ExxonMobil Canada Properties - Hebron Project · Hebron Project EMCP Page 5 of 14 4.0 PROCUREMENT...
Transcript of ExxonMobil Canada Properties - Hebron Project · Hebron Project EMCP Page 5 of 14 4.0 PROCUREMENT...
ExxonMobil Canada Properties
Hebron Project Canada-Newfoundland and Labrador Benefits Report for the Period
January 1, 2018 to December 31, 2018
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 1 of 14
Table of Contents
1.0 Introduction ..................................................................................................................... 2
2.0 Canadian-NL Content Estimates .................................................................................... 3
3.0 Employment .................................................................................................................... 3
4.0 Procurement and Contracting ......................................................................................... 5
5.0 Supplier Development .................................................................................................... 6
6.0 Research and Development ........................................................................................... 7
7.0 Hebron Photos ................................................................................................................ 8
8.0 Diversity ........................................................................................................................ 13
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 2 of 14
1.0 INTRODUCTION
Hebron is an offshore oil field estimated to produce more than 700 million barrels of recoverable
resources. The field was discovered in 1980 and is located offshore Newfoundland and Labrador in the
Jeanne d'Arc Basin 350 kilometres southeast of St. John's, the capital of Newfoundland and Labrador. It
is approximately 9 kilometres north of the Terra Nova Project, 32 kilometres southeast of the Hibernia
Project, and 46 kilometres southwest of the White Rose Project. The water depth at Hebron is
approximately 93 metres.
The Hebron co-venturers are: ExxonMobil Canada Properties (EMCP), Chevron Canada Limited, Suncor
Energy Inc. through the Hebron Petro-Canada Partnership, Equinor Canada Ltd. and Nalcor Energy – Oil
and Gas Inc. EMCP is the operator of the Hebron Project.
During May 2011, EMCP, on behalf of the Hebron co-venturers, filed the Hebron Benefits Plan with the
Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). The Hebron Benefits Plan
was conditionally approved on May 31, 2012 and covers the construction and operations phases of the
project.
Five key principles of the Benefits Plan include:
Meeting local benefits commitments while maintaining the highest levels of safety,
environmental performance, efficiency and integrity of our operations;
Selecting contractors and suppliers that will work diligently with us to deliver benefits to the
people of the Province;
Promoting the development of local skills and industry capacity that leaves a lasting legacy for
the communities in which we operate and for the Province;
Delivering execution certainty so that Hebron delivers best-in-class return on investment to
stakeholders, including the Province of Newfoundland and Labrador; and
Working collaboratively with industry, government, academic and training institutions,
community and other stakeholder groups for the effective delivery of benefits.
As outlined in section 45 of the Atlantic Accord Acts, specific provisions of the Hebron Benefits Plan
include a plan for:
The employment of Canadians and, in particular, members of the labour force of the Province
of Newfoundland and Labrador;
Consistent with the Canadian Charter of Rights and Freedoms, providing individuals resident in
the Province with first consideration for training and employment in the work program for
which the Benefits Plan was submitted;
Providing manufacturers, consultants, contractors and suppliers and service companies in the
Province, and other parts of Canada, with full and fair opportunity to participate on a
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 3 of 14
competitive basis in the supply of goods and services used in any proposed work or activity
referenced in the Benefits Plan;
Providing first consideration to services provided from within the Province and to goods
manufactured in the Province, where those services a3nd goods are competitive in terms of
fair market price, quality and delivery;
The establishment of an office in the Province where appropriate levels of decision-making are
to take place; and
Expenditures for R&D, including education and training, to be carried out in the Province.
This report summarizes the Hebron Project activities for the period of January 1, 2018 to December 31, 2018
in the areas of expenditures, employment, procurement and contracting, research and development, and
diversity.
2.0 CANADIAN-NL CONTENT ESTIMATES
The table below details the estimated Canada-NL content of actual expenditures during 2018.
* NL = Newfoundland & Labrador, OC = Other Canadian, NC = Non-Canadian
3.0 EMPLOYMENT
The total number of people employed on the Hebron Project as of December 31, 2018 was 1152 of which
91.5% were NL residents, 5.5% were Other Canadian and 3% were Non-Canadian based on Canadian
General Standards Board (CGSB) reporting guidelines and the C-NLOPB definition of residency (i.e. in
compliance with the Newfoundland and Labrador Elections Act).
2018 Canada-NL Content Estimates
NL OC NC Total
TOTAL 62% 13% 25% 100%
No. Filled NL OC NC
Offshore 553 525 24 4
Onshore 599 529 39 31
Totals 1152 1054 63 36
Percentage 91.5% 5.5% 3%
* NL = Newfoundland & Labrador, OC = Other Canadian, NC = Non-Canadian
Status (at time of hire)
Hebron Staffing Residency Summary
As of December 31, 2018
(Steady State and Transitional Roles)
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 4 of 14
Notes: 1. Reported total number of persons directly employed on the project at end of reporting period, including operator and contractor personnel. 2. Residency status reported as of time of hire, based on the following definitions:
Canadian: A person who was born in Canada and has not relinquished his/her Canadian citizenship; or, a person who has been granted
Canadian citizenship; or a person who has been granted landed immigrant status
Newfoundland and Labrador Resident: A Canadian citizen or landed immigrant who meets the residency requirements of the Province as
defined by The Elections Act, SNL 1992, CE-3.1
3. Reported location by “Onshore”, “Offshore” activity
Notes:
1. Disciplines are based on the following National Occupational Classification (NOC) Codes:
Management includes: Senior Managers as well as Middle and Other Managers
Administration includes: Administrative & Sr. Clerical Personnel as well as Clerical Personnel
Engineers includes: only those in that NOC code
Technicians includes: Semi-professionals & Technicians
Professionals includes: only those in that NOC code
Skilled Trades includes: Skilled Crafts & trades as well as Skilled Trades & Services
Labour includes: Semi-Skilled Manual Workers, Other Manual Workers as well as Intermediate Sales & Service
Students includes: any student enrolled at a recognized educational institution or accredited academic program and includes both graduate and undergraduate students, cadets or any other student
Other includes: positions that do not fit into any of the other disciplines
Male % Female %
Management 107 84.1% 20 15.9% 127
Administration 19 25.1% 57 74.9% 75
Engineers 109 84.3% 20 15.7% 129
Technicians 168 90.7% 17 9.3% 186
Professionals 113 79.8% 29 20.2% 141
Skilled Trades 264 98.9% 3 1.1% 267
Labor 150 96.7% 5 3.3% 155
Students 6 71.6% 2 28.4% 9
Other 56 89.1% 7 10.9% 63
TOTALS 992 86.1% 160 13.9% 1152
Employment Summary by Discipline
Hebron Project
As of December 31, 2018
DisciplineNumber of Persons Total Number of
Persons
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 5 of 14
4.0 PROCUREMENT AND CONTRACTING
The table below provides a listing of Hebron’s new service contracts, services contract extensions, material
contracts and material contract extensions with a value greater than $250,000 awarded during 2018. The
table includes a description of the contract, name of the contractor and the contractor’s location at the time
of award.
Contracting Activity 2018
Description Contractor Contractor
Location (NL, OC, NC)
NEW SERVICE CONTRACTS
Water Sampling Avalon Laboratories Inc. NL
Supply Of HVAC Primary and Secondary Filters Dawe Enterprises NL
Supply of Misc Electrical Consumables McLoughlan Supplies Ltd. NL
Supply of RFID Technology and Software Services Focus Field Solutions Inc. NL
Supply of Architectural Support Services Stantec Architectural Ltd. NL
Immersion Suit and Life Jackets Maintenance and Repair Nord Marine Services Ltd. NL
Subsea Engineering Support Frontier Subsea NL
Marine Surveys and Inspections Canadian Global Maritime NL
Supply of Maintenance, Repair, Hydraulics, and Fabrication Services for Hebron
Hyflodraulic Limited NL
Supply of Technical Safety and Risk Engineering Services RiverRock Consulting Inc. NL
Marine Surveys and Inspections Canadian Global Maritime NL
Bird Monitoring Services LGL Limited NL
Repair and Maintenance of LP Compressor for Hebron Howden Compressors NC
MATERIAL CONTRACTS
Supply of Galley and Laundry Equip and Spare Parts Harold Snow Service Group
NL
SERVICE CONTRACT EXTENSIONS
Provision of vessel support services, Hebron Atlantic Towing Ltd NL
MATERIAL CONTRACT EXTENSIONS
Supply of OEM Rapp Bomek Hy Duty Door Spares K & D Pratt Ltd NL
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 6 of 14
Purchase Order Analysis
During 2018, 5,608 Purchase Orders (POs) were awarded with a total value of $222,859,125.19. The chart
below summarizes the percentage of the total awarded value by location.
5.0 SUPPLIER DEVELOPMENT
Throughout 2018, Supplier Development activity continued with local vendors regarding the Hebron Project
and potential opportunities.
In April 2018, EMCP met with representatives from Nunacor Development Corp, the executive
development arm of the Nunavut Community Council representing Inuit of Southern Labrador, to
provide them with an overview of the procurement process utilized by oil and gas operators in NL
and to gain a better understanding of the capabilities and types of services provided by their
member companies, as they apply to offshore requirements.
In May 2018, a supplier session was held at OTC in Houston for NL suppliers. This was an invitation
only information session for NL suppliers attending the OTC and aimed to raise awareness around
ExxonMobil’s procurement opportunities globally (ex. in Guyana, Romania, etc.) as well as in the US
and Western Canada. The purpose was to facilitate operator–supplier collaboration to help increase
access to global supply chains and export markets, and to provide them with details on procurement
processes utilized by ExxonMobil in the various regions as well as who the key points of contact are
for suppliers interested in expanding the supply of their services to those areas.
During the NOIA 2018 Oil & Gas Conference in June, EMCP participated in their Business-to-Business
Matchmaking Program which provided suppliers registered in the program with opportunity for
one-on-one meetings with Operators and other major industry players to discuss the services they
provide and how they relate to oil and gas industry requirements.
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 7 of 14
In 2018 EMCP partnered with Focus FS to use and further develop their home-grown RFID solution
for application in supply chain and offshore activities. Following successful early implementation in
NL, Focus FS is now being considered for a global agreement with ExxonMobil to expand the use of
their solution in operations in other regions.
Provided contact information for EMCP procurement counterparts in various regions to suppliers
interested in international opportunities outside of NL, ex. Guyana.
Co-ordinated several supplier information sessions / site visits with local suppliers for the buying and
maintenance teams to raise awareness and educate them about capabilities of local supply
community.
In addition to the above EMCP activities, Aker Solutions, Hebron EPCM, has also participated in supplier
engagement & development activities in 2018.
Aker has been working with local fabricators to obtain certification on procedures and weld
qualifications that were previously not available locally and were only able to be sourced from
outside of NL
Aker initiated a technical qualification process with several new local suppliers, which pre-qualifies
them to compete for future work tendered by Aker in NL, and makes them available for use in other
countries where Aker operates, increasing their exposure
6.0 RESEARCH AND DEVELOPMENT
Listed below are some key research and development and education and training activities related to the
Hibernia Project that took place in 2018. In 2018, Hebron R&D and E&T expenditures exceeded $6.2M.
Ice Management
Helicopter Operational Efficiency
Flowline Protection Requirements for Extended Tiebacks
Subsea Iceberg Protection Structure (SIPS)
Johnson GeoCentre Exhibit Upgrade
Ocean Learning Partnership
Petty Harbour Mini Aquarium – Operational Upgrade Project
Metocean
Co-operative Education Students
Scholarships and Awards at Memorial University of Newfoundland and College of the North Atlantic
Safe Choice Training
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 8 of 14
Kristina Ennis, Benefits and
R&D Analyst, at the Coalition
for Persons with Disabilities NL
2018 Inclusion Awards
presenting the Hebron
sponsored Inclusion Award –
Excellence in Disability Media
Coverage to CBC’s Ramona
Deering & Jen White for the
Access Denied series.
7.0 HEBRON PHOTOS
Carman Mullins, President of EMCP, spoke at the 2018 NOIA Oil and Gas Conference in June 2018
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 9 of 14
EMCP employees and contractors from the Hebron team presented seven papers about the Hebron Project at the Offshore Technology Conference in Houston, Texas in May 2018. The session reached
capacity and required an overflow room to accommodate the large audience.
Stephen Edwards, SSHE and External Relations Manager, presents a donation to Gary Lane and Christian Somerton of the Victoria Park Community Renewal project
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 10 of 14
Paul Phelan, Finance Manager, presents a donation to Bridges to Hope “Bag to School” program that supports the community through educational outreach
Sadie Sellars and Sarah Pietraszek-Mattner present a donation of $5,000 to the NL Sexual Assault and Crisis Prevention Centre Executive Director Nicole Kielly.
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 11 of 14
On November 27, 2018 Hebron marked one year of production with a Day of Giving. On hand at the event were representatives from Hebron operator ExxonMobil Canada, co-venturers (Chevron Canada, Suncor
Energy, Equinor Canada and Nalcor Energy – Oil and Gas), the Hebron Project Employers’ Association and 10 local charities that received a total donation of $420,000: Janeway Foundation, Young Adults Cancer Canada, NL Hard of Hearing Association, Ronald McDonald House, Daffodil Place, Discovery Health Care Foundation, Juvenile Diabetes, Mazol Shriners, MS Newfoundland & Labrador, and Women in Resource Development.
Carman Mullins, ExxonMobil Canada President, presents a donation of $1.44M to the Dr. H. Bliss Murphy Cancer Centre on behalf of the Hebron Project Employers’ Association.
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 12 of 14
ExxonMobil Canada employees volunteering at the Gathering Place
Representatives from ExxonMobil Canada, Hebron Co-venturers, and the Hebron Project Employers’ Association present a donation to Kids Eat Smart Foundation NL
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 13 of 14
In addition to the above noted donations for 2018, the Hebron Project and the Hebron Project Employers’ Association also made the following donations:
Resource Centre for the Arts - $5,000
Old Perlican Recreation and Arena - $10,541
8.0 DIVERSITY
2018 Hebron Diversity Report Introduction It is the ongoing responsibility of ExxonMobil Canada Properties (EMCP) to oversee the implementation and execution of the Hebron Project Diversity Plan to meet its regulatory and contractual requirements. EMCP’s approach to achieving success in diversity takes a long-term view, and focuses on sustainability following implementation. The report below includes results from EMCP’s workforce self-identification survey and initiatives completed in 2018.
Representation of Designated Groups
Employment Categories Women
Aboriginal Peoples
Visible Minorities
Persons with Disabilities
2018 2018 2018 2018
Managers and Supervisors 16% 1% 3% 0%
Professional and Technical 21% 1% 4% 0%
Administrative 77% 0% 1% 3%
Skilled Crafts and Trades 2% 2% 2% 0%
Sales and Service 33% 5% 5% 5%
Manual Workers 11% 1% 7% 1%
Representation
Representation numbers indicate a percentage of the total project workforce, including EMCP employees, contractor agency employees, main contractors and subcontractors
With the exception of gender, all representation results reflect responses to the self‐identification survey. Individuals have the right to decline self‐identification and as a result, not all representation may be captured.
In 2018, Hebron completed its first year in operations. In the majority of employment categories, the overall representation of all designated groups has remained relatively stable, with minor fluctuations year over year.
HEBRON 2018 BENEFITS REPORT 29-Mar-19
Hebron Project EMCP Page 14 of 14
Implementation
Total compounded community investment of approximately $1.9 million o 2018 saw focused investment in high economic, employment and social impact programs
including Oceans Learning Partnership Teaching Fellowships, College of the North Atlantic Skilled Trades Apprenticeship Bursary Program for Women and Indigenous Students, Women in Resource Development Corporation, Coalition for Persons with Disabilities, Esteem Women, NL Sexual Assault Crisis and Prevention, Newfoundland and Labrador Organization of Women Entrepreneurs, NLOWE, and Memorial University Diversity Awards and Women in Science and Engineering Scholarships, and College of the North Atlantic Diversity Awards and Women in Industrial Trades and Engineering Technology Bursaries.
Collaborative recruitment and selection efforts o In 2018, EMCP and its contractors worked with community organizations to attract and recruit
diverse candidates from around the province.
‘One platform, One Team’ inclusive and supportive work environment o 2018 saw continued initiatives aimed at supporting inclusion and wellness of employees on the
Hebron Project.
Continuous improvement of monitoring and stewarding initiatives o In 2018, EMCP continued to onboard new contractors which included reviewing key policies,
guidelines, plans and requirements, as well as ongoing review and support of main contractors in the development and implementation of required Diversity Plans.