HUMAN CAPACITY BUILDING PLAN AND POLICY

WESTERN DEVELOPMENT LTD has been operating in Nigerian for over 25 years and has recorded quite a
number of success stories in its operations and local partnerships in Nigeria. These success stories are
part of a deliberate effort by WESTERN DEVELOPMENT LTD to improve the volume of its business in
Nigeria as well as impact local businesses positively.

In the first instance, WESTERN DEVELOPMENT LTD recently addressed the

challenges of meeting client’s deadlines on the fabrication of storage tanks in Nigerian. It was WESTERN
DEVELOPMENT LTD management’s belief that with the certification standards, WESTERN
DEVELOPMENT LTD would have the capability and capacity to design, fabricate, repair, storage tanks,
platforms that meet construction codes, customer, statutory and regulatory requirements and within
project budgets. Thus, eliminating the problems associated with cost and delivery delays.

WESTERN DEVELOPMENT LTD team achieved its target thus making WESTERN DEVELOPMENT LTD one
of the first Company to achieve such a prestigious recognition in terms of quality and fabrication
methods totally executed in Nigeria.

In another instance, WESTERN DEVELOPMENT LTD has been working with the Nigerian Content and
Monitoring Board (NCDMB) to actualize the national aspiration for developing indigenous capabilities
and participating in the Nigerian Oil and Gas industry.

The Nigerian Content Human Capacity Development Initiatives implementation guidelines were issued in
2005, WESTERN DEVELOPMENT LTD has worked hand in hand with the BOARD to implement and fulfil
this initiative in its operation in Nigeria. The objective of the program is to develop young Nigerian
graduate’s competence at entry level in Subsea structure design, Quality Assurance in Health Safety and
Environment Engineering, and Project Management. WESTERN DEVELOPMENT LTD has recorded 72
successfully trained young graduates which 50 have been employed by WESTERN DEVELOPMENT LTD.

In addition, today, as was the case for the past 8 years, the keywords for WESTERN DEVELOPMENT LTD
management are growing plan, capacity building, classroom training, on the job training, expertise
development, training support. These keywords are echoed at every level of the organization and on the
ground, it has been translated to a dedicated task force to oversee the implementation of a strategic
vision steered by the highest levels of the organization.

It is in this spirit that WESTERN DEVELOPMENT LTD has recently recruited some 60 Nigerian engineers
dedicated to offshore/onshore field development department.

A large number of these engineers are graduates with impeccable academic records and

others are engineers with experience in subsea field development projects. The graduate

engineers have for the past 6 month benefited from a dedicated in-house training program

which brought to Nigeria the most experienced hands from WESTERN DEVELOPMENT LTD sister
companies across the globe. It was a unique opportunity for the trainees to meet Principal Engineers,
Experts, Heads of Departments, Managers, and Executive Directors and to learn from their experiences
and long years of service to WESTERN DEVELOPMENT LTD. The experienced engineers were recruited
for the training task force and their role is to mentor, follow-up and oversees the progress of the trainees
on group and individual basis.

Currently, 23 engineers have proceeded to its second phase in Paris to participate in the

execution of the most technically demanding projects WESTERN DEVELOPMENT LTD is currently working
on. The trainees will spend minimum of 12 months in Paris

where no effort or resource was spared to growing the necessary expertise for engineering

excellence in subsea development projects. This will be another step to build on WESTERN
DEVELOPMENT LTD’s a leading position as a major player in the oil and energy sector in Nigeria.

The training initiative is to address the lack of skilled personnel in the industry for subsea

and deep offshore engineering skills in-country. The exercise is expected to bridge the gap

between the existing capacity and the requirements of the industry and ultimately of the

Nigeria Oil & Gas Industry Content Development Act (NOGICD Act 2010). It is anticipated

that the training and further on the job experience will turn out specialized world class

engineers within Nigeria.

Pursuant of ensuring a hands-on approach to its local content development programme,

on WESTERN DEVELOPMENT LTD appointed a Nigerian to head its Local Content department.
Kenchukwu’s appointment is a result of the restructuring of the on WESTERN DEVELOPMENT LTD Local
Content department making on WESTERN DEVELOPMENT LTD. on WESTERN DEVELOPMENT LTD to
establish a wholly independent Local Content department with a direct reporting to the on WESTERN
DEVELOPMENT LTD Managing Director.

The primary goal of the 3-step programme is to identify local subcontractors that have

adequate structure and plans for development in-country and have demonstrated

commitment and technical capability to the Nigeria Content Development & Monitoring

Board (NCDMB) resulting in the issuance of the Nigeria Content Equipment Certificate

(NCEC).

WESTERN DEVELOPMENT LTD Policy Statement and Indigenization policy

WESTERN DEVELOPMENT LTD is committed to achieving the following goals in respect of all projects:

 Establish the maximum degree of Nigeria content practicable without compromising company
objectives concerning operational efficiency and technical integrity
 Conduct work in a way that has near and long-term benefits to the community in which Company
works, consistent with its corporate guiding principles. This includes working directly and through
others to provide education and training which brings together national objectives to improve
quality of life with business needs.

 Work proactively to achieve high levels of Nigerian content in the scopes of work for projects, taking
into consideration competitiveness and capability.

 Invest in training to bridge the gaps between business needs and local capabilities.

 Maximize the potential for project revenues to remain in Nigeria.

 Establish meaningful, long-term and sustainable relationships between Nigerian companies,
engineers, managers and technicians, and their counterparts in Europe and other western countries
for the express purpose of skill and technology transfer.
 Develop CASHES policy for WESTERN DEVELOPMENT LTD and sub-contractor with provision for
continuous assessment and improvement so as to ensure safe systems of work, harmonious
community relations and zero, negative environmental impact.

It is the policy of WESTERN DEVELOPMENT LTD to instigate a series of cultural education initiatives
amongst their foreign partners, aimed at promoting an understanding of Nigeria, her, people, culture,
politics and aspirations. This is in order to strengthen the bond between Nigeria and expatriate
participants, to aid skill and technology transfer and to reap all of the rewards that mutual understanding
and respect bestow.

1.1 WESTERN DEVELOPMENT LTD Indigenization Plan. (Summary)

The summary plan for achieving the state objectives is as follows:

 Making use of Nigerian individuals, contractors and suppliers to the fullest possible extent with due
consideration to competitiveness and capability.

 Developing the capability of individuals and contractors, where appropriate, to meet business needs.

 Understanding the Nigerian content expectations of the Government, which is a high priority, and by
meeting the terms of legislation and agreements.
 Establishment of the principles and objectives.
The goals and objectives for the involvement of Nigerians in projects will be established as a level 1
activity with the WESTERN DEVELOPMENT LTD board. A policy statement will be created and a
schedule for review will be set.

 Establishment of the full potential scope of Nigeria content.

The aims and objectives of WESTERN DEVELOPMENT LTD for the involvement of Nigerians will be
made known. The potential for training of National staff amongst expatriate personnel (if any) will be
explored, and a co-coordinator will be appointed to co-ordinate the training and report to the
WESTERN DEVELOPMENT LTD Project board.

 Establishment of interface management systems.

Management systems, common to WESTERN DEVELOPMENT LTD will be put in place to effect
integration of the effort of Nigerians, technology transfer and training.
 Establishment and integration of training schemes.
Training schemes and ‘candidate descriptions’ are determined to achieve the skill transfer objectives
set. In addition to skill transfer specific to the equipment and services that is comprised in tender
package, industry standard qualification and accreditation training will be provided where
appropriate and practicable. The aim would be not just to train a Nigerian staff member to test or
inspect, but to establish the staff member as a qualify and accredited engineer commensurate with
European and U.S training standards.

2.0 Commitment

In addition to the corporate level of management involved, WESTERN DEVELOPMENT LTD is committed
to the recruitment and training of Nigerian staff required to perform the relevant tasks. This would be
facilitated by the extensive recruitment and training programme already in place, which is currently
bringing indigenous staff into positions usually associated with expatriate staff. There will be a high level
of Nigerian content in the initial contracts. This figure will improve as WESTERN DEVELOPMENT LTD
executes more and more projects.

WESTERN DEVELOPMENT LTD has chosen several procedures to achieve this objective. Some of these
include:

 Formal training of Nigerians

 Hosting Seminars
 Managerial Training opportunities
 Technical training
 Technical presentations
 Hosting advanced technical classes
 Other inter-active approaches to technology transfer.

WESTERN DEVELOPMENT LTD is committed to increasing Nigerian content through involving Nigerians
on all levels of project planning and execution including:

 Proposal efforts
 Overall project management
 Technical expertise
 Other various engineering activities

3.0 TRAINING FOR NIGERIAN STAFF

It is the policy of WESTERN DEVELOPMENT LTD to maintain the availability of trained staff.

The In-house training courses, usually conducted, consist of the following:

1. DGPS / presentation of survey reports

2. Geotechnical / Geophysical Survey methodology under environmental engineering
3. Anchor positioning methodology
4. Understanding of International Codes and Standards
5. Visual Inspection of process Plant and equipment
6. Radiation Safety
7. Quality Assurance and Quality control
8. General Safety Practices.
9. etc.

Chris Okoroigwe
Managing Director