Carlos Eduardo Almeida, Brazil Account Manager

1. OTC-26208-MSFulfilling Local Content Requirements Within The First Six Months Of Country Operation: A Case Study Carlos Eduardo Almeida, Brazil Account Manager

2. Slide 2 INTRODUCTION Since its market de-regularization, Brazil introduced the Local Content Requirement (LCR) to strengthen demand directed to the domestic market and boost employment. • Local content requirements are seen as: • A mechanism to help diversify a country’s industrial sector. • Support the development of technology-intensive sectors and high growth potential. • Build segments to enhance national security. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

3. Slide 3 LOCAL CONTENT REQUIREMENT OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

4. Slide 4 THE CHALLENGE • Provision of H2S and CO2 safety services for ten offshore drilling rigs with an extremely tight timeline of 90 days. • Operator chose a safety solutions provider based in North America • Need to comply with operator and government requirements to have 60% local content at project launch. • Huge gap between capacities available and capacities required. Solution: Put in place accelerated nationalization of the workforce. This methodology covers all the elements of sourcing, recruiting, onboarding, integrating and operating phases for new workers joining the operation. OTC 26208 • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

5. Slide 5 SOLUTION: STANDARD ONBOARDING PROCESS • To maintain quality of service: • Typically utilizes its full-time training and development department; specialized trainers and facilities in Canada. • Mobilized two experienced and skilled safety coordinators from Angolan operations to conduct onboarding and OJT for local workforce. Eliminated language barrier. Communication between the Portuguese-speaking Angolan supervisors and the Brazilian personnel was smooth and efficient. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

6. Slide 6 SOLUTION: ON-THE-JOB TRAINING • Mobilized at project launch: • Two Portuguese-speaking Angolan Safety Coordinators • Seven Portuguese-speaking Angolan Safety Supervisors • 18 Brazilian Technicians • Angolan supervisors conducted: • New Hire Training Program • Ongoing OJT and Mentoring • Monitoring and Quality Control • Total trained: 34 local nationals. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

7. Slide 7 SOLUTION: SAMPLE NATIONALIZATION PLAN 1 2 Recruitment & Onboarding 3 Technical & On-the-Job Training 4 Knowledge Transfer International Career Devt. • Local National • Initiate local recruitment & selection initiatives • Initial Training - company orientation & induction • OJT Local operations/ systems, processes • Development Training - Local job enrichment activities • Local leadership development • Head Office & Technical Training Center • Canadian Petroleum Training Program • Industrial operations OJT training program • Equipment/shop QA/QC systems/ training program • Equipment maintenance certification courses • Problem solving • Cultural training • Sales development • Local National • Career Development • Assume local leadership/ management roles • Transfer knowledge - leading and developing local workforce • Replace expats (as applicable) • Global • Career Planning • Leadership & Management Devt through strategic international assignment • Continue company & industry specific technical & practical development • Global workforce • Multi-disciplined, multinational core OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

8. Slide 8 RESULTS OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

9. Slide 9 SOLUTION: CAREER DEVELOPMENT The company has four (4) distinct tiers of H2S / CO2 Technicians within the company, namely H2S / CO2 Technicians Level I-IV. Progression to the next level requires them to meet the following criteria: • Minimum one year working experience as a Level I H2S / CO2 Technician. • Proven leadership skills verified through interviews with management and operator representatives. • Completion of the core competencies defined by the career ladder for the skill level the employee is currently in Quality SMS knowledge – verified through a written exam. • Interpersonal skills – on the job observation by a Quality SMS representative. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

10. Slide 10 CONCLUSIONS Improving production efficiency levels for the operator by developing human infrastructure • The safety solutions company developed human infrastructure to align and support the goals of the operator. • Pursued an aggressive training and development program through its standard new-hire program, and local government established courses. • By having a reliable pool of safety professionals who are skilled and knowledgeable about international safety standards, the operator improved its production efficiency levels. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

11. Slide 11 CONCLUSIONS Established Quality Control standards • The quality control process established by the safety service provider was able to qualify the good employees and eliminated those that did not follow a continuous improvement model. • Once the company established itself, it started building relationships with the local government and community. • When the benefits of having a foreign company operating in-country became obvious, it became easier to work with the locals to overcome safety challenges in offshore operations. OTC-26208-MS • Fulfilling local content requirements within the first six months of country operation: A Case Study • Carlos Eduardo Almeida

12. Slide 12 Works Cited Dutch Disease Definition from Financial Times Lexicon, http://lexicon.ft.com/Term?term=dutch-disease (accessed July 06, 2015). Brazil - International - Analysis - U.S. Energy Information .., http://www.eia.gov/beta/international/analysis.cfm?iso=BRA (accessed July 06, 2015). de Lima-Campos, Aluisio. 'Local Content Requirements In The Oil And Gas Sector'. Washington College of Law Vienna, September 30, 2013. Presentation. Valle, Sabrina. "Buy-Brazil Rules Said to Be Eased in Plan to Spur Oil Projects." Bloomberg.com. May 12, 2015. Accessed June 17, 2015. Daher, E., 2013. Excellence in Safety Performance Has No Multicultural Barriers: A Case Study. Paper SPE 163754 presented at the SPE Americas E&P Health, Safety, Security, and Environmental Conference held in Galveston, Texas, USA, 18–20 March 2013. Retrieved from https://www.onepetro.org/conference-paper/SPE-163754-MS United Safety Limited. Facilitate large scale mobilization of H2S and CO2 Gas Safety Systems in Brazil. http://www.unitedsafety.net/blog/tag/case-upstream/_br (accessed May 23, 2014).

13. Slide 13 Thank You / Questions