Environmental dimensions of petroleum sector governance - LINS

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Oil for Development


OfD

www.norad.no/ofd

November 2007

OfD


our objective


Assist developing countries with
petroleum resources in their efforts
to


manage these resources in a way
that generates economic growth,
promotes the welfare of the
population and is environmentally
sustainable


avoid ”the resource curse”

OfD


who we are


OfD steering committee:



Formulates strategic directions and priorities


Decides on major project proposals


OfD
-
secretariat located in Norad:


Responsible for coordination, implementation and quality
control


Norwegian embassies play an essential role in OfD:



Development cooperation responsibility is assigned to them

OfD


who we cooperate with


The Norwegian Petroleum Directorate, Petrad, the
Norwegian Pollution Control Authority, consultancies and
research institutions


The Extractive Industries Transparency Initiative (EITI)


Norwegian and international oil and service companies can
assist OfD
-
programmes in vocational training and
enhancement of local content


Norwegian and international NGOs


Important role in building capacity among local civil society
organisations


6 Norwegian NGOs and one international NGO have received
funding in 2007


OfD


our foundation



OfD is built around three integrated
themes:



1.
Resource management

2.
Environmental protection

3.
Revenue management



Principles of good governance, transparency and accountability are a
fundamental part of the three themes

OfD
-

how we work



Assistance is based on requests


OfD shares Norwegian experiences. Each country has
to create its own policy based on own circumstances


Long
-
term perspective

Core countries



OfD spending

OfD annual spend
83
175
0
50
100
150
200
2006
2007
Year
Million NOK
*

*

*estimate

OfD and capacity building


Standardised short term courses


Petrad 8
-

week


Tailor made seminars and workshops


Language training


Advisors working with counterparts


Internships and on
-
the
-
job
-
training


Vocational training


Higher education


Scholarships for individual students


Quota programme


NOMA
-

Norad’s Programme for Master Studies




NOMA in more detail


From 2006 NOMA replaced the former scholarship
programme (NPF). NOK 63 mill in 2006


NOMA Energy and Petroleum. Objectives:


Support the development of energy and/or petroleum related
Master programmes at Higher Education Institutions (HEI) in
the South through cooperation with HEI in Norway


Achieve, in a longer perspective, sustainable capacity of
institutions in the South to provide the national work force w
adequate qualifications within energy and petroleum sectors


Stimulate South
-
South
-
North cooperation through support to
the development of regional Master programmes


Enhance gender equality in all programme activities


Strengthen capacity of Norwegian HEI to integrate global as
well as development perspectives in their professional work




The case of Timor
-
Leste


Project ongoing since 2003


Large education component


Petroleum legal framework


Petroleum fund


Boundary negotiations with Australia


1st bid round in exclusive area


Challenging setting


Post conflict


Very low outset capacity in public petroleum sector


Expectation management


high unemployment


Political turbulence





Standardised short term courses


1 public sector staff taking Petrad 8
-
week course each year


Petroleum policy and resource management


Petroleum development and operations



Tailor made seminars and workshops


Seminars and workshops have been conducted in both
Timor
-
Leste and Norway:


Environmental Impact Assessment (2)


Data Management (6)


Resource management (3)


Delegation of 12 to Norway in 2005


visits to a range of institutions in Stavanger and Oslo


seminar on national oil companies



Language training


English is the language of the international petroleum sector


Intensive English training in Australia/NZ for all public
petroleum sector staff in 2005 and 2006


English training in Timor
-
Leste


Significant improvement:


Staff meetings can now be conducted in English


Ability to participate in international training and events



Advisors working w counterparts


Timor
-
Leste is the OfD
-
project that has had most advisors
on the ground


Continuity is a problem, as most advisors only willing to live
there one year


Counterpart capacity is a significant challenge to knowledge
transfer


Language and educational level


Advisors often end up doing the work


Need for long
-
term approach and realistic expectations


Internships and on
-
the
-
job
-
training


Facilitated internships for public sector staff with


Gaffney Cline & Associates (1 staff, 6 months)


Three staff participated in seismic survey (3
-
weeks each)


Vocational training


One public sector staff will attend TAFE (Technical and
Further Education) in Australia from 2008


As part of production sharing contracts in the exclusive
zone operators will support local content development


Not finalised, but may include practical and/or financial support
for vocational training



Higher education


No accredited university in Timor
-
Leste


not NOMA
-
eligible


Funding for bachelor and master degrees abroad


Four students currently on bachelor programmes in Australia


One student currently in Stavanger doing Master in petroleum
engineering


Minimum five years of work for the public petroleum sector
upon completion of degree



Small grants to Timorese taking petroleum
-
related degrees
in Indonesia


OfD capacity building strategy 2008


Strengthen HEI in the South through NOMA, the quota
programme and other arrangements


Scholarships


New, standardised modules


Tailor made workshops/seminars


Facilitate internships and on
-
the
-
job
-
training


Advisors (resident and on rotation)


Close cooperation with Norw. and int. civil society on
capacity building of civil society in the South


Increased focus on local content in projects