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Community relations – local sourcing at Malampaya

In the Philippines, we are providing integrated asset support for Shell on the Malampaya Deep Water Gas-to-Power facility, which aims to provide a regular supply of natural gas to the region.

"Effective community relations lead to effective projects – we gain; the community gains; our customer gains."
Steve Chadwick, Project Manager 
 

When we manage a project, one strand of the support we can offer is effective community relations. On the Malampaya project we appointed a community relations officer who was responsible for ensuring that local people benefited from employment and business opportunities created. Our investment in the local supply chain has resulted in improved capabilities and a more systematic approach to quality and delivery on the project. It has made it possible for local businesses to apply their newly acquired capabilities and secure new work from other companies. Over 85% of the workforce has been sourced locally, which has delivered a significant cost saving to the customer.

The project has been extremely successful to date. Shell has strong sustainable development principles and through our focus on community relations we have not only assisted them in delivering these goals, but have also delivered on time and on budget. Our community relations work has also received independent recognition from Engineers Against Poverty – a specialist international development agency which aims to enhance the social performance of engineering services companies.
 
Other community relations work:

  • We have engaged with local companies on the Sakhalin oil contract in Russia through the procurement process
  • In our construction of the Baku-Tbilisi-Ceyhan pipeline, we are helping deliver our client BP’s community and environmental programmes on the ground
  • We designed and managed the construction of Canada’s first diamond mine, Ekati, which included 40% of the workforce recruited from the local population
Location:South China Sea
Client:Shell Philippines Exploration (SPEX)
Value:US$4.5 billion (Project)
Scope:Management and implementation of maintenance and inspection activities, technical integrity, minor modifications, onshore workshops, logistics, procurement
Date:2000 – 2010