Delivering Employment Diversity on an Offshore Oil Project

Delivering Employment Diversity on an Offshore Oil Project Mark Shrimpton; Mark Shrimpton Jacques Whitford Group Search for other works by this author on: This Site Google Scholar Margaret Allan Margaret Allan Husky Energy Search for other works by this author on: This Site Google Scholar Paper presented at the SPE International Conference on Health, Safety, and Environment in Oil and Gas Exploration and Production, Calgary, Alberta, Canada, March 2004. Paper Number: SPE-86614-MS https://doi.org/10.2118/86614-MS Published: March 29 2004 Cite View This Citation Add to Citation Manager Share Icon Share Twitter LinkedIn Get Permissions Search Site Citation Shrimpton, Mark, and Margaret Allan. "Delivering Employment Diversity on an Offshore Oil Project." Paper presented at the SPE International Conference on Health, Safety, and Environment in Oil and Gas Exploration and Production, Calgary, Alberta, Canada, March 2004. doi: https://doi.org/10.2118/86614-MS Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex Search Dropdown Menu nav search search input Search input auto suggest search filter All ContentAll ProceedingsSociety of Petroleum Engineers (SPE)SPE International Conference and Exhibition on Health, Safety, Environment, and Sustainability Search Advanced Search AbstractThere is a growing need to ensure that local areas receive a share of the jobs and business associated with upstream petroleum industry activity. In the case of Husky Energy's White Rose oilfield project in Newfoundland and Labrador, Canada, there is a government requirement to provide employment and business opportunities not only to residents of Newfoundland and Labrador, and other Canadians, but also to women, aboriginal peoples, visible minorities and persons with disabilities.This paper describes how this requirement is being addressed by the White Rose Project Diversity Plan. The plan uses a non-prescriptive approach, allowing Husky and its main contractors to develop targets and initiatives that are appropriate to their organizations and activities, and to labour market constraints. It employs an iterative process whereby they establish annual diversity targets and monitor success in meeting them, leading to the establishment of new targets. The plan also seeks to foster a 'diversity culture' within project companies, and it emphasizes collaboration between Husky, its contractors and community groups, so as to access different networks and share expertise and lessons. These approaches may have application to employment and business diversity requirements on other projects worldwide.IntroductionIt is increasingly necessary, in almost all parts of the world, to ensure that local residents receive economic and social benefits associated with upstream petroleum industry activity. This requirement may result from corporate reputation concerns, a commitment to corporate social responsibility, and the demands of international financial institutions, local partners, regulators or local communities and populations. It may lead to individual initiatives or to the development of a benefits plan, impact and benefits agreement, or similar formal mechanism for delivering employment and business opportunities to the local population.In the case of Husky Energy's White Rose oilfield development project in Newfoundland and Labrador, Canada's easternmost province, there is a government requirement to provide jobs not only to residents of the province and other Canadians, but also to women, aboriginal peoples, visible minorities and persons with disabilities. This paper describes this requirement and how it was addressed. It includes discussion of the challenges associated with delivering diversity on such a project, the approaches used in responding to them, how the plan works, and progress to date. While a number of constraints and difficulties are identified, the plan is seen as being a useful model for diversity initiatives elsewhere.The White Rose Diversity RequirementThe White Rose project involves the development and operation of a floating production, storage and offloading (FPSO) vessel to produce the 200 to 250 million-barrel oilfield on the Grand Banks. While the FPSO's hull is being built by Samsung in South Korea, and the turret by SBM Canada in Abu Dhabi, many of the topsides components are being fabricated, and the topsides installed, in a shipyard and related fabrication facility in Marystown, on the south coast of Newfoundland. The provincial capital, St. John's, is the location of development phase engineering design and management work, and it will be the support base for the project during the 10 to 15 year production life of the field.Under the 1986 federal and provincial Atlantic Accord Implementation Acts1, which provide the regulatory framework for petroleum activity in Newfoundland and Labrador waters, the proponents of development projects must submit a Canada-Newfoundland Benefits Plan. This must describe the proponent's commitment to, and plans concerning, the employment of Canadians and, in particular, residents of the Newfoundland and Labrador, and the participation of Canadian and, in particular, Newfoundland and Labrador, businesses in the provision of goods and services. Under the Acts, the Canada-Newfoundland Offshore Petroleum Board (CNOPB), which regulates all offshore activity, may require that "any Canada-Newfoundland benefits plan include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable such individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in any proposed work or activity referred to in the benefits plan."2 Keywords: participation, contractor, community group, diversity plan, employment, upstream oil & gas, diversity initiative, canada, floating production system, subsea system Subjects: Offshore Facilities and Subsea Systems, Strategic Planning and Management, Floating production systems, Project management This content is only available via PDF. 2004. Society of Petroleum Engineers You can access this article if you purchase or spend a download.

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