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Building local opportunities

Khairy Abdul Zahra Dakhil, Nashwa Sub District Local Council Chairman, Basrah, Iraq (photo)

External opinion

“Shell’s construction activities in Iraq during 2013 offered employment opportunities to a large number of local residents. Many were in need of employment as other sectors, such as the government, have a very limited number of vacancies. Shell made jobs available for graduates, skilled and unskilled workers.

The employment opportunities were managed by the Local Development Committee (LDC), which was set up by Shell, South Oil Company, Basrah Provincial Council and community representatives. The LDC ensures that all parties work together during the selection process, to distribute the jobs fairly and transparently.”

Khairy Abdul Zahra Dakhil
Nashwa Sub District Local Council Chairman, Basrah, Iraq

Shell works to share the benefits of its projects and operations by creating jobs and helping local businesses and economies to develop. At the outset of a project we consider how we can make the best use of local suppliers and locally-produced materials, where possible. For example, in Malaysia we spent a total of around $3 billion in contracts in 2013 across 150 local suppliers. In Nigeria, Shell introduced a new scheme supported by five local banks to assist Nigerian contractors in accessing finance, which is often a challenge in Nigeria. Contractors who win tenders with Shell are offered favorable funding terms from the participating Nigerian banks. In 2013, the funding scheme enabled 39 contractors to access loans worth over $700 million.

We work with suppliers who may need support to meet our standards. In these cases, we may provide training and then monitor the supplier’s performance throughout the life of the contract. The training includes making sure that businesses have skilled employees, technical know-how and sustainability awareness. In Qatar we signed a partnership agreement with Qatar Development Bank to provide training for suppliers to meet Shell’s standards for goods and services. We also worked with the governments of Kazakhstan and Oman to develop plans to increase local opportunities in the oil and gas sector.