The role of the private sector in promoting economic growth and reducing poverty in the Indo-Pacific region Submission 116
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- Doreen Mills
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1 Woodside submission Information relevant to the Joint Standing Committee on Foreign Affairs, Defence and Trade - Inquiry into the role of the private sector in promoting economic growth and reducing poverty Background Woodside has an extensive portfolio of facilities which we operate on behalf of some of the world's major oil and gas companies. We have been operating the landmark Australian project, the North West Shelf, since 1984 and it remains one of the world's premier liquefied natural gas (LNG) facilities. With the successful start-up of the Pluto LNG Plant in 2012, Woodside now operates six of the seven LNG processing trains in Australia. Woodside also operates four oil floating production storage and offloading vessels in the Carnarvon Basin, North West Shelf and Timor Sea. This is the largest owner-operated fleet in Australia with an excellent track record of efficiently and safely producing from current fields. Driven by our world-class capabilities, we are committed to expanding our LNG portfolio through premium developments including the Browse Floating LNG (FLNG) Development and the Sunrise LNG Development. We are also seeking to expand our exploration portfolio, both within Australia and globally, to generate future growth opportunities for the company. Woodside's international interests are in Timor-Leste, Myanmar, Peru, Republic of Korea, the Republic of Ireland, Canada, New Zealand and the Canary Islands. We remain focused on strengthening our relationships with customers, co-venturers, governments and communities to ensure we are a partner of choice, and attain our vision of becoming a global leader in oil and gas. Opportunities to increase private sector investment in the lndo-pacific Region The development of oil and gas fields has the ability to provide increased stability and significant economic development to relevant host countries in the Inda-Pacific Region. The flow of related taxation revenue together with associated local content and social investment from developments can represent a significant contribution towards the expansion of national infrastructure and human resources. The following items may be considered by the Australian Government to further encourage private sector investment in the Inda-Pacific Region: The establishment of formal, structured and regular information sharing forums with relevant private sector companies regarding investment opportunities in the Inda-Pacific Region. This approach may encourage further cross-sector alignment and could focus on a range of complementary areas of investment. These could include education, capacity building and the viable and sustainable development of local small and medium sized enterprises (SMEs) who often have inadequate access to financial support, limiting their growth and investment opportunities.
2 The provision of support and sharing of expertise with relevant governments in the lndo Pacific Region to establish well developed incentive and sanction structures that encourage the creation of micro financing models like Micro Credit Schemes and Credit Guarantee Schemes. Specific collaboration with private enterprise to support micro financing models. This approach may contribute towards balanced economic growth and social and political stability and enable the increased participation of SM Es in oil and gas developments. Collaboration with private enterprise in this area may increase the sustainability of such initiatives. Increased structured collaboration with private enterprise to achieve collective impact and shared value across a range of areas of common interest. Please see Case Study 1 that provides an overview of the Woodside Development Fund, which demonstrates a model of collective impact and shared value in practice. Also included in this submission is an overview of Woodside's Timor-Leste Professional Development Program (Case Study 2) as well as the Sunrise Joint Venture's Social Investment Program in Timor Leste (Case Study 3) which provides an insight into the social investment activities that we are involved in within the Inda-Pacific Region.
3 Case Study 1 - Woodside's Development Fund The recently launched Woodside Development Fund will support programs and organisations that focus on early childhood development, with the aim of creating positive, long term impact in communities in Australia and around the world. Woodside will work collaboratively with industry, governments, community organisations and practitioners, as it is critical that the views and resources of many are shared in a collective approach to tackling complex social challenges. Through the Fund, Woodside aims to be an energizer, advocate and collaborator, providing long-term funding and serving as a catalyst for different organisations and sectors to come together, working towards clear goals. Woodside will commit at least A$20 million over ten years to the Fund. In the early stage we are engaging with potential collaborators and key stakeholders to ensure we develop the most effective model for community support and that we target areas of focus that are relevant and realistic. Together with others committed to early childhood development, we will support projects that will: Bring about meaningful, long-term positive change in communities; Build a sustainable workforce for the future; and Demonstrate impact through a shared monitoring and evaluation process. CDLUSlllOORS _, l' _... -"" ~-"'Y... More information on the Woodside Development Fund can be found at:
4 Case Study 2 - Woodside's Timor-Leste Professional Development Program Woodside provides an opportunity for Timor-Leste nationals currently studying in Australia to complete 12 weeks of employment in Perth during their university summer break. Through Woodside's Timor-Leste Professional Development Program, five participants are placed in areas relevant to their discipline and have the opportunity to build their technical, business and career development capability through paid employment. Participants in their penultimate year of study (undergraduate or postgraduate) are eligible for assessment for Woodside's Summer Vacation Program. The program integrates and is consistent with Woodside's Summer Vacation and Indigenous Cadet programs. This year (2014) will be the third successful year of the program. More information regarding the Timor-Leste Professional Development Program can be found at:
5 Case Study 3 - Sunrise Joint Venture's Social Investment Program in Timor-Leste The Sunrise and Troubadour gas and condensate fields, collectively known as the Greater Sunrise fields, are located approximately 150 km south-east of Timor-Leste and 450 km north-west of Darwin, Northern Territory. The Sunrise Joint Venture (SJV) includes joint venture participants Woodside, ConocoPhillips, Shell and Osaka Gas. Through its established social investment program, the SJV has delivered important social and economic benefits to the communities of Timor-Leste. The SJV takes a strategic and integrated approach to corporate social investment by focusing on developing the capability and capacity of local organisations and supporting the health and wellbeing of local communities. The SJV supports local organisations to grow and develop new skills and partners with local and international non-government not-for-profit organisations to promote the sustainable growth and longterm development of the Timor-Leste community. Several examples of SJV supported initiatives include: Empreza Di'ak's Good Fish Community Network - is an initiative for economic empowerment of fishing communities on Atauro Island through technical and business skills training for dried fish and salt production. Ba Futuru's Early Childhood Development Initiative - provides training and capacity building for more than 100 early childhood educators in Timor-Leste. SJV also supported a program in 2012 that included training of 40 educators and construction of Ba Futuru's Early Childhood Education Facility in Dili, Timor-Leste. ICFP Baucau Teachers College - provides a program for ICFP tutors to build their teaching capacity through the Australian Catholic University to gain a Masters of Education qualification. HIAM Health's Community Nutrition Garden program - addresses malnutrition through education and training of community members including the installation of sustainable community vegetable gardens in Ermera and Maliana. More information regarding the SJV social investment program can be found at:
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