Baker Hughes Angola Advancing Reservoir Performance
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Advancing Reservoir Performance Baker Hughes Angola
Baker Hughes Angola
Baker Hughes has been providing advanced oilfield products and services to the Angolan petroleum
industry for over 30 years. We have helped Sonangol and its international operator partners cut
costs, maximize production and improve ultimate reserve recovery from their fields, regardless of
the technical or operational challenges.
Our Vision
Baker Hughes Angola will be a leading partner People
in the Angolan petroleum Industry through the Ensure that the Angolan team has the
delivery of superior service and results that add required trained, experienced personnel
value to our customers’ business. to deliver our technology and services to
meet the client’s expectations
By becoming a preferred community partner in Create an environment in which people
Angola, we will build key business relationships are highly engaged and motivated
while making long-term investments and focusing
on our national content efforts. Process
Drive continuous improvement in our support
The critical success factors for achieving the Baker processes, facilities and supplier relationships
Hughes Angola vision will be: to optimize business performance
Customer Results
Create value by delivering exceptional wellsite Deliver profits to our shareholders,
performance and results Grow market share
Engage as a strategic partner Be completely compliant – C2
Results
Health, Safety and the Environment
Baker Hughes is a responsible corporate citizen committed to the health and
safety of people and the protection of the environment. It is the company’s
policy to conduct business activities in a manner that does not harm people or
the environment. We require all employees to fully comply with this policy and
Process
HSE Customer all HS&E standards and regulations. We firmly believe that this commitment
adds value to our customers, employees and shareholders. Through promoting
applicable laws, regulation and policies, the Baker Hughes global HS&E
organization and every BHI employee is tasked with the responsibility of
working to ensure the safety of all our employees, customers and communities.
People
Baker Hughes Angola HS&E Performance
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2005 2006 2007 2008 2009 12MR Quarter
BHI (TRIR) BHI in Angola (TRIR)
BHI (DAFWCR) BHI in Angola (DAFWCR)
2
Today, Baker Hughes has a strong and growing Baker Hughes employees are expected to be honest,
presence in Angola. The map below shows that Baker trustworthy, respectful and ethical in all ways. The Baker
Hughes provides services to most of the offshore Hughes Business Code of Conduct governs our business
blocks in Angola. decisions and actions. The integrity, reputation and
profitability of Baker Hughes ultimately depend upon the
individual actions of our employees and representatives.
Block 0
Each employee is personally responsible and
Block 14
accountable for compliance with our Code of Conduct.
Block 15
Baker Hughes is committed to continuously improving
its Angolan national content through three cornerstones:
workforce, suppliers and community.
Block 31 Block 3
Baker Hughes
Angolan Content cornerstones
Block 32 Block 18
Workforce
Angolan
added value
Providing the technology advancements and operational
Suppliers Community
excellence necessary to recover Angola’s vast
hydrocarbon resources is only part of Baker Hughes’
commitment to Angola. Equally important is our pledge
to drive the local economy and contribute to social
programs designed to improve the quality of life for To meet that goal, Baker Hughes is establishing a
Angolans. Social and economic programs to benefit measurement metric, NaCETS or National Content
Angola are at the center of Baker Hughes’ long-term Expenditure Tracking System, dedicated to monitoring
business plan. As Baker Hughes operations grow in our performance in national content development, that
Angola, the company is more dedicated than ever to impact value creation. The monitoring system includes
recruiting and training an Angolan workforce as well a structured communications plan designed to detail
as partnering with local companies, government progress quarterly to all stakeholders, including
ministries and educational institutions to help drive government ministries, Sonangol, international oil
Angola’s economic strength in the global community. companies, employees, foreign embassies and
educational institutes.
The Baker Hughes Core Values of Integrity, Performance,
Teamwork and Learning are an everyday reminder of Angolan Content Measurement • Total expenditure on Angola labor
the high standards expected of each employee from • Total Angolan man hours
• Employee training costs
the chief executive officer to technicians in the field.
Baker Hughes is dedicated to being a superior corporate
• Total expenditure on Angola
citizen in countries around the world. goods and services
Baker Hughes is committed to a culture of complete • Total capital investment in
Workforce Angolan assets
compliance, which starts with our Core Value of integrity • Contribution to education
– the foundation of our individual and corporate actions. Suppliers
Community
National content means our
commitment to create value in the The plan is to develop a quarterly Baker Hughes Angola
Countries where we operate, in national content report and to hold bi-annual meetings
compliance with our Core Values with our stakeholders to get their engagement and
feedback on our initiatives.
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The Baker Hughes Dubai training center provides state-of-the-art classrooms and equipment to train employees
and customers.
Workforce Development
Baker Hughes employs over 460 people at four over 500 scientists and engineers are working
locations in Angola: Luanda, Sonils (Port of to solve the industry’s future challenges. Baker
Luanda), Soyo and Malongo/Cabinda. Currently, 71 Hughes completed its Dubai headquarters and
percent of our workforce is Angolan and we plan to education center in 2008, significantly improving
increase that number to 75 percent by the fourth operations support and training capabilities in the
quarter of 2010, including appointing Angolans eastern hemisphere. Baker Hughes Angola also
to senior management and executive positions. will use the training facility in Dubai for customer
All positions in the organization will be attainable training on new technology and techniques
by local employees, based on their demonstrated planned for deployment in Angola. The recruiting
aptitude and performance. and training plan is ambitious; however, based on
the processes in place to recruit, train and provide
Hiring additional local staff is just part of Baker future opportunities for Angola employees, we are
Hughes’ commitment. We have established a confident we can reach our goal of maximizing our
strong training program that focuses on each local workforce development.
individual’s needs and goals for advancement.
The objective of the training program is to deliver Baker Hughes Angola plans to recruit 53 Angolans
a competent, motivated workforce to provide the in 2009. We are continuing to search for and
Angola petroleum industry the highest level of find technically competent people with the
service and support as well as quality products in skill sets and the motivation to learn more about
the safest possible environment. The ultimate goal our industry.
of a strong employee training and advancement
program is to achieve a 92 percent retention rate
Recruitment of Angolans
among our local staff.
2011 82
The Baker Hughes training program centers on
both individual and organizational learning and 2010 88
Year
development, including English language classes,
administrative, HS&E and technical training. Baker 2009 53
Hughes dedicates nearly $1 million per year to
2008 48
training its Angola staff at the Dubai and Houston
Technology Centers. The Center for Technology
0
10
20
30
40
50
60
70
80
90
100
Innovation, or CTI, in Houston opened in 2008 and Personnel
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Community Investment
The Baker Hughes commitment to Angola’s people
does not stop at recruiting and training employees. The
company is committed to furthering the local economy
and social structure through community investments.
In 2008 the Baker Hughes Foundation launched the
Baker Hughes Scholars Program, providing grants to
local undergraduate students committed to furthering
their education to drive Angola’s economic development.
Eighty-four percent of the students in the program are
the first in their families to pursue higher education.
Our commitment in Angola
is mirrored in other countries
around the world. In a recent
Management & Excellence
benchmark study comparing
oilfield service companies’
sustainability programs, Baker
Hughes ranked second in the
world. The company improved
from a 47.8 percent score in
2008 to 72.7 percent in 2009,
indicating Baker Hughes’
singular focus to expand its
Angolan undergraduates celebrate receiving their bursary awards with Baker Hughes role as a business and social
staff in April 2009
partner in countries like Angola.
The study included 355 criteria
The $1.5 million investment in the Baker Hughes
Scholars Program supports 86 Angolan students
such as sustainability, corporate
pursuing degrees in engineering, geology and governance, social responsibility,
geophysics and various business related fields at eight transparency and ethics.
different Angola universities. Each student receives
the grant through graduation, providing they remain
in good academic standing. The scholarship program,
administered by the prestigious Institute of International
Education, is the first for Baker Hughes anywhere in
the world, demonstrating our commitment to the future
of Angola. Baker Hughes will continue to sustain the
Scholar Program in Angola.
Education is just one aspect of community involvement.
Baker Hughes employees also distribute food and other
consumables to the Cluny Orphanage in Soyo, Angola,
every six months.
5
Expanding Infrastructure
Baker Hughes currently operates in three regions
in Angola: Luanda, Soyo and Cabinda. In 1999
Baker Hughes transferred its operations to a
purpose-built facility in the Sonils Oil Service
Center in Luanda. This facility serves as the
primary base of operations for all Baker Hughes
product lines and the Angola leadership team.
Soyo and Cabinda serve as operations centers.
In 2009-2010 Baker Hughes will invest over
$80 million in capital projects in all of these
regions, bringing new business to the local
communities while enhancing our ability to
support operators in Angola. The infrastructure
expansion projects constitute one of the largest
single investment programs in any country by
Baker Hughes in 2009-2010, demonstrating the A $4 million expenditure over two years
firm’s commitment to Angola. to build a bulk storage and mixing
facility in Sonils
These expenditures will include: A new $3 million downtown
A $29 million investment in new staff housing headquarters for the Baker Hughes
in Luanda by the first quarter of 2010 Angola leadership team
Construction of a $22 million new operations A $2 million upgrade to the Soyo
facility at the Sonils base, targeted to open drilling service facility
by March 2010 A $1.1 million expansion of the
A $14 million investment over two years to existing production chemicals blending
build a new service facility in Malongo/Cabinda plant in Soyo operated by Baker
A $7.4 million investment to redevelop Petrolite Angola Ltd., a joint venture
the Sonils Luanda operations base, with Vernon Angola Services Inc; the
including establishing a BEACON remote facility expansion will double the joint
collaboration center venture’s in-country capacity
A new $3 million downtown headquarters for the Baker Hughes Angola leadership team.
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Supplier Development
Baker Hughes recognizes the importance of
partnering with local Angolan suppliers to conduct
our business and drive the local economy. We will
procure goods and services from local business
and service providers wherever and whenever
possible with no compromise in quality, delivery,
schedule or costs. Baker Hughes tenders for local
goods and services include appropriate clauses
binding vendors to similar principles of national
content to their suppliers and subcontractors.
Baker Hughes has a rigorous procedure for
supplier selection and monitoring, ensuring each
supplier has the capability to meet the necessary
business requirements. We have developed
contract and procurement procedures that ensure
local companies are treated equitably in the bid
process and we work closely with suppliers to
make certain they are aware of Baker Hughes’
future work commitments and can provide the The BPAL organization currently numbers in excess
necessary capacity. of 80 personnel, of whom 56 are Angolan nationals
(68%). All Angolan employees have contracts directly
Baker Hughes is currently running a joint venture with BPAL. Five Angolans are in management
that operates in Angola as Baker Petrolite Angola positions. A significant investment is planned within
Limited (BPAL), a joint liability entity with ownership the new Baker Hughes facility in Luanda. This will
split 60-40 between Baker Petrolite and Vernon provide a second storage and blending location and
Angola Services Inc. This joint venture has will effectively double our in-country capability.
strengthened our position in Angola and will provide
stability for long-term growth in the area. Where local support services are insufficient to
meet Baker Hughes business requirements, district
business plans include a program to support the
development of third party services. Baker Hughes
operations promote sustainable development of local
services in those areas that support our operations,
including the development of people, support
services and their associated infrastructure.
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Baker Hughes Angola Rua Eduardo Mondlane # 1 Luanda Republica de Angola Tel +244 222 311 747 Fax +244 222 311 762 www.bakerhughes.com ©2009 Baker Hughes Incorporated. All Rights Reserved. COR-09-26652
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