ASSESSING WORK FORCE FOR EMERGING OIL AND GAS INDUSTRY.

PRESENTED BY

Mr. Nestory Phoye Managing Director

PROACTIVE SOLUTIONS (T)LIMITED P. O. Box 191, Mtwara-Tanzania; Shangani area– near VETA

Sub ofice: Lindi, Kilwa. Mobile phone:+255 787 339 699Email: info@proactivesolutions.co.tz, Website:

www.proactivesolutions.co.tz

INTRODUCTION

• The human resource is certainly the most important factor of production because it is capable of transforming all the other factors for the betterment of human life and human welfare.

• Developing and utilizing this resource effectively increases its productivity and its capital value. Thus, human resources development must be one of the leading objectives on the nation's development agenda

• Given significant discoveries of natural gas, there is apparent demand local workforce from riggers to petrochemical engineers on and offshore. There is a need to exposing this potential and disseminate the status of the industry particularly its potential contribution to the development of Tanzania.

INTRODUCTION- CONTINUE

• The oil and gas industry in Tanzania is now a few years old. The previous drilling campaigns were mostly seismic and exploration campaigns with non-permanent staff. Later on Mnazi Bay and songosongo fields were the first major onshore exploration areas that shows employment needs when gas exploration is made semi-permanent or permanent.

• Today oil and gas companies are coming in with large long-term in investment. With these trends there are substantial needs for skilled permanent personnel in exploration as well as when productions begin in major scale.

• These new companies will no longer looking for a large amount of ex-pats for all skilled positions and large amounts of unqualified staff who can be used for rigger work(Current trend…locals works on unskilled and semiskilled jobs.

• Expats are qualified and highly experienced but also expensive…• Local staff are un-experienced but cheep

INTRODUCTION- CONTINUE

• – instead the companies are looking for long term solutions with skilled Tanzanians who can replaced the ex-pats staff, and a more streamlined crew with higher specific skills and who are suitable for long-term employment, without any disturbances.

• Of the unskilled and unexposed job-seekers they are looking for those which can be trained and climb the ranks in the company. They are also looking for cost-effectiveness and wish to avoid commotion and legal repercussions, compared to trouble –free international staff. In recruitment off-shore for example, there is no reason not to employ staff from other countries, if it means less trouble and hassle than Tanzania staff.

Aim of the discussion:Assessing Tanzania workforce:

• There are plenty of bright and talented young people in Tanzania. Unfortunately most of Tanzanian job seekers have no prerequisite training to work directly in the Oil and Gas industry. Positions like Riggers, Roustabout, Roughneck, Forklift Operators, Crane Operators, Drillers, Seismic crew, Derrick men, motormen (mechanics),Boats Operators, Drivers, Logistics Coordinators, HSE advisors, Assistant Operations managers, Clearances and forwarding, customs clearing, Hospitality, catering, housekeeping and Security requires basic training in particular field (trade skills, industrial experiences and well administered Health, Safety and environment training (accredited training) and good communication in English and excellent working attitude. Oil and Gas companies have high emphasis and are strict on adhering to health and safety and one of the disqualifications is non compliance to Health and safety requirements.

Assessing Tanzania workforce-CONTINUE

• The trend now, staff are being recruited in other continent countries. The reason being that these candidates speak good English, have experience and industrial skills and excellent attitude (Example of a drillship with 150 workforce…only 10-20 Tanzanian)

• If this trend continues the benefits of the oil and gas industry will not benefit local Tanzania population, which will lead to further segregations and marginalization which may lead frustration and social unrest as well as general increase of insecurity (crime). In real terms, Tanzania should be the hub of the oil and gas industry, with excellent schools, courses, infrastructures for certifications.

Assessing Tanzania workforce:CONTINUE

• With high employment rates and flourishing communities and increase government income, resulting in higher social institutional infrastructures. Continued employment of workers from other countries is like to be returned to home region through remittances

• Given that local government works in the interest of its constituents, our belief is that the local government must do what it can to insure as much employment as possible comes to the local employment force of Tanzania.

• Key difficulties must be met with targeted efforts. By doing this, we believe that Tanzania can be a flourishing with the benefits of the oil and gas industry being seen in all social layers.

Assessing Tanzania workforce:Obstacles for local employment in Tanzania (Example of Mtwara)

The reasons for oil and gas companies not employing people from Tanzania are many.

• Attitude problems are prevalent. It beings with a lack of professionalism when looking for the job, difficult salary negotiations, bad work performance, talking their personal employment status with strangers, third parties and clients, poor adherence to company policies, legal aftermaths and bad talking following termination. (Ex. 5 out of 10 new recruits will be terminated in the first three to six months)

• Lack of trade skills is another obstacle. Even though of the candidates have been to VETA or a graduate or worked in local workshops, many do not have practical work experience. Also their trade skills are substandard. This is particularly true for the hospitality industry, and less true for mechanics and electricians. (Example…a new recruits will need at least one two two year to master his/her job)

Assessing Tanzania workforce:Obstacles for local employment in

Tanzania (Example of Mtwara)

Communication problems.• Lack of communication skills among Native Tanzanians, Low

Command of English language is an increasingly important hindrance. While in previous campaigns it was possible to use Tanzania with only Swahili and English/Swahili –speaking supervisors to translate, companies looking for long –term employments wish to use staff which they can train to rise in the company and eventually replace ex-pats. In some cases the companies wish to send candidates to study specific trades and abroad this is obviously not possible for anyone who does not speak good English. Even if possible from Tanzania do obtain work, without English they will always remain in the lowest positions (housekeepers, rigger, security etc, not supervisors or managers). (Example of the offshore roustabout position requirement

Obstacles for local employment in

Tanzania (Example of Mtwara)- Continue

Communication problems/government/trade unions• An additional obstacle for companies operating in Oil and Gas

industry is communication between staff, government and trade union and companies in the oil and gas industry. This results into the outsourcing of liabilities to shadow third parties and the movements of company registrations to other jurisdictions.(Outsource liabilities)

• Trade unions/Labour/inspectors/mediators/abitrators etc, do not really understand the industry and they end up misleading local staff and hence create misunderstanding and conflicts at workplace (An example of an arbitrator who said, he finds out that in the dispute between an employee and an employer, he will just favour an employee regardless because he thinks the employer is too pewerful over an employee….

Obstacles for local employment in Tanzania (Example of Mtwara)-

Continue• Working hours and poor time management and discipline. Currently, there are conflicts between the Tanzania Labour law

act no.6 of 2004 and the practice of the oil and gas industry globally. Local Tanzanian who works in Oil and gas industry prefer to be treated as per labour law of Tanzania by working 8 hours per day, 45 hours per week and 195 hours per calendar month, probably with additional 10 hours overtime per week and 50 hours overtime per calendar month. In the other hand the oil and gas requires 12 hours shift daily for 6 days or 28/28 days rotation. With the conflicts, the labor unions and government bodies usually get into conflicts and that is a reason of many disputes. So the companies would prefer a candidate who already understands working in the oil and gas industry than recruiting a local guy who will end up sending them to the courts of law for misunderstanding (Offshore 28/28days rotation)

Positions available in Oil and Gas industry for Tanzanian

• Riggers -Roustabout -Forklift Operators• -Crane Operators -Drillers -Sesmic crew• -Derrick men -Roustabouts -Motormen

(mechanics)• -Boats Operators -Drivers -Logistics

Coordinators• -HSE advisors -Drivers -Security personnel• -Assistant Operations managers• -Clearances and forwarding, etc.• -Hospitality, catering, housekeeping –Security

Positions….

Positions….

PRE- QUALIFICATIONS FOR WORK IN THE OIL AND GAS INDUSTRY, ON-SHORE AND OFF-SHORE.

• Excellent command of English language (Both in write and Speaking) and IT knowledge

• -Degree/Diploma/certificates or excellent skills in an industrial trade, including Operators

• -Certificates (BOSIET/ HUET, full medical check-ups), certificates of machinery --Operations etc/ OPITO approved

• -Knowledge of swimming -Valid passport• -Certificates of past work experience• -Good work attitude. • - Knowledge of Health and safety & Environment

CHALLENGES FOR THE PEOPLE OF TANZANIA WHEN COMPETING FOR A JOB IN THE OIL AND GAS INDUSTRY

(Mtwara)

• Lack of good command of English/IT/admin skills. Training is difficult.

• -Badly written CVs and falsified certificates.• -Lack of industrial trade skills-mechanics, electrician welders,

boat operators ect.• -Bad attitudes: Time keeping, tiredness (sleeping on the job),

attitudes to ----Tanzania (and ex-pat) supervisors, following instructions, alcohol, un-interest, theft, faking illness, unpermitted absence, conflicts of interest, theft, unwarranted usage of trade unions and CMA, sexism (toward ex-pats).

• -Lack of necessary certificates and fake certificates/forgery…• Illegal strikes and demonstrations at work places.• Companies take advantage of the situation….bringing more

expatriates…(Example of a company looking at the colour of skin and assume/label them expatriate while don’t have qualification

challenges

HOW TO ADDRESS CHALLENGES AND ASSIST IN INCREASING EMPLOYABILITY.

• Targeted training course: short-term and long –term, within international framework (time-keeping, no exceptions to rules, no nepotism or corruption etc):

• -Targeted English/IT &Admin skills teaching

• (Upgrading ) VETA/Encourage science subjects in sec schools, and higher trade degrees (mechanical /electrical engineering). When international companies teach students (like Petrobras), ensure that the teachers learn it and integrate into the current teaching plan.

• Teachers with greater knowledge – upgraded training programs – Tanzania could have the best VETA for trades needed in Tanzania? Bring qualified and experienced trainers

challenges

HOW TO ADDRESS CHALLENGES AND ASSIST IN INCREASING EMPLOYABILITY.

• -CV- writing programs and training into communication skills.• -Trainee programs with national and international companies• -Industrial practical training connected to VETA/DIT/Technical

colleges• -Governmentally arranged courses for forklift ops, crane ops,

boat ops, ect• -Usage of successful local Tanzania who can explain and

training local job-seekers, and or teach at VETA/ or other training centers as motivational speakers.

• -Scholarship to undergo trainings abroad• -Parent awareness of available training courses• -Public awareness of available opportunities – government

intervention to inform

OUR PROPOSED TRAINING PROGRAMS AVAILABLE LOCALLY

AND INTERNATIONALLY• -BOSIET/HUET/ OPITO (Offshore Petroleum Training organisation)

approved . -Training into Health, safety and environment….

NEBOSH• This is available local and its conducted by our Company Proactive

Solutions , we are an agent Tanzania offering NEBOSH UK through Wise Global.

• International Technical certificate in oil and Gas operation safety course as an associate of WISE GLOBAL TRAINING LTD (www.wiseglobaltraining.com) UK based organisation , We also offer

• BOSIET/HUET OPITO APPROVED COURSES, BOSIET as an associate of SMTCGLOBAL (www.smtcglobal.com) of DUBAI

• -Operator courses (i.e. forklift, operator)• -VETA----Trade skills from recognized training colleges with best

trainers.• -Management and Supervisory skills/IT/admin/etc

Training 2.Training Services, Due to our specialization in the Oil and Gas industry we

offer specific course for anybody working on this field, agent in Tanzania for(A) WISE GLOBAL TRAINING LTD UK offering IOSH, NEBOSH,CIEH, QUALITY

MANAGEMENT COURSE(B) We send trainees to global approved training institution SMTC GLOBAL of DUBAI

that offering Offshore Petroleum Industry Organization (OPITO APPROVED/ACCREDITED Courses)

Basic Offshore Safety Induction Emergency Training (BOSIET)Further Offshore Emergency Training (FOET)Tropical Basic Offshore Safety Induction Emergency Training (TBOSIET)Tropical Further Offshore Emergency Training (TFOET)Travel Safely By Boat (TSBB)Basic H2S TrainingTropical HUET & FTHUETHUET EBS & FHUET EBSTropical HUET with EBS

training

Training

Additional service

• With partnership with EMS SHIP SUPPLY….a global offshore supplier of foods and marine hard ware…we are looking forward to give best services in the oil and gas industry

• Contact us for further information….

THANK YOU• Presented by: Nestory Phoye Managing Director Proactive Solutions (T) Ltd P.O.BOX 191 Mtwara-Tanzania Mobile: +255 787 339 699 E-mail: nestory@proactivesolutions.co.tz Website: www.proactivesolutions.co.tz