Hibernia Management and Development Company Ltd. · 2019-03-31 · Canada-Newfoundland and Labrador Benefits Report 2018 Annual Report Page 4 of 12 Male % Female % Management 136

Hibernia Management and Development Company Ltd.

Canada-Newfoundland and Labrador Benefits Report for the Period

January 1, 2018 to December 31, 2018

Canada-Newfoundland and Labrador Benefits Report 2018 Annual Report

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Table of Contents

1.0 Introduction .................................................................................................................... 2

2.0 Canadian-NL Content Estimates .................................................................................... 3

3.0 Employment ................................................................................................................... 3

4.0 Procurement and Contracting ........................................................................................ 5

5.0 Supplier Development .................................................................................................... 6

6.0 Research and Development ........................................................................................... 7

7.0 Hibernia Photos .............................................................................................................. 8

8.0 Diversity ....................................................................................................................... 11


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1.0 INTRODUCTION

The Hibernia field is located on the northeastern Grand Banks, approximately 315 km south-southeast of

St. John’s, Newfoundland and Labrador. The field was discovered in 1979 by Chevron et al. when they

drilled the Hibernia P-15 well.

On September 15, 1985, Mobil, on behalf of the Hibernia co-venturers, filed the Hibernia Benefits Plan

and Hibernia Development Plan with the Federal and Provincial governments. The Hibernia Benefits

Plan was approved by the C-NLOPB in June 1986. The Plan covers all phases of the Hibernia project from

project development to abandonment. An Amendment was submitted in February 2010 and

subsequently approved in September 2010 to address the Hibernia Southern Extension. This was the

first amendment to Hibernia’s Benefits Plan since the original was approved by the Board in Decision

86.01.

Several key principles of the Plan include:

The provision for a local office where appropriate levels of decision-making are to take place;

The requirement for full, fair and timely opportunities for Newfoundland and Canadian industry

to participate in the supply of goods and services on a competitive basis;

Utilizing, to the extent practical and cost effective, the principle of first consideration to

Newfoundlanders and Labradorians and Canadians in procurement, contracting and

employment policies for the project including the construction, development and operating

phases;

Engineering and construction work that can be performed in Newfoundland and Labrador shall

be performed in Newfoundland and Labrador;

Establishment of a Gender Equity and Diversity Program; and

Expenditures shall be made for research and development to be carried out in the province and

for education and training to be provided in the province.

This report summarizes the Hibernia Project activities for the period of January 1, 2018 to December 31,

2018 in the areas of expenditures, contracting and procurement, employment, research and

development, and diversity.


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2.0 CANADIAN-NL CONTENT ESTIMATES

The table below details the estimated Canada-NL content of actual expenditures during 2018 for Hibernia Base and Hibernia Southern Extension (HSE Unit).

2018 Canada-NL Content Estimates

NL OC NC Total

Percentage (%) 61% 21% 18% 100%

* NL = Newfoundland & Labrador, OC = Other Canadian, NC = Non-Canadian

Notes:

1. SAP reports are analyzed to determine the NL, Other Canadian and Non-Canadian Content Estimates 2. The table has been populated with NL, Other Canadian and Non-Canadian percentages for existing vendors based on historical

content percentages with updates during an annual verification process. 3. For non-major contractors, information collected from the vendor or standard rules and assumptions are utilized to determine the

content percentages

3.0 EMPLOYMENT

The total number of people employed on the Hibernia Project as of December 31, 2018 was 1355 of

which 91.9% were NL residents, 5.8% were Other Canadian and 2.3% were Non-Canadian based on

Canadian General Standards Board (CGSB) reporting guidelines and the C-NLOPB definition of residency

(i.e. in compliance with the Newfoundland and Labrador Elections Act).

No. Filled NL OC NC

Offshore 691 653 29 10

Onshore 663 593 50 21

Totals 1355 1245 79 31

Percentage 91.9% 5.8% 2.3%

Status (at time of hire)

Hibernia/HSE Staffing Residency Summary

As of December 31 2018

(Steady State and Transitional Roles)

Notes: 1. Reported total number of persons directly employed on the project at end of reporting period, including operator and contractor

personnel. 2. Residency status reported as of time of hire, based on the following definitions:

Canadian: A person who was born in Canada and has not relinquished his/her Canadian citizenship; or, a person who has been granted

Canadian citizenship; or a person who has been granted landed immigrant status

Newfoundland and Labrador Resident: A Canadian citizen or landed immigrant who meets the residency requirements of the Province as

defined by The Elections Act, SNL 1992, CE-3.1

3. Reported location by “Onshore”, “Offshore” activity


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Male % Female %

Management 136 83.6% 27 16.4% 162

Administration 27 28.0% 68 72.0% 95

Engineers 84 80.7% 20 19.3% 104

Technicians 244 91.3% 23 8.7% 267

Professionals 91 73.8% 32 26.2% 123

Skilled Trades 316 98.9% 4 1.1% 320

Labor 211 96.1% 8 3.9% 219

Students 6 68.9% 3 31.1% 9

Other 46 82.4% 10 17.6% 56

TOTALS 1160 85.6% 195 14.4% 1355

Employment Summary by Discipline

Hibernia/HSE Project

Q4 2018

DisciplineNumber of Persons Total Number of

Persons

Notes:

1. Disciplines are based on the following National Occupational Classification (NOC) Codes:

Management includes: Senior Managers as well as Middle and Other Managers

Administration includes: Administrative & Sr. Clerical Personnel as well as Clerical Personnel

Engineers includes: only those in that NOC code

Technicians includes: Semi-professionals & Technicians

Professionals includes: only those in that NOC code

Skilled Trades includes: Skilled Crafts & trades as well as Skilled Trades & Services

Labour includes: Semi-Skilled Manual Workers, Other Manual Workers as well as Intermediate Sales & Service

Students includes: any student enrolled at a recognized educational institution or accredited academic program and includes both graduate and undergraduate students, cadets or any other student

Other includes: positions that do not fit into any of the other disciplines


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4.0 PROCUREMENT AND CONTRACTING

The table below provides a listing of new service contracts, services contract extensions, material

contracts and material contract extensions with a value greater than $250,000 awarded during 2018.

The table includes a description of the contract, name of the contractor and the contractor’s location at

the time of award.

Description Contractor

Contractor

Location

(NL, OC, NC)

Water Sampling Avalon Laboratories Inc. NL

Supply Of HVAC Primary and Secondary Filters Dawe Enterprises NL

Supply of Misc Electrical Consumables McLoughlan Supplies Ltd. NL

Supply of RFID Technology and Software Services Focus Field Solutions Inc NL

General Platform Services Crosbie Salamis Limited NL

Project Planning Services Hibernia Team Products and Services Inc. NL

Supply of Architectural Support Services Stantec Architectural Ltd. NL

Immersion Suit and Life Jackets Maintenance and Repair Nord Marine Services Ltd. NL

Immersion Suit and Life Jackets Maintenance and Repair Spartan Industrial Marine NL

Subsea Engineering Support Frontier Subsea NL

Provision of Motor Repair and Support Services NorthPoint Technical Services NL

Supply of Maintenance, Repair, Hydraulics, and Fabrication Services

for HiberniaHyflodraulic Limited NL

Marine Surveys and Inspections Canadian Global Maritime NL

Supply of Galley and Laundry Equip and Spare Parts (contract that

covers both Hibernia and Hebron) Harold Snow Service Group NL

Supply of Cut & Pull, Pipe Recovery and Fishing Services Import Tool NL

Provision of Hibernia Chemicals Baker Hughes Canada Company NL

General Platform Services Crosbie Salamis Limited NL

Supply of OEM Rapp Bomek Hy Duty Door Spares K & D Pratt Ltd. NL

SERVICE CONTRACT EXTENSIONS

MATERIAL CONTRACTS

NEW SERVICE CONTRACTS

MATERIAL CONTRACT EXTENSIONS

Contracting Activity

Hibernia Project

2018


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Purchase Order Analysis

During 2018, 5,397 Purchase Orders (POs) were awarded with a total value of $117,713,980.93. The table below summarizes the percentage of the total awarded value by location.

5.0 SUPPLIER DEVELOPMENT

Throughout 2018, supplier development activity continued with local vendors regarding the Hibernia

Project and potential opportunities.

In April 2018, representatives from HMDC met with representatives from Nunacor Development

Corp, the executive development arm of the Nunavut Community Council representing Inuit of

Southern Labrador, to provide them with an overview of the procurement process utilized by oil

and gas operators in NL and to gain a better understanding of the capabilities and types of

services provided by their member companies, as they apply to offshore requirements.

In May 2018, a supplier session was held at OTC in Houston for NL suppliers. This was an

invitation only information session for NL suppliers attending the OTC and aimed to raise

awareness around procurement opportunities globally (ex. in Guyana, Romania, etc.) as well as

in the US and Western Canada. The purpose was to facilitate operator–supplier collaboration to

help increase access to global supply chains and export markets, and it provided them with

details on procurement processes utilized by HMDC as well as who the key points of contact are

for suppliers interested in expanding the supply of their services to those areas.

During the NOIA 2018 Oil & Gas Conference in June, HMDC participated in their Business-to-

Business Matchmaking Program which provided suppliers registered in the program with


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opportunity for one-on-one meetings with Operators and other major industry players to

discuss the services they provide and how they relate to oil and gas industry requirements.

In 2018 HMDC partnered with Focus FS to use and further develop their home-grown RFID

solution for application in supply chain and offshore activities. Following successful early

implementation in NL, Focus FS is now being considered for a global agreement to expand the

use of their solution in operations in other regions.

Provided contact information for procurement counterparts in various regions to suppliers

interested in international opportunities outside of NL, ex. Guyana.

Co-ordinated several supplier information sessions / site visits with local suppliers for the buying

and maintenance teams to raise awareness and educate them about capabilities of local supply

community.

In addition to the above HMDC activities, Wood has also participated in supplier engagement &

development activities in 2018.

In 2018, Wood increased its local supplier base by 13%, prequalifying an additional 11 suppliers.

There are now over 100 NL based companies pre-qualified and approved in their procurement

system.

In 2018, Wood grew the amount of PO commitments to the local supply chain. In 2017, Wood

placed $19.5m worth of PO commitments to suppliers in NL in support of Hibernia projects. In

2018, Wood placed over $30.6m, increasing expenditure in the NL market by 56%.

6.0 RESEARCH AND DEVELOPMENT

Listed below are some key research and development and education and training activities related to the Hibernia Project that took place in 2018. In 2018, Hibernia R&D and E&T expenditures totalled $4.6M.

Environmental Genomics

Ice Management

Dynamic Positioning in Ice

Wave Impact Study

Metocean

Marine Mammal Detection Infrared Camera System

Fibre Optic Leak Detection

Helicopter Operational Efficiency

Flowline Protection Requirements for Extended Tiebacks

Subsea Iceberg Protection Structure (SIPS)

Let's Talk Science

Co-operative Education Students

Scholarships and Awards at Memorial University and College of the North Atlantic

Girl Quest - Expanding Opportunities for Outreach

Women in Science in Engineering Student Summer Employment Program

STEM Education Program at Manuels River Hibernia Interpretation Centre

Ocean Learning Partnership: STEM Teachers Education – Hibernia Teaching Fellowships

Safe Choice Training


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7.0 HIBERNIA PHOTOS

Scott Sandlin, HMDC

President, presents a

donation of $10,000 to

the annual Ride for Dad to

Co-Chair Dana Chaffey.

The Ride for Dad supports

prostate cancer research

and increasing public

awareness of the disease.

Jennifer Walck, former HMDC President, at the launch of the floor map at the Manuels River Hibernia Interpretation Centre where HMDC donated $840,000 to expanded STEM programming.


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Sadie Sellars, former R&D Manager, and Jordan Angle from the ExxonMobil Upstream Research Company attended the International Workshop on Environmental Genomics, organized by the Center

for Environmental Genomics Applications. The workshop is held annually in St. John’s, NL. Also pictured here is Mehrdad Hajibabaei and Steve Barrett from eDNAtec.

During Q3 2018, 216 team members underwent training in preparation for the

2018 Hibernia Turnaround.


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Rick White and Family present a check for $8815 to Ronald McDonald House NL, the Q4 recipient of

the HMDC Nobody Gets Hurt donation.


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8.0 DIVERSITY

2018 Hibernia Diversity Report Introduction It is the ongoing responsibility of HMDC to oversee the implementation and execution of the Hibernia Project Diversity Plan to meet its regulatory and contractual requirements. HMDC’s approach to achieving success in diversity takes a long-term view, and focuses on sustainability following implementation. The report below includes results from HMDC’s workforce self-identification survey and initiatives completed in 2018.

Representation of Designated Groups

Employment Categories Women

Aboriginal Peoples

Visible Minorities

Persons with Disabilities

2018 2018 2018 2018

Managers and Supervisors 16% 1% 2% 1%

Professional and Technical 21% 3% 6% 1%

Administrative 80% 1% 2% 2%

Skilled Crafts and Trades 2% 2% 1% 0%

Sales and Service 39% 2% 4% 2%

Manual Workers 5% 1% 4% 2%

Representation

Representation numbers indicate a percentage of the total project workforce, including HMDC employees, contractor agency employees, main contractors and subcontractors.

With the exception of gender, all representation results reflect responses to the self‐identification survey. Individuals have the right to decline self‐identification and as a result, not all representation may be captured.

HMDC’s contractual expectations of diversity and contractor’s successful implementation of diversity plans have led to increased representation across most designated groups over a two year period.

Implementation

Total compounded community investment of approximately $1.8 million o 2018 saw focused investment in high economic, employment and social impact programs

including Let’s Talk Science, Oceans Learning Partnership Teaching Fellowships, Manuals River Natural Heritage Society, Women in Science and Engineering NL, Memorial University’s Girl Quest Summer Camp, Memorial University Scholarships and College of the North Atlantic Diversity Awards, Women in Industrial Trades and Engineering Technology Bursaries and Scholarships.


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Collaborative recruitment and selection efforts o In 2018, HMDC and its contractors worked with community organizations to attract and

recruit diverse candidates from around the province.

‘One Team’ inclusive and supportive work environment o 2018 saw continued initiatives aimed at supporting inclusion and wellness of employees on

the Hibernia project.

Continuous improvement of monitoring and stewarding initiatives o In 2018, HMDC continued to onboard new contractors which included reviewing key

policies, guidelines, plans and requirements, as well as ongoing review and support of main contractors in the development and implementation of required Diversity Plans.

Documents

Hibernia Management and Development Company Ltd. · 2019-03-31 · Canada-Newfoundland and Labrador Benefits Report 2018 Annual Report Page 4 of 12 Male % Female % Management 136