ExxonMobil Canada Properties - Hebron Project · Hebron Project EMCP Page 5 of 14 4.0 PROCUREMENT...

ExxonMobil Canada Properties

Hebron Project Canada-Newfoundland and Labrador Benefits Report for the Period

January 1, 2018 to December 31, 2018

HEBRON 2018 BENEFITS REPORT 29-Mar-19

Hebron Project EMCP Page 1 of 14

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 Hebron Photos ................................................................................................................ 8

8.0 Diversity ........................................................................................................................ 13



1.0 INTRODUCTION

Hebron is an offshore oil field estimated to produce more than 700 million barrels of recoverable

resources. The field was discovered in 1980 and is located offshore Newfoundland and Labrador in the

Jeanne d'Arc Basin 350 kilometres southeast of St. John's, the capital of Newfoundland and Labrador. It

is approximately 9 kilometres north of the Terra Nova Project, 32 kilometres southeast of the Hibernia

Project, and 46 kilometres southwest of the White Rose Project. The water depth at Hebron is

approximately 93 metres.

The Hebron co-venturers are: ExxonMobil Canada Properties (EMCP), Chevron Canada Limited, Suncor

Energy Inc. through the Hebron Petro-Canada Partnership, Equinor Canada Ltd. and Nalcor Energy – Oil

and Gas Inc. EMCP is the operator of the Hebron Project.

During May 2011, EMCP, on behalf of the Hebron co-venturers, filed the Hebron Benefits Plan with the

Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). The Hebron Benefits Plan

was conditionally approved on May 31, 2012 and covers the construction and operations phases of the

project.

Five key principles of the Benefits Plan include:

Meeting local benefits commitments while maintaining the highest levels of safety,

environmental performance, efficiency and integrity of our operations;

Selecting contractors and suppliers that will work diligently with us to deliver benefits to the

people of the Province;

Promoting the development of local skills and industry capacity that leaves a lasting legacy for

the communities in which we operate and for the Province;

Delivering execution certainty so that Hebron delivers best-in-class return on investment to

stakeholders, including the Province of Newfoundland and Labrador; and

Working collaboratively with industry, government, academic and training institutions,

community and other stakeholder groups for the effective delivery of benefits.

As outlined in section 45 of the Atlantic Accord Acts, specific provisions of the Hebron Benefits Plan

include a plan for:

The employment of Canadians and, in particular, members of the labour force of the Province

of Newfoundland and Labrador;

Consistent with the Canadian Charter of Rights and Freedoms, providing individuals resident in

the Province with first consideration for training and employment in the work program for

which the Benefits Plan was submitted;

Providing manufacturers, consultants, contractors and suppliers and service companies in the

Province, and other parts of Canada, with full and fair opportunity to participate on a



competitive basis in the supply of goods and services used in any proposed work or activity

referenced in the Benefits Plan;

Providing first consideration to services provided from within the Province and to goods

manufactured in the Province, where those services a3nd goods are competitive in terms of

fair market price, quality and delivery;

The establishment of an office in the Province where appropriate levels of decision-making are

to take place; and

Expenditures for R&D, including education and training, to be carried out in the Province.

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

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

diversity.

2.0 CANADIAN-NL CONTENT ESTIMATES

The table below details the estimated Canada-NL content of actual expenditures during 2018.

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

3.0 EMPLOYMENT

The total number of people employed on the Hebron Project as of December 31, 2018 was 1152 of which

91.5% were NL residents, 5.5% were Other Canadian and 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).

2018 Canada-NL Content Estimates

NL OC NC Total

TOTAL 62% 13% 25% 100%

No. Filled NL OC NC

Offshore 553 525 24 4

Onshore 599 529 39 31

Totals 1152 1054 63 36

Percentage 91.5% 5.5% 3%

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

Status (at time of hire)

Hebron 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

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

Male % Female %

Management 107 84.1% 20 15.9% 127

Administration 19 25.1% 57 74.9% 75

Engineers 109 84.3% 20 15.7% 129

Technicians 168 90.7% 17 9.3% 186

Professionals 113 79.8% 29 20.2% 141

Skilled Trades 264 98.9% 3 1.1% 267

Labor 150 96.7% 5 3.3% 155

Students 6 71.6% 2 28.4% 9

Other 56 89.1% 7 10.9% 63

TOTALS 992 86.1% 160 13.9% 1152

Employment Summary by Discipline

Hebron Project

As of December 31, 2018

DisciplineNumber of Persons Total Number of

Persons



4.0 PROCUREMENT AND CONTRACTING

The table below provides a listing of Hebron’s 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.

Contracting Activity 2018

Description Contractor Contractor

Location (NL, OC, NC)

NEW SERVICE CONTRACTS

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

Supply of Architectural Support Services Stantec Architectural Ltd. NL

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

Subsea Engineering Support Frontier Subsea NL

Marine Surveys and Inspections Canadian Global Maritime NL

Supply of Maintenance, Repair, Hydraulics, and Fabrication Services for Hebron

Hyflodraulic Limited NL

Supply of Technical Safety and Risk Engineering Services RiverRock Consulting Inc. NL

Marine Surveys and Inspections Canadian Global Maritime NL

Bird Monitoring Services LGL Limited NL

Repair and Maintenance of LP Compressor for Hebron Howden Compressors NC

MATERIAL CONTRACTS

Supply of Galley and Laundry Equip and Spare Parts Harold Snow Service Group

NL

SERVICE CONTRACT EXTENSIONS

Provision of vessel support services, Hebron Atlantic Towing Ltd NL

MATERIAL CONTRACT EXTENSIONS

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



Purchase Order Analysis

During 2018, 5,608 Purchase Orders (POs) were awarded with a total value of $222,859,125.19. The chart

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 Hebron Project

and potential opportunities.

In April 2018, EMCP 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

ExxonMobil’s 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 to provide them with details on procurement

processes utilized by ExxonMobil in the various regions 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, EMCP participated in their Business-to-Business

Matchmaking Program which provided suppliers registered in the program with 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 EMCP 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 with ExxonMobil to expand the use of

their solution in operations in other regions.

Provided contact information for EMCP 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 EMCP activities, Aker Solutions, Hebron EPCM, has also participated in supplier

engagement & development activities in 2018.

Aker has been working with local fabricators to obtain certification on procedures and weld

qualifications that were previously not available locally and were only able to be sourced from

outside of NL

Aker initiated a technical qualification process with several new local suppliers, which pre-qualifies

them to compete for future work tendered by Aker in NL, and makes them available for use in other

countries where Aker operates, increasing their exposure

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, Hebron R&D and E&T expenditures exceeded $6.2M.

Ice Management

Helicopter Operational Efficiency

Flowline Protection Requirements for Extended Tiebacks

Subsea Iceberg Protection Structure (SIPS)

Johnson GeoCentre Exhibit Upgrade

Ocean Learning Partnership

Petty Harbour Mini Aquarium – Operational Upgrade Project

Metocean

Co-operative Education Students

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

Safe Choice Training



Kristina Ennis, Benefits and

R&D Analyst, at the Coalition

for Persons with Disabilities NL

2018 Inclusion Awards

presenting the Hebron

sponsored Inclusion Award –

Excellence in Disability Media

Coverage to CBC’s Ramona

Deering & Jen White for the

Access Denied series.

7.0 HEBRON PHOTOS

Carman Mullins, President of EMCP, spoke at the 2018 NOIA Oil and Gas Conference in June 2018



EMCP employees and contractors from the Hebron team presented seven papers about the Hebron Project at the Offshore Technology Conference in Houston, Texas in May 2018. The session reached

capacity and required an overflow room to accommodate the large audience.

Stephen Edwards, SSHE and External Relations Manager, presents a donation to Gary Lane and Christian Somerton of the Victoria Park Community Renewal project



Paul Phelan, Finance Manager, presents a donation to Bridges to Hope “Bag to School” program that supports the community through educational outreach

Sadie Sellars and Sarah Pietraszek-Mattner present a donation of $5,000 to the NL Sexual Assault and Crisis Prevention Centre Executive Director Nicole Kielly.



On November 27, 2018 Hebron marked one year of production with a Day of Giving. On hand at the event were representatives from Hebron operator ExxonMobil Canada, co-venturers (Chevron Canada, Suncor

Energy, Equinor Canada and Nalcor Energy – Oil and Gas), the Hebron Project Employers’ Association and 10 local charities that received a total donation of $420,000: Janeway Foundation, Young Adults Cancer Canada, NL Hard of Hearing Association, Ronald McDonald House, Daffodil Place, Discovery Health Care Foundation, Juvenile Diabetes, Mazol Shriners, MS Newfoundland & Labrador, and Women in Resource Development.

Carman Mullins, ExxonMobil Canada President, presents a donation of $1.44M to the Dr. H. Bliss Murphy Cancer Centre on behalf of the Hebron Project Employers’ Association.



ExxonMobil Canada employees volunteering at the Gathering Place

Representatives from ExxonMobil Canada, Hebron Co-venturers, and the Hebron Project Employers’ Association present a donation to Kids Eat Smart Foundation NL



In addition to the above noted donations for 2018, the Hebron Project and the Hebron Project Employers’ Association also made the following donations:

Resource Centre for the Arts - $5,000

Old Perlican Recreation and Arena - $10,541

8.0 DIVERSITY

2018 Hebron Diversity Report Introduction It is the ongoing responsibility of ExxonMobil Canada Properties (EMCP) to oversee the implementation and execution of the Hebron Project Diversity Plan to meet its regulatory and contractual requirements. EMCP’s approach to achieving success in diversity takes a long-term view, and focuses on sustainability following implementation. The report below includes results from EMCP’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% 3% 0%

Professional and Technical 21% 1% 4% 0%

Administrative 77% 0% 1% 3%

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

Sales and Service 33% 5% 5% 5%

Manual Workers 11% 1% 7% 1%

Representation

Representation numbers indicate a percentage of the total project workforce, including EMCP 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.

In 2018, Hebron completed its first year in operations. In the majority of employment categories, the overall representation of all designated groups has remained relatively stable, with minor fluctuations year over year.



Implementation

Total compounded community investment of approximately $1.9 million o 2018 saw focused investment in high economic, employment and social impact programs

including Oceans Learning Partnership Teaching Fellowships, College of the North Atlantic Skilled Trades Apprenticeship Bursary Program for Women and Indigenous Students, Women in Resource Development Corporation, Coalition for Persons with Disabilities, Esteem Women, NL Sexual Assault Crisis and Prevention, Newfoundland and Labrador Organization of Women Entrepreneurs, NLOWE, and Memorial University Diversity Awards and Women in Science and Engineering Scholarships, and College of the North Atlantic Diversity Awards and Women in Industrial Trades and Engineering Technology Bursaries.

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

diverse candidates from around the province.

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

Hebron Project.

Continuous improvement of monitoring and stewarding initiatives o In 2018, EMCP 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.

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