CHAPTER SIX THE CASES STUDIED
6.1. The National Oil Corporation
6.1.1. Problems of Providing Manpower in the Oil Sector: There are a number of problems in providing manpower in the oil sector these include
NOC (2009)
Low level of education and training, output which forced companies to develop training programs for rehabilitation, long-term and cost a lot of money.
The difficulty of obtaining foreign expertise and specialized especially the petroleum industry is characterized by advanced and innovative techniques of the time needed to prepare national elements, which are qualified
High rates of wastage of experienced and well rehabilitation and the difficulty of preparing the elements of alternative terms that would require a long time and high cost.
Under the provision of training of local and national elements the NOC annually accepts a specific number of students obtaining the certificate of completion of a basic education and offers facilities to prepare for their entry into disciplines needed by the oil companies (see Tables below). The NOC operates its own institute, this Institute was developed to train and prepare employees for the extractive oil industry in those important disciplines that serve the drilling activities, production, welding machines, safety and other requirements. However companies needed first-class production workers and managers to support them. The total number of students and trainees during the academic year 2007 was 216. The numbers of students who graduated from the Institute during the years 2003-2007 are (1170) and they have been the placed as can be seen in table 6.1:
Table 6.1: Number of Students Graduated During 2003-2007
Year 2003 2004 2005 2006 2007 Total Number of graduates 241 223 259 231 216 1170
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Table 6.2: Number of Technician Graduated During 2003-2007 Year 2003 2004 2005 2006 2007 Total
Number of graduates 184 153 149 179 136 801
Source: NOC, Annual Report (2009, p.106)
The total number of technicians during the academic year 2007 was 136 (see table 6.2). There have been 801 technicians who have graduated from the institute during the years 2003-2007 and they have been given placements in the oil companies. Plans for training and development in the oil sector in 2007 show a figure of (6918) candidates for training within the Libya, during the year however (7123) trainees were sent on training courses this is an implementation rate of (103%) .Table 6.3 reflects the growing interest to take advantage of all the training possibilities available within Libya during 2003 to 2007.
Table 6.3: The Percentage of Planning and Implementation of TDPs Year Planned Implemented Percentage of Implementation
2003 6613 8973 136% 2004 6395 7381 115% 2005 6395 7603 119% 2006 6602 7254 109% 2007 6918 7123 103% Total 32923 38334 116%
Source: NOC Annual Report (2009, p106)
As a result of the lack of local training programmes, the NOC seriously began to consider overseas training programmes in 1975, since then it has aimed to benefit from any international modern technical training which helps to develop exploration, operations, and maintenance fields, and thereby improves the oil industry. Because the Libyan industry has been characterised by complicated technology and a management structure which witnessed many changes and constant development, as already indicated, it became important to utilise whatever overseas advanced training opportunities were identified as appropriate, and consequently, many Libyan nationals have benefited from such training programmes in different technical fields. The plan for training and development in the oil sector in 2007 was to train 1541 production staff
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outside Libya in technical and specialised fields was there was no possibility for them to be trained locally. There were actually 1361 training opportunities taken up abroad this was 88% of the target for the year, NOC (2007).
Figure 6.2 : Training and Development Plan 2007
Source: NOC, Annual Plan of Training and Development (2007,p3).
Table 6.4: Human Resources in Oil Sector (2007) According to Nationality
Rating Manpower
Nationals Arabs Foreigners
Total Number Percentage % Number Percentage % Number Percentage % NOC 1820 98.0 19 1.0 19 1.0 1858 Production Companies 21847 91.8 272 1.1 1692 7.1 23811 Manufactu ring Companies 5621 94.8 69 1.2 239 4.0 5929 Service Companies 5676 91.6 161 2.6 359 5.8 6196 Marketing Companies 6885 100.0 0 0.0 0 0 6885 Total 41849 93.7 521 1.1 2309 5.2 44679
Source: NOC, Annual Report (2007, p87)
Libya’s oil industry is running by national oil corporation, along with smaller subordinate companies, which shared account for around half of the county’s oil output. The NOC performs its duties through its fully owned companies, with the total number
Manpower in the Oil Sector
41849 2309 521 Nationals Foreigners Arabs Total 44679
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of 44679 employees, NOC (2007) among them are 41849 nationals, 2309 foreigners and approximately 521 Arabs see figure 6.2. These companies are vary in activity from operating and producing companies, to refining, processing and domestic/ international marketing companies, to various service companies (see Table 6.4).
Figure 6.3: Human Resources in Oil Sector (2007) According to the Companies' Activities
Source: NOC, Annual Report(2007,87).
Figure 6.3 shows that National oil corporation performs some of its activities through partnership with foreign exploration, production and specialized oil service companies, and some of domestic manufacturing, marketing, production and service companies. In relation to the company’s activities, nearly more than half of the human resources in the oil sector were from production companies, followed by the marketing companies (Figure 6.3).
According to the aims and objectives of The NOC its duties include:
Moderning and developing training and development activity according to modern standards.
The development of supervisors and managers, including employment target for the development of leadership posts in the levels of supervisory, middle and senior management.
Technical development and specialized segment includes engineers and professionals in professional specialization and professionalism.
Vocational Training and development includes employment segment of graduates from colleges and higher instituites and operators in the areas of production, operation and maintenance.
NOC Annual Report (2007 p. 99)
4% 54% 13% 14% 15% NOC Production Companies Manufacturing Companies Service Companies Marketing Companies
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Table 6.5: General Analysis of the Plan for Training and Development in the Oil Sector