NES Global Talent at

The Energy Construction Forum

EXPERTISE

NEEDED

EXPERTISE

FOUND

Talent Dynamics

Gulf Coast Energy Construction 2015 - 2017

Agenda

Overview: Forecast Projects

Talent Attraction / Retention: Oil Price Impact

Project Lifecycle & HR Dynamics

Practical Solutions for a changing environment

Questions

Gulf Coast� 30% of US gas processing capacity

� 40% of US refining capacity

EIC – 136 active US projects – through 2019� $700m average spend

� 98 project owners / developers

GTL / Ethylene / Methanol / Fertilizer / Petrochemical / Gas Processing…

Energy Projects | Overview

North American LNG Import / Export Terminals

Approved

Import TerminalApproved – Not Under ConstructionU.S. – MARAD/Coast Guard1. Gulf of Mexico: 1.0 Bcfd (Main Pass McMoran Exp.)2. Offshore Florida: 1.2 Bcfd (Hoëgh LNG – Port Dolphin Energy)3. Gulf of Mexico: 1.4 Bcfd (TORP Technology-Bienville LNG)4. Corpus Christi, TX: 0.4 Bcfd (Cheniere – Corpus Christi LNG)

(CP12-507)

Export TerminalApproved – Under ConstructionU.S. – FERC5. Sabine, LA: 2.76 Bcfd (Cheniere/Sabine Pass LNG)

(CP11-72 & CP14-12)6. Hackberry, LA: 1.7 Bcfd (Sempra – Cameron LNG) (CP13-25)7. Freeport, TX: 1.8 Bcfd (Freeport LNG Dev/Freeport LNG

Expansion/FLNG Liquefaction) (CP12-509)8. Cove Point, MD: 0.82 Bcfd (Dominion – Cove Point LNG)

(Cp13-113)

Approved – Not Under ConstructionU.S. – FERC9. Corpus Christi, TX: 2.14 Bcfd (Cheniere – Corpus Christi LNG) (CP12-507)As of January 6, 2015

Talent Attraction / Retention – Lower Oil Price

Demand

Softening market – local / regional / international with focus on cost reduction

Availability

Improved HSEQ, Project Services, Engineering, Construction

Continuing Challenges

Specialist engineering and operations roles, particularly liquefaction / methanol

Long term retention: providing the right environment to keep talent when market returns

Behaviors

Good planning, and holistic approach to project staffing and community can deliver a team to deliver projects and continue operations

Importance of HR Strategy to support Project Reputation & Success

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Sta

ffS

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YearYearYearYear

Operations

Peak Construction

Project Project Project Project

Development Development Development Development

(FEED / EPC)(FEED / EPC)(FEED / EPC)(FEED / EPC)

In the face of competing projects, the best executed HR Strategy will deliver significant competitive advantage.

Project Lifecycle

Staff Resource Mix:

• Project Team Staff

• Consultants

• Contractors / Suppliers

Key Challenges:

• Short timeframes

• Discrete Activities

• Large ramp-up

• Finite Talent Pool

• Global Footprint

Non-Traditional Challenges:

• Community Engagement / Development

• JV / Supply Chain Optimization

• Collaboration with Competitors / Authorities

Workforce Dynamics | HR Strategy (1)

Primary Formative Primary Formative Primary Formative Primary Formative

DynamicsDynamicsDynamicsDynamics

Understand & defineUnderstand & defineUnderstand & defineUnderstand & define

� Policy

� Objectives

� Charter

Secondary Formative Secondary Formative Secondary Formative Secondary Formative

DynamicsDynamicsDynamicsDynamics

Build plans to deliverBuild plans to deliverBuild plans to deliverBuild plans to deliver

� Tools

� Process

� Conditions

� Resources

Workforce Dynamics | HR Strategy (2)

Primary(Compliance / Project

Fundamentals / People & Culture)

Secondary

(Recruitment / Attraction &

Retention / Induct & Train)

� Local content

(staffing / training / supply chain)

� Immigration (work visas)

� Employment law / practices (e.g.

overtime / unions / collective agreements)

� Location of project and related

engineering offices / fabrication facilities

� Project Scope

� (e.g. type of work / duration of work)

� Securing accommodation and facilities

� Agreeing work roster pattern

� Project workforce mix

(staff / consultants / contractors)

� Training / ongoing career opportunities

� Communications and branding

� Recruitment supply chain

(having the right resources to execute to plan)

� Pipelining talent – up to a year in advance

Policy / Objectives / Vision / Charter Tools / Resources / Reports / Process

Examples

Executing Strategy = Competitive Advantage

Introducing concepts that we have experienced or supported on projects facing similar challenges:

Project Bonus Programs- 3% - 5% of TFR can incentivize behaviour and improve retention at end of project

Training- Building specialist programs to address technical, community or local needs

Local Content / Community Engagement - Developing a team to deliver positive and sustainable relationships

Project Organisation (JV & EPC Contractors) Team Culture- Shared communications, recognition, rewards programs, and team building

Blended RPO – Reinforcing Successful HR Strategy Execution- Developing the right platform to optimise employee engagement and reduce costs

Blended RPO | Diagram of Benefits

Women in Engineering

Day Month Year and Presenter’s name

The global focus on attracting more women into the oil and gas industry is notjust about creating a more diverse workforce, it is of vital importance if we are tocontinue to serve the world’s growing energy needs.

� Demand for engineering expertise is far outstripping supply and half the experienced engineering workforce is set to retire in the next decade.

�While more is being done to encourage young women to study the STEM subjects this gender disparity continues to exist.

� In order to power future energy projects, the oil and gas industry must act now to fully tap into this enormous potential talent pool.

It’s not just a talent gap – it’s a gender gap

THANK YOU

Dane Groeneveld

Regional Director, Americas

+1 713 551 4401 | +1 832 205 0160

dane.groeneveld@nesglobaltalent.com

Dane Groeneveld

800 Gessner Road, Suite 310, Houston, Texas, 77024 USA

Appendix: Top 20 CAPEX by Country and Project Type

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USA

Total Value ($Million)

Total Value ($Million)

Total Value ($Million)

Total Value ($Million)

LocationLocationLocationLocation

Biofuel

Chemical

CTG

CTL / GTL

Demonstration Plant

Expansion

Fertiliser / Ammonia

Gas Processing / Treatment

Industrial Gases

Operations and Maintenance

Petrochemical Complex

Refinery

Storage

Underground Coal Gasification

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