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Northern Regional Community Consultative Committee update
March 2016
Legal notice
The following presentation contains forward-looking statements concerning BG Group plc’s strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which BG Group plc operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which can be controlled or predicted. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from the guidance given in this presentation for a number of reasons. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the “Principal risks and uncertainties” included in the BG Group plc Annual Report & Accounts 2014. Nothing in this presentation should be construed as a profit forecast and no part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. BG Group plc undertakes no obligation to update any forward-looking statements.
No representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information in this presentation and no responsibility or liability is or will be accepted by BG Group plc or any of its respective subsidiaries, affiliates and associated companies (or by any of their respective officers, employees or agents) in relation to it.
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Safety Moment – Litter
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• QGC engaged Veolia for roadside clean up • Covered 100km of Western Downs roads
most used for our project • Collected:
• 924 bags• 118 tyres• Over 2.6 tonnes of rubbish
• Also supported Clean Up Australia Day (6 March) at various locations
• It’s everyone’s responsibility to ensure that we keep our area of operations clean
• Secure your load – before you drive to make sure no materials fly out
• Clean up your site – before leaving a site ensure it’s left tidy and litter free even if the rubbish isn’t yours
• Don’t throw rubbish out the window –dispose of your rubbish where its suitable
Outline of today’s meeting
1. Introductions
2. Adoption of minutes
3. QGC update
4. Key topic updates
5. Lunch
6. Community benefits report
7. Committee feedback
Welcome
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QGC Update
• BG Group is now a part of Royal Dutch Shell
• For QGC it is business as usual while Shell integration planning progresses
• The safety of our staff and communities remains our priority
• Moving towards plateau production mid 2016
• Low oil price environment demands focus on:
– Optimising our performance across the integrated gas chain
– Achieving high rates of efficiency and productivity
• Delivering Charlie development
Operations Update
• Continuing to ramp up production
• Operating under routine conditions including for maintenance schedules
• From time to time this may involve localised flaring
• Q2 2016 will commence the next phase of trials for Remotely Piloted Aircraft Systems (RPAS)
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RPAS Trial • 12 week trial, 2 days per week, daytime only
• Conduct routine monitoring of QGC infrastructure on group of landholder properties in northern region
• Strict guidelines around image capture to protect privacy
• Improves operational efficiency to monitor 2,600+ wells over large areas
• Partnership with Boeing (Insitu) to develop technology which is expected to benefit other industries in Queensland
Potential benefits: - Reduces land access requests - Reduces risk of land access breaches - Reduces time for landholders to liaise- Reduces road traffic and improve safety- Value adds the work profile for wellsite
operators- Improves wellsite performance
Charlie Project Update• Project site offices established
• Charlie FCS:
– Civil works underway
– Access road civil works underway
– Services pads under development
– Bundi Road upgrade under construction
• Construction water bore operational
• Borrow pit for gravel opened
• Wells being drilled
• 830 people mobilised and increasing weekly
• Workforce based in:
– Windmill Accommodation Park
– Wandoan Accommodation Park
– Woleebee Creek camp8
Key contractors: CPB Main worksMPC Gathering networkEDE Well head infrastructureSaxon Drilling Easternwell Drilling FKG Road works
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Charlie Project - Local content
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Operational Regions
Interstate
Rest of Queensland
28%
16%
56%
New contracts No.
Operational regions 15
Rest of Queensland 27
Interstate 8
Charlie expenditure by supplier location
Items arising from last meeting
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Community procurement
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• Western Downs and Toowoomba represent 82% of the regional spend
• 362 vendors in the Western Downs supplied our business
• Additional $3.2 million spent on credit cards
Western Downs Community Procurement, 2015FY
Chinchilla 27%
Dalby31%
Tara 25%
Wandoan 12%
Other towns 5%
Expanded Local Content Policy
• Extensive consultation with business and industry and internally in 2015
• Key changes in approach:
– Clarifies definitions for ‘local’ and ‘participation’
– Establishes new full, fair and reasonable contract strategy
– Increased transparency in reporting
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• Local Content Policy objectives:
– Support competitive procurement: Actively encouraging local participation in supply chain
– Facilitate job creation: Employees and contractors
– Promote reconciliation: Employment, Training and Business Development
– Build economic sustainability: Develop regional communities
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Simplified processes Registering Interest
1. Register interest online at qgc.com.au
2. Visit a Supplier Information Session
3. Join a network
4. Contact our major contractors directly
5. Express interest for project work –ICN Gateway
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Learning about opportunities
1. Direct invitation
– Low value transactions
– Private tenders
2. Emails through chambers and business networks
3. Promotion on ICN Gateway
Prequalification
• Achilles First Point Supplybase
• During tender processes
Tender submissions
• Local content plans required under stronger tender evaluation criteria
Total workforce
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0
2000
4000
6000
8000
10000
12000
2013 2014 2015
Projectcontractors
Operationalcontractors
Employees
North 76
Central 495
South 109
Total Workforce Numbers, 2015FY Upstream Employees by Region, 2015FY
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‘Local Living’ Plan
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Strategy Actions
Traineeships and apprenticeships
• Developing a formal program• Proposal for apprentices from 2017
Lifestyle rosters • Matching jobs with lifestyle rosters eg 5/2, 4/4
Local incentives • Reviewing package of incentives and allowances • Extended existing incentive established for project
Contractor team • Identifying potential scope for operational contractors to support local employment
Social investment • Investments in education (STEM) and vocational training, health and regional liveability eg Try-A-Trade
• On-boarding programs for new families
Recruitment • Initiatives to source local candidates • Reviewing relocation packages
Trade Futures Program
• Significant increase in intake for Dalby State High School Trade Futures program
– 3 Year 12 students continuing from 2015
– 11 Year 11 students commencing in 2016
• Certified training program:
– Two years
– One day per month and 2, 1 week period per year spent in field
– Involves practical experiences in the Ruby Jo and Kenya operations
– Compete Certificate II in Plant Process
• Potential pipeline to further trade or technical training and jobs in either gas or manufacturing industries
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Rural Property Management• The transition of QGC land to Stanbroke is almost complete
• QGC has honoured all its agreements with agisters and sharefarmers
• With Stanbroke’s co-operation, QGC has been able to provide multiple extensions of time to assist agisters during transition
• One issue of dust from trucks transporting livestock raised by community during transition was addressed at the time
• Stanbroke has started to engage with neighbours, QGC’s previous agisters and community members
• Stanbroke has reported a warm welcome and good support from the community so far
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Stanbroke in the community
In the past three months:
1. Local purchasing
- 3 new vehicles and 4 motorbikes
- Furnishings for 2 houses
- Property maintenance equipment and hardware tools e.g. pumps, chainsaws
- Cattle husbandry requirements
- Provisions for staff
- Fencing materials and portable stockyard
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2. Local employment
- 2 key positions associated with managing
properties advertised locally
- Engaged 2 local mustering contractors
who have up to 4 people working in each
team
- Engaged 2 local contract farming
businesses
3. Other community support
- Sponsorship for the gate fee at upcoming
rodeo in Wandoan
- Sponsorship of the Taroom Show
- Assessing sponsorship options for local
shows in Wandoan and Chinchilla
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Community benefits report
World Science Festival in Chinchilla!
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New partnership supporting agricultural sector
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• Partnering with Food Leaders Australia (TSBE) to support the sustainable development of the agribusiness industry in the Western Downs
• Stage 1 - Agricultural Export Opportunity Forums in April
• Stage 2 – Unique opportunity for up to 10 Western Downs businesses to receive intensive support for business growth over a 12 month period
• Focus on preparing companies for exporting into Asia
• Includes targeted trade mission to China to pursue new opportunities
Export Forums:
Wandoan 26 AprilChinchilla 27 April
Tara 27 April
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Health and safety focus of recent partnerships
• Health-e-Regions extension: • More than 4,000 specialist consultations
now conducted per year via telehealth• $1.8m to date for services in hospitals,
GP clinics, residential aged care• Network in Dalby, Chinchilla, Miles, Tara,
Wandoan • Supporting expanded speech pathology
program in schools in 2016-2017• $653,000 committed to next stage
• Road Safety education ($30,000):• Tara Show 5 March• Wandoan 23,24 April• Miles 17 May• Chinchilla 20-21 May
Supporting rural fire brigades - Training for 15 volunteer
firefighters from across the Western Downs during January and iPads to support fire fighting
- $140,000 offered for this and slip-on and trailer units for 10 rural fire brigades
- Over $630,000 invested in QFES over 3 years
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6 Projects Receive Grants
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Organisation Program Grant
Wandoan State SchoolWandoan State School digital technology STEM program
$49,819
Bell Bunya Community Centre Association Inc
Community centre outdoor kitchen $21,711
Brigalow Recreation Grounds Association Inc
Brigalow Recreation Grounds canteen and covered eating area
$50,000
Cooranga North Recreation Reserve Inc
Relocation of clubhouse to recreation reserve
$14,450
Hannaford Club Inc Building the future. Restoring the past $50,000
Miles State High School Establish a multipurpose hall facility $20,000
Total $205,980
Upcoming engagement and sponsored activities
• Tara, Miles, Chinchilla, Wandoan Annual Show events
• Wandoan Health Auxiliary Cookbook
• Juandah Rodeo Association
• Xtreme Drill Dance, Chinchilla
• Wandoan Gymnastics Club
• Chinchilla One Long Table
• Clean Up Australia Day
• Tara Polocrosse
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QGC Communities Fund Round 3 – now open
Deadline for submissions: 31 March 2016
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Community feedback
2016 meeting dates
2016 proposed meeting dates:
• Q2: 9 June in Chinchilla; 10 June in Miles
• Q3: 8 September in Tara; 9 September in Wandoan
• Q4: 1 December in Chinchilla; 2 December in Miles
Venues to be advised.
Time for Central/Southern meetings: 9am-12noon
Time for Northern meetings: 10am-1pm
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