Thunderbird Consulting Group Project Synopsis
Client Organization
ExxonMobil Indonesia
Location
Bojonegoro (East Java) and Jakarta, Indonesia
Project
Business Incubator Feasibility and Design Study
Contact Information
Email:
Public and Government Affairs
ExxonMobil Affiliates in Indonesia
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Overview
Cepu Block Cooperation Contract (KKS/Kontrak Kerja Sama) was signed on 17 September 2005 and covers
the Cepu Contract Area in Central and East Java, Indonesia. ExxonMobil affiliates (Mobil Cepu Ltd. and
Ampolex (Cepu) PTE. LTD), PT. Pertamina EP Cepu–affiliate of PT Pertamina (Persero), and four local
government companies together comprise the contractors under the Cepu KKS.
First oil production from the Banyu Urip field using Early Production Facility (EPF) commenced in limited
quantity in December 2008. The facility currently produces up to 24,000 barrels of oil per day started in
August 2009. Construction phase for full field production has been started since early 2011 and expected to
be completed in 2014. This construction phase comprises five individual Engineering Procurement
Construction (EPC) contracts: Central Field Facilities (EPC 1), Onshore Pipeline (EPC 2), Offshore Pipeline
(EPC 3), Mooring Tower and Floating Storage and Offloading (EPC 4), and Infrastructure Facilities (EPC 5).
Synopsis
Mobil Cepu Ltd. is looking at economic empowerment of community living nearby our operation sites
adjacent to EPC 1 and 5 (which located in the same area), especially for women. Given the development of
the Project, we are seeking to develop the local economy through livelihood, microfinance and
entrepreneurship programs the local community can rely on without necessarily having to be hired by MCL.
We are looking at fixed income generating activities for the community members so that they can not only
develop their own household but also create spillover effects to the whole local community. These
initiatives are important considering the fact that the Project is located in a densely-populated area in
which most of the community members are at their productive age whilst the area of arable land has
reduced due to the Project existence.
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Thunderbird Consulting Group Project Synopsis
Deliverables
1. Participant engagement strategy.
o Determine level of interest among post-construction contract personnel for participating in
a business incubator program.
o Determine who qualifies for participation and develop an equitable and gender sensitive
application process.
2. Determine the appropriate incubator business foci.
o What target businesses should the incubator be in the business of developing?
o Develop criteria for incubator consideration, (e.g., growth potential/scalability: business
must be scalable to ensure employment for a large number of people, not just micro
businesses that employ family members only).
o Consider gender and development factors that align with the spirit of the ExxonMobil
Women’s Economic Opportunity Initiative (WEOI)
o Conduct a local institutional voids market analysis to identify necessary intermediary
business opportunities.
o Identify gaps in the ExxonMobil value chain that incubator businesses might fill.
o Review the recently completed village-based needs assessment to identify possible
business opportunities that could be incubated to fill regional needs.
3. Conduct a review of the existing ExxonMobil sponsored livelihood programs to determine
effectiveness and discover possible points of integration with the incubator program.
4. Determine the appropriate organizational structure for the implementation and management of
the incubator.
o What mix of ExxonMobil/NGO collaboration will be necessary for program oversight?
o Determine roles, accountabilities, and internal processes (i.e., organizational design
factors).
5. Develop a projected annual budget for the incubator program.
6. Develop an effective measurement and evaluation strategy that addresses short-, medium-, and
long-term objectives. This will involve the development of a project logic model justifying the
incubator program design and strategies for measuring progress.
Special Considerations
 All deliverables mentioned are preliminary and will be subject to revision after initial project
organizational meetings.
 ExxonMobil will provide access to necessary internal resources, financial estimates/statements, and
guidance in the research process.
 Project stakeholders will include the local community and NGO and other ExxonMobil partners in the
area. TEM Lab will need ExxonMobil’s help to identify the appropriate contacts in the area and make
introductions as necessary.
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