2011 Award Recipient
Social Performance

Local Opportunity Centre

Statoil Canada (SCL) prides itself on its strong commitment to the community. This means connecting with people, sharing information and forming partnerships to create business opportunities. Economic engagement is essential in resource extraction projects, not only during construction but also in ensuring an enduring legacy - a foundation for economic benefits to local communities to last long after development activities have ceased.

The south Athabasca area historically had not seen much oil sands development activity. From the earliest discussions with the communities near oil sands leases, communities expressed a clear desire not only for employment, but for real, sustainable economic benefits in the form of business opportunities with SCL. To achieve this, SCL had to overcome several barriers, including skills shortages and poor or non-existent safety and business systems that met the company’s strict Health Safety and Environment (HSE) and procurement requirements. Local suppliers needed access to training and essential tools to run businesses and upgraded IT capacity in the communities. SCL recognized that they must adapt their procurement processes and work with local companies to put them on a fair and competitive footing to bid for work with SCL.

A vehicle was needed to bridge these gaps – an innovative approach was necessary if SCL were to live up to their commitment to meaningful engagement and guild sustainable business capacity in the communities. Therefore, the company established a business development resource centre, known as the Local Opportunity Centre (LOC). This wasn’t just about SCL – to be successful, the LOC had to be a partnership with communities, other oil sands companies and governments.

“We envisioned something different,” says Pamela Strong, Director of Procurement. “Rather than require local companies to come into downtown Calgary to engage, we’ve gone to them.”

The LOC, situated at Conklin Corner, was established in the fall of 2009. It is a unique collaborative approach between industry, communities impacted by oil sands development and the government. This employment and business resource centre helps SCL (and other industry colleagues) develop a skilled and safe workforce of and for local businesses. It provides local vendors with access to training and business development tools. It also ensures that contractors have access to information about current and future business opportunities with SCL and other companies.

Since its inception, the LOC has had more than 1,200 people walk through its doors. The centre has been instrumental in encouraging local companies to participate with SCL projects, resulting in a 178 per cent participation increase in the project, while maintaining SCL’s strict HSE standards. Local and community-affiliated companies generated an excess of $91.7 million in contracts with SCL. Statoil Canada Ltd.’s level of local business engagement, vendor participation and level of improvement in industry-accepted HSE standards have progressed as a direct result of the services provided by the Local Opportunity Centre.