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What lessons from across the world can be transferred to North African shale development?

Mark  Linder  Bell  Po/nger  Unconven4onal  Prac4ce  North  Africa  Oil  &  Gas  Summit  December  8,  2014  

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"Be  as  you  wish  to  appear”    Socrates  

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Unconventionals present a truly great opportunity - a globalising phenomenon The USA is a proof point that while technical and commercial barriers are significant, they can be overcome The UK and Europe is a reminder that the political and social response will ultimately dictate whether the resource can be exploited

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There is opportunity in North & South Africa There is an important economic agenda - self-determination - energy, power, jobs, etc But International NGOs can and will rally objectors. Some of their appeals are based on misinformation and fear No one has done unconventional development without controversy

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USA UK Alignment of interests √ X Public trust in environment regulator √ X Public sector experience √ X Being real about the scale √ X Supply chain √ X

Socio-political environment of the USA - hard to match

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Five issues you can expect, and what to do about them

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1. What’s the point? Making it real matters more than making friends

•  Energy literacy is low – don’t assume people understand

•  Locals live there -- some people always resist change

•  Your best demonstration is a flowing well, and a “smooth ride” operationally

•  Do a lot of listening and educating... remember only when locals start to believe you understand will they start to listen to you

•  Establish a cadence and stick to it if possible

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Na2onally  –  “energy  self-­‐sufficiency”  ●  Why  domes4c  energy  

maLers  ●  How  regula4on  

mi4gates  risk  ●  Poten4al  benefits  

Interna2onally  –  “a  posi2ve  investment  reputa2on”  ●  Consistency  ●  Integrity  ●  Skillbase  

Locally  –  “low  impact”  ●  Operator  rela4onship,  

liaison  and  input  ●  Risk  management  ●  Opera4ons  ●  Projects  and  benefits  

What “makes it real” differs

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2. Environment at the beginning, not the end

•  Projects cannot seem to view environmental impact as an afterthought

•  EIA’s are a great engagement tool when done proactively...

•  It is social impact, not just environmental impact

•  Pick assessment topics that matter to the community, get the community involved

Typical local issues

•Transport

•Noise

•Water Resources

•Induced Seismicity

•Resources and Waste

•Air Quality

•Landscape and Visual Impact

•Lighting

•Ecology

•Hydrogeology and Ground Gas

•Community and Socio-economics

•Land Use

•Archaeology and Cultural Heritage

•Greenhouse Gas Emissions

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3. Proper public engagement “Engage before you create”

•  Assume you will get a lot of attention - local groups, international NGOs

•  International NGOs have ability to hijack the local benefits/ narrative

•  Engage early and often; remind of the purpose...why is this good for the country, the locality

•  Say what you’ll do; do what you say

•  Put your own team out there - enjoy the contact

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The way to do it right: Mozambique LNG

“Identify key projects that can benefit from the use of gas made available to the domestic market at a price that promotes industrialisation and economic transformation and achieves forward linkages”

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There are many ways to engage communities

Consultation Activity Value-add

Information day events Bring independent experts

Engagement with key bodies Quarterly, with monthly updates

Workshop events, local meetings Be on the agenda

Community Liaison Group Meetings are key to identify tension points

Dedicated phone line Must have

Newsletter Distribute monthly

Brochures They DO get read

Animations and computer generated images Not expensive, works well

Community mapping Allows community feedback

Physical models 3D printing - people have no idea about area

Website Make sure it is informative

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But also need to engage informally

Informal Activity Value-add

Local projects, sponsorships Creates involvement

Show up in town Makes you approachable

Is there a local restaurant? Use it

Is there a local cafe or pub? Meet local people there

You are seen publicly to engage

Local school or university - talks, projects Academic involvement

Domicile people locally

Local marketplace - have a table Informal Q&A - you are visible

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4. What’s best is not always what’s asked for

•  People want disclosure – But actually it’s more important to use and communicate about the processes and technology

•  There is a temptation to “agree” with demands for more and more monitoring and disclosure, produces very little value

•  Educate your regulators - it’s all about cement, controlling kicks, better packers, better containment

•  Disclosure = information/ Transparency = decision-making

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Opponent groups are catalysed by strong personalities

...”Opposition” may be a world-view Challenge is to find an opponent who will allow constructive engagement

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5.  Educate about production delivery

•  Stand up for producing gas or oil, not just exploration

•  People have no way to understand industrial processes they haven’t experienced, especially one that behaves like a moving construction site

•  Do NOT assume regulators and decision-makers understand scaling or the economics!

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Scale is the opportunity

UK example •  50 year, £100B investment project

•  Can think through infrastructure, compressor stations,

how to plan for lower impact

•  Thousands and thousands of skilled jobs, plus taxes, benefits etc

•  Opportunity to be a skills hub

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The “EMPPATHY” Doctrine

Expectation Management – It’s about commercial flow - put the environmental process in the lead; say what you’ll do; do what you say

Peace Process - don’t hide from opponents, rebut mis-information. There will those who fight endlessly – get used to it

Actions - stay away from warm words - do something NOW to improve the community

Transparency - explain how you make decisions Human - Go “outside the fence”, take calls, be there You - Your message: This is not about us: it’s about YOU,

and your energy and economy

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Bell Pottinger experience

For over two decades, Bell Pottinger has reduced risk for “big project” investors by creating alignment with key stakeholders. What we do •  Strategic communications methods (1st and 3rd party) to create the

right mood, the right engagement •  We serve clients from centres of excellence in London, Dubai,

Singapore, affiliates in the Nordics, USA and Latin America Our services •  Strategic planning, narrative development and program management •  Campaigning, engagement, creative interventions - real world, paid

and unpaid media, public affairs, coalition-building •  Opponent/ activist engagement

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Thank you

Mark Linder mlinder@bellpottinger.com

The UK and Europe is a reminder that the political and social response will ultimately dictate whether the resource can be exploited