The Hebron Benefits Plan: Two Steps Forward Introduction

• 
  The employment of Canadians and, in particular, members of the labour force of the Province of Newfoundland and Labrador
  
• 
  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 competitive basis in the supply of goods and services used in any proposed work or activity referenced in the Benefits Plan
  
• 
  The establishment of an office in the Province where appropriate levels of decision-making are to take place
  
• 
  Expenditures for R&D, including education and training, to be carried out in the Province
  
• 
  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, and
  
• 
  Providing first consideration to services provided from within the Province and to goods manufactured in the Province, where those services and goods are competitive in terms of fair market price, quality, and delivery.
  

• 
  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 of Newfoundland and Labrador
  
• 
  Promoting the development of local skills and industry capability that leaves a lasting legacy for the communities in which we operate and for the Province
  
• 
  Delivering execution certainty so that the Project delivers best-in-class return on investment for stakeholders, including the Province, and
  
• 
  Working collaboratively with industry, government, academic and training institutions, community, and other stakeholder groups for the effective delivery of benefits.
  

When it comes to leaving a legacy, the Plan emphasizes delivering sustainable economic development, in the form of benefits that can be leveraged for local, national and export purposes by, for example:

• 
  Providing training and employment experience transferable to other projects and industries
  
• 
  Developing business, education, training and R&D capabilities and experience applicable on other projects and in other industries and markets, and
  
• 
  Building infrastructure that can be maintained and utilized beyond the end of project-related use.
  

The Plan is wide-ranging in seeking to identify benefits opportunities, including:

• 
  Promoting access to Hebron benefits opportunities in rural areas
  
• 
  Industrial tourism initiatives, to both educate about the project and industry, and contribute to local tourism, and
  
• 
  Further developing local capabilities related to the assessing, monitoring, and managing the effects of oil and other resource development activity on rural and peripheral area residents and communities.
  

The Plan acknowledges that expertise for delivering sustainable economic development does not necessarily reside within the oil industry. A Benefits Advisory Committee comprised of local, national, and international experts in economic development and benefits planning, and a Benefits Community of Practice Initiative whereby Hebron and other local benefits practitioners will seek to identify and promote good practice, are Plan inititives to address this.

• 
  Senior management stressing the importance of the benefits in internal and external meetings
  
• 
  Discussing the Plan in employee induction and orientation processes
  
• 
  Considering benefits in contractor performance management
  
• 
  Including benefits as a standard item in internal stewardship activities, and
  
• 
  Stressing benefits commitments in meetings with contractors and suppliers.
  

The body of the Plan consists of policies, guidelines, and procedures with respect to: supplier development, contracting and procurement; employment and training; and R&D.

• 
  Supplier information sessions and workshops, and participation in industry conferences
  
• 
  A website providing timely communication of project opportunities, and
  
• 
  Site visits to assess local infrastructure and prospective contractors operating procedures and capabilities.
  

Given the important role of contractors and suppliers, EMCP required that its two main contractors, for the GBS and the topsides, have approved benefits sub-plans consistent with the Plan and its principles. EMCP and its main contractors and suppliers also established a joint contracts and procurement office in St. John’s, staffed by professionals knowledgeable of the local supply community, to coordinate and manage their activities. Lastly, the reimbursable commercial terms of key contracts helped EMCP influence benefits strategy and drive implementation.