the prevailing cultural norms that limit womens role to the domestic sphere, it was a significant challenge to encourage women to expand their earning capacities by attending the training programmes on offer, and even more of a challenge to create an all-women NGO. That both initiatives have succeeded without creating social conflict is extremely encouraging and has promising implications for the future. Awareness of womens rights and capabilities is increasing among the local communities as they experience the projects positive effects. For BHP Billiton, the partnership work has helped establish the tenets for a stronger local economy, resulting in a better educated, better equipped workforce.
So far, the Training Centre at Johi has provided training to 270 women in the development of a variety of skills including sewing and handicrafts.The Sustainable Livelihoods project has provided business-related training and support to 200 women, already leading to the establishment of 20 small-scale enterprises.
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Eni Pakistan and Thardeep Rural Development Programme have been working together since 2002 on a project to improve the quality of life of the communities in and near Enis concession areas in the Dadu district of Pakistan.
Key partners
Eni Pakistan Thardeep Rural Development Programme (TRDP) Network of village development organizations
Background
Eni Pakistan has been carrying out community development activities in the Bhit Development and Production (D&P) lease area for several years. In 2002, to pursue a more holistic approach to community development, Eni Pakistan entered into a partnership with a local NGOThardeep Rural Development Programme (TRDP)to form the Bhit Rural Support Project (BRSP) in the Dadu district. TRDP emerged as an independent NGO in 1998 when Save the Children UK wound up its operations in the Thar Desert. The NGO, which has 400 employees, has internationally recognized expertise in social mobilization and grass-roots community development in arid areas. TRDPs headquarters are in Mithi, and it has 40 offices around Sindh province, with an office for BRSP in Jhangara, the closest town to Eni Pakistans Bhit gas field.
achievement. Another critical function of the VDOs is capital formation; so far, all VDOs have been active in this area as well. One of the key objectives of Eni Pakistan was to attract other mainstream national and international donors actively working on poverty alleviation in Pakistan. As the social arm of Eni Pakistan, TRDP has been successful in developing partnerships with Save the Children, the United Nations Development Programme (UNDP), the Pakistan Poverty Alleviation Fund, the World Health Organization (WHO) and the World Food Programme. All these donors have contributed significantly to projects which directly benefit the local population. This work has become possible only because the communities are now organized, trained and ready to improve their living conditions.
Health
Owing to the high rates of maternal and infant mortality as documented in a 1997 survey by the Aga Khan University Hospital, the partners decided to establish the Mother & Child Health Center (MCH Center) in Jhangara. Equipped with a pathology laboratory and an ambulance, the centre has a professional team of health staff including a female doctor, two trained midwives and two laboratory technicians. In 200304, BRSP constructed an eight-room building for the MCH Center at a cost of US$50,000, on land donated by the Jhangara community. The MCH Center has provided a range of health services to more than 26,000 people since it opened. Around 95 mobile clinics have also visited the more remote villages, benefiting an additional 3,000 patients. In a separate initiative, three outreach community health centres (CHCs) are functioning in Kai, Naing and Tando Rahim Khan villages, benefiting more than 10,000 patients in the 200204 period. A fourth CHC building has been constructed at Bhit and should be operational soon.
THEME: Community development PARTNERS: GOV NGO O&G LEVEL: local LOCATION: Southern Asia
The communities have actively contributed to constructing the MCH Center and the CHCs by donating plots and bearing the labour and in some cases the material costs of these projects. In addition to the infrastructure development, $38,000 is spent annually to meet the recurrent costs of these health facilities which, since 2002, have served 94,000 people.
Education
BRSP operates eight primary schools, one computer training centre in Jhangara, one boat-building school for Manchar Lake residents and two female vocational schools in the villages of Chhinni and Tando Rahim Khan. Eni Pakistan has spent $16,000 on infrastructure development of these projects and has also provided furniture, equipment and educational materials. Eni Pakistan spends $15,000 annually on running these schools.
The borrowers took small loans for small enterprises, agriculture and livestock development. To date, the beneficiaries total 107 people, including 21 women. The loan recovery rate is 98 per cent, and the recovered funds will remain rolling to benefit additional people during the Bhit project lifecycle.
Conclusion
The social mobilization, capital formation and capacity building of the village development organizations have empowered the local population at the grassroots level. Their participation in decision making and BRSPs provision of opportunities for improving their quality of life are paving the way to sustainable economic and social development. BRSP is moving towards becoming an independent NGO with partnerships with key bilateral donors and NGOs, and the synergies are being explored and strengthened.
Income generation
As part of their income generation activities, in 2003 Eni Pakistan and TRDP started a micro-credit scheme in the Kirthar area with seed funding of $17,000. Through TRDP and the network of VDOs, Save the Children and the Pakistan Poverty Alleviation Fund have also started micro-credit schemes in Eni Pakistans concession areas. TRDP has disbursed an additional $19,000 on these schemes.
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Repsol YPF and the Cruzada Patagnica Foundation joined forces to provide education and development opportunities to families living in poor rural communities in western Patagonia.
Education
Key partners
Cruzada Patagnica Foundation Repsol YPF, Argentina San Ignacio Integral Education Centre, Junn de los Andes, Neuqun province
Background
Repsol YPF is an oil company with operations in the Argentine Patagonia region, mainly in northern Neuqun province. The predominantly rural province is home to a large number of people, most of them of Mapuche origin, the indigenous population in that part of Patagonia. Many of these people have unmet basic needs and few development possibilities. The region has been experiencing social unrest; social investments from the private and public sectors in the past decades have generated few positive changes. In 2001, Repsol YPF formed a partnership with the Cruzada Patagnica Foundation, to support a comprehensive education and sustainable development programme aimed at the communities in the region where the oil company operates. Repsol YPF is strongly committed to the region and recognized that the foundations work was producing excellent results in the western part of the province. The Cruzada Patagnica Foundation brought to the partnership 25 years of successful work and solid links with the local communities. The foundation also contributes awareness of, and respect for, the vision and customs of the people it works with. In turn, Repsol YPF provides knowledge of northern Neuqun and its social problems, funding for specific projects and consultancy on construction safety issues.
The education work is based in the San Ignacio Integral Education Centre in the village of Junn de los Andes. The San Ignacio Centre is not a traditional rural school: it offers not just secondary education and professional training in electrical installation, carpentry and other areas, but also primary education for part-time adult students, plus vocational training in forestry and agriculture. The pupils come from families where the parents are often illiterate and have few resources. Some come from as far away as 500 km because there is no other secondary school in the region with an agrariantechnical orientation. The centre provides lodging and daily transportation for students who need them. Recognizing that education is the cornerstone of development, the partnership allocates 60 per cent of its budget to this aspect of the programme. The education project offers scholarships for youngsters and adults from rural communities, and funds the maintenance of buildings, teaching materials and equipment.
Rural development
To complement the educational task and to expand the development possibilities, a second project provides technical assistance to implement family and community micro-enterprises in marginal rural areas. The rural development project helps in skill building and in diversifying agricultural production. The project includes the installation of greenhouses; the monitoring, design and construction of water distribution systems; the establishment of pastures and water delivery in remote communities; and the recovery of lakeshores and riverbanks through reforestation. It receives 30 per cent of the programme budget.
THEME: Community development PARTNERS: NGO LEVEL: local/provincial LOCATION: South America (Argentina)
the process this also serves to strengthen the local communities. The institutional capacity building entails forming alliances with other social organizations and companies; developing training programmes; offering advice; and working on public policies on education and rural development. The partnership allocates 10 per cent of its budget to this work.
Progress
Since its start, the education project has funded more than 400 students and almost 60 teachers, with 95 per cent of graduates finding employment or developing productive enterprises in their own communities, and some of them even going on to university. The rural development project has reached around 3,200 rural inhabitants, and the institutional capacitybuilding project has run workshops for around 400 leaders and members of social organizations and public institutions from all provinces in Patagonia. The partners have collaborated for five years on the education and sustainable development work, which is a significant achievement. Effective two-way communication between the partners is the strongest element of the partnership. In addition, the mutual trust that the partners have built is of particular value in programme planning and execution.
the programme, they asked the foundation to upgrade the safety features of the San Ignacio Centre where the students live and study. Responding to this need required that adjustments be made to the budget. A willingness to work together and adapt to the other partners different ways of working has enabled the partnership to evolve, strengthen the relationships with the beneficiaries and fundamentally ensure real and lasting changes. The work carried out by the divisions within Repsol YPF and by the Cruzada Patagnica Foundation has resulted in local appropriation of the programme. In this specific case, the partnership approach was a different way of reaching the indigenous people in rural communities with whom the oil company had historically experienced conflict.
Conclusion
The development of a region like Patagonia results from the commitment and the work of all the sectors: the private sector, which offers investment and knowledge transfer to all members of society; the public sector, which provides a wide reach and a general overview; and the social sector, which contributes sensitivity and a commitment to service. The RepsolCruzada Patagnica Foundation is an example of the positive changes that can result when different sectors work together for sustainable development.
The rural development programme has reached around 3,200 rural inhabitants.
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Energy companies Total,Tenesol and Electricit de France set up the Temasol company to operate a country-wide rural electrification programme in Morocco.
Key partners
Electricit de France French Development Agency French Fund for the Environment KfW Bank, Germany Moroccan National Electricity Office Temasol, Morocco Tenesol (previously Total Energie) Total
Background
Today, more than 1.5 billion people on the planet, many of them living rurally, have no access to electricity. Moreover, in rural areas, a grid connection is much more expensive than a connection to a decentralized electricity supply. The Rural Energy Services Company (RESCO) concept, a viable, sustainable and replicable model, has been developed to set up decentralized electricity projects in various African countries. Total and its partners, Tenesol and Electricit de France (EDF), have used this model in Mali, South Africa and Morocco. The partnership programme described here is the one set up in Morocco. In 1994, the Moroccan government launched a national rural electrification programme, under which virtually all rural households should have a power supply by 2007, with 91 per cent connected to the grid and 7 per cent receiving decentralized electrification, mainly via solar energy. The scope of the programme is challenging, as the target recipients are geographically isolated, lack resources and have a low standard of living.
Given the limited resources of the populations involved, the Moroccan government identified the need to establish a legal framework to define the local operators mission. It also supplied financial support to make the programme viable for the operator. The Moroccan National Electricity Office (ONE) began the electrification programme at experimental level with a small number of villages. It soon became aware of the need to scale up the programme and to find innovative solutions to meet operating costs, especially with regard to fee recovery. This is why it looked for private partners. Total is a company working on energy issues, with five years experience on projects promoting access to energy for rural populations in developing countries. When ONE started looking for an operator to take over the electrification programme, Totals participation in such a programme seemed logical.
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Total/M. Dufour
THEME: Community development PARTNERS: GOV NGO B&I LEVEL: national LOCATION: Africa
Temasol is aiming to sell domestic energy services to 58,500 households, which receive photovoltaic kits that the households pay for over a 10-year period. The company is in charge of the technical and financial management, maintenance, equipment replacement and fee recovery.
strengthens its power of influence and facilitates its access to bank credit. The quality of the network implemented locally is a key element in the success of the programme. Temasol has a network of 22 agencies around the country and extends its reach by attending the weekly markets.
Progress
By the end of 2005, 20,000 households had already benefited from the electrification programme operated by Temasol. A further 38,500 households will have access to electricity by 2008. The programme has significantly improved peoples lives in rural areas: Households have easier access to communication tools (radio, television and telephone) and benefit from electric lights at night. Children now have more facilities to do their homework at night. Safety in the home is improved as families no longer use oil and paraffin lamps, candles and small petrol generators, thus reducing the risk of accidents. The electric lights are healthier, as they do not damage the eyes. Families are less inclined to overly restrict their use of energy than they were when using candles because the monthly fee for the electricity (which is derived mainly from solar energy) is fixed, regardless of the amount used. By maintaining an informative marketing and sales presence at local weekly markets, Temasol has strengthened its contact with existing and potential customers. Since July 2004, Temasol has also been in charge of the installation and management of solar pumping equipment to provide drinking water. For the time being, the programme is experimental and entails only 15 pumps serving 15 villages with around 5,800 inhabitants.
Total
Total views the partnership as constructive and the partners as complementary. The programme was successful in putting into practice a conceptual model. It also allowed the creation of jobs (Temasol has 120 employees) and stimulated the local economy. The most effective public-private partnerships are those implementing projects and programmes rooted locally and promoting the right balance between the project/programmes capacity for action and innovation and an administrative framework that sets the rules of the game and the goals to be achieved.
Temasol
EDF
EDF believes that the organization of such a programme should be pragmatic, professional and locally rooted. Such an approach ensures ongoing technical maintenance, efficient fee recovery over the long term, and programme ownership by the local population and local public authorities. If the beneficiaries do not participate financially, they do not feel involved and responsible. Even if they are poor, their contribution is important. It is also necessary to pay attention to meeting the real and realistic needs of the local population, and not to propose services that people do not need and cannot pay for.
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Chevron is working with a state agency and a public utility to develop Floridas first hydrogen energy station, which will fuel a small fleet of hydrogen-powered shuttle buses at Orlando International Airport.
Key partners
Chevron Technology Ventures Florida Department of Environmental Protection (Florida DEP) Progress Energy Florida
Background
To spur the development of clean energy technologies, the state of Florida in the United States is working to establish itself as a leader in the emerging hydrogen industry. As of March 2005, Florida had more than 15 mobile and stationary hydrogen technology demonstration projects under way, with another 13 in the planning stage. In early 2004, the Florida Department of Environmental Protection (Florida DEP) contacted Chevron about opportunities to work together on advancing hydrogen technology. Chevron is committed to developing clean, next-generation forms of energy. Through its affiliate, Chevron Hydrogen Company, the company has been accelerating innovation in the production of hydrogen fuel from a variety of sources and the development of a hydrogen infrastructure to deliver that fuel. Chevron is exploring a number of potential pathways to a hydrogen economy, including applications in both transportation and distributed power generation. In the transportation sector, Chevron is concentrating on collaborative demonstrations of fleet applications, which the US Department of Energy has identified as an important midterm technology. Florida DEP also invited Progress Energy Florida, a utility company, to take part in these discussions. Progress Energy supports innovative ways to use and conserve energy sources that protect the environment. The company has participated in
a number of hydrogen-related initiatives in Florida, including hydrogen-fuelled vehicle demonstrations and the construction of fuelling stations. As talks among the three parties continued over several months, it became clear that they shared a similar outlook. We learned we were really on each others wavelength, says Allan Bedwell, Florida DEPs deputy secretary for regulatory programmes and energy at the time of the discussions. The three potential partners recognized that they shared a zeal for original problem solving and technical excellence. Most importantly, they agreed on their overriding strategic objective: to evaluate potential pathways and challenges to the emergence of hydrogen as a promising new fuel. One of the projects under discussion was developing a hydrogen energy station to fuel a fleet of shuttle buses powered by internal combustion engines (ICEs) that are designed to run on hydrogen fuel instead of gasoline. Whereas fuel cells require that the fuel be 99.999% pure hydrogen, hydrogen-powered ICEs typically require a lower minimum level of hydrogen. Supplying hydrogen which meets the purity specification required by fuel cells is significantly more expensive. The near-zero emissions from hydrogenfuelled ICEs deliver most but not all of the environmental benefits of a hydrogen fuel cell. The partners wanted to capture hard data that would allow a careful cost-benefit analysis of the use of hydrogen fuel in the two types of power trains. The fleet of hydrogen-powered shuttle buses among the first of its kindis anticipated to begin transporting visitors at Orlando International Airport in late 2006. Florida DEP sees the new hydrogen energy station as the foundation for a hydrogen hub in the central part of the state. This network of fuelling stations will serve growing numbers of demonstration hydrogen fleets in the area, helping to validate and commercialize the technology.
THEME: Fuels and transportation PARTNERS: GOV B&I LEVEL: national LOCATION: USA
location, met with state representatives and local officials, held numerous meetings with residents and invited all interested parties to the ground-breaking ceremony in February 2005. Thanks to the cooperation among the partners, the outreach phase of the project was a success. The participants continue to cooperate as the project moves into the implementation phase. Team members schedule weekly telephone calls, and the entire project team participates in a monthly conference call. Upcoming challenges include locating the facility at the site, obtaining the necessary permits, handling liability questions and dealing with the construction itself. To date, the participants have learned or confirmed the following lessons about how to build a successful collaboration:
Communicate
Encourage candid discussions among team members. If an issue develops, pick up the phone to resolve it, rather than relying on broadcast e-mails. And have all participants review external communications before release.
Conclusions
Although all of the participants have participated in similar collaborations, they claim that this has been a model arrangement, based on trust, honesty and open, straightforward communication. Going forward, they feel confident about handling the challenges, which have included the transfer of a pivotal member off the team and the need to quickly begin working with his replacement. John Masiello, who is responsible for researching and developing Progress Energy Floridas programmes in energy efficiency and alternative energy, says, If you go forward without this kind of information, you could make mistakes that could be difficult to recover from. The long-term relationships that the partners are building with each other and with the community are essential in the next step to commercializationthe broader adoption of the technologies. In many respects, the strategic relationships we are forming are as important as the technologies, says Jeffrey Jacobs, manager of strategy, planning and business development for Chevron Technology Ventures hydrogen business unit. The partnerships experience to date serves as an invaluable roadmap for others that intend to pursue similar projects.
Be flexible
Be open to a better way to do something. Stay focused on the main objective, and adjust expectations if the project does not unfold as anticipated.
Total and its partners are increasing the professionalism of hydrocarbon transport companies in Madagascar, improving road safety practices and stimulating economic development.
Key partners
Agence universitaire de la Francophonie Association for the Prevention of the risks related to Transport of Hydrocarbons (APTH-France) APTH-Madagascar Groupement des Entreprises de Madagascar Logistique Ptrolire, Madagascar Ministry of Transportation, Madagascar Syndicat des Industries de Madagascar Total Madgasikara United Nations Development Programme (UNDP) VOARISOA (local NGO)
Background
The hydrocarbon transport sector in Madagascar is facing difficulties in running efficiently and according to international industry standards. An ageing vehicle fleet, high accident rates and lack of training as well as poor road conditions and lack of regulation have been identified as the main weaknesses of this economic sector. In 2003, Total carried out a safety audit of the sector. This led to the establishment of a steering committeein partnership with government agencies, industry associations, and local and international organizationsto further assess the issues. As a first step, the steering committee conducted an assessment of the hydrocarbon transport sector in February 2004. The assessment revealed a crucial lack of training, and of an organizational, safety and inspection framework. The assessment covered 500 trucks, 500 drivers and 500 co-drivers. Enhancing the professionalism of transport companies and tanker drivers appeared vital in view of the risks involved in transporting hazardous materials by road. Following the assessment, the steering committee appointed an operational team to implement a largescale partnership programme, known as PATH, for developing the capacity of small and medium enterprises (SMEs) in the hydrogen transport sector in Madagascar.
committee has been set up by UNDP local office. The partners presented the PATH programme to the Malagasy government, which had set transport as one of its priorities, in particular with regard to improving the countrys rail and road infrastructure. The programme received government approval to proceed. At the preliminary meetings the steering committee defined four priorities, which aim to: 1. enhance the managerial skills of the SMEs operating in the sector; 2. improve the professionalism of drivers and mechanics; 3. promote the modernization and maintenance of the vehicle fleet; and 4. establish a formal regulatory framework (training, hazardous materials drivers licences, safety regulations, inspections). To this end, the steering committee proposed a process to: adapt the standards of the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) to the local context; appoint trainers, and train them in the methods of the Association for the Prevention of the risks related to Transport of Hydrocarbons (APTH-Francethe French association for hydrocarbon transport risk prevention), so they could go on to train drivers and co-drivers; develop a managerial training programme for the heads of road transport SMEs; arrange for VOARISOA, a local NGO, to hold environmental awareness seminars with company managers; and identify a local body able to take over PATH and build on it over the longer term.
Total
THEME: Fuels and transportation PARTNERS: GOV IGO B&I RI LEVEL: global/national LOCATION: Africa
Progress
After receiving training in France, a team of six trainers began training drivers and co-drivers in Madagascar. More than 700 drivers and 300 co-drivers have received training in several regions of the country since October 2004. At the outset, company managers were reluctant to let their drivers miss five days of work for training in the safety aspects of hazardous materials transport. But after the managers had undertaken the training themselves they became convinced that the request was well-founded. Given the success of the training programme, and at the request of local authorities, training was extended to include traffic police and private contractors. To date, 570 traffic policemen, as well as around 100 other individuals, have also received awareness training in the risks of hydrocarbon transport. Training for the national police force is under consideration. Over the same period, managerial skills training was given to around 115 people from 58 transport companies, representing the better part of Madagascars hydrocarbon transport fleet.
All partners see the benefit of the partnership work in strengthening the sector; new and higher-quality employment is being encouraged and a healthy economy is being developed, contributing to the development of the country overall. The president of APTH-Madagascar, the local syndicate of hazardous materials transporters, confirmed the merits of the training and its members satisfaction with it. VOARISOA is pleased with its participation in the PATH programme and the accomplishments to date. The Government of Madagascar views the initiative as productive and valuable and welcomes the support of international organizations in promoting the development of this large island. However, a number of institutional measures planned to support the training programme have been slow to see the light of day. One example is the local Ministry of Transportations adaptation of the European ADR regulations on hazardous materials transport. The regulations were expected by the end of 2005. The official recognition of the value of the training programme should help to consolidate the regulatory process. In a similar vein, the banking sector, which has a favourable view of the initiative, judging it a formative step for the sector, is showing interest in the SMEs as clients, but is seeking interest rates close to the base rate plus one or two points. Alternatives will need to be found to facilitate access to credit by the SMEs, which require funds to upgrade their substandard vehicle safety equipment and replace their aging tanker trucks. Finally, the local bodies identified as candidates for taking over PATH have not (thus far) confirmed their initial expression of interest.
Total
Next steps
Ensuring the continuation of the partnership beyond the PATH programme will require the formation of an association of all the oil companies operating in the country. Such an organization would oversee the training for the hydrocarbon transport SMEs, as well as solicit the participation of other companies involved in road transport. Lobbying the authorities to secure the implementation of a formal regulatory framework will also be fundamental. This successful experience may be adapted and duplicated in other countries.
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Launched at the 2002 World Summit on Sustainable Development, the global Partnership for Clean Fuels and Vehicles assisted subSaharan Africa countries in phasing out leaded gasoline by 2005 and is aiming for global elimination of leaded gasoline by 2008.
Key partners1
More than 80 national and international agencies and organizations, including the following who were particularly active in lead phase out in Africa:
Background
Many developing countries experience serious air pollution, especially in their urban centres, and emission sources usually include the transportation sector. In 2000 nearly 100 countries were still using leaded gasoline which perpetuates emissions by precluding vehicle emission controls. In early 2001 IPIECA made a unilateral decision to support global phase out of leaded gasoline and to work with governments to promote quick action. In mid-2001 IPIECA joined with the World Bank, the United Nations Environment Programme (UNEP) and several NGOs to convene a conference in Dakar where 25 sub-Saharan African governments agreed, in the Declaration of Dakar, to phase-out leaded gasoline by 2005. In mid-2002, with the World Summit on Sustainable Development (WSSD) only a few months away, it appeared that several partnership initiatives might be launched at that Summit to focus on the phase out of leaded gasoline, and potentially other fuel qualities, on a regional and global basis. While these initiatives would broaden existing individual efforts, a single global partnership was clearly desirable. Through a process of intense negotiation, the individual parties agreed to band together under the UN umbrella to form the Partnership for Clean Fuels and Vehicles (PCFV).
Governments: Democratic Republic of Congo Ghana Mozambique The Netherlands Nigeria South Africa United States of America Industry: Alliance of Automobile Manufacturers International Petroleum Industry Environmental Conservation Association (IPIECA) Manufacturers of Emission Control Association National Association of Automobile Manufacturers of South Africa Petroleum Industry of East Africa International organizations: UN DESA United Nations Environment Programme (UNEP) The World Bank (not an official member of PCFV) NGOs: Natural Resources Defense Council Trust for Lead Poisoning Prevention
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Nations Environment Programme (UNEP) hosts the partnership, and the partners comprise governments, industry, international organizations, NGOs and academic institutions. To provide advice and support to these countries, the partnership holds regional, sub-regional and incountry planning and technical workshops, produces guidance documents and engages with government decision makers. From each stakeholders point of view, the PCFV offered a means to advance goals that could not be achieved individually: With UNEP and World Bank encouragement, the governments would provide the necessary implementation of rules and specifications for the phase-out process. The situation in sub-Saharan Africa is particularly complex, as in many African countries the fuel refining and distribution infrastructure is partially or wholly state-owned. IPIECA would explain gasoline refining and logistics impacts to governments and communicate that lower octane unleaded gasoline could be used in place of leaded. The auto industry would communicate that governments could go immediately to unleaded gasoline without harming in-use vehicles. Other stakeholders, such as the United States Environmental Protection Agency and various NGOs, would play a critical role in facilitating the partnership process and in giving a voice to community organizations.
Challenges
Apart from the intense negotiations to form the single partnership, several events challenged the PCFV in its early stages, not least of which was the difficulty in agreeing on a mission statement. Three years on, with many of the initial objectives achieved or in sight, there is an ongoing debate about revisiting the partnership mission statement to re-validate the initiative. As the partnership has grown to include more than 80 members, managing input and the work programme in a structured way continues to be an issue. Despite a clear vision for the inclusion of, for example, commercial interests, the expansion of the partnership has raised practical problems over the representation of smaller
THEME: Fuels and transportation PARTNERS: GOV IGO NGO O&G B&I LEVEL: global LOCATION: Africa
states and the multiplicity of NGOs. These entities need representation; however, arranging it in a practical way through an advisory group has been challenging. Some partners consider that setting more concrete objectives within the broader partnership aims would have been helpful for benchmarking the partnerships progress. Other partners suggest that, at the start, the PCFV should have discussed a timeline and also an exit strategy.
100 unleaded gasoline available (%) leaded gasoline 75 leaded and unleaded gasoline unleaded gasoline 50
September 2003 June 2001 September 2002
January 2006
November 2004
25
Lessons learned
The experience of establishing and maintaining the PCFV has shown that voluntary partnerships can be an effective way to implement environmental and health initiatives. Oil and gas industry participants familiar with the partnership see the following factors as key to the success of the PCFV: A strong motivation for working in partnership. The partnering organizations recognized that none of them could individually bring about cleaner fuels and vehicles in developing countries. Clear, well-defined, shared goals. The PCFV has been most effective when the partners have strong consensus on a goal and the means of attaining it (e.g. eliminating lead from gasoline) and somewhat less effective when no consensus exists on the best way forward (e.g. reducing sulphur levels). A simple yet definitive set of governance rules and principles, agreed early on by all. The agreement should ensure the balanced representation of partners and include a process for resolving disputes and handling commercial interests. The establishment of a secretariat, preferably on neutral ground, to take the lead in organizing the partnership and implementing its activities. UNEPs diplomatic skills and its role as a neutral partnership facilitator have been invaluable to the PCFV. Flexibility from all the partners and willingness to seek compromise. Use of the Chatham House Rule of Confidentiality at PCFV meetings, to enable partners to openly offer ideas and share information anonymously. For meetings conducted under this rule: (a) neither the identity nor the affiliation of the speakers, nor that of any other participant at that meeting may be revealed; and
2001 2002 2003 2004 2005 2006
(b) it may not be divulged that the information was received at that meeting.
Conclusions
The partnerships most notable success has been in helping countries in sub-Saharan Africa phase out leaded gasoline by the December 2005 deadline envisaged in the 2001 Declaration of Dakar. Meeting the deadline has only been possible through combined efforts of the partners in the technical, political and social arenas, in conjunction with national governments. Although the emphasis has been on sub-Saharan Africa, the partnership has also engaged with other structures in Eastern Europe, Latin America and Asia. In December 2005 the PCFV launched a new initiative to eliminate leaded gasoline worldwide by 2008 in the 30 countries still using it. UNEPs executive director, Klaus Tpfer, has called the PCFV the most successful partnership emerging from the WSSD . For more information on PCFV activities see www.unep.org/pcfv
Lead phase-out progress in sub-Saharan Africa: per cent of unleaded gasoline available
Keynote speakers at the Dakar+2 meeting of the partnership, held in Nairobi in May, 2004
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The American Petroleum Institute and the National Fire Protection Association are working with the US Occupational Safety and Health Administration to help advance safe working practices in the petroleum industry and, in the process, build a foundation for continued collaboration.
Key partners
American Petroleum Institute National Fire Protection Association Occupational Safety and Health Administration
Background
In March 2002, the Occupational Safety and Health Administration (OSHA) established the Alliance Program as an addition to its suite of Cooperative Program initiatives. The Alliance Programs aim was for participants to work collaboratively and to leverage resources in reaching and educating the nations workforce in advancing safety initiatives. As primarily a regulatory and enforcement US federal agency, OSHA saw the programme as a way to break down some of the institutional and cultural barriers to the public and private sectors working in unison to help advance workplace safety. Under the traditional compliance enforcement model, the regulated community was reluctant to share information or work with OSHA for fear of its enforcement powers. As a result, an adversarial environment has existed between OSHA and American business since the Occupational Health and Safety Act was enacted in 1972, thus preventing the sharing of best practices and new approaches, and hampering progress towards an accident-free workforce. To address this situation, the Alliance Program separated the compliance enforcement and the cooperative outreach programs within OSHA. Groups forming an alliance with OSHA include employers, labour unions, trade and professional groups, government agencies and educational institutions. Participants sign a two-year agreement, which can be renewed after the term expires. The Alliance Program is funded by the organizations involved. Since the Alliance Programs inception, OSHA has formed more than 400 alliances with such organizations as the American Foundry Society, the Industrial Trucking Association, the Shipbuilders Council of America and the International Brotherhood
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THEME: Health PARTNERS: GOV NGO O&G LEVEL: national LOCATION: USA
examples are the development of pamphlets on safe hot work practices, safe tank entry, and fall protection on tanks. In April 2005, Chevron hosted the Safe Tank Seminar at its refinery in Richmond, California. The seminar brought together more than 80 tank safety professionals to share lessons learned and best practices and to network. In addition, OSHA personnel had a tour of the storage tank maintenance and repair operations at the refinery. In 2005/06, OSHA has proposed and is funding the development of a Confined Space E-Tool. The E-Tool is a multimedia interactive training device that can be accessed though the OSHA website for information on safely entering and working in a petroleum storage tank. The E-Tool will contain a primer on the petroleum industry and storage tank operations. It will also provide up-to-date information on safe confined work, including industry practice and OSHA regulatory guidance. Due to the success of the Safe Tank Alliance in its first two years, the initiative is expected to be renewed for a further two years in 2006.
benefits of working together to advance workplace safety and health. This shift has become evident in the way the petroleum industry engages with OSHA. In the past, it was not uncommon to have an industry member sit on one side of the table and OSHA on the other, with each groups attorneys present to protect their clients rights. There was little open dialogue and both parties shared only information relevant to the issue at hand. The OSHA Alliance Program has knocked down those barriers. Alliance Program meetings are open and informal, with no lawyers present. There is an honest and open sharing of lessons and experiences that each party can take back and incorporate into their standards of operations.
Conclusions
Perhaps the most important success of the Alliance Program, and the Safe Tank Alliance, is the paradigm shift in how the relationship between industry and government is perceived and is being recast as a model of partnership and collaboration. Slowly, the adversarial mindset is being replaced with a culture of cooperation, where all parties realize the immense
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Eni and the University of Genoas Infectious Diseases Department are developing a project for the prevention of mother-to-child transmission of HIV/AIDS in the Kouilou region of the Republic of Congo.
which has been included in the Congolese National Health Plan to address HIV/AIDS.
Key partners
Eni Congo Kouilou Health Department, Republic of Congo National Program for AIDS Control Regional Hospital of the Army, PointeNoire, Republic of Congo University of Genoa, Infectious Diseases Department
Background
HIV/AIDS represents a devastating emergency, particularly in Africa, where the epidemic increasingly affects young adults, the most productive section of the population, and so is ravaging national economies. An increasing number of infected children are also being registered, with most cases resulting from the transmission of the virus from their mothers during pregnancy, delivery and breastfeeding. Operating in many of the countries hardest hit by HIV/AIDS, Eni has promoted a number of programmes aimed at halting the spread of the disease. The oil company also networks with other players to share experiences and improve the effectiveness of their actions. The initiatives are part of Enis policy of protecting the health of its employees and their families, its contractors and its customers, as well as improving the primary health of the communities in the areas where it operates. Eni Congo has operated in the Republic of Congo for more than 30 years, and has actively cooperated with local public health authorities on several initiatives, with the restructuring of Talanga Hospital in Brazzaville being the most significant. The prevention of mother-to-child transmission (PMTCT) of HIV/AIDS has become a major priority for many governments and international agencies in Africa. It is consistent not only with the broader goals of HIV/AIDS prevention, but also with the commitment to improving childrens health and promoting their survival. In 2004, Eni Congo began the development of a project for the PMTCT of HIV/AIDS in Pointe-Noire in the Kouilou region, in collaboration with the Infectious Diseases Department of the University of Genoa in Italy, which had already undertaken a number of HIV/AIDS-related initiatives in the republic. The Kouilou Health Department is the official partner in the project,
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4. Adopting an effective approach is fundamental in gaining the trust of the target population. The University of Genoa plays a key role in addressing the social and cultural barriers to HIV/AIDS prevention, as its medical personnel have experience from fighting HIV/AIDS in the republic and so combine scientific knowledge with familiarity with the local culture and habits, and can effectively undertake the communication and sensitization activities.
Conclusions
The capability to diagnose mother-to-child transmission of HIV/AIDS and to properly manage antiretroviral therapy is critical for sustaining families and communities. As a result of the synergies among the partners, the project will give pregnant women and newborns greater access to affordable and high-quality prevention and treatment. In addition, training local healthcare personnel is a prerequisite for capacity building and for long-term sustainability of the project. Once the project is transferred to the community, the laboratory will continue to provide those servicesstill beyond the reach of most developing countriesthat substantially reduce morbidity and mortality. Moreover, the partnerships lessons learned, results obtained and skills acquired form a package that could be easily replicated in other contexts, where local healthcare services have neither the resources nor the capacity to implement their own antiretroviral therapy programmes.
of both caesarean section and bottle-feeding, which are perceived as unnatural practices. Information is being widely disseminated via training sessions at the integrated health centres, as well as briefings, reports, local television presentations and sensitization meetings with local NGOs.
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In partnership, ExxonMobil and NetMark have worked to distribute affordable insecticide-treated bednets and to promote their use as an effective malaria prevention measure.
Background
Key partners
Academy for Education Development/ NetMark ExxonMobil Africa Fuels Marketing Group United States Agency for International Development (USAID)
Sub-Saharan Africa is an area of significant growth for the oil and gas industry. Tragically, the malaria epidemic kills more than one million people a year in sub-Saharan Africa. Every year, at least 300 million acute cases of malaria are suffered globally, resulting in more than 1.2 million deaths. Nine of 10 malaria deaths occur in sub-Saharan Africa, mostly in young children and pregnant women. In fact, an African child dies from malaria every 30 seconds. Economists report that malaria reduces economic growth in many African countries. Health improvements are a prerequisite for broader economic and social development and are high on the agenda of host governments. Although there are proven and effective interventions in the fight against malaria, the reality is that the disease has become increasingly resistant to previously effective medicines, requiring an even greater emphasis on prevention. With petroleum production, retail marketing and distribution in many African countries, ExxonMobil is keenly aware of malarias devastating impact and is working with others to combat this preventable disease. The oil company has specific interest and expertise in community malaria control. Since 2000, ExxonMobils anti-malaria programme has expanded from a strong workplace programme to its broader Africa Health Initiative focused on drug research and development; advocacy of increased international awareness and resources; and community-based projects on malaria prevention, education and treatment.
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In the campaigns, coupons for the purchase of bednets are distributed to local residents, including pregnant women, at area medical clinics and antenatal clinics. The coupons can then be redeemed at service stations in ExxonMobils retail network to purchase discounted insecticide-treated bednets. The service stations also donate a portion of gasoline sales to provide free bednets for local orphanages. About 80 per cent of the coupons distributed in Zambia and Ghana were redeemed for bednets, demonstrating the success of this approach in getting nets to people who need them.
A Cashier in a Mobil Service Station On The Run convenience store explaining the voucher redemption process to Dr Awa Coll-Seck, Executive Director of Roll Back Malaria. Looking on are Vinand Nantulya, Senior AdvisorGlobal Fund, and Local Representative of Netmark.
Lessons learned
Successful public-private partnerships like this one ensure that they do the following: Recognize and utilize participant core competencies and attributes. For example, the programme makes effective use of ExxonMobils downstream retail network to educate communities on malaria and the use of bednets to minimize risk. Help to capture value and provide mutually competitive advantages for each participant. Identify and allow for individual participant incentives and benefits. Create project goals that are a composite of the participant incentives and benefits.
Among the lessons learned is that partnerships entail built-in shared risk, joint participation and shared returns. Therefore, it is critical to do the following: Define a formalized partnership governance structure and equitable, mutually agreed-on ground rules from the outset. Formulate realistic and achievable objectives at the beginning. The partnership used a focused scope of work, deliverables and clear metrics to measure programme success. Maintain participant flexibility and adaptability to meet evolving circumstances and mutual requirements during the programmes operation. For example, flexibility in implementation may be needed to address local Ministry of Health priorities. The partners found that the programme worked best where NetMark had established strong ties with the Ministry of Health and had aligned its priorities with those of the national malaria control centre.
Conclusions
Although there are proven and effective interventions in the fight against malaria, the disease still devastates the health of African people. This partnership represents just one of many approaches to address the needs of at-risk people, particularly women and children, in reducing the impact of the disease. The success of the AED/NetMarkExxonMobil partnership in Africa is a testament to the value of combined organizational core competencies and social responsibility efforts in making a positive difference in developing countries.
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Marathon Oil and its corporate, university, government and other partners have developed an ambitious plan to eliminate malaria from Bioko Island, Equatorial Guinea,West Africa.
Key partners
Companies: GEPetrol Marathon Oil Corporation Noble Energy Sonagas Technical and research organizations: Harvard School of Public Health Medical Care Development International Medical Research Council of South Africa One World Development Group Government: Ministry of Health and Social Well-being, Equatorial Guinea
Background
When Marathon Oil first entered Equatorial Guinea in 2002, it quickly identified the malaria parasite (Plasmodium falciparum) as a significant health threat facing its employees and the local communities on Bioko Island. Malaria on Bioko Island was endemic, with one of the highest transmission rates in sub-Saharan Africa. It was also the cause of approximately 40 per cent of all mortalities and a major contributor to a 17 per cent mortality rate for children under five years of age (20 times higher than the childhood mortality rate in the USA). To meet this critical threat head-on, Marathon and its business partners teamed up with the Equatorial Guinean government and health specialists to design a comprehensive malaria eradication project for Bioko Island. The partnership worked collaboratively and rapidly to roll out the Bioko Island Malaria Control Project (BIMCP).
The BIMCP was also designed so that the Ministry of Health and Social Well-being (MoH) in Equatorial Guinea could build the necessary capacity to sustain the project via a continuing and progressive transfer of responsibility over five years. Thus, all activities have been closely planned with the MoH and integrated within existing systems; a detailed integration strategy was introduced in the second year of the initiative. Key to the capacity building aspect of the project is local community involvement and cooperation, which the partnership recognizes as being crucial to the projects ultimate success. Dr Justino Obama Nve, Minister of Health and Social Well-being, remarked: The communitys cooperation and involvement in the fight against malaria are critical to ensure preventive measures, early diagnosis, and prompt and effective treatment of this disease. Marathons partnership in this effort has greatly strengthened our local capabilities. The five-year project was initiated in 2003 with the first round of indoor residual spraying (IRS) completed in 2004. Synchronized with the spraying has been the projects case management component, focused primarily on children under 15 and pregnant women. The work has entailed training healthcare providers, supplying health centres with diagnostic kits and medicines, and conducting community education and communication programmes. Distribution of treatment drugs is ongoing. In addition, the surveillance programme completed a baseline study in February 2004. Monitoring and research continue around the island.
Progress
After the first round of indoor residual spraying of the vertical surfaces of 100,000 structures on Bioko, the number of mosquitoes infected with the malaria parasite was reduced by 80 per cent. This reduction translated to a 30 per cent drop in the presence of malaria parasites in children on the island. The lowestincome households have also received particular benefits, with the cost burden for malaria treatment dropping from an average of 10 per cent of household income to around 4 per cent. While some rebound is expected, successive rounds of IRS are projected to continue a downward trend, leading to a dramatic reduction in malaria transmission on the island.
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THEME: Health PARTNERS: GOV NGO O&G RI LEVEL: local LOCATION: Africa
In regard to capacity building, the project has trained 80 Equato-guineans as sprayers and supervisors. Others are monitoring window traps at representative sites around the island. This project has been one of the most successful and smoothest ventures weve been involved in, says Chris Schwabe of Medical Care Development International and BIMCPs project manager. Working in these kinds of environments is extremely challenging, but Marathons connections in Equatorial Guinea, and at all levels within the government and the community, eliminated the typically slow build-up period. Weve been able to implement it at an unparalleled rate compared with other projects. MoHs Dr Obama Nve affirms the projects achievements: I am delighted by the early successes. By aligning the project objectives with our national strategy to fight malaria, and integrating ministry staff in all phases of the project, we are building the foundation for a sustainable programme. MoH is becoming well positioned to assume full responsibility for the programme at the end of the five years.
Mosquito and malaria parasite statistics before and after the first round of spraying a) average number of infected mosquitos caught in the home
2.5
40
30%
1.5
30
1
80%
20
0.5
10
Lessons learned
As Joseph Carter, director of Medical Care Development International, has said, the multi-stakeholder partnership brings together the resources and capacities of the private sector, the government, research institutions and civil society. Carter has also indicated that BIMCP is different from many such programmes for several reasons, among which is the early and concerted commitment of the BIMCP to an integration strategy designed to enhance the likelihood of long-term sustainability. The excellent early results suggest that sustainable success is achievable. The partners identified some key success factors in the partnering process: Multi-stakeholder partnershipfull private-public sector collaboration, with government support and technical and research organization participation. The project was fully a team effort. Well-integrated, multi-year planflexible and detailed, with a strategy for programme continuance for the five years. Community involvementespecially important for local health resource personnel responsible for case
management (diagnosis and new treatment protocols), as well as for the indoor residual spraying component. Education and communicationsat local levels, using multiple languages and multiple methods. Sustainability assuranceensures local acceptance and buy-in, as well as sustainability beyond the five-year plan. In addition, the positive results have enabled the government to expand the project concepts and elements to the mainland via Global Fund financial support.
Results from the 2005 parasitemia and prevalence surveys following the first round of spraying on Bioko Island
Conclusions
With two successful spraying campaigns completed by the end of 2005, as BIMCP enters into its third year of implementation, the relationships have been strengthened and all participants remain excited and optimistic about the progress and path ahead. The ambitious goal of malaria eradication from Bioko Island seems attainable. As Marathons Hinchman says, It is very gratifying to be involved in a project that shows such promise to benefit the lives of thousands of people. Marathon and its partners remain firm in their commitment to the BIMCP and recognize the early programme successes provide a springboard for future partnerships.
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Launched in 2000, the Voluntary Principles on Security and Human Rights is an international tripartite initiative designed to assist energy and extractive companies in maintaining the security of their operations globally while ensuring respect for human rights.
convene diverse stakeholders around mutual goals and provide diplomatic channels to engage host governments. NGOs bring an expertise in human rights issues, including knowledge of local civil society in the regions where companies operate. NGOs also see their role as challenging the process and its members to build momentum and drive the process forward.
Key partners
Companies: Anglo American BG Group BHP Billiton BP Chevron ConocoPhillips ExxonMobil Freeport McMoRan Hess Marathon Oil Newmont Mining Norsk Hydro Occidental Petroleum Rio Tinto Shell Statoil Governments: The Netherlands Norway United Kingdom United States of America NGOs: Amnesty International The Fund for Peace Human Rights First Human Rights Watch International Alert Pax Christi Observer: International Committee of the Red Cross IPIECA
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Background
In early 2000, the US and UK governments, a number of extractive and energy companies and several international human rights NGOs initiated a year-long, multi-stakeholder process to address security and human rights concerns. The participants customized human rights guidelines for the extractive and energy sectors that address security issues and provide practical guidance on implementation. Officially announced in December 2000, the Voluntary Principles on Security and Human Rights (Voluntary Principles) cover three key areas: (1) conducting a comprehensive risk assessment of security and human rights issues, with criteria designed to build accountability; (2) engaging with public security forces (military and police); and (3) engaging with private security forces. The Voluntary Principles initiative illustrates the opportunities and challenges of a tripartite approach, as well as the strengths and legitimacy that each partner brings to the process. Companies offer the experience of working on the ground and the reality of implementing at an operational level. Home governments are able to
THEME: Human rights PARTNERS: NGO COM LEVEL: global LOCATION: global
working groups, comprising various companies from the energy and extractives sectors along with home government members. This coordinated approach reduces the exposure of any one company and increases the likelihood of progress. In-country processes have already been established in Indonesia and Colombia. Several companies in the Indonesian process have signed memorandums of agreement with regional police forces, and the Colombian process drafted best-practice guidelines for risk assessment and initiated ongoing best-practice exchange workshops. However, a common challenge for both of these incountry processes has been a lack of NGO involvement, which both groups continue to address. Companies have also called for increased support from home government partners in their role as a diplomatic channel. Partners have discussed the value of offering official membership in the Voluntary Principles to host country governments, as well as private security firms and multilateral organizations, although a number of concerns would need to be addressed first. In addition to implementation challenges, the Voluntary Principles process itself has identified the need to increase transparency, including regular reporting, to maintain and increase the initiatives legitimacy, credibility and integrity. Members feel pressured to demonstrate results, or at a minimum to detail their implementation efforts and prove that they are doing more than just endorsing the Voluntary Principles brand. To date, the Voluntary Principles
process has not mandated any formal public reporting of implementation efforts by process participants. However, an informal information-gathering exercise in 2005 captured company implementation efforts, and some companies now report their implementation efforts in their annual social responsibility reports. The original governance criteria stated that companies could only formally join the Voluntary Principles process if their home country government also joins the process. This requirement has now been removed and any company may now submit a formal request, via the Secretariat, to participate in the process; however, home governments will also be strongly encouraged to participate. Meanwhile current participants, through a working group, continue to review the existing governance language and will release revised participation criteria by the end of 2006.
Conclusions
The Voluntary Principles process involves a diverse set of stakeholders, often in opposition to one another, who have been able to identify common interests and work together constructively. As expected, such a process is extraordinarily difficult to manage and requires delicate finessing to balance the different stakeholder interests. As with most initiatives of this nature, building trust between such diverse partners has been slow and hard-won. Trust has improved over the past five years as the partners better understand each other and their goals. The Voluntary Principles initiative demonstrates that a tripartite partnership can begin to address issues that may be impossible for any single actor to attempt to resolve alone. For more information on the Voluntary Principles see www.voluntaryprinciples.org
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The three-year partnership between Statoil and the Legal Defence and Assistance Project is introducing Sharia judges in northern Nigeria to human rights issues and legislation.
organizations: the Legal Defence and Assistance Project (LEDAP), the Civil Liberties Organization and the Prisoners Welfare and Rehabilitation Action. The text below reports on the project that was set up to train Sharia judges on human rights principles.
Key partners
Legal Defence and Assistance Project, Nigeria Statoil, Norway
Background
Statoil has been active within oil exploration in Nigeria since 1992 and has supported corporate social responsibility (CSR) projects in the county since 1996. Statoils CSR projects entail partnerships with either NGOs or UN organizations. The company does not have its own field staff for these projects, instead choosing to focus on its area of expertiseexploring for oil and gaswhile its partners implement the selected CSR projects. After years of undemocratic leadership and neglect, and numerous breaches of human rights, Nigeria had turned its attention to addressing the issues. In 2001, Statoil decided to support organizations working on human rights issues in the country. This support would be in addition to the award-winning Akassa community development project and some less extensive support of other NGO projects. When Statoils management granted US$100,000 for support of human rights work in the country for 2002, the search started for suitable projects. Splitting the grant into four smaller grants of $25,000 each, the company looked for low-profile, Nigeria-based human rights organizations and not branches of large, international human rights organizations. In Nigeria, hundreds of NGOs work on human rights issues, and Statoil was aware of some NGOs being set up solely to milk contributors. To avoid becoming the victim of a scam, the company spent significant time and effort screening potential cooperation partners. Meeting with its shortlist of 10 organizations, Statoil asked for proposals for projects that could be implemented within one year. The company also stated its intention to establish a long-term partnership after the first year if both parties saw the value. From the proposals submitted, Statoil selected those from three
Progress
The three years of training have given 450 Sharia judges from 7 northern states an insight into human rights questions. This amounts to approximately 20 per cent of the total number of Sharia judges in the country. At the start, the partners had questions about what might result. For example: Would Statoils enabling of LEDAP through project financing (and selection) involve the oil company in one of the currently hot political questions in Nigeria: the unilateral introduction of Sharia legislation in some of the Islam-dominated northern states?
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in those states respond to the human rights training focus on Sharia judges only (and not an offer to all judges)? Would the Sharia judges accept training on human rights thinking from lawyers representing the British law system? After three years, both Statoil and LEDAP report that their experiences have been positive and their concerns unfounded. Specifically, Statoil has had no accusations from government officials or observers of interference in the countrys political processes. Moreover, administrators in some states have established links to LEDAP and, from time to time, use its staff as legal consultants and advisers. Most importantly, the training has been popular and well received by the Sharia judges. For instance, in the evaluations of two seminars in 2004, all participants stated that the training had given them knowledge that was directly applicable to their daily work as Sharia judges.
rights, partnering with LEDAP and training Sharia judges were bold actions. Spend time evaluating potential partners and selecting partners. Build relations also with people, not only with organizations. Spend time on mutual understanding of project tasks and expectation levels. Set up a simple but clear partnership contract. Be sure to build in start and end dates. Establish a tight dialoguing and monitoring system. Release funds based on milestones and reporting. Ensure that the funder has a way to exit the partnership so that the ending of the funding will not harm the project.
Conclusion
Statoil considers the reputation risk in setting up an NGO human rights partnership in Nigeria to be high, and the reward to be limited. On the other hand, this type of human rights partnership is at the core of the companys CSR strategy and is why it has undertaken this and similar initiatives.
Lessons learned
The experience with the StatoilLEDAP partnership to date has led to the following learnings: Be bold when picking partners and projects. According to some observers, selecting human
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Formally launched in 1996, the Global Initiative is an umbrella programme under which the International Maritime Organization (IMO), the oil industry (through IPIECA) and other partners are working together to encourage and facilitate the development and implementation of oil spill contingency plans and increase the ratification of oil spill-related international conventions.
Background
Key partners
International Maritime Organization (IMO) International Petroleum Industry Environmental Conservation Association (IPIECA)
Major oil spills are unfortunate events that can have high impact on the surrounding environment and nearby communities. Short- and long-term effects of the resulting pollution can greatly distress the local socio-economic structure as well as the environmental integrity of the impacted area. Although ongoing work on preventative measures within IMO and other organizations is driving down the number of major spills, the risk cannot be reduced to zero. The reality is that events beyond the scope of human control (such as extreme weather conditions) will always remain. Against this background, the oil and shipping industry has become increasingly conscious of a need to improve its capacity to respond to spills through the development and implementation of sustainable oil spill preparedness and response systems. The realization is also growing that capacity building requires a joint effort by key stakeholders such as local industry, governments and non-governmental organizations, particularly if plans are to accommodate and respond to local conditions. To this end, IMO and IPIECA work closely to encourage and facilitate cooperation between the relevant authorities and the oil industry at national and regional levels.
Speakers at the regional oil spill workshop in Angola, in November 2000, organized by IMO and IPIECA
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THEME: Oil spill response PARTNERS: IGO O&G LEVEL: global LOCATION: global
much of the early GI effort focused on the West and Central African (WACAF) region. Technical missions and training workshops/courses resulted in a substantial increase in African nations ratification of relevant conventions between 1996 and 2003. It became apparent, however, that more needed to be done in terms of technical assistance to complement the activities implemented in the region since 1996 in order to ensure that all of the 21 WACAF countries had an acceptable state of preparedness and operational national contingency plans in place. A reassessment of the process underlined the limitations of the initial approach, which consisted primarily of a series of technical missions, in building sustainable local capacity. The GI has therefore modified its approach to a planned, budgeted process supported by IMO and industry business units in targeted countries to facilitate cooperation between government authorities and the oil industry. This realignment to a nationally and regionally based model puts local stakeholders, rather than London-based staff and secretariats, at the heart of the process.
the commitment of each partner can undermine the trust and respect necessary for a healthy working relationship. The GI change to a budgeted regional focus should reduce the relative significance of the less easily quantified forms of equity.
The IMO/IPIECA workshop in Angola brought together delegates from government and industry in 22 countries party to the Convention for Co-operation in the Protection and Development of the Marine and Coastal Environment of the West and Central African Region (WACAF or Abidjan Convention).
An oil spill response team makes ready their equipment after being called out to an equipment deployment exercise.
align well (or at all) with the requirements of the partnership. Equally, on the industry side, the availability of staff can change at short notice, for example if they are called to respond to an oil spill incident. These external factors can cause frustration for the partners. The GI has addressed the issue in part by erring on the side of caution in planning events and activities, but the partners acknowledge the need for, and have engaged into, improved organizational and timetabling aspects within these external constraints.
study materials, country-by-country assessments and a formal process for documenting outcomes have helped to manage knowledge and information, and to reduce the impacts of staff changes and shortages.
Sustaining interest in the issue that the partnership is addressing can be a challenge
The financial resources available from industry have been constrained by a failure to internally communicate ongoing risk to those assigning corporate budgets. The implementation of best practice and early successes in reducing spills has resulted in oil spills being regarded as a mature and effectively-managed issue at the company level, in turn weakening business unit support for external, industry wide actions. Ongoing communication to corporate staff on the potential negative business and environmental impacts of oil spills is required to ensure sustained financial support.
The deployment of booms is the focus of this equipment deployment exercise in the Philippines.
Conclusions
Clear progress has been witnessed in a number of areas such as designation of Governmental Responsible Authorities, development of national legislation and ratification and effective implementation of relevant IMO conventions by the recipient countries. However, more efforts need to be made by partners to increase the countries capacity in oil spill preparedness and response, and to enhance national and regional cooperation between government and industry. In this respect, it is important to recognize that GI is a longterm process and that the results attained so far in some countries represent good examples which can be replicated elsewhere. Looking to the future, it is hoped that the regionalization of the programme will drive progress more rapidly and deliver effective and sustainable contingency plans in a reasonable time frame, overcoming some of the obstacles of the past 10 years. In order that the changeover to a regional approach does not result in a loss of strategic perspective, it is likely that a core role for IMO and IPIECA will be required.
Inherent differences in institutional culture require mutual understanding from the partners
Cross-sector partnerships, by their nature, bring together organizations with different structures, mandates and operational capabilities. This is the case for IMO and IPIECA. Under these circumstances working together can require adjustments and reciprocal understanding to achieve the effective implementation of a joint programme of activities. Partners need to integrate their strengths and be realistic about their differences to avoid frustration. This has been the approach followed by the GI partners.
Managing knowledge and information can reduce the impacts of staff changes
Staff turnover and staff availability have been issues for both the IMO and IPIECA. Staff change requires lessons to be relearned and working relationships to be developed again. Staff shortages or reduced staff availability can also deter the rate of progress and the vibrancy of the working relationship. Even if staff turnover is expected to be low, a formal process of capturing and managing knowledge from the outset is essential. In the case of the GI, the production of case
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For more information on the Global Initiative see the IPIECA website at www.ipieca.org
THEME: Oil spill response PARTNERS: GOV IGO O&G LEVEL: regional LOCATION: Caribbean
The coordinated efforts of the multiple participants in the January 2005 MOBEX/ POLMAR exercise helped raise awareness and improve capabilities for responding rapidly and effectively to marine oil spills.
Background
Clean Caribbean & Americas (CCA) is a non-profit emergency oil spill response organization and an international Tier 3 response centre covering the Caribbean, and North, Central and South America. CCA works extensively with a number of international organizations, as well as national coast guards, environmental ministries and local authorities. A Tier 3 response operation entails crossing international borders with equipment and personnel. It requires coordination of strategic decision making, logistics, and customs and immigration formalities. Ideally, these mechanisms exist in a National Contingency Plan and are exercised periodically. One such exercise is the CCA International Mobilization, Preparedness and Response Exercise (MOBEX), which has been conducted every three years since 1995. In January 2005, CCA conducted the fourth and most ambitious MOBEX near the island of Martinique, in the French Antilles, in conjunction with the French government exercise of its National Contingency Plan, POLMAR (POLlution MARitime), and La Socit Anonyme de la Raffinerie des Antilles, the local refinery in Martinique.
international observers awareness of oil spill response capabilities and limitations. The theme of MOBEX/POLMAR 2005 was Towards Integrated & Scientific Preparedness & Response. The exercise had three phases: 1. The POLMAR command-and-control exercise under the command of French authorities. 2. Equipment mobilization, deployment and training under the leadership of CCA. 3. An oil spill response conference, attended by approximately 100 observers from 20 countries. The exercise differed from previous exercises in its scope. A simulated spill of 150 cubic metres of oil from a tanker off the south-east coast of Martinique required an initial response and deployment of equipment by the local fire brigade, with CCA support, to protect the environmentally sensitive coastal mangrove areas and the fisheries. During the exercise, POLMAR emergency response plans and actions were tested, from the initial notification and reporting of the oil spill, to response actions to combat the spill and minimise environmental damage and social and economic impact.
Key partners
Multiple local, national and international organizations and agencies, including:
Asociacin Regional de Empresas de Petrleo y Gas Natural en Latinoamrica y el Caribe Clean Caribbean & Americas (CCA) French Navy (Marina Nationale) International Maritime Organization (IMO) International Tanker Owners Pollution Federation (ITOPF) IPIECA Prefecture of Martinique (La Prfecture de la Rgion Martinique) La Socit Anonyme de la Raffinerie des Antilles United Nations Environment Programme (UNEP)
Lessons learned
MOBEX/POLMAR 2005 was an opportunity to address all aspects of emergency response, including administrative and logistical problems, issues in the transport and clearance of equipment across international borders, and the integration of CCA resources into locally and nationally organized and directed response operations. All aspects of the response exercise were conducted with the aim of reviewing and improving POLMAR and CCA response capabilities. The exercise demonstrated that CCAs resources and technical expertise are integrated into national and local systems of response. The exercise also provided an operational model for how CCA will support spill response operations in the 34 countries in its area of responsibility. International observers left Martinique with a better appreciation of the resources and actions required for an effective oil spill response, as well as the science and concepts to improve preparedness in their own countries and companies.
MOBEX/POLMAR 2005
CCA and the Prefecture of Martinique signed a Memorandum of Agreement for the MOBEX/POLMAR exercise. The French government was the lead authority, with CCA filling an integrated support role. The joint exercise had three main goals: To test the efficiency of the cooperation among government agencies in Martinique and international organizations. To evaluate the capabilities of response teams and equipment in an actual situation. To raise government, industry, public and
Monsieur Le Prefet de la Region Martinique aboard an observation vessel in Fort de France harbour is interviewed by local media about the exercise.
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PETRONAS and the Petroleum Industry of Malaysia Mutual Aid Group have been working in partnership with Malaysias Department of Environment on oil spill management and response capability since the early 1990s.
Key partners
Department of Environment, Malaysia Petroleum Industry of Malaysia Mutual Aid Group (PIMMAG) PETRONAS
Background
The Straits of Malacca is a strategic navigation channel and one of the busiest waterways in the world. Annually, approximately 63,600 ships pass through the Straits from Europe and the Middle East to the Pacific Ocean and Asia, carrying 30 per cent of the worlds trade as well as 50 per cent of the worlds oil. With such a volume of traffic, the likelihood of an oil spill is a concern for the littoral states of Malaysia, Singapore and Indonesia. Indeed, 75 shipping incidents in the Straits were reported between 1975 and 1993, with 54 of them resulting in oil spills. Malaysia alone spent US$34 million to clean up 30 oil spills between 1984 and 1997, and this figure excludes compensation for loss of income, equipment and stocks to affected fishermen and aquaculture farmers. The projected impacts of a large oil spill in the Straits have prompted several national and regional initiatives to establish oil spill response and preparedness capabilities. It was in this spirit that PETRONAS spearheaded the formation of the Petroleum Industry of Malaysia Mutual Aid Group (PIMMAG) in December 1993. Open to all companies involved in upstream and downstream activities in Malaysia, PIMMAGs aims are to provide the capability to manage, maintain and operate oil spill response resources, and to complement government efforts in the control and clean-up of oil spills. By virtue of its status as the national oil company, PETRONAS has been contributing to all activities under this cooperation.
national plan is the onus of the National Oil Spill Control Committee (NOSCC), which comprises government agencies such as the Department of Environment, the Marine Department, Royal Navy Malaysia, the Maritime Enforcement Coordination Centre, Marine Police and the Fire Brigade Department, as well as PETRONAS and PIMMAG. The Nagasaki Spirit incident in the Straits of Malacca in 1992, when the tanker collided with a container ship and spilled 13,000 tonnes of crude oil, revealed some weaknesses in the communications and coordination arrangements in the national plan. The Malaysian government decided a review was necessary, and the task was given to the Department of Environment. To ensure the review resulted in a comprehensive and well-tested plan, the government also sought input and expertise from PETRONAS and PIMMAG. It was envisaged that the review would equip Malaysia with not only a comprehensive oil spill contingency plan, but also a stockpile of oil spill response equipment at strategic locations along the Straits of Malacca and on the east coast of Peninsular Malaysia, as well as Sabah and Sarawak. Following the review of the national plan, a three-tier approach was adopted to combat oil spills. Local authorities and local oil companies handle Tier 1 responses on site, and regional councils administer Tier 2 responses involving larger areas. In more serious cases, the NOSCC is responsible for mobilizing and coordinating Tier 3 responses, which include containment efforts on sea and remedial measures on land. Since its establishment in 1976, the National Oil Spill Control and Contingency Plan has also been tested and improved through a number of exercises. Most recently, both PETRONAS and PIMMAG helped prepare for and implement the national oil spill exercises in 2000 and 2005.
THEME: Oil spill response PARTNERS: GOV O&G LEVEL: regional LOCATION: Southern Asia
Tier 1 oil spill response at Kuantan Port; Tier 2 oil spill response at the Pahang State level; and coastal clean-up of oil spills at the Pahang State level.
The exercise was a success in terms of communication and coordination among various agencies, and feedback and improvements were incorporated in the national plan.
oil spill response equipment that was deployed onsite, as well as the groups highly trained oil spill responders. Excellent manpower and equipment support, for example trucks, boats, beach clean-up vehicles and heavy machinery, from government agencies such as the Fire Brigade and the Marine and Fisheries departments.
Conclusion
In a critical situation such as an oil spill, early and coordinated intervention measures will prevent oil slicks from encroaching on larger areas. The 2000 and 2005 exercises clearly demonstrate that the success of the National Oil Spill Control and Contingency Plan is primarily dependent on a strong partnership, established communication and clear understanding among government authorities and private sector organizations.
Proposed by UK Prime Minister Tony Blair in 2002 and endorsed by the G8 countries, the multi-stakeholder Extractive Industries Transparency Initiative supports improved governance in resource-rich countries through publication and verification of company payments and government revenues from oil, gas and mining.
Background
In 2002, the UK government launched the Extractive Industries Transparency Initiative (EITI) at the World Summit on Sustainable Development in Johannesburg. It was motivated by issues of energy securitythe realization that growing amounts of hydrocarbons would be reaching the UK from new areas such as West Africa and the Caspian regionas well as by NGOs efforts to highlight the specific issue of revenue management in resource-rich emerging societies. Subsequently, delegates from multiple countries, companies, associations and organizations at a founding conference in London in June 2003 agreed a Statement of Principles and Agreed Actions, and endorsed the voluntary nature of the initiative. The 12 EITI principles provide the cornerstone of the initiative. They affirm that natural resources management is the domain of sovereign governments, that resource extraction benefits accrue over many years and are often price-dependent, that the achievement of greater transparency must respect laws and contracts, and that a broadly consistent and workable approach to the disclosure of payments and revenues is required. Delegates at a second conference in March 2005 agreed on criteria, guidelines and a sourcebook for implementing countries and participating companies, and authorized the establishment of an EITI Secretariat, now based in the UK Department for International Development (DFID). At the start of 2006, EITI remained in a pilot phase. An International Advisory Group (IAG), set up following the 2005 conference, is discussing the initiatives future. Led by Peter Eigen, chairman of Transparency International, the IAG will recommend to
Key partners1
Multiple countries, companies, associations and organizations, including the following:
Countries (active implementers or endorsers): Azerbaijan Nigeria Peru Trinidad & Tobago Countries (donors): France Holland UK USA Oil and gas companies: BP Chevron Eni ExxonMobil Hess Marathon Repsol Shell Statoil Talisman Energy Total Woodside Industry associations: American Petroleum Institute International Association of Oil & Gas Producers NGOs: Catholic Agency for Overseas Development Global Witness Publish What You Pay coalition Transparency International
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the next EITI international conference (scheduled for late 2006) how to monitor and validate the EITI process and reward nations and companies that fully implement the initiative.
THEME: Transparency PARTNERS: GOV NGO O&G LEVEL: global LOCATION: global
implementing countries endorsing countries
around the oil industry. All official receipts from oil and gas developments going back five years are being audited, a value-for-money process review is under way inside government and a lively nationwide communications exercise has been launched to explain what is happening. The various parties to EITI are learning some distinct lessons. On the company side, participants have been pleasantly surprised by the extent to which their concerns, especially about commercial confidentiality, have been heard and acted on. Were realizing that these tripartite initiatives can work provided you focus on what you agree on. Then you can move an initiative forward. If you focus on the differences, all you do is argue, observes one oil industry executive involved in EITI. Differences do exist among companies, most importantly about whether disclosure of tax and revenue payments to governments should be on a disaggregated (individual company) basis or aggregated (collective) basis.
Although NGOs were committed initially to mandatory EITI reporting requirements and quite aggressive and clear transparency goals, they decided early on to stay involved despite the voluntary nature of the initiative. Two years down the line, EITI is seen as a useful tool in empowering local societies, protecting human rights and advancing democratic accountability. Both companies and NGO participants comment favourably on the role played by DFID and, more recently, the EITI Secretariat. In particular, a sharp increase in expertise and personnel since 2003 wins wide praise. For its part, the Secretariat increasingly sees its role as a matchmaker, putting countries, companies or NGOs in touch with the right people, and as a knowledge bank, sharing information and stimulating better governance, in particular before big money comes in from large hydrocarbon and mining projects and makes altering the status quo more difficult.
Conclusions
Remaining issues include the sincerity and capacity of some countries wanting to sign up to the initiative; the future structure and funding of the EITI Secretariat; the participation of state-owned companies in such places as Russia, China, Brazil, India and Malaysia; the minimum levels of monitoring and validation needed to ensure the initiatives continued credibility; its geographic spread; and the implications of the large revenue increases being experienced in many oil- and gas-rich states. Against that, experience has taught those involved with EITI not to expect linear progression. Less than four years after the launch of the initiative there is wide acceptance that knowing what governments receive, verified by what companies pay, is a critical first step to holding decision makers accountable for the use of those revenues. In this sense, EITI has already justified itself as part of a wider drive for better governance that may in time ensure that revenues from hydrocarbon and mineral projects contribute more directly to poverty reduction and development. For more information on EITI activities, visit www.eitransparency.org
SIGN UP Government makes public statement Stakeholders identifiedgovernment, civil society, all extractive companies Initiating conference held
SET UP Multi-stakeholder committee formed Basic procedure for EITI agreed and workplan developed
PROCESS DEVELOPMENT Technical assistance needs identified and secure financing and support found Select independent administrator to reconcile figures to international audit standards
DISCLOSURE AND PUBLICATION Design reporting template Companies and government submit data to administrator Ensure data is to international standards
PUBLIC DISSEMINATION AND DISCUSSION EITI Report published, identifying any discrepancies Administrator makes recommendations to improve process Stakeholders review data
REVIEW Review process and make improvements Workplan reviewed Regular reporting continues
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BP has been involved with the Extractive Industries Transparency Initiative since its launch in Johannesburg in 2002, mostly in Azerbaijan and also in Angola, and Trinidad and Tobago.
Key partners
BP Azerbaijan, BP Angola, BP Trinidad & Tobago Other members of consortia and joint ventures partnering BP in these countries Governments of Azerbaijan and Trinidad & Tobago (EITI implementers) and Angola (EITI endorser) Department for International Development, UK government
Background
In 1997, BP sponsored a social impact assessment in Angolathe first ever undertaken on its behalf. The assessment indicated that a key issue for BP was the host governments use of revenues received from the companys oil exploration and development activities in the country. As BP expanded its operations in Azerbaijan and the Caucasus region, revenue transparency was again highlighted as an issue with implications for the companys reputation. As oil prices recovered from a low of $10 a barrel in 1998 to rise above $50 a barrel in 2005, the issue of revenue transparency attracted wider interest. An investigation by Oxfam America and the launch in 2002 of a Publish What You Pay campaign by the Open Society Institute and a coalition of NGOs gave the topic worldwide prominence. For its part, BP calculated that over the next 3040 years the government of Azerbaijan might receive revenues of $40187 billion, dependent primarily on the price of oil. Angolaas well as Indonesia and Trinidad and Tobago (other countries in which BP is building a commercial presence)could achieve similar revenues. From the outset BP has not regarded the Extractive Industries Transparency Initiative (EITI) as a panacea.
A platform topsides under construction at an offshore oil development in the Caspian Sea
Any transparency that EITI achieves is a means to the endand not the end in itself in the words of Richard Paniguian, BPs group vice president for Africa, Middle East, Russia and the Caspian Region. In BPs view, achieving the core purpose of transparency promotion of better governance, less corruption, fewer conflicts and reduced povertyultimately depends on the capacity of host country governments. No company, however large, can achieve much by itself. But BP also accepts that there are valuable things companies can do in this area by working in partnership with others. BP is one of two energy companies (Chevron is the other) who represent the wider oil and gas industrys views in the EITIs International Advisory Group (IAG). The IAG is to make recommendations at the 2006 EITI international summit in Oslo on how to validate implementation of EITI and how to organize the initiative in future.
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THEME: Transparency PARTNERS: GOV O&G LEVEL: global national LOCATION: Caspian
government. The aggregator compares the totals, checks for obvious errors and publishes the reports. Azerbaijans first EITI report was published in March 2005. At present, BP is one of two international companies represented in Azerbaijan (Statoil of Norway is the other) to publish individual data (in its Azerbaijan Sustainability Report 2004 available on the bp.com website).
2005 as evidence of the authorities commitment to transparent management of revenues accruing from the extractive sector. Local NGOs have hailed the publication of the report as a significant step forward. Nevertheless, in important ways the EITI remains work-in-progress: It stands outside oil companies licence agreements with host governments and can be revoked at any time. One suggestion is to incorporate EITI provisions in project lending terms, so allowing financing to be withheld if EITI commitments are not met. Validation of the initiativedevising an independent process to ensure countries and companies are proceeding with implementation consistent with the EITI principles and agreed criteriais still under discussion in the IAG. Protection of the EITI brand to stop countries and companies falsely claiming to be endorsing or implementing the initiative, is a key issue being addressed by the IAG. A new administrative structure will be necessary once the UKs sponsoring agency, the Department for International Development, relinquishes its central role. Again, the IAG is developing options. Revenue management in Azerbaijan remains an issue and the country continues to feature prominently on Transparency Internationals Corruption Perception Index. A majority of oil and gas companies operating in Azerbaijan are opposed to individual company tax payment and revenue disclosure. Most prefer to report collectively.
Installing offshore platforms at the giant Azeri-ChiragGunashli offshore complex in the Caspian
Conclusions
EITI would never have started except on a voluntary basis. Within this limitation it has achieved much in the three years since its inception, particularly in Azerbaijan and Nigeria (where BP is not represented). BP has particularly welcomed the development of minimum criteria for EITI implementation and the way the initiative has mobilized and legitimized the role of civil society in a sensitive area for governments. A strong sense exists, however, that the real test of EITI lies ahead both in Azerbaijan when oil revenues soar in 2006 and beyond, and further afield as more countries sign up.
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A guide to resources
Further reading
Acknowledgement
This publication is the work product of the IPIECA Partnership Task Force. The Task Force was convened under the auspices of the IPIECA Strategic Issues Assessment Forum. Case studies were provided by IPIECA company and association members. Eva Halper from the Partnering Initiative (a collaborative venture between the Prince of Wales Business Leaders Forum (IBLF) and the University of Cambridge Programme for Industry), provided invaluable insight and expertise; Michael Warner, Programme Director at the Overseas Development Institute, brought his knowledge of partnerships and the oil and gas industry. Partnership Task Force members included: Garry Mann (Nexen) Helen Sullivan, Chair (Shell) Dominique Chauvin (Total) Karen Tyrone (ExxonMobil) Eva Halper (The Partnering Initiative) Sophie Depraz / Hannah Buckley (IPIECA)
The oil and gas industrytechnology cooperation and capacity building, contributing to Agenda 21. IPIECA/UNEP, 1994.
The oil and gas industry: from Rio to Johannesburg and beyond. OGP/IPIECA WSSD report, 2002.
The Partnering Toolbook. (Available in more than 15 languages.) The International Business Leaders Forum (IBLF) and the Global Alliance for Improved Nutrition (GAIN), 2003.
The Case Study Toolbook. Published in 2006 by IBLF on behalf of The Partnering Initiative.
For more resources on cross-sector partnering please see www.ThePartneringInitiative.org The case studies were edited by Sue McManus.
Please also visit the IPIECA Partnership Portal The partnership portal can be accessed via the IPIECA website at www.ipieca.org, and includes further resources on multi-stakeholder partnerships in addition to each individual case study featured in this publication. A search function enables users to search case studies via themes, keywords, region, partner or company involved.
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The International Petroleum Industry Environmental Conservation Association (IPIECA) is comprised of oil and gas companies and associations from around the world. Founded in 1974 following the establishment of the United Nations Environment Programme (UNEP), IPIECA provides one of the industrys principal channels of communication with the United Nations. IPIECA is the single global association representing both the upstream and downstream oil and gas industry on key global environmental and social issues including: oil spill preparedness and response; global climate change; health; fuel quality; biodiversity; social responsibility and sustainability reporting.
Company members
BHP Billiton Ltd BG Group BP Chevron CNOOC ConocoPhillips ENI SpA ExxonMobil Hess Corporation Hunt Oil Company Hydro Kuwait Petroleum Corporation Mrsk Olie og Gas Marathon Oil Nexen Inc NOC Libya Petroleum Development Oman Petronas Petrotrin PTTEP Repsol YPF Saudi Aramco Shell International Ltd Statoil TNK-BP Total Woodside Energy Ltd
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Association members
AIP (Australian Institute of Petroleum) API (American Petroleum Institute) ARPEL (Regional Association of Oil & Natural Gas Companies in Latin America and the Caribbean) CAPP (Canadian Association of Petroleum Producers) CPPI (Canadian Petroleum Products Institute) CONCAWE (Oil Companies European Association for Environment, Health and Safety) EUROPIA (European Petroleum Industry Association) IFP (Institut Franais du Ptrol) OGP (International Association of Oil and Gas Producers) PAJ (Petroleum Association of Japan) SAPIA (South African Petroleum Industry Association) WPC (World Petroleum Congress)
Please also visit the IPIECA Partnership Portal The partnership portal can be accessed via the IPIECA website at www.ipieca.org, and includes further resources on multi-stakeholder partnerships in addition to each individual case study featured in this publication. A search function enables users to search case studies via themes, keywords, region, partner or company involved.
www.ipieca.org
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