Senergy

Adam Smith International

Miascape

Why EEC is different – Capability & Credibility

Unique combination of

Deep, global energy discipline technical knowledge,plus

Extractive industry economic and regulatory reform; and

Organisational transformation

We are very happy to work independently (most of our work is separate),

but there is value in the combined package

Common Aspirations

• Application of the principles of EITI, UNDC, etc

• De-risk and attract investment through setting consistent operating standards and regulatory environment plus competitive unambiguous licensing terms

• Reduce the environmental impact of energy or extractive industries

• Provide technical advice and training to national organisations

• Energy projects managed to international standards to optimise energy reserves recovery

• Maximise the potential return to the resource nation and its people in an equitable manner

Wide appeal• VISIO

N, POLIC

Y• &

• LEGISLATIO

N • Revenue

Management

• Transparency

& Accountabilit

y

• Economic

Development

• Communities

& Environment

• Ethical, effectiv

e & efficien

t, institutional

transformatio

n

Options for:

Regulators

Licensees

Donor Organisations

Energy Companies

Investors

Lenders

What is EEC

A consortium whose formation was commissioned by United Nations Association to further the ends of global energy and extractive

initiatives

A Private Sector backed initiative which fits the UK and UNDP encouragement and aspirations for such private sector participation

Three successful commercial enterprises with desire to improve the effectiveness and fairness of energy extraction

Companies committed to improving the equitable wealth of developing and emerging nations and their citizens without compromising safety

or the environment

Through the combined services of

Miascape

An innovative, highly successful agent of

organisational transformation

Delivering successful organisational transformation

management into local, national, international

and global organisations

LR Senergy

A leading international energy consultancy and

project manager

Delivering successful energy services and

solutions and projects to Governments, NOCs and

international and independent Oil

Companies

Adam Smith International

A leading global adviser to Government clients seeking to improve

governance and development of the oil, gas

and mining sectors

Delivering successful Extractive Industry

regulatory and economic reform and governance

Together as EEC

addressing the entire Life Cycle of

Energy Extraction in an ethical manner

Senergy - Heritage

Formed in 2005 from established consultancies – now with a talent pool of over 1000, some 800 of whom are engaged at any one time, the majority as full time employees

Now a member of the Lloyds Register Group, a company• With worldwide reputation of integrity• With over 250 years of protecting life, assets and the environment• 100% owned by a charitable foundation committed to improving lives • Over 9000 employees• All profits reinvested in the business or distributed to charitable causes

Senergy - Oil Company without Assets for Hire

Senergy - Global Expertise for Local Solutions

Middle East

Abu Dhabi

Dubai

Main Office

Project Office

Representative

• 9

• Europe• Aberdeen (Headquarters)• London• Stavanger

• USA• Maine• Houston

• Asia Pacific• Perth• Melbourne• Kuala Lumpur• Jakarta

Senergy - Trusted by commerce & governments

Over 300 commercial energy clients including all super majors

Technical work in nearly every oil and gas province in the world, including Kenya and other East Africa nations.

25 years of contract with UK government for geological and reservoir expertise

Carbon capture and storage work for Chinese and Australian (among others) authorities

Work for national oil and gas companies of Malaysia, Brazil, Norway, Iran, Abu Dhabi, Russia, Sudan, and many others

Worked with regulators around the world, including many African nations

Many other examples

Miascape – Transforming Organisations

Miascape are a specialist provider whose techniques embed organisational change quicker

They do this with academically sound and field proven techniques which changes the way people think about change

This delivers and implements rapid and sustainable change which in turn transforms the effectiveness of the organisation

Waste and lost time due to organisational conflict is eradicated

Money is saved, and the development desired happens quicker

ASI – a leader in extractive industries governance

• A professional services business working on inclusive economic growth initiatives and government reform to achieve lasting societal impact

• For over 20 years, Adam Smith International has worked with ministers, government officials and citizens across the globe on wide-ranging projects of economic, government and social reform

• A leading international authority on the governance of the oil, gas and mining industries, including the following service areas:

1.Strategy, Policy & Legislation

2.Institutional Reform & Strengthening

3.Revenue Management

4.Transparency & Accountability

5.Communications & Communities

6.Environmental Sustainability

7.Economic Development & Local Content

ASI – Successful projects across Africa and Asia

Wide Appeal, experience, credibility and capability• VISIO

N, POLIC

Y• &

• LEGISLATIO

N • Revenue

Management

• Transparency

& Accountabilit

y

• Economic

Development

• Communities

& Environment

• Ethical, effectiv

e & efficien

t, institutional

transformatio

n

Options for:

Regulators

Licensees

Donor Organisations

Energy Companies

Investors

Lenders

For more information

Ian Williamson

VP Commercial

Senergy

Tel: +44 7778 315707

ian.williamson@

senergyworld.com

www.senergyworld.com

Ken Stewart

Director of Strategy Miascape

Tel: +44 7956 818009

kenstewart@miascape.com

www.miascape.com

Gareth O'Hagan

Head Extractive Industries

Adam Smith International

Tel: +44 7588 434 434

gareth.ohagan@adamsmithinternational.com

www.adamsmithinternational.com

Please contact

THANK YOU

3rd December 2013

Kenya Extractive Industries Development Programme (KEIDP)

Oil/gas/mining provide potential to achieve game-changing economic growth, if the resource curse can be avoided

» If resources are confirmed, significant economic potential exists for Kenya, as suggested by a simple country comparison:

» And whereas it is crucially important not to forget that the resource risks we have witnessed in other countries (e.g. Nigeria, Sierra Leone) also threaten Kenya (e.g. ~50% poverty, unrest in Turkana)

» Kenya now has the opportunity and the ability to succeed, and can avoid the mistakes of others

Economic Indicator

Botswana Ghana Kenya

Income Level Upper Middle Lower Middle Low

GNI per capita $7,470 $1,410 $820

Poverty ratio 30.6% 28.5% 45.9%

Inclusive, sustainable economic growth can best be achieved if the industries are governed

according to best practice that has arisen from lessons and research in many other countries

“Kenya can buck the trend of the resource

curse. Kenya can do the right thing.”

Oil Company

“We don’t want to be perceived as an oil

producing country. We want to create a regional hub for

training, know-how, research and logistics.”

Vision 2030

DFID and partners are engaging with the Government, Presidency, Parliament and communities to support this aim

» DFID this year conducted a comprehensive scoping report to recommend just how the international community could support the Kenyan Government and citizens in ensuring inclusive growth / poverty reduction

» Working with the World Bank, African Development Bank, UNDP, and the Canadian and Australian Governments

» The resulting recommendations address all areas of good governance and community engagement, aimed at broad, inclusive, sustainable sector development, employment and poverty reduction

» A GoK-requested DFID programme of support runs now for 18 months, focus on immediate priorities, and developing a longer-term programme

» We look forward to continuing to engage with Cabinet Secretaries during this period to further understand challenges, opportunities and priorities, and plan corresponding support and technical assistance

The resulting comprehensive programme could help Kenya become a model for other resource-

rich nations

Scoping Recommendations

Engage with Cabinet and President’s Office to develop and refine programme to support and meet GOK requirements

Establish a compelling & inclusive national vision and roadmap for extractives; WB to fund oil & gas roadmap

Design & implement national communications strategy for all levels of society

Design, establish & operate Information Centre (AfDB) and Cabinet Executive Committee

Develop & implement EITI Roadmap, capacity building

Increase effectiveness of legislature, civil society, media

Strategic Environmental and Social Assessment (SESA)

Develop community development/investment frameworkDesign & pilot Resource County Development Programme

Develop policy, legal and regulatory framework

Design comprehensive wealth & job creation programme Comprehensive skills & education programme

Institutional review and capacity building across GOK

Build on IMF work to implement system and capacity for managing resource revenues

The GoK-requested multi-year programme is based on sound sector vision, policy and communications

Workstream Component

1. Vision & Communicatio

ns

Stakeholder Engagement

Vision

Communications

2. Coordination &

Transparency

Coordination

Transparency

Accountability

3. Sustainability

& Communities

Environmental & Social

Conflict/Community/County

4. Policy & Growth

Resource Policy, Legislation

Local Content & Education

5. Capacity & Tax

Institutional Strengthening

Revenue Policy, Legislation

Priorities to be agreed with GoK, in

collaboration with other supporting

partners, e.g. AfDB, World Bank

THANK YOUPlease note that the African Development Bank, World Bank, UNDP and others are working with DFID as part of a concerted donor effort to ensure that support is available to the Government of Kenya.