Northern Regional Community Consultative Committee update
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- Josephine Hood
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1 Northern Regional Community Consultative Committee update March 2016 Legal notice The following presentation contains forward-looking statements concerning BG Group plc s strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which BG Group plc operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which can be controlled or predicted. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from the guidance given in this presentation for a number of reasons. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the Principal risks and uncertainties included in the BG Group plc Annual Report & Accounts Nothing in this presentation should be construed as a profit forecast and no part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. BG Group plc undertakes no obligation to update any forward-looking statements. No representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information in this presentation and no responsibility or liability is or will be accepted by BG Group plc or any of its respective subsidiaries, affiliates and associated companies (or by any of their respective officers, employees or agents) in relation to it. 1
2 Safety Moment Litter QGC engaged Veolia for roadside clean up Covered 100km of Western Downs roads most used for our project Collected: 924 bags 118 tyres Over 2.6 tonnes of rubbish Also supported Clean Up Australia Day (6 March) at various locations It s everyone s responsibility to ensure that we keep our area of operations clean Secure your load before you drive to make sure no materials fly out Clean up your site before leaving a site ensure it s left tidy and litter free even if the rubbish isn t yours Don t throw rubbish out the window dispose of your rubbish where its suitable 3 Welcome Outline of today s meeting 1. Introductions 2. Adoption of minutes 3. QGC update 4. Key topic updates 5. Lunch 6. Community benefits report 7. Committee feedback 2
3 QGC Update BG Group is now a part of Royal Dutch Shell For QGC it is business as usual while Shell integration planning progresses The safety of our staff and communities remains our priority Moving towards plateau production mid 2016 Low oil price environment demands focus on: Optimising our performance across the integrated gas chain Achieving high rates of efficiency and productivity Delivering Charlie development Operations Update Continuing to ramp up production Operating under routine conditions including for maintenance schedules From time to time this may involve localised flaring Q will commence the next phase of trials for Remotely Piloted Aircraft Systems (RPAS) 3
4 RPAS Trial 12 week trial, 2 days per week, daytime only Conduct routine monitoring of QGC infrastructure on group of landholder properties in northern region Strict guidelines around image capture to protect privacy Improves operational efficiency to monitor 2,600+ wells over large areas Partnership with Boeing (Insitu) to develop technology which is expected to benefit other industries in Queensland Potential benefits: - Reduces land access requests - Reduces risk of land access breaches - Reduces time for landholders to liaise - Reduces road traffic and improve safety - Value adds the work profile for wellsite operators - Improves wellsite performance Charlie Project Update Project site offices established Charlie FCS: Civil works underway Access road civil works underway Services pads under development Bundi Road upgrade under construction Construction water bore operational Borrow pit for gravel opened Wells being drilled 830 people mobilised and increasing weekly Workforce based in: Windmill Accommodation Park Wandoan Accommodation Park Woleebee Creek camp Key contractors: CPB Main works MPC Gathering network EDE Well head infrastructure Saxon Drilling Easternwell Drilling FKG Road works 8 4
5 Charlie Project - Local content Charlie expenditure by supplier location Interstate 16% Operational Regions 28% New contracts No. Operational regions 15 Rest of Queensland 27 Interstate 8 Rest of Queensland 56% 9 Items arising from last meeting 5
6 Community procurement Other towns 5% Wandoan 12% Tara 25% Dalby 31% Chinchilla 27% Western Downs Community Procurement, 2015FY Western Downs and Toowoomba represent 82% of the regional spend 362 vendors in the Western Downs supplied our business Additional $3.2 million spent on credit cards 11 Expanded Local Content Policy Extensive consultation with business and industry and internally in 2015 Key changes in approach: Clarifies definitions for local and participation Establishes new full, fair and reasonable contract strategy Increased transparency in reporting Local Content Policy objectives: Support competitive procurement: Actively encouraging local participation in supply chain Facilitate job creation: Employees and contractors Promote reconciliation: Employment, Training and Business Development Build economic sustainability: Develop regional communities 12 6
7 Simplified processes Registering Interest 1. Register interest online at qgc.com.au 2. Visit a Supplier Information Session 3. Join a network 4. Contact our major contractors directly 5. Express interest for project work ICN Gateway Learning about opportunities 1. Direct invitation Low value transactions Private tenders 2. s through chambers and business networks 3. Promotion on ICN Gateway Prequalification Achilles First Point Supplybase During tender processes Tender submissions Local content plans required under stronger tender evaluation criteria 13 Total workforce Total Workforce Numbers, 2015FY Upstream Employees by Region, 2015FY South 109 North Project contractors Operational contractors Employees Central
8 Local Living Plan Strategy Traineeships and apprenticeships Actions Developing a formal program Proposal for apprentices from 2017 Lifestyle rosters Matching jobs with lifestyle rosters eg 5/2, 4/4 Local incentives Reviewing package of incentives and allowances Extended existing incentive established for project Contractor team Identifying potential scope for operational contractors to support local employment Social investment Investments in education (STEM) and vocational training, health and regional liveability eg Try-A-Trade On-boarding programs for new families Recruitment Initiatives to source local candidates Reviewing relocation packages 15 Trade Futures Program Significant increase in intake for Dalby State High School Trade Futures program 3 Year 12 students continuing from Year 11 students commencing in 2016 Certified training program: Two years One day per month and 2, 1 week period per year spent in field Involves practical experiences in the Ruby Jo and Kenya operations Compete Certificate II in Plant Process Potential pipeline to further trade or technical training and jobs in either gas or manufacturing industries 16 8
9 Rural Property Management The transition of QGC land to Stanbroke is almost complete QGC has honoured all its agreements with agisters and sharefarmers With Stanbroke s co-operation, QGC has been able to provide multiple extensions of time to assist agisters during transition One issue of dust from trucks transporting livestock raised by community during transition was addressed at the time Stanbroke has started to engage with neighbours, QGC s previous agisters and community members Stanbroke has reported a warm welcome and good support from the community so far 17 Stanbroke in the community In the past three months: 1. Local purchasing - 3 new vehicles and 4 motorbikes - Furnishings for 2 houses - Property maintenance equipment and hardware tools e.g. pumps, chainsaws - Cattle husbandry requirements - Provisions for staff - Fencing materials and portable stockyard 2. Local employment - 2 key positions associated with managing properties advertised locally - Engaged 2 local mustering contractors who have up to 4 people working in each team - Engaged 2 local contract farming businesses 3. Other community support - Sponsorship for the gate fee at upcoming rodeo in Wandoan - Sponsorship of the Taroom Show - Assessing sponsorship options for local shows in Wandoan and Chinchilla 18 9
10 Community benefits report World Science Festival in Chinchilla! 20 10
11 New partnership supporting agricultural sector Export Forums: Wandoan 26 April Chinchilla 27 April Tara 27 April Partnering with Food Leaders Australia (TSBE) to support the sustainable development of the agribusiness industry in the Western Downs Stage 1 - Agricultural Export Opportunity Forums in April Stage 2 Unique opportunity for up to 10 Western Downs businesses to receive intensive support for business growth over a 12 month period Focus on preparing companies for exporting into Asia Includes targeted trade mission to China to pursue new opportunities 21 Health and safety focus of recent partnerships Supporting rural fire brigades - Training for 15 volunteer firefighters from across the Western Downs during January and ipads to support fire fighting - $140,000 offered for this and slipon and trailer units for 10 rural fire brigades - Over $630,000 invested in QFES over 3 years Health-e-Regions extension: More than 4,000 specialist consultations now conducted per year via telehealth $1.8m to date for services in hospitals, GP clinics, residential aged care Network in Dalby, Chinchilla, Miles, Tara, Wandoan Supporting expanded speech pathology program in schools in $653,000 committed to next stage Road Safety education ($30,000): Tara Show 5 March Wandoan 23,24 April Miles 17 May Chinchilla May 22 11
12 6 Projects Receive Grants Organisation Program Grant Wandoan State School Wandoan State School digital technology STEM program $49,819 Bell Bunya Community Centre Association Inc Community centre outdoor kitchen $21,711 Brigalow Recreation Grounds Association Inc Brigalow Recreation Grounds canteen and covered eating area $50,000 Cooranga North Recreation Reserve Inc Relocation of clubhouse to recreation reserve $14,450 Hannaford Club Inc Building the future. Restoring the past $50,000 Miles State High School Establish a multipurpose hall facility $20,000 Total $205, Upcoming engagement and sponsored activities Tara, Miles, Chinchilla, Wandoan Annual Show events Wandoan Health Auxiliary Cookbook Juandah Rodeo Association Xtreme Drill Dance, Chinchilla Wandoan Gymnastics Club Chinchilla One Long Table Clean Up Australia Day Tara Polocrosse QGC Communities Fund Round 3 now open Deadline for submissions: 31 March
13 Community feedback meeting dates 2016 proposed meeting dates: Q2: 9 June in Chinchilla; 10 June in Miles Q3: 8 September in Tara; 9 September in Wandoan Q4: 1 December in Chinchilla; 2 December in Miles Venues to be advised. Time for Central/Southern meetings: 9am-12noon Time for Northern meetings: 10am-1pm 26 13
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