Eni Rovuma Basin
09:55 - 10:20
Thursday, 19 September 2019
S2.7 Local Content & Sustainable Development in the Mozambique FLNG Industry
The paper aims at showing how the Local Content is rooted in the Eni’s global strategy and business model and the strategic role played in ensuring social license to operate during the development and execution of the Coral South FLNG Project in Mozambique.
Local Content, indeed, is a pivotal component of the 3 levers of the Company’s mission and business model. It helps in creating value for all stakeholders by combining financial robustness with long-term sustainability through:
- cooperation model with the countries where Company operates which aims at promoting social and industrial development thus strengthening its ties with host countries; it is based on the conviction that it is necessary to make the host/producer countries autonomous from the point of view of energy supplies by choosing the path of dialogue and respect for local cultures. Local Content also represents a way for promoting human rights by creating job opportunites directly and along our supply chain, with fair salaries and safe and healthy conditions. This lever reflects the commitment towards the 17 Sustainable Development Goals;
- operating model that reduces business risks as well social and environmental impacts thorough the attention to the safety of our people and assets, investing in research and development;
- decarbonisation path, which promotes energy transition towards a more sustainable energy mix driven by gas and renewables, thus combating climate change
In order to make the commitments towards Local Content more concrete, an Externalities Evaluation Assessment Model helps in measuring direct, indirect and induced effects of company presence in a host country on 3 dimensions: economic, employement and human capital development. The tool has been applied for the first time to our Ghana – OCTP project, then in East and West Hib projects in Angola, and now is being applied to Coral SOUTH FLNG project in Mozambique.
In Mozambique, an holistic LC Strategy and action plan has been defined. It encompasses the coordination and monitoring of all commitments and actions to be undertaken by Company and its main contractors and subcontractors recognizing the value chain contribution to the successful implementation of the LC. The strategy relies on three main streams:
- workforce development - the investment in human capital through cooperation with local Universities and Vocational Training institutions to strengthen their capacity in terms of infrastructures, labs, O&G and technical training programs for professors & trainers, scholarship programs for higher education and technical schools candidates.
- development of local suppliers – through dedicated workshops with local companies to support them in registration and qualification process and by implementing an incubator programme for local SMEs
- socio-economic development – represents the investment for the benefit of the communities where company operates: nearly 40 mln USD spent in favour of the territory to date and further 20 to be invested over the next 4 years.