CRES together with AFREN PLC and

THE UNITED NATIONS INSTITUTE FOR

TRAINING AND RESEARCH (UNITAR)

published a study entitled "Skills

shortages in the global oil and gas

industry. How to close the gap"

One year ago, the “Global Oil for Development” initiative was launched with the aim of enhancing the linkages between the oil and gas industry and socio-economic development in producing countries. Conducted in close collaboration among two international organizations (UNDP and UNITAR), an oil company (AFREN), CRES, and in consultation with ILO, the study lays the foundations of the initiative.

The study is based on an analysis of the socio-economic and political environment of the two main sub-Saharan countries, Angola and Nigeria. It examines ways through which countries could implement local content policies in a realistic and optimized manner, and at the same time benefit from the "talent crisis" the oil industry is currently facing.

The study proposes orientations and recommendations that respond to local content challenges and opportunities. It is based on the importance of developing relevant and comprehensive training strategies that will support the emergence of local content.

Although the study was initiated before the financial crisis and the sudden oil price collapse, the topic is still relevant today for any organization or company that is looking for long term development.

Any local content policy, especially in the oil and gas sector, is however not an end in itself. Such policies should be considered a major leverage for industrial development in those countries where oil and gas represent the main resource in support of the Millennium Development Goals.

>> Read the document Part I

>> Read the document Part II, Case studies Nigeria, Angola

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COOPERATION AGREEMENT with

AFREN PLC and THE UNITED NATIONS

INSTITUTE FOR TRAINING AND

RESEARCH (UNITAR)

Geneva and London, 5th February 2008 - CRES has entered into a cooperation agreement with The United Nations Institute for Training and Research (UNITAR) and AFREN PLC.

CRES is pleased to announce that the Foundation has signed a cooperation agreement with AFREN PLC and The United Nations Institute for Training and Research (UNITAR), to investigate the skills gap in oil-producing African countries and detail the results in a comprehensive report due out in Q3 2008.

The parties will subsequently explore the feasibility to develop a regional training institute, leveraging on the findings of the skills gap report, to create a program aimed at providing solutions to assist in the reduction of the competency disparity.

BACKGROUND

The global oil and gas industry will face a lack of skilled employees in the near future.  In particular in oil-producing developing countries, energy companies face a dilemma: import an expensive skilled workforce or opt to train more nationals and thereby promote economic growth and increase local content.

Young women and men in developing countries must have greater access to high-powered training to fill the coming skills gap in the petroleum and energy industry.  Training is needed in all fields from physical to electronic engineering, energy policy, IT, supply-chain and human resources management, logistics and financial accounting.  What's more, the best international standards of ethical good governance and sustainability must be included in education and training for all future professionals.

Most important is that energy supplies meet the demand to fuel global economic growth.  But this will only be possible so long as the energy industry attracts sufficient numbers of young qualified professionals. 

Better schooling and professional training is indispensable, not only to guarantee energy for the future, but also to improve living conditions and employability where the need is greatest.  The United Nations Millennium Development Goals (MDGs) were negotiated to reduce poverty and increase everyone's chances for economic prosperity; to achieve this, collaboration between the energy industry, governments, international organisations and NGOs is vital.

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GLOBAL OIL FOR DEVELOPMENT INITIATIVE

Stakeholder dialogue, training and local content in the oil and gas sectors

The objective of this initiative is to strengthen the positive impact of the oil and gas sectors on sustainable development in producing countries. This impact is primarily felt through local development, the creation of decent jobs and an effective stakeholder dialogue. The aim is to align business objectives in the two sectors with those of human development and local economic growth.

It is often argued that the oil and gas sectors contribute little to the sustainable development of developing countries. This is primarily because of the perceived “oil curse”, the so-called Dutch disease and the enclave nature of oil and gas production with few linkages to the rest of the economy.

This initiative is based on the view that oil and gas production have large potential benefits for sustainable development, but that complementary policy measures need to be introduced to make these benefits real and to ensure that they reach a wide segment of the population, in particular workers and their representing organizations.

The project seeks to achieve this objective at three levels. First, it recognizes that an effective stakeholder dialogue is essential to making oil more development-friendly. The project will strengthen dialogue between all stakeholders, and in particular the social dialogue between government, the oil and gas producers, and the workers and their organizations. Second, once an enhanced stakeholder dialogue is in place, programmes will be identified at country level to provide training, promote decent work and local development. The promotion of decent jobs will be in accordance with the ILO Declaration on fundamental principles and rights at work, and follow the guidelines contained in the ILO Tripartite Declaration of principles concerning multinational enterprises and social policy.

Third, the project will identify good practice policies to enhance the contribution of the oil and gas sectors in achieving employment growth, local development and poverty reduction. This will result in a series of policy proposals and recommendations validated by the international community, targeting not only governments but also multinational and national enterprises in the oil and gas sectors.

This initiative is a joint effort of two UN organizations – the United Nations Institute for Training and Research (UNITAR) and the International Labour Organization (ILO) – and the Centre de Recherches Entreprises et Sociétés (CRES).

>> Read the document

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