Co-ordinating Council formed to maximise oil and gas industry jobs and opportunities

27/2/04
State Development Minister Clive Brown will chair a new Co-ordinating Council with the objective of maximising business and employment opportunities in Western Australia's rapidly growing oil and gas sector.
The establishment of the Co-ordinating Council was a major outcome of today's summit in the Legislative Assembly, which saw 61 of the State's top industry, Government and union movement minds discuss ways to maximise the benefits to Western Australians from the State's major oil and gas projects.
The council will consist of industry, Government and union movement leaders and will, for the first time, facilitate ongoing communication between the oil and gas industry's major stakeholders.
State Development Minister Clive Brown said today's summit showed that all stakeholders were keen to maximise the benefits to Western Australians from the State's major oil and gas projects and the Co-ordinating Council would provide the forum for ongoing progress.
"It was a common view of those who attended today's job summit that industry, Government and the union movement should work together to maximise the business and employment opportunities flowing from our major oil and gas projects," Mr Brown said.
"It was also a common view that ongoing communication and the building of trust between the key stakeholders were essential if progress was to continue.
"I thank all stakeholders for participating in today's summit and look forward to working with them on the new Co-ordinating Council to maximise business and employment opportunities throughout the State."
Details of additional outcomes from the summit are outlined in the below communiqu?.
Minister's office: 9222 9699

A SUMMIT ON
MAXIMISING WESTERN AUSTRALIAN BUSINESS AND EMPLOYMENT OPPORTUNITES IN THE OIL AND GAS INDUSTRY

GROWING THE ENGINEERING DESIGN, ENGINEERING CONSTRUCTION AND FABRICATION SECTORS

An Australian Industry Participation Initiative

Legislative Assembly, Western Australian Parliament,
February 27, 2004
Chaired by the Minister for State Development
Clive Brown MLA

SUMMIT COMMUNIQUE

The oil and gas industry is a significant contributor to the economic development of Western Australia and is the
State's largest resource sector, with total petroleum sales in 2002 of more than $10billion, or 37 per cent of the total value of the State's mineral and petroleum sales, and annual exports of $7.8billion (2002-03).
The industry directly employs over 13,000 people in Australia. Around 900 Western Australian service and contracting companies are involved in the industry.
The oil and gas industry has enormous potential, with increasing demand for LNG in the USA, China, Korea and Japan, as well as opportunities for further downstream processing in WA. Gas is also a major source of energy for the State in electricity generation, minerals processing and service provision.
This summit aims to identify practical initiatives that are able to translate growth in the industry into new business and employment opportunities for Western Australians. With the co-operation of all stakeholders, WA has the opportunity to become a national and regional centre for the oil and gas industry.
This summit has the support of the State Government, industry and the union movement and the WA ATSIC State Council and complements initiatives developed through the Australian Industry Participation Framework.

Western Australia's is increasingly becoming a major player in the global oil and gas industry.

This position is predicated on a number of strategic advantages.
First, WA has significant petroleum reserves, with our already world-class natural gas reserves expected to increase substantially with further exploration and advances in technology.
Second, WA has a strong record of meeting supply commitments, led by Woodside's faultless record in the export of LNG to Japan over the last two decades. This record contributes to Western Australia's reputation as a low sovereign risk environment.
Third, WA is proximate to many of the world's fastest growing economies, making us ideally placed to both meet their energy needs and assist them in developing their own oil and gas industries.
Fourth, WA has a high quality and diverse skills base, with our traditional trades skills complemented by growing expertise in engineering design, engineering construction and fabrication.
Fifth, WA is a wonderful place in which to live and do business. We have a high and affordable standard of living and a warm and welcoming society.
The challenge for WA is to take advantage of these strategic advantages and continue to become a major player in all levels of the oil and gas industry.

The parties to this summit are committed to maximizing WA participation in the oil and gas industry and create increased business and employment opportunities to further the economic development of the State and the nation.
We recognise for this objective to be achieved, we must ensure the industry is internationally competitive, particularly if WA is to reach its potential as a world-class centre for oil and gas exploration, development, production and services.

• co-ordination and communication within the industry about strategic direction and future opportunities;
• global competition and competitiveness;
• costs, timing, bidding and processes associated with pre-qualification;
• lack of understanding of industry standards, global supply chains and how to participate in them;
• limitations of specific skills and expertise;
• difficulties in establishing alliances or joint ventures; and
• optimal project bundling of requirements for goods and services.

Industry Co-ordination.
Establishment of a high level Co-ordinating Council, chaired by the Minister for State Development, and including senior industry, union and Government representatives, to deal with strategic issues facing the industry, to ensure communication and to better coordinate its development.

Early focus to be:

• create an understanding of the major issues identified at the Summit and define strategies to address them;
• as a matter of priority complete a current situation analysis of physical and human capability and potential required to be globally competitive;
• strategies to address and overcome barriers and impediments and streamline access to resources and approvals processes;
• strategies to address and overcome barriers and impediments to the successful participation of local companies in the oil and gas industry;
• strategies to urgently address current and future skill requirements in the industry and develop and co-ordinate an oil and gas industry and associated service industries training plan; and
• strategies to facilitate Global Supply chain facilitation generally.