Technology Cooperation and Capacity Building - CommDev

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SevenImperial Oil in northern Canadaoil-in-place. The expansion project included the drilling ofmore than 200 wells, the building of six artificial islands in theMackenzie River (which is several kilometres wide at thatpoint), and the completion of more than 1000 kilometres offield production and transportation pipeline, linking the fieldwith transportation infrastructure in southern Canada.Imperial Oil Resources Limited is sole operator of thefield, with the Government of Canada holding a one-thirdnet profit interest. Today, Norman Wells produces about5300 cubic metres of crude oil per day and employs about100 people, 20 per cent of whom are local Aboriginals.Socio-economic developmentImperial believes it has an obligation to share the wealthcreated by resource development with local Aboriginalpeople through employment and business opportunities.When the expansion project began in the 1980s, Imperialcommitted itself to a policy of working with government andlocal communities to maximize employment and businessopportunities to Northerners in the Mackenzie River Valley(locally known as the Sahtu region). This commitmentextended to both the expansion project and to permanentoperation of the oilfield.Imperial believes development of a vibrant oilfieldservices sector in Norman Wells also enhances the viabilityof future Northern oilfield operations. To that end, thecompany developed a socio-economic action plan to ensurethat the expansion project would create real and lastingeconomic benefits for the people of the North. The planfocused on two major areas—employment and training, andNorthern business development.Employment and trainingA number of initiatives were undertaken to maximizeNorthern employment opportunities through training andhiring practices. These included:● establishment of a Northern employment andconsultation office in Norman Wells;● working with the Government of NWT employmentdepartment and local Band Councils in the Sahtu to assistin recruitment of Northern employees;● development of a rotational work arrangement to allowNorthern employees to continue living in their homecommunities and maintain traditional lifestyles;A winter view of Norman Wells—the town, oilfield and MackenzieRiver. In the background are the Mackenzie Mountains. Several of theartificial production islands built in the Mackenzie River are visible.●●●specific hiring practices designed to maximizeopportunities for Northerners;cross-cultural training and support to supervisors andemployees;Aboriginal employment content targets and creation of aNorthern Development Program to train and equipNortherners with skills vital to permanent employment.As a result of project-based initiatives, nearly half of the2350 work years of employment created by the projectbetween January 1982 and June 1985 was worked byNorthern residents. Initiatives related to the on-goingoperation of the oilfield have increased Northernemployment from less than two per cent prior to theexpansion project to 20 per cent today. Imperialacknowledges that the company’s progress in increasing‘Morale is good and there is a sense that we are native-ownedand operated. There are more native guys here, so we feel morerelaxed. The key to a good crew is everyone working together.It’s nice to have Esso here with us—they’re sharp people. Wenative people used to just watch things from the riverbank. Nowthis is a good place for a young man who wants to learn.’Rod Kakfwi (Fort Good Hope)Shehtah Drilling employee, 198439