1. Corporate Council of Africa Washington D.C. June 2003
2. Baker Hughes…. Best-in-class products and services
Responsive, flexible, and easy to work with
Committed to local content
3. Technology Capabilities Drilling
Rotary Steerable Systems
Performance Drilling Products
Cased hole logging
Formation Fluid sampling
Realtime Data Transmission
Provide all suppliers equal access to purchasing opportunities
Promotes supplier participation from the diverse business community
Enables disadvantaged suppliers to compete
Encourages economic development
Improves quality of Baker Hughes offerings
5. How do we find Minority Business Enterprises (MBE)? We utilize the National Minority Supplier Development Council
NMSDC is a non-profit organization that links over 15,000 MBEs to more than 3500 corporate members.
They have local councils in over 30 states, where corporations actively recruit minority owned firms to work with Corporate America.
They provide active databases for corporate procurement professionals to source for new suppliers.
They offer training to minority businesses as well as access to capital.
6. 6 Supplier Diversity Awards 2001 – Nominated as “Prime Supplier of the Year” by the Houston Minority Business Council.
2002 – Named “Prime Supplier of the Year” by the Houston Minority Business Council.
Recognized Baker Hughes’ commitment, innovation and expenditure with minority business enterprises.
2003 – Honorable Mention, “Prime Supplier of the Year” by Shell Oil Company.
8. World Class Opportunities in Angola
9. International and Local Customers
10. Angola Field Developments
11. Issues that require attention:
Lack of existing local companies
Legal structures and laws
Local financial institutions
12. Commitment to Local Content Local content:
A prerequisite for a service company’s long term success.
Requires ongoing financial and personnel commitment.
Achieves best results if the goals of all parties are understood and agreed upon from the beginning.
Collaboration is a key to success.
13. Local Content Elements: Recruit and train local employees
Establish permanent local facilities
Support local suppliers
Establish local joint ventures, alliances and partnerships
Support local institutions
14. Baker Hughes Sonils Base Luanda
15. Recruiting Local Personnel All areas of operation
Detailed recruiting plan
Realistic, obtainable goals
Training and development
Career path for each employee
Establish local competencies
Maintain high performance standards
16. Training Local Personnel Language Classes
common language is a first step
Health, Safety & Environment
Specific to products and services
Outside training facilities
Local and foreign
Training facilities made available to Sonangol and the Ministry of Petroleum
17. Preparing the Workforce Recruiting begins with local
Well-educated new employees
Advance more rapidly to responsible positions
Replace expatriate employees
Service company involvement
Donations of equipment and material
18. Local Joint Ventures Benefits to countries
Transfer of technology
Training and participation of nationals
Establishment of local facilities
Sharing of risks and rewards
Benefits to service companies
Good will with governmental entities
Excellent source of local employees
Increased market share
Sharing of risks and rewards
19. Different Expectations for Joint Ventures
20. JV’s can work Sonamet
21. SONAWEST A JV success in Angola
Installed complete new processing facility
Workforce 50% expats/50% Angolans
Set up extensive training program
Began 1st major 3D processing project
1998, 2000, 2002
Increased computing power
Center regularly processing major 3D surveys with an experienced Angolan
workforce (trained over 40 geophysicists and technicians)
Workforce 10% expatriate/90% Angolan
Fast turn-around, essential to Deepwater E&P effort
22. SONAWEST A success story in Angola
Process 2D and 3D seismic data in Angola
Train Angolans geophysicists
Increase participation between Sonangol and oil companies with data
Decrease project cycle time
Grow with the market
23. New Opportunities Baker Hughes actively working on new JV’s
24. New Model
25. Local Content – Alliances Alliances and partnerships
Requires established local businesses
Many areas in Angola are suitable for alliances and partnerships
Sonangol and Western Atlas (Baker Hughes) Alliance was a catalyst for the Deepwater exploration effort
26. Social Responsibility and Performance Responsibility to lead as well as serve
Contribute to the people in the community and society
Become part of society
Requires more than commendable expressions of social intent
27. Sustainable Development “Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.”
By building local content, service companies can help the host country achieve sustainable development, while sustaining their own long-term success as members of the local industry.