StatoilHydro is a partner in Algeria's third and fourth largest gas projects, In Salah and In Amenas, and it is operator for Hassi Mouina, an exploration licence in the Sahara that covers an area half the size of Denmark. Our partners in Algeria are BP and the Algerian national oil company - Africa's largest oil and gas company.
The Hassi Mouina licence is located in the desert north of In Salah and is close to environmentally and socially sensitive areas. Several small towns are actually located within the licence area, and drilling activities take place within visible distance of densely populated areas.
The areas in the south are considered to be very poor and characterised by high unemployment, social exclusion and marginalisation, and they are totally reliant on subsidies from central government to survive.
Although the oil and gas sector in Algeria accounts for a significant part of the country's value creation and almost all its export revenues, only a small part of the country's workforce and a small number of companies are either directly or indirectly involved in the industry.
To improve our long-term position in the country, we have invested in a range of human capital and supplier-development initiatives which also strengthen the links between the oil and gas industry and the local economy.
IAP
StatoilHydro owns 10 per cent of the Algerian Petroleum Institute (IAP Spa) and it has a member on the board. Our partner, the Algerian national oil company Sonatrach, owns 82 per cent. We play an active part in developing the institute. The position gives us access to the Algerian oil and gas industry network and is a tool for local recruitment and business development in the country at large.
Drilling and completion
This project has been agreed under the memorandum of understanding between Sonatrach and StatoilHydro, in which we agreed to support IAP in revising and improving its training in drilling and completion. The plan in 2008 is to sponsor 15 candidates for a two-year drilling education adjusted to the companies' needs.
The best way to further improve drilling education is by making use of it, thus enabling us to transfer and adapt know-how, invest in Algerian human resources and build local competence.
Safe Behaviour Programme
As part of the cooperation between StatoilHydro, Sonatrach and IAP on HSE awareness in the day-to-day working environment, StatoilHydro's Safe Behaviour Programme has been adapted to the Algerian context. It is in fact the largest and most complex undertaking of its kind in the history of our company, and, following the handover to the IAP in late 2007, it is now the largest business unit at the Institute.
The first workshop took place in May 2007 and as many as 6,900 Sonatrach employees completed the training by the end of the year. In 2008, as many as 13,800 employees are expected to complete the programme. In total, as many as 120,000 Sonatrach employees - including subsidiaries - will make use of the training over the next five to ten years.
Oil spill response
The Oil Spill Response Company (OSPREC Spa) was formed in May 2007 together with Sonatrach and other foreign oil companies. Our share is 4.7 per cent, and we will assist the competent national authorities in elaborating the plans for preventing and intervening in the event of marine pollution in southern parts of the Mediterranean Ocean and parts of the West coast of Africa.
Les Routes des Ksour
A three-year programme for the Hassi Mouina licence was signed in 2006 with the United Nations Development Programme (UNDP) and the Algerian government. Through the programme, we support vocational training centres for women as well as the establishment of women's associations.
The project has also helped restore and conserve old villages and traditional underground waterways with the aim of facilitating the growth of tourism in the area.
