Oil Spill Response and East Asia Response Limited
OUR OPERATING PHILOSOPHY AND STRATEGIC DIRECTION The purpose of this document is to explain how the company’s operating philosophy has evolved, our aims, and the impact for us and our stakeholders.
1
1. OPERATING PHILOSOPHY >> Over the years the evolving organisation conducted a number of strategic reviews that inevitably resulted in incremental change. This included development of a more professional business focus and the establishment in 2002 of a Service Level Agreement (SLA) which defines standards of expectation, sets a benchmark for delivery and integrates response management arrangements of both company and client. The SLA is a key part of our business and is reviewed annually by the Board. It has with time undergone significant enhancement at minimal extra cost to the shareholder. Our Operating Philosophy was first published as an agreed reference point in 2003. Throughout the continuing process of review there remained ongoing commitment to safeguard and preserve the rationale that drives the business. 2005 saw extended strategy discussion at Board level that led to articulation of a vision for the future and in turn a basis from which to develop a strategic framework for delivery. The philosophy embodied in the Mission and Charter stood consistently firm and remains valid. >>
MISSION STATEMENT The mission of OSRL/EARL is to provide resources to respond to oil spills efďŹ ciently and effectively on a global basis.
CHARTER OSRL/EARL will continue its pursuit of excellence in providing cost effective oil spill response, training and consultancy services. OSRL/EARL will work towards improving communication, awareness of resources and capabilities, and where appropriate, encourage mutual support among the global population of international tier three oil spill co-operatives. These efforts will enhance OSRL/EARL’s ability to deliver the quality of services required by its shareholders.
1998
1999
2000
2001
Improving our reach to more distant locations
Creation of UK Response Service
Alliance between OSRL and EARL
Integrated surveillance and rapid response dispersant service for UKCS
2
2. CHANGE CONTINUUM >> During the course of the last 20 years we have progressively adapted our services to meet extensive change within the industry. We need to be agile in adapting quickly to changing circumstances and effectively managing risk, and are confident in our ability to meet the challenges that lie ahead.
Development of Diverse Workforce Staffing Composition – Gender Number 200
Male Female Projected
150
Changing World
100
MARKET CHANGE
FROM >> TO 50
Corporate-led >> Business Unit-driven Centralised >> Global multi-location
0
1995
2000
2005
In-house expertise >> Customer integration
2007
2008
2009
2010
Year
Government-driven >> Oil company onus
OSRL/EARL DEVELOPMENT
Staffing Composition – Background Number
Centrally located >> Regionally focused Response orientation >> Preparedness / Response / Technical Advice and Management Services Task-driven >> Broader / varied service role Equipment focus >> People / expertise / networks Short projects >> Long-term / advisory / external focus
200 150
2006 Activity
S
Spill Responses
Advocacy
Improving Preparedness
Client Visits
Exercises
New Members
Projected
100 50 0
From an organisation that started life in the 1980s as a pure response organisation waiting for a call to mobilise, OSRL/ EARL has evolved into a fully integrated company of some 120 professional staff providing a comprehensive range of services to customers globally.
Engineering Officer Deck Officer Engineering Apprentice Graduate Other
1995
2000
2005
2007 Year
2008
2009
2010
2002
2003
2004
2005
SLA defined
Operating Philosophy published
New integration programme
Introduction of GRN
4
4. STRATEGIC DIRECTION >>
3
3. EVOLVING STRATEGIC DEVELOPMENTS >>
As the world evolves, so must our strategy, and we have built on the Mission and Charter that together govern our business activity to formulate a strategic plan for the five year time frame 2006-2010. This plan reflects the dynamic and changing nature of the industry, the need to grasp opportunities as they arise and the potential to develop a bigger and different company by the end of that period.
Global Response Network
Established in 2005, the Global Response Network (GRN) is a collaboration of like-minded, industry funded, not-for-profit oil spill response organisations brought together to promote the philosophy of sharing both resources and knowledge in order to maximise the effectiveness of oil spill response world-wide.
Although our business is in part reactive, it is essential that we retain direction and focus, and accordingly we have translated our view of the future into a framework for delivery. Simply put this is about capturing the rationale behind our continuous development which for the first time provides a platform for forward planning.
Member Locations
ACS WCMRC
ECRC
Our expectation of growth is of course dependent on continuing demand from our customers. We have experienced that trend, and anticipate ongoing demand and further developments.
Southampton
MSRC CCA
Bahrain Singapore
AMOSC
Industry Technical Advisory Committee The Industry Technical Advisory Committee (ITAC) is an international forum for industry and response organisations to share information, develop best practice and cooperate in mutually beneficial projects.
We shall continue to embrace the evolution that has influenced our transition to what is now a global company with a strong regional focus.
>>
Global Initiative
GI WACAF
The Global Initiative (GI) is a partnership programme between the IMO and IPIECA to facilitate improvement in global oil spill preparedness and response arrangements. GI activity has extended to many countries during the last 10 years, bringing together key players from government and oil company business units.
• 21 Countries,
The GI West and Central Africa (WACAF) project is illustrative of the shift to a regional setting and the application of structured project management arrangements to drive work forward.
8000km coast line
• 4 year programme • IPIECA fund: $600k/year • 7 oil industry members • Equivalent support/funding from IMO
• Technical support from
government and local oil industries
New Locations
Technical Services In response to client need, OSRL/ EARL continues to extend the scope of preparedness services that now embrace not only traditional oil spill contingency planning and equipment hire, but secondment of personnel, emergency response and wildlife response plans and full turnkey solutions for Tier 2 and
exploration programmes. Coverage includes a wide range of technical and management services. We offer:
• Aerial surveillance and dispersant
delivery in North Sea, West Africa and Middle East
• Port and Harbour Services in UK and Singapore
• Surveillance and Monitoring applications
By developing a response centre in the Middle East and opening an office in Aberdeen, we have placed ourselves in a better position to service customer need. We shall continue to pursue and evaluate business opportunities to establish presence in new locations in order to promote membership and add value to customers in-region. Bahrain base
2006 Merger of OSRL and EARL
2007
2008
2009
2010
Responding to change and developing strategy for the future
We aim to increase Trainee Delegate throughput by 15% year on year Incremental Trainee Delegate Throughput
5
Trainees
5. BUSINESS PLANNING AND THE WAY FORWARD >>
2500 2000 1500
In 2006 we recorded positive achievement in the first year of a projected five year plan, which with formal completion of the merger between OSRL and EARL was also a year of development and consolidation. The merger delivered benefits to shareholders in allowing us to keep fees down whilst enhancing the services we offer. The Strategic Business Plan 2007-2010 sets out how we intend to make our vision and aspirations for the company a progressive reality through tangible and accountable actions, with an annual business plan cycle that becomes an iterative process designed to fuel growth and stimulate continuous improvement. Our philosophy is one of improving preparedness and response through the co-ordination of industry resources, technical improvements and plugging response gaps. We recognise the shift in both the location requirement of service and the changing demand in expertise from our customers, and therefore to be of maximum value we must adapt our strategy accordingly and concentrate closely on their core business.
•
3000
Actual Projected
The tiered response concept remains core to oil industry response.
1000 500 0
2005
2006
2007
2008
2009
2010
Year
•
Preparedness is key to effective response and we must do all we can to assist our customers in this respect.
• •
We shall increase frequency and quality of customer contact. We shall seek opportunities to move closer to our customers and where necessary relocate personnel and equipment to enhance our ability to respond to their needs.
•
We shall continue to differentiate ourselves from others by the quality and range of services we provide, our focus on preparedness and the significant capability we can readily bring to bear in the event of a major incident.
•
We shall continue to review the organisation in order to improve and optimise customer service.
Our Market View for the Delivery of Technical Solutions Service
Objectives
Consultancy: • OSCP • Exercises • Emergency Response Plans • Modelling • Audits
Increase penetration of membership base. Increase range of services taken up by members, including: • Wildlife Contingency Plans • HNS Contingency Plans • Consultation • Post Spill Services • Environmental Services
Provision of personnel: • Long term • Short term • Training services • Operational support • Audit services • Stand-by and contingency resources
Develop existing long term secondments in field and at corporate level. Introduce Technical Advisors for improved incident response. Increase penetration of membership base.
Geography
• Middle East • West & Central Africa
• North Africa /
Mediterranean
• Sakhalin Island • Caspian / Black Sea
• China • Indonesia / SE Asia
Provision of equipment: • Short term (stand-by) hire • Long term (turnkey) hire
Increase penetration of membership base.
Tier 2 services: • UK ports & harbours • UK Continental Shelf aerial surveillance & dispersant • West and Central Africa surveillance & dispersant
Develop service for Scottish ports & harbours Review and implement equipment base in West Africa region Outsourced management of Asia Tier 2 bases (Indonesia, India)
• India
6
Service Level Agreement Response Standards
6. PERFORMANCE MONITORING AND MEASUREMENT >> The monitoring and reporting of company performance against key objectives is vital to strategic delivery. To facilitate this process and to provide clarity and unity in the measurement and evaluation of corporate performance throughout the organisation we have introduced a Balanced Scorecard (BSC) methodology. This identifies and measures key business performance in relation to defined targets/ objectives (that include the SLA), providing underlying trends in achievement and a guide to future performance.
Net Cost per 100 Shares (£)
Managing the Cost to Shareholders Net Cost per 100 Shares (£) Net Cost per 100 Shares Profile
60,000 40,000 20,000 0
Oil spill response teams are available 24 hours a day, 365 days a year in Southampton comprising • 1 Team Manager • 1 Field Operations Manager • 1 Duty Administrator • 11 Responders Initial response team: (1 Manager, 1 Administrator & 6 Senior Responders/ Responders) mobilisation time from activation maximum 1 hour. Secondary response team: (1 Manager, 5 Senior Responders/ Responders) mobilisation time from activation maximum 3 hours.
Equipment • Wide range of pre packaged equipment suited to expected range of spill scenarios • Two high volume aerial dispersant delivery systems (ADDS and Nimbus) Logistics • Own fleet of vehicles to mobilise equipment • Hercules L382G cargo aircraft to be available for loading at nominated base within 4 hours of call • Additional air transportation services through dedicated broker on 24 hour call
Access to Southampton resources is limited by contract to 50% of the personnel and equipment resources by type available at the time of the request. Additional resources can be considered for release on request but may be subject to recall in the event of a secondary incident. Oil spill response team available 24 hours a day, 365 days a year in Bahrain comprising • 1 Team Manager • 1 Duty Administrator • 8 Response Contractors Initial response team: (1 Manager, 1 Administrator, 3 Response Contractors) mobilisation time from activation maximum 1 hour. Secondary response team: additional 8 Response Contractors within maximum 2 hours. (It is policy that OSRL / EARL response staff will be deployed from Southampton or Singapore to support any response that is mounted by the Bahrain base unless the incident is so minor that the local Manager deems it unnecessary.)
Equipment • Wide range of pre packaged equipment to support local and regional deployment • Full air mobile response package of equipment for offshore and onshore deployments • One high volume aerial dispersant delivery system (ADDS pack) Local response contractors • A team of 8 local Response Contractors Logistics • A non dedicated/ non guaranteed Hercules is available in the region - the crew of this aircraft is trained in the use of the ADDs pack • Charter aircraft from dedicated broker on 24 hour call • Dedicated response vehicles to mobilise response equipment
Access to Bahrain resources is not limited, 100% of the personnel and equipment resources by type available at the time of the request can be released. 2005
2006
2007
2008
Year
Service Level Agreement Response Resources
• One high volume aerial dispersant delivery system (ADDS pack) Local response contractors • Team of 20 trained sub contractors for use in Singapore only to support 24 hour operations accessible within 12 hours Logistics • Hercules L382G cargo aircraft to be available for loading at nominated base within 4 hours of call • Additional air transportation services through a dedicated broker on 24 hour call
Access to Singapore resources is not limited, 100% of the personnel and equipment resources by type available at the time of the request can be released.
Publication June 2007
• Operating Bases in Southampton, Bahrain and Singapore • 24/7 Duty Manager • Technical Advisors • Responder Pool • 300 years oil spill experience >250 spills attended, 20 years, 30 countries • Access to Wildlife Response Services • Aerial Logistics Capability: - 2 x L382G Hercules transport aircraft - Aerial Dispersant Delivery Systems in Southampton, Bahrain and Singapore - For UKCS - Cessna 310 aerial surveillance aircraft and Cessna 406 spray aircraft - Embraer Bandeirante 110P2 aircraft based in Sâo Tomé
Oil spill response team available 24 hours a day, 365 days a year in Singapore comprising • 1 Team Manager • 1 Duty Administrator • 14 Senior Responders/ Responders Secondary response would be provided by Southampton / Bahrain in the event of a major incident. Equipment • Wide range of pre packaged equipment suited to expected range of spill scenarios
We have offices in: Aberdeen
Bahrain
London
Singapore
Southampton
Marine House Blaikies Quay
Building 45 Road 301 Block 603
1 Great Cumberland Place
2 Jalan Samulun
Lower William Street
Aberdeen AB11 5EZ UK
Mahazza Sitra Kingdom of Bahrain
London W1H 7AL UK
Singapore 629120
Southampton SO14 5QE UK
Tel: +44 (0)1224 726859
Tel: +973 1773 0961
Tel: +44 (0)20 7724 0102
Tel: +65 6266 1566
Tel: +44 (0)23 8033 1551
Fax: +44 (0)1224 726860
Fax: +973 1773 0058
Fax: +44 (0)20 7724 0103
Fax: +65 6266 2312
Fax: +44 (0)23 8033 1972
Web: www.osrlearl.com
Web: www.osrlearl.com
Web: www.osrlearl.com
Web: www.osrlearl.com
Web: www.osrlearl.com
E-mail: aberdeen@osrlearl.com
E-mail: bahrain@osrlearl.com
E-mail: london@osrlearl.com
E-mail: singapore@osrlearl.com
E-mail: southampton@osrlearl.com