Oil for Development – 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 * * *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