Aboriginal partnership with international companies results in big dollars

Thailand’s state oil company’s recent purchase of 40 per cent minority shares in Calgary-based Statoil Canada’s Kai Kos Deh Seh oil sands project near Fort McMurray brings a new Asian investor to the Alberta oil sands. PTT Exploration and Production Co. paid $2.28 billion in a deal set to close early in the new year. Foreign investment in the oil sands, such as the Thai government’s, and Aboriginal partnerships was one of the discussions at Alberta 2011: A Bright Future for Aboriginal Business, a day-long forum hosted by the Canada Council for Aboriginal Business on Nov. 25, 2010.

“The oil sands development in Northern Alberta is big and is going to continue to grow,” said Graham Bojé, executive director of the Oil Sands Development Group, a non-profit society whose vision is “responsible development.”

Aboriginal affairs is one of 10 committees established by the OSDG. Other committees include housing, communications and the environment and all comprise of company members.

“With OSDG members spending over $700 million with Aboriginal businesses in 2009, clearly the opportunities for Aboriginal businesses to grow with the developments remain very significant,” said Bojé.

 Over the past 11 years, Aboriginal companies in Wood Buffalo have earned over $3.7 billion through contracts, employment and community investment, said Bojé. Construction jobs aside, in 2009 over 1,600 Aboriginal people were employed by the oil sands industry in permanent jobs in the region. Also in 2009 oil sands companies invested over $10 million to Aboriginal communities in Wood Buffalo through school and youth programs, celebrations, cultural events, community projects and other programs, more than double the amount of each previous year dating back to 2001.
Statoil works with local and Aboriginal communities through its local opportunities centre, which supports procurement and corporate social responsibility.

 “(Statoil Canada Ltd.) is a true values-based company with a strong commitment to health, safety and the environment,” said Brian Blattler, the company’s vice president commercial affairs.

“The Statoil Way,” which is the Norwegian-based company’s policy and procedure process, is to employ only minor joint partners. In fact, its mandate is not to exclude local companies but those companies must meet Statoil’s competitive pre-qualification standards.  In 2009 accrued benefits to local contractors in the Wood Buffalo area were over $92 million.

Statoil is proud of its local opportunities centre and works in joint venture with the Alberta and federal government to develop education and training programs. These include a summer student program, operator and culinary arts training through Portage College, winter drilling training program and local opportunity centres. Statoil often plays an incubator role, helping companies get started and then selling them.

Regarding environmental issues, Blattler said, “Norwegians are very progressive environmentally and the world is focussed on the oil sands to a greater extent than we are in our backyard.”

Photo Caption: Cheryl Alexander, general manager for Northeastern Alberta Aboriginal Business Association, with Brian Blattler, vice president commercial affairs of Statoil Canada Ltd.