Oil Industry Associations:
their role in preparedness
and response partnerships
2010 PAJ Symposium

31/03/2010

What is IPIECA?
• The single global association representing both theupstream and downstream oil and gas industry on key
environmental and social issues• Founded in 1974 following the establishment of theUnited Nations Environment Programme (UNEP),IPIECA provides a principal channel of communication
with the UN• NGO status with United Nations (UNEP, IMO)
• Key areas of activity:– Oil Spill Preparedness and Response– Strategic Issues Assessment– Social Responsibility– Biodiversity– Climate Change– Fuels and Transportation– Health1

Company & Association Members

This Presentation• Why partnerships?
• The characteristics of partnerships: the IPIECA view
• The lessons we learned from partnerships• Partnerships in planning:– The Global Initiative in general• OSPRI• WACAF• Partnerships in response– Response integration• Conclusions

Why Partnerships?
“….The foundation stone of IMO’s success has been partnership.
Indeed, partnership is a fundamental principle in IMO which at its
heart is a cooperative relationship between the 158 Member
Governments, who join together in framing, implementing andpolicing the standards and the rules and regulations that governinternational shipping. It is a partnership that has produced morethan 40 conventions and several hundred protocols and resolutions
that together provide the blueprint for a safe, environmentally friendly
and cost-effective industry….in this, a global industry, our objectives
can only be achieved through global partnerships in a global forum”
William O’Neill
Secretary General of the IMO
July 2000

Partnerships - IPIECA Objectives• To communicate how the oil and gas industry is using
partnerships to contribute to sustainable development• To explore the partnering process through challenges
and “lessons learned” which were identified by IPIECA
members and their partners• To provide practical information for oil and gas
managers engaging in any stage of the partnering
processPublication content• Lessons from the case studies– Benefits of working in partnership– Practical tips for effective partnerships• Case studies organised by theme:– Biodiversity– Capacity building– Climate change– Community development– Fuels and transportation– Health– Human rights– Oil spill response– Transparency/Reporting

Partnerships in the oil and gas industry

Examples of partnerships in the oil and gasindustry• Global Gas Flaring Reduction(GGFR)• CONCAWE, EUCAR, JRC‘Well to wheels’ study• UNEP Partnership for Clean
Fuels and Vehicles (PCFV)• IPIECA Global Initiative

Benefits of working in Partnership• Stepping more safely into the field of sustainable
development• Delivering higher quality project outcomes• Promoting long-term sustainability of projects• Facilitating development and growth of projects• Improving stakeholder engagement• Creating open communication channels with localcommunities• Contributing to local economic development of hostcommunities• Contributing to wider regional or global sustainable
development efforts

Practical tips for effective partnerships•

Partnership drivers•

Partner selection•

Partnership building
Managing the partnership
Evaluating the success of the partnership
Agreements and contracts
Exit strategies and moving on

Case Studies

The Genesis of the Global Initiative (GI)• The IPIECA Oil Spill Working Group wasestablished in 1987 to tackle OSR issues• Membership:– 22 IPIECA member companies andassociations.
– Technical partners: IMO, ITOPF, le CEDRE,Oil Spill Response, AMOSC, UNEP, WCMC,PAJ, etc.
– Global Initiative (GI) programme formallylaunched in 1996 with input from industry andgovernment representatives as long termanswer

IMO/IPIECA Global Initiative• The IMO/IPIECA Global Initiative aims to:– Assist countries in developing national structure for OSR andpreparedness– Encourage ratification and implementation of relevant IMO
Conventions– Catalyze local ownership by industry and government– Demonstrate industry/IMO commitment to tackling oil spill issues• IMO/IPIECA cooperation stems from theOPRC Convention (1990) which calls forregulatory authorities to work with theoil and shipping industry to develop
global oil spill response capability

Regional Model for GI

1. Mediterranean (MOIG)
2. Black Sea, Caspian sea and Central Eurasia (OSPRI)
3. West and Central Africa (GI WACAF)
4. Wider Caribbean
5. South East Asia Seas
6. North West Pacific15

Contributions by other partners• Technical partners of the OSWG - IMO, OSR, CCA,ITOPF, etc. - provide significant financial or in-kind
support to GI programmes.
• Significant investments in oil spill prevention andpreparedness capability are being made by thirdparties (development banks, regional bodies,intergovernmental organizations)• Potentially a large benefit to industry in positively
influencing programmes by other ‘third parties’ carryingout similar work to GI groups to avoid duplication or
detrimental messages.

16Analysis of GI and lessons learned• The structure was inefficient; need to move on from“ad hoc” approaches and develop a coordinated andsustainable GI programme• The original program was owned and run by IMO andIPIECA in London. A better approach would be todevelop regional approaches that build capacity locally• GI programs need to be owned, managed, and run
locally with support from the principals at IMO andIPIECA in London. In difficult regions (like WACAF)
comprehensive support from organizations like Oil Spill
Response formed part of the redesign• Each region has a dedicated project
manager/consultant with local champions
17

Case Study: OSPRI
Kazakhstan
UkraineRussianFederation
Romania
Bulgaria

Caspian Sea
Black Sea

Turkmenistan

Georgia
Azerbaijan

TurkeyIR Iran18

Case Study: OSPRIOPRC 1990Country1992 CLC

1992 Fund2003

2009

2003

2009

2003

2009Bulgaria

998989Georgia

999999Romania

999988Turkey

899999Ukraine

888988Russia

899999Azerbaijan

898988IR Iran

998989Kazakhstan

888888Turkmenistan

88898819

OSPRI: their Recipe for success• Business Unit led and driven• Dedicated coordinating resource• Act as catalyst for tier 2 cooperation– including facilitation of tier 3• Aligned advocacy– consistent messages– recognized and ‘trusted’ voice

The GI WACAF Project

Goal: strengthen the oil spill response
capability, and develop
industry/government partnership throughexercises, training and workshops.

Implementation progress 08/09• 11 activities delivered- workshops,- exercises,- trainings• 7 national workshops up-coming• 1 Regional workshop

GI WACAF workshop
Hosting country

Activities Delivered

National workshops-NOSCP development-Dispersant Use-Sensitivity mapping

Supporting Tools

Exercise-Full scale ex. ind/gov-Table top-Deployments

Training
OPRC Level 1OPRC Level 2OPRC Level 3

WACAF’s Proposed objectives 2010-2014• Increase effectiveness and operational capacity ofstructures– Exercise Gov/Ind to test NOSCP (customs, immigration, security)– Equipment Tier 2 cooperatives• Strengthen national instruments for oil spillresponse– Contingency Plan
– Legislation (OPRC 90 ,CLC 92, FUND92, Bunker, etc.)• Strengthen partnerships in the region• Reinforce the project structure– Focal point network

OSPRI and WACAF are different• OSPRI and WACAF are both successful• The approach has been similar, but the activities
have been different and the partners have beendifferent, because the NEEDS are different• A tailored approach using a regional model basedon partnerships has worked for two very different
regions…

Partnerships in ResponseConclusions

3 Golden Rules
Build on shared values – because
successful partnerships are value driven
Be creative – because every partnership isunique
Be courageous – because all partnerships
involve risk

THANK YOU