PDO – SD Awareness
ObjectivesObjectives
1. What is Sustainable Development? 2. Why does it matter?3. Why are we committed to contributing?4. What does it mean in practice & How are
we embedding this commitment into our operations?
PDO – SD Awareness
Global issues - Population Growth
Fact World population is expected to
double by 2050 Currently more than 80% of world’s
population live in developing countries
World’s economic output has more than doubled in the past 25 years
Challenge Enabling economic growth with
minimalenvironmental and related impacts.
Implications for business Adopt cleaner and affordable
technologies Develop renewable and recyclable
goods
PDO – SD Awareness
36 would lack basic political rights and civil liberties
12 would produce half the income
44 would not have access to proper
sanitation, electricity or
modern cooking fuels
20 would suffer from malnutrition
23 over the age of 15 would be
unable to read or write
2 would have a further college
education
20 would not have access to clean water
Distribution of Opportunity
100100PEOPLEPEOPLE
100100PEOPLEPEOPLE
PDO – SD Awareness
Consumption Levels
If the entire world lived on a footprint equivalent to the average person in the US it would take five planet Earths to support the present world population.
USA -10 acres to supply the average person’s basic needs.
The Netherlands - 5 acres
Ethiopia -1 acre
PDO – SD Awareness
Sustainable Development Barometer
2. When you hear the term does it make you….
Blink in incomprehensio
n?
Squirm in discomfo
rt
Sit up and listen
Stand ready for action
3. Why have companies like Shell committed to contribute to SD?
‘Have lost their minds, their
nerve or both’
‘Spin to help their
reputations’
‘To use these values to create business value for
their shareholders’
‘To live by their core corporate
values’
1. Can you define ‘Sustainable Development’? (so your neighbours understand)
‘Sustainable what?’
‘Heard of it but not really sure’
‘Think I more or less get the concept, but not in
words fit for the neighbours’
‘Sure it is….’
PDO – SD Awareness
What is Sustainable Development?What is Sustainable Development?
“ The development that meets the needs of the present generation without compromising the ability
of future generations to meet their own needs ”
PDO – SD Awareness
Generate Profitability Benefit communities
Protect the environment Manage
resources efficiently
Respect & safeguard people
Work with stakeholders
SD
Components of SD-ConventionalComponents of SD-Conventional
People
Planet Profit
PDO – SD Awareness
To explore and develop oil & gas in a sustainable manner to the benefit of all stakeholders
PDO MissionPDO Mission
We
Incorporate SD in strategies, plans and decision-making processes
Contribute to SD in partnership with the Government’s authorities
Involve our employees and increase SD awareness among our staff and contractors
Report externally on our SD performance
PDO – SD Awareness
As trust diminishes, the demand for partnering with stakeholders, for open reporting and
external assurance increases
Move to an ‘engage me’ world
High
Low
Low High
“Trust me”
Trust
Transparency
Trend
“Tell me”
“Show me”
“Engage me”
“Help me understan
d”
PDO – SD Awareness
Society
Maps are representational only- not comprehensive
Government Employees
CustomersCompany
Share-holders
NGOs
Society
Government Employees
Share-holders
NGOs
Company
OLD NEW
Customers
Stakeholder Maps
PDO – SD Awareness
IS NOT ISDeciding, announcing, defending
Developing options, discussing, deciding
Dealing only in facts Taking account of feelings, values and perceptions
Assuming win/lose outcomes Searching for win/win results & ways to add value for all parties
A one-off exercise at start/end of project
An iterative process
Secretive, information on a `need to know’ basis
Open and transparent
Public relations Public involvement
Stakeholder Engagement
PDO – SD Awareness
Time
Low
High
Risk
Business reality
PublicExpectation
Managing Expectations
Expectations
PDO – SD Awareness
Is… enshrined in our Business
Principles a potential source of
value and competitive edge
an integral part of our approach to business – a way of thinking
enables WIN-WIN solutions which generate value for both company and society
open dialogue with stakeholders
making better decisions by better understanding stakeholders’ needs
Is not… a new initiative a cost or burden to our
business an “add-on “ a trade off between
economic and environmental/social issues
just a PR exercise handing over decision-
making responsibility to stakeholders
Sustainable Development …
PDO – SD Awareness
Health & Safety Programmes
Agricultural projects - Rahab Farms
Education and training
Omanisation (PDO currently at 80%)
Potable water supply to communities
Business and HSE training for LCCs
SD in Action …. PeopleSD in Action …. People
PDO – SD Awareness
SD in Action .…. Planet ISO-14001 accreditation
90% use of associated gas; Continuous Flaring out by 2008
White Oryx Reserve (UNESCO World Heritage Site)
Phasing out of CFC / Halons ahead of Montreal Protocol
“Greening the Desert” - Reed Beds
1st & 2nd generation Solar Car developed at SQU
PDO – SD Awareness
E-business: savings
On-line bidding
Infrastructure improvement projects: roads, electricity, etc.
Local Community Contractors program (LCC)
EOR projects
Operating Model Review 2004 & beyond.
SD in SD in Action …. Profit …. Profit
PDO – SD Awareness
Balance long term & short term
Integration Profits, Planet & People
Engagement with stakeholders
&
Building Partnership
Sustainable Development is...Sustainable Development is...
PDO – SD Awareness
Integrated Impact Assessment (IIA) Integrated Impact Assessment (IIA) Guidelines – GU 447Guidelines – GU 447
Assessing environmental, social and health potential impacts
IIA Process linked to VAR and Project Cycle
Currently, it is standardised for all projects
Examples are Gas projects, EOR projects
PDO – SD Awareness
Why IIA Guideline?
Measures to mitigate projects impacts
License to operate
Means to reduce the overall business cost
Complimenting the legislative role of government
Means to contribute to SD of Oil & Gas in Oman
Meets international standards
PDO – SD Awareness
Initial Impact Evaluation Report
Preliminary Impact Assessment Report
Final IIA Report/ SD/SP Program Report
Impact Management & Monitoring Plan IMMP/SD/SP
Initial Screening Checklist (IIIC)
VAR 1VAR 1
VAR 2VAR 2
VAR 3VAR 3
VAR 4VAR 4
VAR 5VAR 5
IIA Process Flowchart/Deliverables
PDO – SD Awareness
48” Gas Loop Line
Construction of a 48” pipeline parallel to the existing pipeline starting Saih Nihayda to Al-Kamil; total distance of 264 km
The pipeline crosses five Wilayats; Adam, Mudhaibi, Al-Qabil, Bidiyah and Al-Kamil. (Excluding Adam, all Wilayats are outside PDO concession area)
12 communities located within a 1-2 km from the RoW; approximately 500 people; livestock camps in Wadis throughout the project area
No basic infrastructure and/or services (education, health, community resources) in the communities
PDO – SD Awareness
Opportunity Realisation Framework
The identification, selection and implementation process for strategic social investment (SSI) projects follows PDO’s opportunity realisation framework
Select Define Execute Operate(rank)
(Develop business
plans)
(Implementation)
Identify & Assess
Op
po
rtun
ities
(Baseline data collection)
(Project Complete)
PDO – SD Awareness
Select Phase: 1st Stage Ranking
Project Ranking Criteria:
1. Project serves wide population
2. Project self-sustaining
3. Project does not create long-term dependency; clear PDO exit strategy
The ranking exercise follows PDO Guideline “Social Performance Project Evaluation Guide” (GU – 468)
PDO – SD Awareness
Select Phase: Ranking Exercise Results
27 potential social project proposals ranked
4 Quick wins; 7 proceeded to 2nd stage ranking;
(3 potential projects selected);
3 for later implementation; 11 rejected; and2 not ranked
Focus Areas: Health, Quality of Life, Sustainable Livelihoods, Local Capacity Building
PDO – SD Awareness
Basic Infrastructure Support–al Basic Infrastructure Support–al QabilQabil
Objective: Support basic infrastructure requirements to improve living standards of households in project-effected communities
Description: One-time monetary donation to the Wali to (partially) fund an infrastructure project for identified households
Beneficiaries: Households in Al Khorais, Al Sarhat, Hailat Raei Shajarah – Al Qabil
Community Benefits: Improved quality of life
Business Benefits: Social licence to operate, enhanced reputation, improved social performance, work in partnership with provincial governments and alignment with government development plans
Exit Date: Q 2 2005
Cost: $ 260 000
PDO – SD Awareness
MDC Steering Committee
Develop strategy & define what is required
Social Project selection Select, define &
rank the SP Projects
Assets/Project TeamsExecute actions
PDO + Gov. NetworkAim to enhance trust
FeedbackResults
Communicate required Actions / activities
Communicate strategyAnd requirements
Assess Assets / Project Teams
PDO + SD Peers Network(Shell EP, OLNG, SQU,
OPAL)Learn on best practices
Work together on commonprojects
Benchmarking
SD Structure in PDOSD Structure in PDO
PDO – SD Awareness
SD General Awareness among Staff (SD on Paper)
SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head)
SD is considered in some PDO business
(Weave / Head to Heart)
Full SD integration into all aspects
of the PDO business (Infuse / SD in the Heart)
4.03.93.83.73.63.53.43.33.23.13.02.92.82.72.62.52.42.32.22.12.01.9
SAQ
2001/2002
Lead
ing In
dicat
or: S
AQ
2003
SD Self Assessment WorkshopSD Self Assessment Workshop
SD General Awareness among Staff (SD on Paper)
SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head)
SD is considered in some PDO business
(Weave / Head to Heart)
Full SD integration into all aspects
of the PDO business (Infuse / SD in the Heart)
4.03.93.83.73.63.53.43.33.23.13.02.92.82.72.62.52.42.32.22.12.01.9
SAQ
2001/2002
Lead
ing In
dicat
or: S
AQ
2006
2003
2004
PDO – SD Awareness
1. Social GIS for the concession area2. SD Awareness & Knowledge Campaign
across PDO - Ongoing3. A common SD pot for all SP projects4. Develop Framework to extend IIAs from
Projects to clusters5. SD workshop involving key project staff
SD team 2005 PlanSD team 2005 Plan
PDO – SD Awareness
NeedNeed moremore info…info…
Visit PDO SD Web Site
Contact MSE6 Team
OR
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