energy chamber trinidad and tobago _local content panel
TRANSCRIPT
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Energy Chamber of Trinidad & Tobago
National Energy Policy Consultation
Local Content Panel
12thJanuary 2011
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Outline:
Local content and ownership
Energy Service sector performance
Energy service exports as diversification
Standards
Legislation
Human resource development
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Definition:
Definition of local company.
Primary consideration is ownership (at least
50%).
Secondary considerations:
Nationality of management Nationality of workforce
Any shareholder agreements that divert profits
Legal registration
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Ownership:
Local content more than local service providers.
Measures to attract local capital investment intothe sectoroil production good possibility.
Listing on stock exchange.
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Services Sector
performance:
2009- 2010 have been terrible years in the local
energy service sector.
Very limited activity
Significant declines in GDP.
Lack of confidence
Decreasing employment Many people moving oversees
Local companies closing or hibernating.
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Energy Sector GDP Growth
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
2005
2006
2007
2008
2009
2010
%G
rowth(Decline)
GDP % Change 2005 - 2010
Overall GDP
Energy GDP
Energy Service Contractor GDP
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Wells Started/Completed from
2001-2010
0
20
40
60
80
100
120
140
160
20012002
20032004
20052006
20072008
20092010
Well Completions
Wells Started
Source: MEEA
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Need to export:
Declines in past two-years underline the need
to build a strong export market for local service
companies.
Need a diversified market in order to survive
feast and famine.
But can only successfully export from strong
local baselocal content policy.
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Local content strategy:
Need a policy topromotelocal companies in
the T&T market (not protectionism).
Strategy needs to identify areas of strength andplace support in those sectors where we have a
chance to compete with major international
service companies.
Successful approach used in the development of
platform fabrication industry.
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Role of legislation:
% target spend legislation does not have good
success rate.
Better to target procurement process andpromote use of local companies (Atlantic Train
IV construction example).
Regulations to ensure that local companies have
a fair chance of providing goods and services
procured (but must avoid unnecessary red-
tape).
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Importance of standards:
Adherence to high standards important to:
Help companies export services
Prevent unfair low cost internationalcompetition.
Industry self-regulation has important role to play in
raising standards:
Example: Safe to Work initiative.
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Human resource
development:
Local content not just about companies.
Also about T&T nationals being able to access good
jobs (highest-level) in industry in T&T.
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Energy Chamber strategy:Building a strong platform for sustainable energy sector growth
Efficient
Business
Sector
Strong
Energy
Chamber
Export Energy ServicesPromote Energy Investment