Professional Skills Development & Job Creation in the Upstream Petroleum Industry - AN OGTAN PRESENTATION During 2018 Local Content Conference & Exhibition, By Petroleum Commission Ghana, at Takoradi Ghana Dr. Mayowa Afe President, OGTAN MD – Danvic Petroleum. November 28, 2018

Presented by: MAZI SAM AZOKA ONYECHI, Vice President - (OGTAN) Oil & Gas Trainers Association of Nigeria (OGTAN)

UPSTREAM PETROLEUM INDUSTRY Presentation Outline ABOUT OGTAN UPSTREAM PETROLEUM INDUSTRY LOCAL CAPACITY OPPORTUNITIES IN THE INDUSTRY IN-COUNTRY CAPACITY BUILDING INITIATIVES THE OVERALL NEED FOR TRAINING AND SKILLS ACQUISITION CONCLUSION

ABOUT OGTAN OGTAN is the independent umbrella Group of Training Services Providers in the Oil and Gas Sector established by the Nigerian Content Development and Monitoring Board (NCDMB) in 2010. OGTAN represents the Education and Training Sectoral Group of the Nigerian Content Consultative Forum (NCCF) – NCDMB groupings of industry professionals for each key sector of the local content initiative for enhancing capacity development per identified sector. Acts as a business group that interfaces with Operators, International Organizations and the Nigerian government, with the central to BUILD LOCAL HUMAN CAPITAL CAPACITY in the Nigerian Oil and Gas industry.

OGTAN ACTIVITIES IN PICTURES

THE STRUCTURE OF OGTAN

In alignment with the Human Capacity Development AIMS AND OBJECTIVES OF OGTAN In alignment with the Human Capacity Development Guidelines and the NOGICD Act (2010), OGTAN is established to: Ensure the implementation of a structured and standardized approach to Human Capacity Development in the Oil and Gas industry. To operate as a Training Business Group (Umbrella Body) and interface with the key stakeholders in the industry - National, International Oil & Gas companies and Government.

AIMS AND OBJECTIVES OF OGTAN To provide a platform for training providers to collaborate with Government Regulatory Agencies in formulating policies and developing strategies for domiciling training in Nigeria. To facilitate the creation of sustainable partnerships between local and international organizations thus ensuring that globally accepted standards are deployed locally for human capacity building.

AIMS AND OBJECTIVES OF OGTAN To bridge the identified skills gap between the academia and the industry through liaisons with formal educational institutions including Universities, Polytechnics and Research Institutes Promote opportunities for On-the-Job Trainings through collaborative efforts with operating and service companies in Nigeria

SOME OGTAN MANDATES Become ISO certified and accredited as may be required for its roles in the industry and encourage member-companies to attain similar standardization status & collaborate with international stakeholder organizations like OPITO, NEBOSH, ASNT, AWS, API, CSWIP, IRATA, etc for mutual benefits. Provide guidance on certification requirements for disciplines and competencies that are relevant to oil and gas business Work with NCDMB to Facilitate the establishment of Centers of Excellence in strategic locations.

THE UPSTREAM PETROLEUM INDUSTRY CYCLE

THE UPSTREAM PETROLEUM INDUSTRY

World oil reserves by region THE PLACE OF AFRICA IN O & G OPPORTUNITIES World oil reserves by region Ghana sub-basin

THE STRATEGIC O & G OPPORTUNITIES IN AFRICA

THE ROLE OF TRAINING AND SKILLS ACQUISITION In an Executive Briefing to the World Economic Forum on “The Future of Jobs and Skills in Africa – Preparing the Region for the Fourth Industrial Revolution” (May 2017), the authors stated that “Education and work in Sub-Saharan Africa will determine the livelihoods of nearly a billion people in the region and drive growth and development for generations to come. As one of the youngest populations in the world, it is imperative that adequate investments are made in education and learning that holds value in the labour market and prepares citizens for the world of tomorrow. In addition, as the global transformation of work unfolds in Africa, policymakers, business leaders and workers must be prepared to proactively manage this period of transition”.

WHAT IS LOCAL CAPACITY BUILDING? Broadly defined, Local capacity building is seen as the "process of developing and strengthening the skills, instincts, abilities, processes & resources that organizations and countries need to survive, adapt, and thrive in a fast-changing world”. NIGERIA’S LOCAL CONTENT ACT DEFINITION Section 106 of the Act defines Nigerian Content “ NC” as “the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian Oil and Gas industry”

ROLE OF TRAINING IN LOCAL HUMAN CAPACITY BUILDING It is obvious that for locals to participate as professionals in the Oil and Gas Industry, they have to be trained in the complex processes of the industry and certified according to international standards for such practice. Realizing this therefore and in a bid to truly achieve the most singularly important goal of the Local Content Act in Nigeria, NCDMB rallied all Companies offering trainings of various kinds in the industry and formed them into a unified business body with the challenge to go all out, improve their capacities and capabilities and strive with earnestness to aid the Board realize this goal of making Nigerians useful in the core businesses of oil exploration via human capacity building, hence Oil and Gas Trainers Association of Nigeria (OGTAN) was born.

VARIOUS LOCAL CAPACITY BUILDING INITIATIVES Capacity building and development is needed to initiate and maintain Africa’s emerging economy, especially in the oil and gas sector

VARIOUS LOCAL CAPACITY BUILDING INITIATIVES Develop local capacity in key areas such as manufacturing fabrication, engineering etc Promote indigenous ownership of assets and utilization of indigenous assets in oil and gas operations 1 Maximize utilization of in country made goods 2 Develop indigenous skills pool across oil and gas value chain Provides mandatory training requirements on the back of projects Creates JQS to manage and track available skills Maximize utilization of local human resources 3 Link the oil and gas industry with other sectors of the Economy Promote establishment of support industries that will sustain oil and gas industry operations Enhance multiplier effect of oil and gas investments in economy Focus on community participation in the supply chain 4 Develop pool of competitive supply chain rooted in oil bearing communities Create customized training and sustainable employment opportunities structured awareness and enlightment campaigns 5 Institutionalize inter-agency collaboration on local content development Integrate necessary agencies into planning and contracting process to ensure Local Content COUNTS Dedicated capacity building must be ensured Foster institutional collaboration

THIS IS THE CAPACITY DEVELOPMENT THAT LASTS SUMMARY & CONCLUSION Various local capacity initiatives are in place to enhance local content development but chief of them all is: LOCAL HUMAN CAPACITY DEVELOPMENT THROUGH TRAINING AND SKILLS ACQUISITION THIS IS THE CAPACITY DEVELOPMENT THAT LASTS AND IS ABOVE ALL TRANSFERABLE. OGTAN will therefore join the “call to action to the region’s leaders to address urgently the reforms that are needed today to ensure that Africa’s young people can harness the new opportunities that are coming their way”

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