Sustainable Development Awareness Session

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Sustainable Development Awareness Session By Dr.
Yasmeen Al Lawati
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Objectives

• What is Sustainable Development?
• Why does it matter?
• Why are we committed to contributing?
• What does it mean in practice How are we
  embedding this commitment into our operations?

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Global issues - Population Growth

• Fact
• World population is expected to double by 2050
• Currently more than 80 of worlds population
  live in developing countries
• Worlds economic output has more than doubled in
  the past 25 years
• Challenge
• Enabling economic growth with minimal
• environmental and related impacts.
• Implications for business
• Adopt cleaner and affordable technologies
• Develop renewable and recyclable goods

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Distribution of Opportunity
12 would produce half the income
2 would have a further college education
100 PEOPLE
44 would not have access to proper sanitation,
electricity or modern cooking fuels
36 would lack basic political rights and civil
liberties
20 would suffer from malnutrition
20 would not have access to clean water
23 over the age of 15 would be unable to read or
write
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Consumption Levels
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Sustainable Development Barometer
1. Can you define Sustainable Development? (so
your neighbours understand)
2. When you hear the term does it make you.
3. Why have companies like Shell committed to
contribute to SD?
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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
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Components of SD-Conventional
People

• Respect safeguard people
• Work with stakeholders

Planet
Profit
SD

• Protect
• the environment
• Manage resources efficiently

• Generate Profitability
• Benefit communities

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The Sustainable Development Lens
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PDO Mission
To explore and develop oil gas in a sustainable
manner to the benefit of all stakeholders
We

• Incorporate SD in strategies, plans and
  decision-making processes
• Contribute to SD in partnership with the
  Governments authorities
• Involve our employees and increase SD awareness
  
  among our staff and contractors
• Report externally on our SD performance

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Move to an engage me world
As trust diminishes, the demand for partnering
with stakeholders, for open reporting and
external assurance increases
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Stakeholder Maps
Society
Maps are representational only- not
comprehensive
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Stakeholder Engagement
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Managing Expectations
Expectations
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Sustainable Development

• 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

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SD in Action . People

• 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

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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

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SD in Action . Profit

• E-business savings
• On-line bidding
• Infrastructure improvement projects roads,
  electricity, etc.
• Local Community Contractors program (LCC)
• EOR projects
• Operating Model Review 2004 beyond.

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Sustainable Development is...

• Balance long term short term
• Integration Profits, Planet People
• Engagement with stakeholders
• Building Partnership

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Integrated Impact Assessment (IIA) Guidelines
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

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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

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IIA Process Flowchart/Deliverables
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Working Example
SD/Social Performance Project
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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
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Opportunity Realisation Framework
The identification, selection and implementation
process for strategic social investment (SSI)
projects follows PDOs opportunity realisation
framework
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Select Phase 1st Stage Ranking
The ranking exercise follows PDO Guideline
Social Performance Project Evaluation Guide (GU
468)

• Project Ranking Criteria
• Project serves wide population
• Project self-sustaining
• Project does not create long-term dependency
  clear PDO exit strategy

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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 and
• 2 not ranked
• Focus Areas Health, Quality of Life, Sustainable
  Livelihoods, Local Capacity Building

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Basic Infrastructure Supportal Qabil

• 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

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SD Structure in PDO
Work together on common projects
PDO Gov. Network Aim to enhance trust
MDC Steering Committee Develop strategy define
what is required
Communicate strategy And requirements
Assess Assets / Project Teams
Social Project selection Select, define rank
the SP Projects
Communicate required Actions / activities
Benchmarking
Feedback Results
Assets/Project Teams Execute actions
PDO SD Peers Network (Shell EP, OLNG, SQU,
OPAL) Learn on best practices
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SD Self Assessment Workshop
SAQ
SAQ
4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.
8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 1.9
4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.
8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 1.9
Full SD integration into all aspects of the PDO
business (Infuse / SD in the Heart)
Full SD integration into all aspects of the PDO
business (Infuse / SD in the Heart)
Leading Indicator SAQ
Leading Indicator SAQ
SD is considered in some PDO business (Weave /
Head to Heart)
SD is considered in some PDO business (Weave /
Head to Heart)
2006
2004
SD perceived as additional and sometimes
requiring duplicating efforts (Bolt On / SD in
the Head)
SD perceived as additional and sometimes
requiring duplicating efforts (Bolt On / SD in
the Head)
2003
2003
SD General Awareness among Staff (SD on Paper)
SD General Awareness among Staff (SD on Paper)
2001/ 2002
2001/ 2002
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SD team 2005 Plan

• Social GIS for the concession area
• SD Awareness Knowledge Campaign across PDO -
  Ongoing
• A common SD pot for all SP projects
• Develop Framework to extend IIAs from Projects to
  clusters
• SD workshop involving key project staff

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Need more info
Visit PDO SD Web Site
OR
Contact MSE6 Team
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.. the journey continues