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Corporate Council of Africa Washington D.C. June 2003

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Corporate Council of Africa Washington D.C. June 2003

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    1. Corporate Council of Africa Washington D.C. June 2003

    2. Baker Hughes. Best-in-class products and services Focused divisions Enterprise strategy HSE Commitment Responsive, flexible, and easy to work with Committed to local content

    3. Technology Capabilities Drilling Bits Drilling Optimization Directional Drilling Rotary Steerable Systems Performance Drilling Products Drilling Fluids Liner Hangers Fishing/Milling Services Sidetracking Systems Formation Evaluation LWD Wireline logging OH Logging Cased hole logging Geo-mechanics Coring Reservoir Navigation Formation Fluid sampling Petrophysical Analysis Mudlogging Realtime Data Transmission

    4. 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: Education levels Lack of existing local companies Infrastructure Logistics Cultural differences Social conditions Legal structures and laws Local financial institutions Understanding Angola

    12. Commitment to Local Content Local content: A prerequisite for a service companys 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 Technology transfer 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 Field service Equipment maintenance Office personnel Detailed recruiting plan All departments 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 General Knowledge Core Values Business principles Health, Safety & Environment Technical Skills Specific to products and services Training Resources In-house facilities 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 High/prep schools Technology institutions Universities Well-educated new employees Productive sooner Advance more rapidly to responsible positions Replace expatriate employees Service company involvement Professor sponsorships Donations of equipment and material Financial contributions Student sponsorships

    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. JVs can work Sonamet Sonatide SonaSurf Sonamer SonaWest And more

    21. SONAWEST A JV success in Angola Formed 1997 Installed complete new processing facility Workforce 50% expats/50% Angolans Set up extensive training program Began 1st major 3D processing project 1998, 2000, 2002 Expanded facility Increased computing power Today 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 Goals: Process 2D and 3D seismic data in Angola Train Angolans geophysicists Increase participation between Sonangol and oil companies with data processors Decrease project cycle time Grow with the market Be profitable Goals attained: 100%

    23. New Opportunities Baker Hughes actively working on new JVs

    24. New Model

    25. Local Content Alliances Alliances and partnerships Requires established local businesses Financial resources Trained personnel Technical capabilities 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.

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