Oil for Development – OfD norad.no/ofd

1. Oil for Development – OfDwww.norad.no/ofd November 2007

2. OfD – our objective • Assist developing countries with petroleum resources in their efforts to • manage these resources in a way that generates economic growth, promotes the welfare of the population and is environmentally sustainable • avoid ”the resource curse”

3. OfD – who we are • OfD steering committee: • Formulates strategic directions and priorities • Decides on major project proposals • OfD-secretariat located in Norad: • Responsible for coordination, implementation and quality control • Norwegian embassies play an essential role in OfD: • Development cooperation responsibility is assigned to them

4. OfD – who we cooperate with • The Norwegian Petroleum Directorate, Petrad, the Norwegian Pollution Control Authority, consultancies and research institutions • The Extractive Industries Transparency Initiative (EITI) • Norwegian and international oil and service companies can assist OfD-programmes in vocational training and enhancement of local content • Norwegian and international NGOs • Important role in building capacity among local civil society organisations • 6 Norwegian NGOs and one international NGO have received funding in 2007

5. OfD – our foundation • OfD is built around three integrated themes: • Resource management • Environmental protection • Revenue management Principles of good governance, transparency and accountability are a fundamental part of the three themes

6. OfD - how we work • Assistance is based on requests • OfD shares Norwegian experiences. Each country has to create its own policy based on own circumstances • Long-term perspective

7. Core countries

8. OfD spending * * *estimate

9. OfD and capacity building • Standardised short term courses • Petrad 8- week • Tailor made seminars and workshops • Language training • Advisors working with counterparts • Internships and on-the-job-training • Vocational training • Higher education • Scholarships for individual students • Quota programme • NOMA - Norad’s Programme for Master Studies

10. NOMA in more detail • From 2006 NOMA replaced the former scholarship programme (NPF). NOK 63 mill in 2006 • NOMA Energy and Petroleum. Objectives: • Support the development of energy and/or petroleum related Master programmes at Higher Education Institutions (HEI) in the South through cooperation with HEI in Norway • Achieve, in a longer perspective, sustainable capacity of institutions in the South to provide the national work force w adequate qualifications within energy and petroleum sectors • Stimulate South-South-North cooperation through support to the development of regional Master programmes • Enhance gender equality in all programme activities • Strengthen capacity of Norwegian HEI to integrate global as well as development perspectives in their professional work

11. The case of Timor-Leste • Project ongoing since 2003 • Large education component • Petroleum legal framework • Petroleum fund • Boundary negotiations with Australia • 1st bid round in exclusive area • Challenging setting • Post conflict • Very low outset capacity in public petroleum sector • Expectation management – high unemployment • Political turbulence

12. Standardised short term courses • 1 public sector staff taking Petrad 8-week course each year • Petroleum policy and resource management • Petroleum development and operations

13. Tailor made seminars and workshops • Seminars and workshops have been conducted in both Timor-Leste and Norway: • Environmental Impact Assessment (2) • Data Management (6) • Resource management (3) • Delegation of 12 to Norway in 2005 • visits to a range of institutions in Stavanger and Oslo • seminar on national oil companies

14. Language training • English is the language of the international petroleum sector • Intensive English training in Australia/NZ for all public petroleum sector staff in 2005 and 2006 • English training in Timor-Leste • Significant improvement: • Staff meetings can now be conducted in English • Ability to participate in international training and events

15. Advisors working w counterparts • Timor-Leste is the OfD-project that has had most advisors on the ground • Continuity is a problem, as most advisors only willing to live there one year • Counterpart capacity is a significant challenge to knowledge transfer • Language and educational level • Advisors often end up doing the work • Need for long-term approach and realistic expectations

16. Internships and on-the-job-training • Facilitated internships for public sector staff with • Gaffney Cline & Associates (1 staff, 6 months) • Three staff participated in seismic survey (3-weeks each)

17. Vocational training • One public sector staff will attend TAFE (Technical and Further Education) in Australia from 2008 • As part of production sharing contracts in the exclusive zone operators will support local content development • Not finalised, but may include practical and/or financial support for vocational training

18. Higher education • No accredited university in Timor-Leste – not NOMA-eligible • Funding for bachelor and master degrees abroad • Four students currently on bachelor programmes in Australia • One student currently in Stavanger doing Master in petroleum engineering • Minimum five years of work for the public petroleum sector upon completion of degree • Small grants to Timorese taking petroleum-related degrees in Indonesia

19. OfD capacity building strategy 2008 • Strengthen HEI in the South through NOMA, the quota programme and other arrangements • Scholarships • New, standardised modules • Tailor made workshops/seminars • Facilitate internships and on-the-job-training • Advisors (resident and on rotation) • Close cooperation with Norw. and int. civil society on capacity building of civil society in the South • Increased focus on local content in projects