Presentation to North Africa Oil & Gas Summit, Algiers, December 2014

1. 1
What lessons from across the world
can be transferred to North African
shale development?
Mark
Linder
Bell
Po/nger
Unconven4onal
Prac4ce
North
Africa
Oil
&
Gas
Summit
December
8,
2014

2. 2
"Be
as
you
wish
to
appear”
Socrates

3. 3
Unconventionals present a truly great
opportunity - a globalising phenomenon
The USA is a proof point that while technical
and commercial barriers are significant, they
can be overcome
The UK and Europe is a reminder that the
political and social response will ultimately
dictate whether the resource can be exploited

4. 4
There is opportunity in North & South Africa
There is an important economic agenda - self-
determination - energy, power, jobs, etc
But International NGOs can and will rally
objectors. Some of their appeals are based on
misinformation and fear
No one has done unconventional development
without controversy

5. 5
USA UK
Alignment of interests √ X
Public trust in environment regulator √ X
Public sector experience √ X
Being real about the scale √ X
Supply chain √ X
Socio-political environment of the USA -
hard to match

6. 6
Five issues you can expect, and what to do
about them

7. 7
1. What’s the point? Making it real matters
more than making friends
• Energy literacy is low – don’t assume people understand
• Locals live there -- some people always resist change
• Your best demonstration is a flowing well, and a “smooth
ride” operationally
• Do a lot of listening and educating... remember only
when locals start to believe you understand will they
start to listen to you
• Establish a cadence and stick to it if possible

8. 8
Na2onally
–
“energy
self-­‐sufficiency”
● Why
domes4c
energy
maLers
● How
regula4on
mi4gates
risk
● Poten4al
benefits
Interna2onally
–
“a
posi2ve
investment
reputa2on”
● Consistency
● Integrity
● Skillbase
Locally
–
“low
impact”
● Operator
rela4onship,
liaison
and
input
● Risk
management
● Opera4ons
● Projects
and
benefits
What “makes it real” differs
2
1
2
3

9. 9
2. Environment at the beginning, not the end
• Projects cannot seem to view
environmental impact as an
afterthought
• EIA’s are a great engagement
tool when done proactively...
• It is social impact, not just
environmental impact
• Pick assessment topics that
matter to the community, get
the community involved
Typical local issues
•Transport
•Noise
•Water Resources
•Induced Seismicity
•Resources and Waste
•Air Quality
•Landscape and Visual Impact
•Lighting
•Ecology
•Hydrogeology and Ground Gas
•Community and Socio-economics
•Land Use
•Archaeology and Cultural Heritage
•Greenhouse Gas Emissions

10. 10
3. Proper public engagement
“Engage before you create”
• Assume you will get a lot of attention - local groups,
international NGOs
• International NGOs have ability to hijack the local
benefits/ narrative
• Engage early and often; remind of the purpose...why is
this good for the country, the locality
• Say what you’ll do; do what you say
• Put your own team out there - enjoy the contact

11. 11
The way to do it right: Mozambique LNG
“Identify key projects
that can benefit from
the use of gas made
available to the
domestic market at a price that
promotes industrialisation and
economic transformation and achieves
forward linkages”

12. 12
There are many ways to engage communities
Consultation Activity Value-add
Information day events Bring independent experts
Engagement with key bodies Quarterly, with monthly updates
Workshop events, local meetings Be on the agenda
Community Liaison Group Meetings are key to identify tension points
Dedicated phone line Must have
Newsletter Distribute monthly
Brochures They DO get read
Animations and computer generated images Not expensive, works well
Community mapping Allows community feedback
Physical models 3D printing - people have no idea about area
Website Make sure it is informative

13. 13
But also need to engage informally
Informal Activity Value-add
Local projects, sponsorships Creates involvement
Show up in town Makes you approachable
Is there a local restaurant? Use it
Is there a local cafe or pub? Meet local
people there
You are seen publicly to engage
Local school or university - talks, projects Academic involvement
Domicile people locally
Local marketplace - have a table Informal Q&A - you are visible

14. 14
4. What’s best is not always what’s asked
for
• People want disclosure – But actually it’s more important
to use and communicate about the processes and
technology
• There is a temptation to “agree” with demands for
more and more monitoring and disclosure, produces
very little value
• Educate your regulators - it’s all about cement,
controlling kicks, better packers, better containment
• Disclosure = information/ Transparency = decision-
making

15. 15
Opponent groups are catalysed by strong
personalities
...”Opposition”
may be a world-view
Challenge is to find an
opponent who will allow
constructive engagement

16. 16
5. Educate about production delivery
• Stand up for producing gas or oil, not just exploration
• People have no way to understand industrial processes
they haven’t experienced, especially one that behaves
like a moving construction site
• Do NOT assume regulators and decision-makers
understand scaling or the economics!

17. 17
Scale is the opportunity
UK example
• 50 year, £100B investment project
• Can think through infrastructure, compressor stations,
how to plan for lower impact
• Thousands and thousands of skilled jobs, plus taxes,
benefits etc
• Opportunity to be a skills hub

18. 18
The “EMPPATHY” Doctrine
Expectation Management – It’s about commercial flow -
put the environmental process in the lead; say what you’ll
do; do what you say
Peace Process - don’t hide from opponents, rebut mis-
information. There will those who fight endlessly – get
used to it
Actions - stay away from warm words - do something NOW
to improve the community
Transparency - explain how you make decisions
Human - Go “outside the fence”, take calls, be there
You - Your message: This is not about us: it’s about YOU,
and your energy and economy

19. 19
Bell Pottinger experience
For over two decades, Bell Pottinger has reduced risk for “big project”
investors by creating alignment with key stakeholders.
What we do
• Strategic communications methods (1st and 3rd party) to create the
right mood, the right engagement
• We serve clients from centres of excellence in London, Dubai,
Singapore, affiliates in the Nordics, USA and Latin America
Our services
• Strategic planning, narrative development and program management
• Campaigning, engagement, creative interventions - real world, paid
and unpaid media, public affairs, coalition-building
• Opponent/ activist engagement

20. 20
Thank you
Mark Linder
mlinder@bellpottinger.com
The UK and Europe is a reminder that the
political and social response will ultimately
dictate whether the resource can be
exploited