Other OfD programmes

07.07.2011
In addition to our bilateral country programmes, OfD is also involved in a number of Other programmes either directly or via Other donors and implementing partners. These programmes, which include our regional efforts in East and South East Asia, West Africa, and East Africa, are presented in this chapter.

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OFD-INITIATED REGIONAL INITIATIVES


In 2010, OfD has stepped up its efforts to support regional and South- South cooperation, meaning that capacity building activities involve more than one participant country. An area of special interest is West Africa. Three of our core countries, Angola, Ghana and Nigeria, belong to the region, while both Sierra Leone and Liberia receive regional and bilateral assistance. OfD support has also been given to Ivory Coast.

Sierra Leone and Liberia are at somewhat similar stages in their petroleum development, hence there are substantial advantages in taking a joint approach in the capacity building process. The two countries will have the opportunity to learn from each Other’s experiences and engage in discussions on the most appropriate ways in which to govern the petroleum sector.

The joint cooperation with Sierra Leone and Liberia is undertaken in collaboration between OfD, the African Center for Economic Transformation (ACET) and Revenue Watch Institute (RWI), jointly called the Petroleum Advisory Group (PAG), each institution represented by a lawyer.

REGIONAL ACTIVITIES IN 2010

The first joint workshop for Sierra Leone and Liberia on upstream petroleum sector policy and organization was held in Freetown, Sierra Leone in May. Back to back with the workshop, the Government of Sierra Leone held a stakeholders’ workshop on the Petroleum Policy where the PAG was invited to attend as an observer.

The second joint workshop for the two countries on petroleum legislation was held in Monrovia, Liberia in November. The workshop was also attended by Mali.

A workshop on petroleum data management was held in Elmina, Ghana in November, with participants from Ghana, Guinea-Bissau, Guinea, Ivory Coast, Liberia, Mali, Nigeria, São Tomé and Príncipe and Sierra Leone.

A workshop on oil, fish and environment was organized in Luanda, Angola in November, with participants from Angola, Congo DRC, Gabon, Ghana, Liberia, Mozambique, Namibia, São Tomé and Príncipe and Tanzania.

In addition to the West African regional workshops, a workshop on environmental management of petroleum activities in the Amazon was organized in Quito, Ecuador in August for Bolivia, Ecuador and Peru, and in November a workshop on petroleum data management was organized for Bolivia, Cuba and Ecuador in Santa Cruz, Bolivia. In October a workshop on petroleum data management organized for Kenya, Mozambique, Namibia, Rwanda, Sudan, Tanzania, Uganda, and Zambia was held in Entebbe, Uganda, and in March a workshop on good governance and corruption prevention in the petroleum sector was held in Maputo, Mozambique for the Portuguese speaking OfD partner countries.

 

Photo: Gunnar Sjøgren

Participants at the West African regional data management seminar.
Photo: Gunnar Sjøgren



COPERATION WITH SIERA LEONE

Institutional capacity building and technical support

Cooperating institutions

  • Office of the President, The Presidential Task Force
  • Petroleum Resource Unit (PRU)
  • Ministry of Justice/ Attorney General – Legal Drafting Team (LDT)

Goals and objectives

To assist the Government of Sierra Leone in its reform of the petroleum sector and to strengthen its ability to manage the exploitation of its petroleum resources in accordance with applicable well established international best practices. The capacity building efforts are provided mainly through workshops and training programmes.

Project Period

2010–2013

Contact

Oil for Development: Mr. Halvor Musæus, halm@norad.no

Cooperating institution in Norway

  • Petrad

Cooperating institutions outside Norway

  • African Center for Economic Transformation (ACET), Ghana
  • Revenue Watch Institute (RWI), USA

Brief history of the project

President Ernest Bai Koroma of Sierra Leone, in a letter to Prime Minister Jens Stoltenberg of October 15th 2009, requested Norwegian assistance under the OfD programme, to which Norway responded positively. The President of Sierra Leone agreed to Norway’s offer to provide assistance through a regional approach. The first mission of the PAG to Freetown was conducted in December 2009. During this mission, contacts were established and the priorities for the cooperation were decided on.

Activities in 2010

The second mission of PAG to Freetown took place in February. The President asked the PAG to provide its opinion on a number of questionable decisions regarding extensions of exploration periods in various blocks. Such assessments were made and recommendations were given. Discussions were held on the future collaboration, including the cooperation with Liberia, concerning the Policy Paper etc.

The third mission to Freetown was conducted in November. The Presidential Task Force, responsible for the restructuring of the petroleum sector, had established a Legal Drafting Team under the leadership of the Minister of Justice/Attorney General and the PAG was invited together with the Commonwealth Secretariat to participate in the first session of the team. The PAG had some months earlier provided the Government with extensive comments on the existing law and recommendations for adjustments.

Two representatives from Sierra Leone participated in Petrad’s eightweek course in Stavanger.

Key achievements in 2010

With the assistance of the PAG, the Petroleum Policy Paper was prepared and approved by Parliament so that the work on the petroleum law could proceed.

COPERATION WITH LIBERIA

Institutional capacity building and technical support

Cooperating institutions

  • Office of the President
  • Ministry of Lands, Mines and Energy
  • Ministry of Planning & Economic Affairs
  • Environmental Protection Agency of Liberia
  • National Oil Company of Liberia (Nocal)

Goals and objectives

To assist Liberia in its reform of the petroleum sector and to strengthen Liberia’s ability to manage the exploitation of its petroleum resources in accordance with applicable well established international best practice. The capacity building efforts will be provided mainly through workshops and training programmes.

Project Period

2010–2013

Contact

Oil for Development: Mr. Halvor Musæus, halm@norad.no

Cooperating institutions in Norway

  • Petrad
  • Norsk Energi

Cooperating institutions outside Norway

  • African Center for Economic Transformation (ACET), Ghana
  • Revenue Watch Institute (RWI), USA

Brief history of the project

President Sirleaf Johnson sent a formal request in December 2009 for assistance on the management of the petroleum activities in line with the support offered to Sierra Leone. An offer of assistance from Norway was confirmed in January 2010.

Activities in 2010

As a follow up of OfD’s first visit to Monrovia in January, the PAG conducted a scoping mission to Monrovia in early March. The following key issues were identified for possible cooperation: the formulation of a National Policy on Petroleum; revision of the existing legislation; examination of the administrative structure; preparation and execution of bidding rounds for the award of blocks; data management and border demarcation. Plans were initiated for the establishment of the cooperation programme and the cooperation with Sierra Leone.

A workshop on petroleum contract negotiation, organized by the PAG in close cooperation with Nocal, was held in Monrovia in June. The workshop was well attended and conducted at a high level.

One representative from Liberia participated in Petrad’s eight-week course in Stavanger.

Key achievements in 2010

The workshop on petroleum contract negotiation raised awareness on key issues related to contract negotiation in the Government’s preparation for a bidding round.


 

AFRICAN CENTER FOR ECONOMIC TRANSFORMATION (ACET)

 

The African Center for Economic Transformation (ACET) was established in 2007 and has its office in Accra, Ghana. ACET’s objective is to enhance capacity building in cooperation with governments in African countries to support them in achieving a sustainable development and reduction in poverty. In these efforts emphasis is put on using African experts with relevant knowledge and experience from engagements at home and abroad. The purpose is to make African countries less dependent on external consultants with limited knowledge of local conditions. OfD is, together with the Revenue Watch Institute (RWI), providing financial support to ACET’s activities within the extractive industries, enabling ACET to widen its activities to include advice on the management of natural resources, primarily oil and gas. ACET has initiated a pilot project in Sierra Leone and Liberia in cooperation with OfD and the RWI, see here


 

THE CORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP)

 

Programme for Enhancing Public Petroleum Management (EPM) of the CCOP Member Countries

CCOP is an intergovernmental organization devoted to geo-science programmes in East and Southeast Asia. The organisation promotes capacity building, information transfer, sustainable resource development, management of geo-information, geo-hazard mitigation and protection of the environment. There are twelve member countries: Cambodia, China, Indonesia, Japan, Korea, Malaysia, Papua New Guinea, the Philippines, Singapore, Thailand, Timor-Leste and Vietnam. CCOP is supported by fifteen cooperating countries, of which Norway is one.

Goals and objectives

To create the highest possible value from petroleum resources in order to improve the quality of life of the people in the CCOP member countries.

To enhance the capacity of the member countries to assess undiscovered petroleum resources in emerging areas, with focus on natural gas and the environment.

Project period

2008 –2012

Expenditures 2010

NOK 4.6 million

Programme

The EPM programme is comprised of the following main projects:

  • Petroleum Resource Management with focus on Natural Gas, Cross-border study of the North Sumatra – Mergui Basin between Indonesia, Malaysia and Thailand;
  • Natural Gas Field Developments and Environmental Issues;
  • Metadata on Natural Gas Resources in the region.

Contact

Oil for Development: Petter Stigset, pest@norad.no

Cooperating institutions in Norway

  • Norwegian Petroleum Directorate (NPD)
  • Petrad

BRIEF HISTORY OF THE PROJECT

Norway has supported CCOP since 1976 and has been the main supporter of the petroleum programmes since 1989. The programme has evolved from initial training and technology transfer into resource management and environmental issues. The current project (EPM) started in 2008 and will end in 2012.

ACTIVITIES IN 2010

The following workshops and meetings were conducted:

  • Data Integration, Basin Analysis & Technical Fieldwork (Indonesia)
  • Basin Modelling, Map Integration and Fractured Basement (Malaysia)
  • Storage into geological formations, HSE, CDM and Flaring, (Thailand)
  • Mapping of CCS Potential Reservoir and Selection Criteria, (Indonesia)
  • Metadata training and guidelines for metadata management (Thailand)
  • GIMS, in cooperation with China Geological Survey (China)
  • EPPM Seminar (Thailand)

KEY ACHIEVEMENTS IN 2010

The sharing of data, modelling and analyses by countries with rights to the same petroliferous basin are unique and contribute to improved assessments of the petroleum potential.

The work on carbon capture and storage (CCS) has raised the awareness of potential reservoirs, as well as on a regulatory framework. A basis has been established for regional cooperation on CCS as well as cooperation with the ASEAN Council on Petroleum (ASCOPE).

The metadata projects provide a basis for a regional standard, as well as for efficient sharing of data.


 

THE PETROLEUM GOVERNANCE INITIATIVE (PGI)

 

PGI is a bilateral collaboration between the Government of Norway and the World Bank Group. The programme comprises three pillars: Governance and Revenue Management, the Environment, and Community Development. PGI provides technical assistance and capacity building, consensus building and advocacy, global knowledge management and dissemination of best practices. The programme works at both global and country-specific levels. The intention is to engage primarily in areas where Norway by itself has limited expertise or insufficient resources for implementation.

Expenditures

2010 NOK 10 million

ACTIVITIES IN 2010

An external evaluation of the PGI was completed in 2010, addressing performance and results within the context of Norway’s development assistance goals and the World Bank Group’s strategy for extractive industries. Strong progress in the first four years of operations was documented, confirming PGI’s unique position as a provider of authoritative global knowledge products and country-based technical assistance.

Pillar 1:

Petroleum Sector Governance and Petroleum Revenue Management

Country specific assistance was provided to Ghana, Rwanda and Cambodia within the domains of regulatory issues and capacity building. The programs in Ghana and Rwanda were completed in 2010, whereas the activities in Cambodia will continue in 2011. Global programmes were addressed through two studies being initiated and one conference: “The Role of LPG in Reducing Energy Poverty”, a study of factors influencing households’ use of liquefied petroleum gas in a variety of developing countries, and “Gender Dimensions of Oil and Gas”, a multi-country study of the gender impacts of the petroleum industries. Development and public finance issues related to the petroleum sector in federal systems were addressed in the international “Conference on Oil and Gas in Federal Systems” held in Washington DC in 2010.

Pillar 2:

The Environment

Regulations, institutions and capacity building measures for the management of social-environmental impacts of offshore activities were addressed in Mauritania, and a facility for Environmental Management Training was established in Ghana as a followup to the Survey on Environmental Management Systems. Finally, as a global activity, a “Best Practices Toolkit on Decommissioning” for regulatory authorities to address legal, contractual, economic, social and environmental implications of the abandonment of oil fields and mines was completed.

Pillar 3:

Community Development

A number of both country specific and global programmes were undertaken under the Community Development Pillar: “Strengthening Social Accountability to Improve the Impact of Royalties in Columbia” addressed the performance of royalties' investment monitoring. The “Information Clearinghouse” disseminated good practices in community development and investments in extractive industries through the internet. A methodology for sustainable development and community investments as part of extractive industries projects was developed through the “Value Social Investment Tool”, and municipal investment in the area of influence of the Peru LNG pipeline was improved through the “Peru LNG Enhancing Royalties Investment”. Also in Peru, the local government effectiveness for managing revenues from O&G sector operations was improved through a “National Project on the Mining Canon and O&G Revenues”.

Other projects addressed the investment management and accountability practices for local Colombian governments in the area of influence of Greystar's gold mine project, the use of oil royalties in selected municipalities across Colombia, and a product for a performance-based approach to CSR.

Extractive Industries – Technical Advisory Facility (EI -TAF)

EI -TAF was established in 2009. The facility organizes assistance related to contract negotiations and associated policy reforms/frameworks.


 

INTERNATIONAL MONETARY FUND (IMF)

 

The IMF and OfD entered into a bilateral cooperation agreement in the spring of 2009. OfD draws on the IMF’s capacity on petroleum resource wealth and revenue management in our cooperation with the partner countries.

Total budget

NOK 10 million, of which approximately NOK 3 million spent in 2010

ACTIVITIES IN 2010

Bolivia

Activities were carried out as part of Bolivia’s “Public Finance Reform and Resource Management” project. One mission advised on the implementation of a medium term fiscal framework and on improving hydrocarbon projections, while anOther provided further strengthening of the treasury and debt management. A third mission was undertaken to assist the authorities in the design of a financial programming model for medium term macro-fiscal projection. 

Uganda

Focus is on the Oil Tax Administration of Uganda. The broad objectives of the project are to strengthen the institutional capacity to collect and manage petroleum revenues. Notable achievements include the establishment of a specialist entity within the Large Taxpayers office dealing with oil tax, and the formulation of the first version of a manual of best practice on oil tax administration. 

Sub-Saharan Africa

The project financed the Sub-Saharan African Countries Regional Tax Policy Conference, held in Kampala, Uganda in June. The focus of the conference was on presenting best practices and country experience on petroleum tax.

IMF Topical Trust Fund – Managing Natural Resource Wealth

In December, Norway agreed to support the IMF’s multilateral fund on Managing Natural Resource Wealth with the amount of NOK 30 million until 2015. The objective of the fund is to assist resource rich countries in their efforts to avoid the resource curse. Initial funding of NOK 3 million was made available to the IMF in order to establish the organization and start the planning of activities. The activities are anticipated to commence in the spring of 2011.


 

THE EAST AFRICAN COMMUNITY (EAC)

 

The EAC, seated in Arusha, Tanzania, is the regional intergovernmental organization of the Republic of Kenya, the Republic of Uganda, the United Republic of Tanzania, the Republic of Burundi and the Republic of Rwanda. The EAC aims at widening and deepening cooperation among the partner states in areas such as the political, economic and social fields. To this aim, the EAC countries established a Customs Union in 2005 and are working towards the establishment of a Common Market by 2010, subsequently a Monetary Union by 2012, and ultimately a Political Federation of the East African States.

The OfD programme has supported the petroleum sector through sponsoring the East African Petroleum Conference in Kampala, Uganda. The conference has become an important meeting place for the oil exploration sector and holds high quality with regards to transparency and information sharing.

OfD has also supported a regional data management seminar in the EAC region. In 2010, the seminar was held in Kampala, Uganda. In addition to the EAC countries, participants from Mozambique, the Democratic Republic of Congo, and Sudan were invited to the seminar.


 

CIVIL SOCIETY CAPACITY BUILDING THROUGH NORWEGIAN NON-
GOVERNMENTAL ORGANIZATIONS

 

Civil society organizations play an important role in the OfD programme. In 2010, seven Norwegian non-governmental organizations (NGOs) were granted a total of NOK 14.5 million for capacity building of civil society partner organizations in OfD’s cooperation countries. Most of the allocations were made on a three-year basis in order to enhance predictability for the Norwegian NGOs and their partner organizations and to minimize the administrative burden on the NGOs and Norad.

Ranked according to the size of funds received, the partnering organizations were: World Wide Fund for Nature Norway (WWF Norway), Publish What You Pay Norway (PWYP Norway), Norwegian People’s Aid, the Norwegian Confederation of Trade Unions (LO), Friends of the Earth Norway, Norwegian Church Aid, and Norwegian Students’ and Academics’ International Assistance Fund (SAIH).

Organizations such as PWYP Norway, LO, Friends of the Earth Norway, WWF Norway and Norwegian People’s Aid conducted capacity building activities which targeted organizations and individual NGO-members from a range of the OfD partner countries, whereas SAIH and the Norwegian Church Aid worked with civil society in Bolivia, and Angola and Mauritania, respectively.

Thematically, the Norwegian NGOs worked to build capacity within two main areas: enhanced transparency and accountability in petroleum governance and revenue management; and environmental and social sustainability in petroleum activities.


 

CIVIL SOCIETY CAPACITY BUILDING THROUGH REVENUE WATCH INSTITUTE

 

In February 2010, the Revenue Watch Institute (RWI) and OfD entered into a new agreement for core institutional support for the period 2010–2012. The purpose of the RWI OfD programme is “effective, transparent and accountable management of oil, gas and mineral resources for the public benefit in countries where these extractive industries constitute a significant part of economic activity and source of government revenue.” Under this agreement, the RWI received NOK 6 million in 2010. The funds were spent on research, technical assistance to governments, the Extractive Industries Transparency Initiative (EITI), strengthening the capacity of parliaments in different countries to better understand the nature of the petroleum sector, capacity building for media, capacity building of civil society organizations and grant-making to civil society actors. The RWI played a vital role in supporting EITI implementation in countries such as Afghanistan and Iraq.

The RWI and its partners achieved a historic victory with the passage in the US Congress of the Lugar-Cardin amendment as part of the Dodd Frank Act, a bipartisan measure requiring all companies registered with the Securities and Exchange Commission to report all amounts they pay to governments for access to oil, gas and mining companies, country by country, and project by project. The Revenue Watch Index was publicly released in 2010, and the Natural Resource Charter was officially launched. The Natural Resource Charter is a global initiative designed to help governments and societies to effectively harness the opportunities created by natural resources.

In cooperation with OfD and the African Center for Economic Transformation (ACET), the RWI provided technical assistance to Sierra Leone and Liberia as pilots for the longer-term cooperation between the organizations and as a means for ACET to continue to develop its skills in extractive-industry assistance. RWI provided grants to a number of civil society organizations in OfD partner countries in Africa, Asia-Pacific, Latin America and the Middle East.

 

Photo: Fredrik Naumann

Photo: Fredrik Naumann


 

PETRAD’S EIGHT-WEK PROGRAMMES

 

Petrad’s eight-week programmes were developed in the period 1990– 91 assisted by key resource personnel from the Norwegian petroleum research institutions and the petroleum industry. One programme focuses on Petroleum Policy and Resource Management and the Other on Petroleum Development and Operations.

The two programmes were arranged for the first time in 1991, with 20+20 participants from 18 countries. The programmes run in parallel and have been repeated every autumn since 1991. The objective of the programmes is to strengthen the participants’ capabilities for contributing to the successful management of petroleum resources. The programmes have become internationally recognized for their combination of applied petroleum management, practical case studies, industrial visits and a substantial social programme.

A total of 871 participants from 77 countries have graduated from the two programmes.

Petroleum Policy and Resource Management

Petrad’s programme “Petroleum Policy and Resource Management” concentrates on how a country can develop its petroleum resources in the best way to the benefit of all the people in the country. The programme is based on the premise that these resources can add substantially to a nation’s development and wealth, and should be managed by national authorities. It is also recognized that profit-seeking companies, often coming from outside the nation in question, can contribute with technical, organizational and financial capabilities which will be decisive for a successful development of petroleum resources. However, this requires a proper legal framework and efficient monitoring by the authorities.

Petroleum Development and Operations

Petrad’s programme “Petroleum Development and Operations” will increase the participants’ skills and give them tools to assist their country’s authorities with the management and monitoring of the development and operation phases. It is designed to introduce and communicate alternative options for how to manage offshore petroleum developments and operations.

In 2010, 19 participants from OfD core countries (Timor-Leste, Ghana, Mozambique, Nigeria, Sudan and Uganda) were trained, as well as 10 participants from OfD countries with limited cooperation (Cambodia, Cuba, Ecuador, Liberia, Sierra Leone and Tanzania). In addition, six participants from Gambia, Mongolia, the Philippines and Thailand also took part in the training programmes. In total, the participation of 35 persons was funded by the OfD programme.


 

NORAD’S MASTER PROGRAMME FOR ENERGY AND PETROLEUM (ENPE)

 

Norad’s Master Programme for Energy and Petroleum (EnPe) – a support programme for higher education within petroleum and renewable energy – was launched in 2009. The programme aims at contributing to the education of staff in the energy and petroleum sectors through building capacity at the Master’s level in higher education institutions (HEI) in the South.

The programme is managed by the Norwegian University of Science and Technology and a separate Programme Board. HEI in the South and in Norway submit joint project proposals to the Programme Board, which decides on project funding.

The objectives of the EnPe programme are:

  • To support the development of Master programmes at HEI in the South through close collaboration with HEI in Norway in accordance with national needs
  • To achieve, in a longer term perspective, sustainable capacity of institutions in the South to provide the national work force with adequate qualifications within selected academic fields of study relevant to the energy and petroleum sectors
  • To stimulate South-South-North cooperation through support to the development of regional Master programmes
  • To enhance gender equality in all programme activities
  • To strengthen and further develop the competence of Norwegian HEI to integrate global as well as developmental perspectives in their professional work

The first allocations were made in December 2009, and as of December 2010 there are currently nine different programmes running with support from EnPe. This includes programmes in Africa, Asia and South America and involves the major academic institutions within energy and petroleum in Norway. In 2010, NOK 1.3 million have been allocated.


 

INTERNATIONAL ASSOCIA - TION FOR IMPACT ASSESSMENTS (IAIA)

 

The International Association for Impact Assessment (IAIA) is a forum aimed at advancing innovation, development, and communication of best practice in impact assessments. In 2010, OfD provided stipends for 16 participants from 10 OfD partner countries to participate in the annual IAIA-conference, which was held in Geneva, Switzerland. The support was administered by the Norwegian Directorate for Nature Management (DN). A separate programme for the OfD-funded participants was developed jointly by the Ministry of Environment, DN and NIBR. This programme consisted of an introductory programme ahead of the conference itself, one thematic forum that dealt particularly with impact assessments in the oil and gas sector, one concurrent session which focused on specific OfD partner countries issues, one workshop session where the environmental and social responsibilities of the oil and gas industry were discussed, and finally a post-conference session on networking for impact assessment capacity building in the oil and gas sectors.


 

GLOBAL GAS FLARING REDUCTION PARTNERSHIP (GGFR)

 

The Global Gas Flaring Reduction Partnership (GGFR) is a World Bankled initiative aimed at reducing gas flaring by sharing global best practices and implementing country specific programs. As the international community is examining ways of reducing greenhouse gas emissions and moving toward low-carbon economies, natural gas, as the cleanest burning fossil fuel, is becoming an increasingly attractive component of the energy mix in countries around the world. Yet billions of dollars in natural gas are burned or flared at oil fields across the world. While, according to the GGFR, the total volume of gas flared has been reduced over the years, it is estimated that about 140 billion cubic meters of natural gas are still being flared and vented annually. This is equivalent to more than the total gas consumption of Central and South America combined. Eliminating carbon dioxide emissions from flaring would be equivalent to taking some 160 million cars off the road. Natural gas is released when oil is produced, but is less profitable to process, especially in countries that lack sufficient regulations, infrastructure and markets for it. Solving the challenge of bringing this wasted gas to productive use is the mission of this partnership.

Through the GGFR, major oil companies and governments are now working together to minimize this waste by raising the awareness about the issue, jointly overcoming the barriers that inhibit more gas utilization, as well as sharing global best practices and implementing country specific programmes. Norway was one of the founders of the initiative in 2004 and has supported the programme since, with approximately USD 130 000 per year. However, the programme has a lot of challenges, as a variety of factors make it uneconomical or physically difficult for some resource holders to reduce gas flaring.

OfD aims at combining our bilateral cooperation with the multilateral initiatives of GGFR. In 2010 OfD, representing Norway took active part in the governing process of the initiative through our participation in the Steering Committee of GGFR.