local business development (lbd) compliance briefing
TRANSCRIPT
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LOCAL BUSINESS DEVELOPMENT (LBD)
COMPLIANCE BRIEFING
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To Maximize Local Spin Offs from Oil & Gas Activities By Maximizing Use of Local Workforce and Local Goods and
Services…
LBD Objectives & KPI
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LBD Directive No.1
End Market Domination
No Monopoly
Enable more local companies participation
Open up business opportunities for new companies
Create level playing field
Issued 2011
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LBD Directive No.2
Increase use of LocalContent
• Local Workforce• Local Goods and Services• Local Financing• Local Subcontractors
Drive active ownership
LBD Quadrant Framework
LBD data reporting 3 timesper year
Issued 2012
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GUIDELINES for Directive 2 on Local Business Development Framework for the Oil & Gas Industry
Page 27
LBD Directive No.2 –LBD Allocation of Contract
GU
IDELIN
ES for Directive 2 on Local Business D
evelopment Fram
ework for the O
il & Gas Industry
Page 29
GU
IDELINES for D
irective 2 on Local Business Developm
ent Framework for the O
il & Gas Industry
Page 30
GUIDELINES for Directive 2 on Local Business Development Framework for the Oil & Gas Industry
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Bumiputra & Local Companies ONLY
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Quadrant determined by: Complexity of the work Technology required to execute
the work The Approved Contract Value
LBD Directive No.2 –LBD Quadrants
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LBD Online Reporting
LBD Data Monitoring & Reporting
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Company Details: Name of Owners, Percentage of Ownership, Description of Business, Contact Details etc.
LBD Data Monitoring & Reporting
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Company Workforce
Breakdown of Workforce
Breakdown of Workforce
Local Content
LBD Data Monitoring & Reporting
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2016
LBD Progress To Date
• <15% Local
Spending
• ~20,000 Jobs
• <50% Local
Employed
• No Local
Company
Venturing
Overseas
• 21% Local
Spending
• 24,350 Jobs
- 13,240
(54%) Local
Employed
• 1 Local
Company
Venturing
Overseas
Prior 20122013
• 39% Local
Spending
• 26,647 Jobs
- 15,981
(60%) Local
Employed
• 2 Local
Company
Venturing
Overseas
• 15 New
Local Companies
2014
• 54% Local
Spending
• 26,205 Jobs
-16,495
(63%) Local
Employed
• No Local
Company
Venturing
Overseas
Revenue
• 10 New
Local
Companies
2015
Target
• 54% Local
Spending
• 27,500 Jobs
- 17,600
(64%) Local
Employed
• 4 Local
Company
Venturing
Overseas
Target
• 80% Local
Spending
• 50,000
Jobs
- 40,000
(80%) Local
Employed
• 30 Local
Company
Venturing
Overseas
2035
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Applicability:
Local employees
ND and below qualification
The Reasonable Wage (RW):
• Onshore - B$700.00 per month ( Technical workers only )
• Offshore - B$1,000.00 per month ( Technical & Non-
technical workers offshore )
• Working hours:
Onshore/Offshore Shift period as a maximum- 2
weeks on / 2 weeks off
Local Seaferer- 1month on/ 10 days off
Definition: Basic reasonable wage to which a Local Employee is
entitled under his or her contract of employment but doesnot include: Overtime payment Bonus/annual salary supplements Productivity incentive Any allowance
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Prioritization of the use local goods and services
Formulation of LBD Management
Local Content Opportunity Framing report for major projects/contracts/ agreements
Prioritization of the use of local financial institutions
To submit the LBD Performance Report 3 times a year
To provide conducive environment for the employment of locals (e.g Reasonable
Wage, Career Development etc)
To provide report to the EDPMO on any difficulties or failures to fulfill the LBD
requirements
Shall adopt the LBD Allocation of Contract