Guidelines for grants from license holders to competence development
1. The main objective of the grants for competence development pursuant to section 13, (2) and (3) in the licenses for exploration for and production of hydrocarbons and in Annex 3 to the licenses is that grants shall be spent on appropriate higher theoretical education and vocational training within the hydrocarbon industry, which the license holders have committed to conducting and instigating for employees of the Faroese authorities, institutions and companies.
2. Projects which can be expected to contribute to industrial competence in general can also receive grants.
Demands to receivers of grants
3. Funds can be granted to companies, institutions (associations) and public authorities. Small amounts can in certain cases be granted to individuals.
4. Grants to educational projects within the educational system shall in principle be allocated to higher education or supplementary education such as courses. Small amounts can in certain cases be allocated to grammar schools.
5. Companies shall have a distinct plan for the competence development. The objective of the plan shall be to strengthen the company and improve its possibilities of participating in the hydrocarbon industry, cf also clause 2 above. There shall be a reasonable proportion between the competence development cost and the expected result.
6. Educational and research institutions shall have a distinct plan for the competence development. The objective shall aim at improving the ability of Faroese companies, authorities and institutions to participate in the hydrocarbon industry or to administer hydrocarbon related issues see also clause 2 above.
7. Allocated grants shall be spent on costs directly related to competence development, e.g.:
- course expenses
- expenses in connection with the purchase of teachers, consultants etc.
- travel and hotel expenses
- salary for people in research educations or research and development positions
- license holders’ internal expenses directly involved in the project
- in special cases for equipment, e.g. as a necessary part of a comprehensive project
8. Allocated grants shall as a main rule not be spent on e.g.:
- salaries or other remuneration to the staff of the receiver of the grant unless it is a case of research and development salaries
- overheads of the administration of the receiver of grants
Applications / grants
9. Applications can be submitted to one or several license groups. The groups decide on an individual basis which projects they chose to comply with.
10. The license groups can on their own initiative grant funds for competence development.
11. Applications shall as a minimum address the below issues:
- Applications from companies etc shall contain a description of and schedule for the project. The application shall also specify how the project will develop the company’s competence to participate in the hydrocarbon industry or develop industrial competence as such.
- Applications from educational or research institutions etc shall contain a description of and schedule for the project. The application shall also specify how the project will develop the competence of the Faroese business community to participate in the hydrocarbon industry or develop industrial competence as such.
- Applications from public institutions shall contain a description of the project and how it will improve the competence of the involved employees to administer conditions regarding the hydrocarbon industry or industrial conditions as such.
- Description of the project’s budget. Whenever possible the budget shall contain an adequate description of the reasonable proportion of the cost of the competence development to the outcome, hereunder the prospects of implementing the project.
12. The license holders shall on an annual basis submit to the Faroese Petroleum Administration a report on the activities of the previous calendar year for approval. The report shall as a minimum contain a description of the projects that have been funded together with a description of the objective of the projects, to what degree the objectives have been reached and how the funds have been used. The report shall also contain information on which plans the license holders has for competence development in the coming year.
13. The report shall be submitted to the Faroese Petroleum Administration no later than on 1 March each year.
14. The Faroese Petroleum Administration determines whether a project falls within the reach of the objective cf clauses 1 and 2 above. In case of uncertainties the license holder can consult the Petroleum Administration before deciding whether to comply with an application. The Petroleum Administration can consult people outside the Administration.
15. The Faroese Petroleum Administration shall as soon as possible be notified when funds are allocated and also if any changes are made to the allocated grants at a later stage.
16. The Faroese Petroleum Administration shall keep an overview of allocated grants and may inform the public of these, however confidential information shall be considered in connection with the individual projects.
17. License holders who grant funds can request the opinion of an accountant on whether the funds have been used in accordance with the grant. The Faroese Petroleum can request a copy of the opinion.
18. The Faroese Petroleum Administration can give exemptions to the above stipulations in certain cases.