2014 Corporate Responsibility Report
2014 Corporate Responsibility Report Chevron in Nigeria Human Energy
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Chevron in Nigeria
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2014 Corporate Responsibility Report
Chevron is the third largest oil producer in Nigeria and one of the largest investors in the country, with billions in annual capital investments. On the cover: A Nigerian employee working on the Agbami FPSO. Inside page: The EGTL plant in Escravos, Delta State, Nigeria Produced by: Policy, Government & Public Affairs (PGPA) Department, Chevron Nigeria Limited Design & Layout : D&R unit, Chevron Nigeria Limited
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2014 Corporate Responsibility Report
Chevron in Nigeria
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2014 Corporate Responsibility Report
forward “toWethelook future with
Clay Neff
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keen interest and are resolute on maintaining our reputation as a Partner of Choice.
2014 Corporate Responsibility Report
TABLE OF CONTENTS Message from the CMD 6 About Chevron in Nigeria 7 Social Performance 8
Health 9
Education 13
Economic Empowerment 17
Partnership Initiativesf for Niger Delta 20
Donations and Sponsorships 26 Engaging Stakeholders 31 Our People 35 Operating Responsibly 41 Nigerian Content 49 Awards 53
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“ We strongly believe that by operating responsibly, developing strong partnerships and investing in communities, together we make a brighter future”
Message from Clay Neff
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For more than five decades, Chevron companies in the upstream operations in Nigeria have played a major role in the development of the energy sector, anchored by our efficient base business and tremendous growth in our deep water and gas resources. Through continued development of these resources, and with our participation and partnerships in community engagement activities, we are proud to help improve the quality of human life in Nigeria by supporting education, health, capacity building and sustainable development.
We had another remarkable year in 2014 in terms of delivering our business objectives with excellence. Of course, we could not have achieved our goals without the sustained support of the government, our senior partner (the Nigerian National Petroleum Corporation), other partners, communities, and our employees and contractors.
We are committed to responsible and ethical behavior, which is embedded in our system of values. Our people believe that success is driven by operating with excellence in everything we do. We provide reliable and affordable energy with an unyielding commitment to personal safety, process safety and environmental stewardship — by doing every task the right way, every time.
Our 2014 Corporate Responsibility Report showcases how our operations have positively impacted our employees, various communities, the environment, economies, and stakeholders.
We strongly believe that by operating responsibly, developing strong partnerships and investing in communities, together we make a brighter future.
Clay Neff
We look forward to the future with keen interest and are resolute on maintaining our reputation as a Partner of Choice.
I hope you find the information, success stories and best practices reported in this brochure informative and useful. Chairman and Managing Director Chevron Nigeria/Mid-Africa Strategic Business Unit
2014 Corporate Responsibility Report
About Chevron in Nigeria Chevron is the third largest oil producer in Nigeria and one of the largest investors in the country, with billions in annual capital investments. The company operates under a Production Sharing Contract (PSC) where it has extensive interests in deep water offshore Nigeria. Among them is the Agbami Field, one of Nigeria’s largest deep water discoveries. Chevron Nigeria provides rich career development opportunities for more than 7,500 employees and direct contractor staff. Chevron operates the Agbami Field, which lies 70 miles (113 km) off the coast of the central Niger Delta region, spanning 45,000 acres (182 sq. km). We also have a 30 percent non-operated working interest in the Usan Project, located in 2,461 feet (750 m) of water, 62 miles (100 km) off the coast in the eastern Niger Delta region. Chevron has interests, ranging from 18 percent to 100 percent in 10 deep water
and performance. blocks in offshore Nigeria. Chevron operates four of these blocks. Chevron companies in Nigeria also operate and hold a 40 percent interest in nine concessions operated under a joint-venture arrangement with the Nigerian National Petroleum Corporation, which owns a 60 percent interest. Chevron takes seriously its role as a member of the community in Nigeria and is active in many projects promoting health, economic development and education. In 2005, we adopted a new approach to community engagement in the Niger Delta to high-grade local participation in determining the needs our programmes should address. This model, called the Global Memorandum of Understanding, gives communities a greater role in managing their development through newly created Regional Development Committees. The objective is to bring peace and stability to areas where Chevron operates. The Chevron Way
Our vision means we: • Provide energy products vital to sustainable economic progress and human development throughout the world; • Are people and an organization with superior capabilities and commitment; • Are the partner of choice; • Deliver world–class performance; • Earn the admiration of all our stakeholders—investors, customers, host governments, local communities and our employees— not only for the goals we achieve but how we achieve them. Values Our company’s foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment and benefit the communities where we work. Chevron’s values are integrity, trust, diversity, ingenuity, partnership, protecting people and the environment, and high performance.
Vision At the heart of The Chevron Way is our vision: to be the global energy company most admired for its people, partnership Chevron in Nigeria
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Social Performance Chevron Nigeria contributes to the economic and social wellbeing of people in communities where we operate because we have learned through decades of experience that our business is deeply linked to society’s progress. We work with our communities and partners to focus our support on strategic social investments in health, education and economic development
$12.1 Million
Made available to Regional Development Committees to execute community projects
Highpoints of our social performance initiatives: • •
• • •
$2.2 Million
Donated chest clinics
More than
80,000 Primary school pupils benefitted from the Mass Deworming programme.
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•
• •
•
•
Continued its robust healthcare supports aimed at improving the quality of healthcare delivery in Nigeria. Announced additional $1.7 million in its funding support for the community-based Prevention of Mother to Child Transmission of HIV (PMTCT) project in Bayelsa State. Donated chest clinics to three states in Nigeria at a total cost of $2.2 million. More than 80,000 primary school pupils benefitted from the Mass Deworming programme. Commissioned a Molecular Biology Research Laboratory donated to the Lagos University Teaching Hospital (LUTH) which was instrumental to the detection of the first case of the Ebola Virus Disease in Nigeria. 10,000 students have benefited from the Agbami Medical and Engineering Professionals Scholarship and produced 95 graduates in First Class division (or its equivalent) since inception in 2009. Discovery Channel interactive learning programme was extended to Delta State in 2014. Provided approximately US$12.1 million to Regional Development Committees to execute community projects under the Global Memorandum of Understanding (GMoU) process. In 2014, Partnership Initiatives in the Niger Delta (PIND) continued to focus on tackling the knowledge gap and poor agronomic practices that lead to belowpar yield of small-holder farmers. Supported various programmes of reputable charity, non-governmental and not-for-profit organizations
2014 Corporate Responsibility Report
Health Interventions Chevron companies in Nigeria have committed substantial resources over the years towards helping to improve healthcare in communities in our areas of operation and beyond. We support programmes and partnerships to address among others, diseases and epidemics such as HIV/AIDS, Malaria and Tuberculosis. In 2014, the company continued to dedicate its capabilities and resources, including people, to support initiatives that improve healthcare delivery in the country.
Medical Personnel in an ambulance donated by Chevron Nigeria to assist in containing the spread of the Ebola Virus Disease in Nigeria
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In 2014, the programme was deployed in Igbokoda, Ondo State targeting pregnant women and children under the age of five. As a result, over 6,200 people were treated for malaria while over 28, 500 had access to improved health care. HIV/AIDS Campaign Chevron recognizes that HIV/AIDS poses a significant threat to the business, its employees and their families, contractors, business partners and the society as a whole. The company has therefore played a leadership role in combating the spread of the disease in the country through the support for various programmes and initiatives. These include: Prevention of Mother-To-ChildTransmission (PMTCT) of HIV
Medical Personnel working in the DNA Laboratory donated to the University of Lagos
River Boat Clinic (RBC) The NNPC/Chevron River Boat Clinic scheme remains a veritable vehicle for taking healthcare to the doorsteps of communities in the Western Niger Delta area. Under this programme, the Delta State government provides the medical personnel while the NNPC/Chevron Joint Venture provides the boat and medical consumables. In 2014, over 50,800 community people benefited from the RBC services and improved access to health care.
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The significance of the DNA laboratory became the more apparent in July 2014 when it helped detect the first case of Ebola Virus Disease in Nigeria
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Roll Back Malaria According to the World Health Organization (WHO), there are an estimated 300 million acute cases of malaria every year around the world, resulting in more than one million deaths. Approximately 90 percent of these deaths occur in Africa, mostly in young children. Chevron and the Nigerian government, along with development and private sector partners, through the Roll Back Malaria (RBM) initiative, hold campaigns to demonstrate significant commitment to the task of reducing the high burden of illness, suffering and deaths due to malaria.
In March 2014, Chevron Nigeria announced additional $1.7 million in its funding support for the communitybased Prevention of Mother to Child Transmission of HIV (PMTCT) project known as the PROMOT project, in Bayelsa State. This additional commitment raises Chevron’s investment for the PROMOT Project to $5.3 million. The project is implemented by Pact Nigeria in partnership with community based organizations (CBOs), to achieve the primary goal of educating and mobilizing the population in targeted communities to reduce mother to child transmission of HIV in Bayelsa state. The additional support facilitated the expansion of the reach of the PROMOT project to all Local Government Areas. By September 2014, 30,738 pregnant women had been tested for HIV and received their results; 117,898 people reached with HIV prevention messages; 431 HIVpositive pregnant women known to be on antiretroviral (ARV) prophylaxis and 449 including community health extension workers were trained on the latest state of the art PMTCT approached and techniques and 253 HIV-exposed infants tested for HIV at six weeks. Molecular Biology Research Laboratory for Lagos University Teaching Hospital
2014 Corporate Responsibility Report
As part of its commitment to partnering with government and other institutions in the development of the Nigerian health sector, the company in February 2014 commissioned the Molecular Biology Research Laboratory it provided for the Lagos University Teaching Hospital (LUTH). The support also included the renovation of the Teaching Hospital Science Laboratory which was equipped with state of the art equipment, including an alternative source of power supply. The project is the first of its kind in the whole of West African sub-region and able to provide services that were not readily available in-country. It provides genetic diagnostic tools that aid in the diagnosis, management, treatment and counseling of people with a genetic disadvantage. The significance of the DNA laboratory became the more apparent in July 2014 when it helped detect the first case of Ebola Virus Disease in Nigeria. The company also responded to the national challenge by donating four (4) standard Ford Transit Ambulances designated to support the core operations of the Ebola Emergency Operations Centre (EOC), Lagos; the Point of Entry (POE) activities of the EOC at the Murtala Mohammed International Airport Health Services in Lagos; Delta and Rivers States Governments.
hospitals in Katsina, Enugu and Akwa-Ibom States and a Mother and Childcare Center in Delta State. These projects, which are to improve access to basic health care delivery, are deployed in partnership with the respective state governments and the National Tuberculosis Programme. The main focus of the Chest Clinics is on the diagnosis and treatment of tuberculosis. Tuberculosis is one of the most opportunistic diseases of HIV/AIDS and Nigeria has the secondlargest number of people living with HIV.
Other Social Investments in the Area of Health: •
.
X-Ray Machine for St. Kizito Clinic: Chevron donated a mobile X-ray machine to St. Kizito Clinic, Jakande Estate, in Lekki, Lagos, to fight tuberculosis and infectious diseases common among HIV/AIDS patients. The clinic, supported by Chevron Nigeria, helps to provide a wide range of medical services to people in the neighborhood, especially the less privileged. Chest Clinics: Star Deep Water Petroleum Limited, a Chevron company and its co-venturers in the Agbami field deployed three Chest Clinics to existing government
•
Deworming: Chevron, in partnership with the government, executed deworming programmes that benefitted about 80,000 children in each of Delta, Lagos and Ondo States. In Delta State, the programme was launched on October 29, 2014 at Caveginia Primary School, Warri with 63 primary schools in Warri South and Uvwie Local Government Areas benefitting from the programme. Over 1,610 school children received preventive healthcare education and over 160,063 benefitting indirectly from the programme.
Above: X-ray session in progress in one of the Chest Clinics donated by the Agbami co-venturers Below: A Chest Clinic Ward
In 2014, more than
28,500
had access to improved health care at Igbokoda, Ondo State.
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As at March 2014,
$5.3
Million
Investment for the support for the community-based Prevention of Mother to Child Transmission of HIV (PMTCT) project known as the PROMOT project, in Bayelsa State.
In 2014, over
50,800 community people Above: Flag off of the deworming exercise in Warri Below: X-Ray machine in one of the Chest Clinics donated by the Agbami co-venturers
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The reason Nigeria was not embarrassed during the Patrick Sawyer and Ebola saga was because of the Chevron Molecular Biology Laboratory, which was commissioned in February this year (2014). Had Dr Adadevoh not thought to send Sawyer’s sample to the Molecular Lab at LUTH, it would have to have been sent to a medically advanced destination like Atlanta. This would take a couple more days of waiting and hoping, during which Ebola would be gaining a stronghold with primary contacts now travelling all over the country
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Prof. Akin Osibogun, immediate past Chief Medical Director, Lagos University Teaching Hospital (LUTH)
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Cottage Hospitals: Chevron in collaboration with the Regional Development Committees, under the Global Memorandum of Understanding (GMoU) signed with communities in its areas of operation has helped to build and equip cottage hospitals in remote communities in the Niger Delta region.
benefited from the River Boat Clinic services
2014 Corporate Responsibility Report
Education Chevron Nigeria holds the view that education is the key to unlocking the potential of the youth and developing their capacity for societal relevance. This is one of the reasons why the company is committed to promoting quality education in partnership with government and other stakeholders. The thrust of our education support strategy is towards an improved access to education for all Nigerians.
Some of the Agbami scholars who graduated with First Class honours in 2014
Agbami Medical and Engineering Professionals Scholarship This is a merit based scholarship scheme and the students are expected to maintain a minimum standard performance to continue to remain eligible. It is open to all Nigerian undergraduates studying any of the following: Engineering, Medicine, Dentistry, Pharmacy, Medical laboratory Sciences and Nursing. As at 2014, more than 10, 000 students in various universities in the country had benefited from the programme. Out of these scholars, 95 have graduated with First Class honours or its equivalent. Out of the 19 beneficiaries of the Agbami scholarship who graduated from the University of Ibadan in 2014, four graduated with first class honours.
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• University Support Programmes: Sponsorship of Facilities Engineering Human Capacity Development Initiative (FUHCADI), a capacity enhancement programme, is targeted at engineering undergraduate students in their fourth and final school years. The aim of the initiative is to expose engineering students to oil and gas facilities engineering fundamentals, to help the students develop initial skill sets required in the oil industry, and in turn improve their awareness of the industry.
Undergraduate students during a scholarship aptitude test
10, 000
students
currently are on Agbami Medical and Engineering Professionals
Scholarship in various universities in the country
95
graduated with
First Class honours
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• NNPC/CNL JV National University Scholarship Award: This is exclusively designed for full time second year degree Nigerian undergraduates in Nigerian universities (Federal, State & Private) only in all states of the federation, including FCT. About 299 students were awarded in 2014 in addition to the 917 existing scholars in the scheme making a total of 1,216 awardees. • Community Scholarship Awards – Non-GMoU CNL Areas: Designed for communities located in CNL’s areas of operation. It covers both secondary and tertiary students. • Scholarship for the Blind/Physically challenged: This scholarship is targeted at the visually and physically challenged who are indigenes of the states where Chevron operates. It is offered to enhance their access to education. It is also a manpower development tool for blind students from the Niger Delta region. The scholarship is for students in recognized Nigerian tertiary institutions (Universities, Polytechnics, and Colleges of Education etc.)
• Libraries and Laboratory Complexes: Towards an improved access to basic Science education in Nigeria, Chevron and its Agbami Co - Venturers, deployed three Science Laboratories to public Secondary Schools in Ogun, Niger and Benue States as well as a Hybrid Library (electronic and conventional library) in Lagos State and a Medical Diagnostics Laboratory to the Niger Delta University in Bayelsa State; Chevron and co-venturers in OML 132 field also deployed two hybrid libraries to public Secondary Schools in Ondo and Edo states. Over 10,000 Engineering and Medical Sciences students received scholarships in 2014. • 65% of the total number of students in the supported schools that registered for Chemistry, Biology and Physics in 2014 West African Examination Council (WAEC) scored credit and above in these subjects. The National average performance for same year is 31%. Chevron, Discovery Learning Alliance Partnership The Chevron, Coca-Cola Africa Foundation and Discovery Learning Alliance (DLA), formerly known as Discovery Channel Global Education Partnership (DCGEP) Programme launched in 2008 was extended to Delta State during the 2013/2014 academic session. DCGEP is a nonprofit organization that works in
2014 Corporate Responsibility Report
schools and communities around the world to provide access to technology and information opportunities to schools. The programme is designed to empower Nigerian children, teachers and communities to acquire media technology and use television as a tool to acquire knowledge for the benefit of individuals and the society. Between 2013 and 2014, the Delta State extension project trained 1,342 teachers, engaged 18,555 parents/ guardians and community members while in 2014, there were 8,857 direct student beneficiaries, which translate to an increase of 727 students from the 2013 school enrollment figure. Chevron Employee Volunteer Programmes: Chevron Nigeria Limited encourages its employees to give back to the community through the Employee Volunteer Programme (EVP). In 2014, some of our employees supported by the company rebuilt and furnished blocks of classrooms at Community High School, Alegongo, Ibadan, Oyo State ,Ilasan Secondary School, Lekki, Lagos State respectively. The renovations involved concrete flooring, reconstruction of external walkway, electrical fittings and lighting, painting, plastering, provision of metal windows and doors as well as furniture. Employees under the EVP also sank two boreholes in Rumde and Wafande in Fufore Local Government Area of Adamawa State. Competitions: National Art Competition: The 2014 edition of the National Art Competition for Nigerian secondary schools aimed at developing the creative talents of Nigerian students was held on Wednesday, October 15, 2014 at the Musical Society of Nigeria (MUSON) Centre, Lagos with about 600 students from different states of the federation in attendance. The event was attended by the wife of the Lagos State Governor, Dame Abimbola Fashola and officials of the Federal Ministry of Education. Winners in both junior and
senior categories were honoured at the event. Chris Ikomi Essay Competition: The NNPC/Chevron Joint Venturesponsored Chris Ikomi Essay Competition is aimed at promoting the study of English Language among students in public and private secondary schools in Delta State. The competition also aims to promote reflective thinking and creative writing among the youths. 2014 edition of the competition attracted 1,320 schools comprising private and public schools.
Above: Edjana Faustalu, winner of the 2014 NNPC/Chevron National Art Competition for Nigerian Secondary Schools is flanked by Mrs. Jane Ashimi, Deputy Manager, Public Affairs, NAPIMS (left); Mr. Deji Haastrup, CNL’s General Manager, Policy, Government and Public Affairs (PGPA) and Mrs. Abimbola Fashola, wife of the Lagos State Governor. Below: A student explaining her work to the dignitaries at the 2014 NNPC/ Chevron National Art Competition for Nigerian Secondary
Awokoya Chemistry Competition: This competition among secondary schools in Delta State is organized annually in collaboration with the State chapter of the Chemical Society of Nigeria (CSN). The competition is designed to promote the teaching and learning of Chemistry. In 2014, 649 students from 23 Local Government Areas of Delta State participated in the competition.
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laptops, laboratory tests etc. And by not worrying about my finances, I was able to focus on my studies” Olugbenga, whose future plans included a Master’s degree in Pharmaceutical Chemistry, spared no words in thanking his sponsors for giving him the encouragement he needed to succeed: “Agbami partners have done very well in helping people like me, people who are eager to learn, but are financially unstable… initially because of the financial pressures I almost quit, I hope they continue to touch lives, and help people achieve their dreams” Toluwalase Fosudo, a First Class graduate of Mechanical Engineering also expressed his gratitude to the Agbami partners for the support. “Agbami, please keep up the good work, I don’t know if I would have been able to do it without you, but I did it with you,”. Students in one of the Hybrid Libraries
“
Testimonal
Without the Agbami Scholarship, my story will not be complete… my course (Medicine) is financially demanding so I was able to focus on my studies and not finances which I am grateful for...
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In 2014, four (4) beneficiaries of the Agbami Medical and Engineering Professionals Scholarship Programme (AMEPS) graduated from the University of Ibadan with First Class Honours in their different disciplines. This is a strong testimonial to the impact Chevron and the Agbami partners are making in promoting the quality of education in the country. 12 other AMEPS beneficiaries also graduated with second class honors upper division. Olugbenga Abraham, the only graduating student with a first class in Pharmacology was effusive in his gratitude to Chevron and the Agbami partners for the scholarship award which he said made life easier for him as an undergraduate. “I feel awesome, I did it! This milestone could not have been achieved without the Agbami scholarship”. He added: “The scholarship helped me both financially and emotionally. Pharmacology is a course which requires huge financial obligation from laboratory coats to
Ms. Isioma Diji, who graduated with a degree in Medicine and Surgery, said she felt empowered like she had ‘the keys to the bigger world’. “Without the Agbami Scholarship, my story will not be complete… my course (Medicine) is financially demanding so I was able to focus on my studies and not finances which I am grateful for”. Ms. Diji, who already has an internship offer from the Lagos University Teaching Hospital (LUTH), also plans to go for a Master’s degree in Child and Adolescence Mental Health.
2014 Corporate Responsibility Report
Economic Empowerment Promoting sustainable development through participatory partnership and Stakeholder Engagement
Dr. Emmanuel Uduaghan, (left) Governor of Delta State and officials of Chevron at the GMoU Fair
Global Memorandum of Understanding Confronted with the dynamics of the Niger Delta and the challenges of ensuring sustainable development in the communities around her operations, Chevron Nigeria Limited (CNL), in 2005, adopted the Global Memorandum of Understanding (GMoU) to achieve its goal of significantly contributing to improving the quality of life in the Niger Delta.
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The GMoU has generated over 258 projects in more than 400 communities, villages and chiefdoms and benefited over 600,000 people. Projects worth more than $83 million have been completed, enhancing the quality of life in these communities.
Teachers Quarters built by KEFFES RDC through the GMoU process
Under the GMoU approach which is predicated on mutually negotiated agreements, planning and execution of community development programmes is now the responsibility of the Regional Development Committees (RDCs). These committees work with the communities to produce development plans that are designed to improve their livelihoods. The GMoUs define and guide the spirit of relationships and partnerships among key stakeholders.
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Projects worth more than N16,517,000,000
billion have been completed, enhancing the quality of life in these communities
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The GMoU ensures sustainable community-driven development process, institutionalizes the spirit of partnerships, economic empowerment and human capacity building. It has brought remarkable socio-economic benefits to communities around the company’s operations in Nigeria. The GMoU is predicated on the following principles: • • • • •
Participatory Partnership and Stakeholder Engagement Transparency and Accountability Sustainability Assurance Peace Building Monitoring and Evaluation
Funding of GMoU: In 2014, the NNPC/ Chevron Joint Venture provided about US$12.1 million to the eight Regional Development Committees (RDCs) for a wide range of infrastructure and noninfrastructure projects which include; water supplies, rural electrification projects, school buildings, cottage hospitals, road and drainage networks, concrete jetties, foot bridges, public toilets, town halls, housing, scholarships, micro-credit schemes and others. The projects were identified in a series of Sustainable Livelihoods Assessments (SLAs) conducted by all RDCs and incorporated into detailed Community Development Plans (CDPs). •
CNL in partnership with the Regional Development Committees (RDCs) organized a GMoU Fair in February 2014 to improve stakeholders’ awareness about the GMOU model and its accomplishments to enable the RDCs attract third party partnerships and support. The two-day event featured various engaging activities including panel discussions, presentations and an exhibition in which the RDCs showcased their achievements and success stories.
•
CNL in partnership with the RDCs conducted Sustainable Livelihood Assessment and Economic Growth Opportunities studies (SLA/ EGO). The outcomes of the SLA/ EGO study in each RDC was used to develop a 5-year community development action plan for the RDCs to maximize partnerships, job creation, income generation and livelihoods diversification in line with the GMoU+ strategic focus.
2014 Corporate Responsibility Report
•
The RDCs have completed and commissioned projects worth over five billion naira (N5 billion) and have continued to execute new projects that enhance the quality of life within their communities. This has led to an atmosphere of partnership between our company and the communities in our operational areas resulting in minimal disruptions to our operations, thus helping to achieve our business goals and objectives. A breakdown of these projects shows these resources have been spent by all the RDCs on various projects in Education, Health, Housing, and Economic Development.
The GMOU process continues to work with stakeholders to attract other partners in making contributions towards the development of these communities. In this respect, the Ministry of Niger Delta Affairs has been attracted to partner with the various RDCs. This will allow for interventions in large scale infrastructural projects. CNL has also advanced partnership engagements with the International Institute of Tropical Agriculture (IITA) and the International Food and Agricultural Fund (IFAD). These institutions are to bring resources and expertise to collaborate with the RDCs to exploit agricultural and rural resources for the economic development of these communities as identified in the SLA/EGO studies.
as the overall objective of the GMoU process is to build the capacity of the local communities. For us in Delta State, we are happy to be a part of the GMoU process because it has provided an enabling environment for investors to carry out their business and simultaneously take care of the interests of the citizens”
Above and Below: RDCs continue
to work with stakeholders to attract other partners in making contributions towards the development of their communities
Dr. Emmanuel Uduaghan, Governor of Delta State
The GMoU has generated over
Testimonal “The GMoU, I must say, is worth emulating. I commend Chevron Nigeria Limited and urge other oil companies to think seriously about adopting the GMoU model with the communities in which they are operating. It may not attain 100 percent perfection at the beginning but as time goes by, you will agree with me that it will have an immense impact on the communities
258 projects
in more than
400
communities, villages and chiefdoms and benefited over
600,000 people
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Partnership Initiatives for Niger Delta Chevron Corporation established the Foundation for Partnership Initiatives in the Niger Delta (PIND) in 2010 as a non-profit foundation in Nigeria to serve as an operational entity funded by the Niger Delta Partnership Initiative (NDPI). PIND was established to help alleviate poverty and promote peace in the Niger Delta region by building dynamic, innovative programmes and multi-stakeholder partnerships for peaceable, equitable economic growth.
James F. Entwistle, US Ambassdor (second from left) to Nigeria signs Memorandum of Understanding (MoU) with Strengthening Advocacy through Civic Empowerment (SACE) grantee Nosa Confidence Amayo
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PIND complements Chevron Nigeria’s existing social investment efforts by working to address systemic causes of social problems in the region – conflict, poverty, unemployment and weak institutional capacity – in a way that would mitigate the risks of economic activity, including oil exploration and production. As a partnership initiative, PIND achieves this by pulling in resources from a diverse range of stakeholders – both public and private – to help tackle the region’s development needs. PIND focuses on four main areas: Economic Development, Capacity Building, Peace Building and Analysis and Advocacy. Economic Development PIND’s interventions in Niger Delta communities in 2014 focused on tackling the knowledge gap and poor agronomic practices that lead to belowpar yield and lack of competitiveness of small-holder farmers. In aquaculture, PIND ran a successful demonstration pond pilot project which ended in 2013. This pilot project enabled members of an aquaculture Business Membership Organizations (BMO) to optimize their fish feed utilization and grow catfish more efficiently and profitably. 80 farmers from United Ufuoma Fish Farmers Association (UUFFA) in the Delta State area, benefited from the successful pilot demonstration pond project; 87% of whom experienced increased sales as a result of the intervention. Records provided to PIND between January and June 2014 revealed that as a result of the intervention, farmers within the UUFFA experienced additional income of N6, 000,000 from sales of their fish. Additional income in the fish farming business has increased membership for fish farming associations, evidenced by a growth of UUFFA’s members from 400
in September 2013 to 686 by end of third quarter 2014. PIND trained a pool of local service providers to deliver both technical and business knowledge to fish farmers. This training was to develop capacity to sell better quality services to farmers in states in the Niger Delta region. PIND also formed a partnership with Grand Cereals; a fish feed manufacturing company which set up six demonstration ponds in Delta State, Nigeria. This would benefit two fish farming association, CAMP 74 Fish Farmers Association (CAFAN) and Liberty Fish Farmers Association, each with 40 and 120 members respectively. Another Fish feed company, Marakute, replicated the PIND model in the UUFFA cluster by engaging the services of a PIND trained local service provider to run demonstrations. The replication of the model introduced by PIND is a testament to the success of the programme.
Above: Diezani Alison-Madueke, Minister of Petroleum and other government officials during a visit to PIND stand. Below: Skill acquisition programme for people of the Niger Delta
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Mechanical Adjustable Harvester and succeeded in engendering interest in the production of the machine for Nigeria. Agro-machinery manufacturer STIHL Germany was initially looking to introduce the machine to Nigeria in five years, but the intervention of PIND fast-tracked the process. The machine was introduced within the year. Two dealers based in the eastern part of the country sold the machine to farmers and farming clusters in the Niger Delta region.
A cassava farmer benefiting from cassava tube best practices
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PIND established a partnership with Ubuluku Cassava Farmers Association in Delta State for a demonstration pilot project to share best practices in cassava farming with up to 200 farmers. PIND further identified and established partnership with agriculture service providers, Notore, Jubaili, and Harvest Plus to provide fertilizer and herbicides for the demonstration.
In 2014, PIND was approached by the Delta State Ministry of Environment to promote the bio-sand filter in communities in the State under the government’s Territorial Approach to Climate Change (TACC) project
PIND has continued to promote the Small-Scale Processing Equipment (SSPE) which gives small-scale palm oil processors an increase of 33% in the extraction rate of oil compared to the old machines, translating to approximately 40% increase in profit per ton of palm fruit processed. Fabricators were trained on how to build the machinery, one of whom built an improved version of the machine to be installed at the largest palm oil farming cluster in Imo State.
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To improve palm fruit harvesting in the region, PIND introduced the
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Through its Appropriate Technology Enabled Development (ATED) project, PIND has sustained the introduction of the Chorkor Oven, an improved smoking technology, which uses less fuel, produces higher quality smoked fish product with longer shelf- life and has the capacity to smoke more fish at once. PIND piloted the Chorkor Oven in partnership with UUFFA and a fish smoker on site at the fish farm cluster. After 11 months of use at the farm cluster, 13,425kg of fish was smoked using the oven. This led to extra income to the farmers’ association’s coffers. Currently, over 15 Chorkor Ovens have been constructed through PIND and its partners across the region. Additionally, a student group from the University of Port Harcourt and local non-profit organization, Morgan Smart Foundation, both received support from PIND in developing a proposal that culminated in a grant from the French Embassy to promote the Chorkor Oven in local communities in Rivers State. PIND also used its ATED platform to promote the Bio-Sand Filter (BSF), a simple water filtration technology made with locally available materials that removes up to 99% of water impurities. Part of the Foundation’s unique approach to the challenge of Water, Sanitation and Hygiene (WASH) service delivery is creating a market for Appropriate Technologies (ATs) that address WASH issues. In 2014, PIND was approached by the Delta State Ministry of Environment
2014 Corporate Responsibility Report
to promote the bio-sand filter in communities in the State under the government’s Territorial Approach to Climate Change (TACC) project. Under this project, 106 BSFs were installed, 52 of which were locally constructed by entrepreneurs trained by PIND to build BSFs with locally available materials. This local construction of the BSFs has succeeded in driving the price of the filter down and would continue to ensure affordability of the technology for the average low-income user. There are currently 206 households with bio-sand filters installed, and PIND is working to increase the number of BSFs and other appropriate technologies in use in the Niger Delta region. Capacity Building: PIND spent the year equipping the next generation of Niger Delta leaders with essential skills. The youth capacity building program conducted in partnership with Africa Center for Leadership and Strategic Development was in its second cycle in 2014. PIND through this program trained 40 youths in leadership, ICT skills, program management and peacebuilding, in addition to a six- month mentorship program. This program has helped to mold change agents for social development in the region. Of the 80 youth trained so far in the program, at least 30 are engaging in social work in their communities and 61 are currently earning income through entrepreneurship. Trainees who have passed through the program testify to significant and positive changes in their disposition and attitude, as well as a renewed sense of purpose. Peace Building In 2014, PIND partnered with the United States Agency for International Development (USAID) and Research Triangle Institute (RTI) on the Leadership, Empowerment and Advocacy (LEAD) project to build partnership between communities, local governments and the Rivers State Government so as to improve local governance. LEAD’s objectives are to strengthen the capacity of local governments and local civil society, as
well as to improve transparency and fiscal management. Previously based only in the northern states of Bauchi and Sokoto, LEAD came to the Niger Delta through PIND’s efforts. Earlier in the year, LEAD worked to help set priorities for the 2014 annual budget of three LEAD Local Government Councils (LGCs). Officials from each of the three LEAD Local Government Councils (LGCs) met with 429 of their community members to set priorities for the budget. This was followed by a mapping exercise of over 100 state and local government-level civil society organizations in all three local governments, and engagement of 75 in training on public expenditure tracking. The trained Civil Society Organizations (CSOs) have helped in tracking the implementation of the budget in the respective LGAs.
Above: Cat fish market in the Niger Delta. Below: A beneficiary of the small scale business initiative
99%
water impurities removed through the Bio-Sand Filter (BSF), a simple water filtration technology made with locally available materials that develpoed by PIND
To improve the local governments’ tax base records and mobilization of internally-generated revenue, the LEAD team trained the local government officials in a LGA Tax Consultative Forum, which resulted in the development of revenue improvement plans. The Strengthening Advocacy and Civic Engagement (SACE) Project Chevron in Nigeria 23
2014 Corporate Responsibility Report
Empowering the people
with USAID also commenced in 2014, eight (8) Niger Delta organizations, including two business membership organizations received grants aimed at strengthening civil society’s ability to influence the development and implementation of key democratic reforms at the national, state, and local levels. PIND trained staff as well as implementing partners on conflict sensitivity tools to ensure that interventions carried out in communities do not foment conflict. The Foundation also worked to mainstream peace building approaches at the planning stages in different areas of its programming to ensure consciousness of different groups. 2014 also witnessed remarkable growth for the PIND-supported Partners for Network which grew to 1,248 members across the region from just 120 members when it was launched in August 2013. Partners for Peace (P4P) formed its own central working committee to coordinate the activities of the various state chapter
24 Chevron in Nigeria
networks. PIND’s P4P team held twoday conflict assessment workshops in each of the 9 Niger Delta States where 284 people were trained to analyze conflict drivers in their communities, conduct stakeholder analyses, and design grassroots-led, peace building interventions. These conflict assessment workshops proved to be a good recruitment tool, as they were open not only for P4P members, but also for security officials, government officials, community leaders, and local NGOs that have found peace building to be integral to the success of their work. PIND’s P4P team also supported P4P chapters as they independently organized trainings, workshop and various means of outreach to build peace in their communities. Different state chapters have earned recognition for their peace building work. The Imo P4P for example, received commendation from the State Special Advisor to the Governor on Peace and Conflict Resolution; Cross Rivers State Government officially recognized the state chapter of P4P as a partner under the Office of Civil Society and NonGovernmental Matters; and Abia State P4P’s peace summit in Ibeku community was credited by community leaders with helping ensure the first non-violent New Yam Festival in years. Analysis and Advocacy: In October 2014, PIND held its first Youth Link Forum to promote youth development. The Forum provided an avenue through which 234 Niger Delta youths were provided resources and opportunities to make them more employable. The forum also provided an excellent networking opportunity for the attendees. The youths were engaged in hands-on workshops on writing a good resume, on how to conduct themselves in job interviews and how to start an agri-business. The release and dissemination of two working papers on Models of Development for Experiential Learning (MODEL) Project in partnership with the Nigerian Institute for Socio-economic
2014 Corporate Responsibility Report
PIND collaborated with NDPI to host the third annual Niger Delta Development Forum (NDDF) in the United States and Nigeria. The opening session of the NDDF in Washington, DC, themed: “Collaboration for Growth and Stability in the Niger Delta” had Dr. Bisa Williams, Deputy Assistant Secretary for West Africa, U.S. Department of State; Ambassador Ade Adefuye, Nigerian Ambassador to the U.S., and Dr. Martin Fregene, Senior Technical Advisor to the Nigerian Minister of Agriculture and Rural Development. The Nigerian edition held in Calabar on the theme: “Unlocking Investment Opportunities in Agriculture in the Niger Delta for Regional Competitiveness”. There were discussions on making agriculture in the Niger Delta attractive to foreign investors. Attendance at the Forum has grown with each year from 187 in 2012 to 727 in 2014. At the 2013 edition of NDDF, PIND launched NDLink which is now the fastest growing online Community of Practice for development
practitioners in the Niger Delta. It is a diverse community of stakeholders, multinational companies, International Oil Companies (IOCs), private businesses, and individuals working in the Niger Delta to achieve a common goal which is the sustainable development of the region. NDLink had 137,808 page views and an average of 40 new members in a month. By the end of its first year, NDLink had 900 members and 11 co-operate partners, with 337,620 website visits and an average monthly membership growth rate of 17.3%.
Participants at PIND’s Youth Capacity Building Program
“
The Strengthening Advocacy and Civic Engagement (SACE) Project with USAID also commenced in 2014, eight (8) Niger Delta organizations, including two business membership organizations received grants aimed at strengthening civil society’s ability to influence the development
“
Research (NISER) and the U.S.-based Brookings Institution followed a year of research on Analysis of CommunityDriven Development in Nigeria’s Niger Delta Region: Use of the Institutional Analysis and Development Framework and Participant Perception of the Effectiveness of the River Songhai Initiative in the Niger Delta. These case studies were designed to identify, describe, document and share development models that have obtained a perceived measure of success in the Niger Delta Region of Nigeria. PIND held the dissemination workshops in Washington, DC, U.S., as well as in two places in Nigeria. By highlighting development models that work in the Niger Delta, PIND shed light on projects that had hitherto not been given as much attention and challenged audiences in both countries to think differently about development issues, not just in the Niger Delta, but in Nigeria at large.
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Donation and Sponsorships At the inception of its operations in Nigeria, Chevron took a commitment to do much more than pump oil and pay royalties and taxes. We decided that we would add value to our presence in the country by closely identifying with the people and serving as agent of positive change. Our Social Investment philosophy is anchored on our vision to be the global company most admired for its people, partnership and performance.
Emmanuel Idoko, winner of the 2014 NNPC/Chevron Tennis Junior Masters
26 Chevron in Nigeria
2014 Corporate Responsibility Report
Through our support and sponsorship of various programmes, we have continued to demonstrate our support to help to improve the quality of life in the communities where we work. In 2014, we supported or sponsored various programmes of reputable charities, non-governmental and not-for-profit organizations. The organizations we supported included; Nigeria Economic Summit Group, Africa Leadership Initiative-West Africa; PSRG/ Richardson Health, Safety, Security and Environment; Ake Arts and Book Festival; Women in Business (WIMBIZ); National Youth Service Corps (NYSC) Breeding Enterprise Future Project and Musical Society of Nigeria (MUSON) among others. As part of its contribution to the development of the next generation of community–spirited leaders in West Africa, CNL supported the Africa Leadership Initiative West Africa [ALIWA]; a joint venture of the ASPEN Institute (USA), Data Bank Foundation (Ghana) and LEAP Africa (Nigeria). Equipped with the tools necessary to meet the challenges of corporate and civic leadership in the 21st century, beneficiaries of the ALIWA programme have continued to lead successfully initiatives in their communities. Chevron Nigeria Limited has continued to support the arts as a vehicle for capacity building. In 2014, the company was one of the sponsors of Ake Arts & Book festival, Abeokuta, Ogun State. The event attracted young and established writers, students, Booksellers and culture enthusiasts from different parts of Nigeria and the diaspora. The company also sustained its partnership with the Musical Society of Nigeria (MUSON) to promote music and artistic excellence in the country. CNL supported the 18th edition of the yearly MUSON festival tagged; Coming of Age.
Vocational Training In achieving Chevron’s social objective of providing employment opportunities and income enhancement, a vocational skills acquisition and Business Management Program targeted at women and youth in Awka, Anambra State implemented. Over 150 direct and indirect beneficiaries were empowered with starter packs, entrepreneurial and vocational skills training. The program was implemented by Star Ultra Deep Petroleum Limited on behalf of partners in the OML 140 asset
Above & Below: Chevron donated four (4) standard Ford Transit Ambulances designated to support the operations of the Ebola Emergency Operations Centre (EOC), Lagos; the Point of Entry (POE) activities of the EOC at the Murtala Mohammed International Airport Health Services in Lagos; Delta and Rivers States Governments
NYSC Breeding Enterprise Future Project As part of its commitment to promoting economic empowerment initiatives among young people, Chevron Nigeria has continued to sustain its partnership with Startup Hub and Enterprise Development Centre of the PanAtlantic University (PAU) to expose members of the National Youth Service Corps programme to the benefits of Chevron in Nigeria 27
2014 Corporate Responsibility Report
Durosanya Abiodun, a participant: “I am very glad to inform you that the Chevron Wealth Creator Scheme Certificate awarded to me after the training and coupled with a copy of my Business Plan strengthened my application for the Mandela Washington Fellowship (MWF) in the United States of America for Young African Leaders, organized by President Barack Obama. I have been successful in writing out a comprehensive Business Plan on vegetable exportation and have also been able to present the Plan to two different potential investors and the outcome has been encouraging”. Sports Development Participants at one of the wealth creation intensive capacity programmes under the NYSC Breeding Enterprise Future Project
“
Chevron Nigeria has continued to sustain its partnership with Startup Hub and Enterprise Development Centre of the Pan-Atlantic University (PAU) to expose members of the National Youth Service Corps programme to the benefits of entrepreneurship, innovation and creativity
“
2500
corps members in general entrepreneurship programme that included Financial Management, successful Marketing and Business Plan development.
28 Chevron in Nigeria
entrepreneurship, innovation and creativity. Designed to position wealth creation as a viable option to seeking employment, the scheme which also has as partners, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and Enterprise Lab (UK), has helped to groom over 2500 corps members in general entrepreneurship programme that included Financial Management, successful Marketing and Business Plan development. In 2014, about 186 corps members benefited from the wealth creation intensive capacity programme held in partnership with the Entrepreneurship Development Centre (EDC) of the Pan African University. Ten (10) of the participants with the brightest business ideas were selected for continuous support at the Start Hub Incubation Centre.
186
corps members benefited from the wealth creation intensive capacity programme
In line with our tradition of continuously contributing to national development and supporting youths and sports in Nigeria, the NNPC/Chevron Joint Venture has consistently supported the development of youth tennis in the country in diverse ways. One of such ways is the sponsorship of the NNPC/ Chevron Junior Tennis Programme which includes a summer coaching clinic and the National Junior Masters Tournament. The 15th edition of the NNPC/Chevron Junior Masters Tennis Championship was held on Sunday, at the Lord Rumens Centre Court of the Lagos Lawn Tennis Club, Onikan, Lagos on Sunday, October 26, 2014. Eighteenyear old Emmanuel Idoko defeated Niyi Olatunji in two straight sets of 6-0; 6-4 in exciting match watched by tennis enthusiasts including officials of the Nigerian Tennis Federation.
2014 Corporate Responsibility Report
Arrive Alive
School Zone Safety Programme
Above: School Children demonstrating Road safety Below: A Science Laboratory donated by the Agbami co-venturers
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2014 Corporate Responsibility Report
Engaging Stakeholders In this section: Our robust engagements with government stakeholders at all levels help us to make responsible decisions which lead to positive results and enduring relationships.
In 2014, Chevron Nigeria sustained its tradition of:
• Involving the government especially state governments, in the execution of our Social Investment programmes • Sponsoring government officials to international conferences to further enhance their understanding of the oil and gas industry • Capacity building for various stakeholders
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2014 Corporate Responsibility Report
Productive Stakeholders Engagement Partnership with Stakeholders is a core value for Chevron. The three arms of government are primary stakeholders for the company. Chevron Nigeria partners with government officials at all levels to build productive, collaborative, trusting and mutually beneficial relationships.
Mr. Clay Neff, Chairman/Managing Director, Chevron Nigeria and President Goodluck Jonathan during the recognition of Chevron as one of Nigeria’s top 100 companies.
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and gas industry, ultimately, helping our business strategically, especially in the areas of policy-making and implementation. From regular engagements, the feedback from key government stakeholders is that “Chevron is accepted and recognized as Partner of Choice”.
Testimonal
Above: Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) during his visit to Gramen Yard, Warri
To build capacity and enhance efficient delivery of the functions of government officials and agencies, Chevron held regular meetings, shared information best practices, sponsored participation of government officials to oil and gas industry seminars and conferences within and outside Nigeria.
“ From regular engagements, the feedback from key government stakeholders is that “Chevron is accepted and recognized as Partner of Choice”
“
32 Chevron in Nigeria
In 2014, the company sponsored members of the legislature to the annual Offshore Technology Conference (OTC), which held from May 4 to May 9, 2014. The sponsorship of the National Conference/Exhibition on Gas Resources organized by Senate Committee on Gas Resources, took place between May 26 and 28, 2014. The Director, Oil Field Investment of National Oil Detection and Response Agency (NOSDRA) was also sponsored to the 2014 International Oil Spill Conference which held in Georgia, United States from May 5 – 8, 2014. Sponsorship of Senators, Members of House of Representatives and other employees to conferences helps to broaden their understanding of the oil
“On behalf of the planning Committee and distinguished members of the Senate Committee on Gas Resources, I write to extend our heartfelt thanks for your participation as our sponsor at the recently convened National Conference on Gas Resources (Nigeria 2014) organized by our Committee in collaboration with some key stakeholders in the petroleum industry. The feedback from this conference was extremely positive as respondents were enthusiastic about the content and the overall quality of the conference. We know that this would not have been as strong a conference without your contributions. While we thank you for joining us in this adventure, please accept the best regards of the committee in your professional endeavors.” Senate Committee on Gas Resources.
2014 Corporate Responsibility Report
AWARES Training for Journalists In keeping with Chevron’s core values of building productive, collaborative and beneficial relationships, the company in 2014 partnered with the Pan Atlantic University (PAU) to sponsor 27 journalists to the Advanced Writing and Reporting Skills (AWARES) programme. The programme is a 20-day course spread across three months. It took place at the School of Media and Communication, Pan-Atlantic University, Victoria Island, Lagos campus. The course was aimed at empowering the journalists and enhancing their writing skills.
Above: The AWARES participants during their graduation at the Lagos Business School
In keeping with Chevron’s core values
27
Journalists
were sponsored to the Advanced Writing and Reporting Skills (AWARES) program
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2014 Corporate Responsibility Report
Our People One of our enabling strategies for business growth is investing in our employees In this section: •
108
Nigerians employees on foreign assignment
• •
At the end of 2014,
6179
Nigerian employees and contractors
•
•
34 Chevron in Nigeria
Our philosophy is founded on the need to ensure that we have the right people with the right skills, in the right places, at the right time. In 2014, a total of 108 Nigerian employees were on foreign assignment. Chevron Nigeria, as part of efforts to encourage employees to self-develop themselves, Chevron Nigeria provides financial support to employees who enroll for part-time courses in Nigeria. The employees are also granted time off to attend lectures and write examinations. To develop a healthy workforce, we have several healthcare programmes for the benefit of our employees and their families. Diversity programmes were driven mainly by the three employee networks in the company.
2014 Corporate Responsibility Report
Recruitment and Employee Development Chevron provides career opportunities for Nigerians hired as employees and contractors. Our employees are united by common values and our mission to find new, cleaner ways to power the world. Delivering energy to the world requires a wide range of technologies and the best and brightest minds to develop them.
Employees at a training session
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2014 Corporate Responsibility Report
academic or professional qualification. For professional enhancement, employees are also encouraged to join professional bodies Employee development is competencybased that equips the employee with the specific skill requirements for each role and function. This enables employees to achieve a high level of competence in an efficient manner in a positive work environment. Our training programmes in 2014 include: New-to-Chevron: This is a year-long program that starts from the first week of resumption of a new employee. It’s a combination of formal classroom training, e- learning, mentoring and guidance to ensure the new hire understands the company’s operations, values and objectives.
The company’s Basketball team (in blue) won gold at the 2014 edition of the biennial Nigeria Oil and Gas Industry Games
By the end of 2014, the total number of Nigerian employees and contractors was 6179. Chevron’s employee development philosophy is anchored on the need to equip employees with the right skills that enable organizational capacity and reinforce business performance. The process focuses on achieving career fulfillment for the employee as well as ensures business growth for the company. We therefore invest in people to strengthen organizational capability and develop a talented global workforce that gets results the right way. Our approach to learning is using a combination of formal and informal platforms including on-the-job experience broadening and mentoring in different parts of chevron’s global operations, to facilitate knowledge sharing, learning occurs and value creation. The company also grants study leave to employees who desire to pursue higher
36 Chevron in Nigeria
Horizons and Pathways Programmes: On resumption, all Petrotechs and some specific professionals go through a structured technical competency development programme called Horizons for the first five years of their employment. Those who graduate from Horizons go through the Pathways programme to help deepen their technical and business skills. Structured Leadership Development Programmes: In Chevron, every employee is a leader. These programmes are designed to invest in our employees to provide the opportunity for growth, learning and strengthening of the company’s organizational capability. These programs cover the whole gamut of skills and competencies required to become an effective leader. Some of these programmes are open-enrollment while others are based on nomination. The ultimate objective is developing leaders who deliver results the right way. Other Technical and Soft Skill Programmes: These include programmes to build the skills of employees on Communication, Personal Effectiveness, Emotional
2014 Corporate Responsibility Report
Intelligence, Safety Awareness etc. We also offer trainings on Operation and Maintenance, Human rights, Compliance and other competencies to develop the capabilities of our employees and stakeholders. New Training Programs and Initiatives in 2014 - - -
Influential Leadership Workshop Developing Mentoring Skills Business Analysis
Employee Educational Assistance As part of efforts to encourage employees to self-develop themselves, Chevron Nigeria provides financial support to employees who enroll for part-time courses in Nigeria. The employees are also granted time off to attend lectures and write examinations. A scholarship Board oversees the process and determines the suitability of such part time courses to the employee’s current role and future prospects. A total of 12 employees benefitted from this in 2014. In addition, the company has in place educational scholarship programmes to support employees and retirees’ children. In 2014, 28 children benefited from the highly competitive Chevron International REACH (Recognizing
Excellence and Achievement) Scholarship Programme while nine (9) others were awarded the Chairman/ Managing Director’s scholarship. Employee Health and Wellness Programmes Chevron Nigeria places the highest priority on the health and safety of its workforce. This is reflected in the investment of world class medical facilities and numerous health programmes in all its locations nationwide. These include: •
Clinical Medical Care o 24/7 Access to Chevron Hospitals/ Clinics (in Lagos – Gbagada & Lekki; Warri; Port Harcourt; Escravos) General Clinics Consultant/ Specialist Clinics including nutrition, paediatric, surgical and obstetric and gynaecological services. o Access to Specialist External Hospitals Access to external health facilities is provided for dental services, eye care and other specialized services not provided by CNL in-house facilities employees (and their families) in Abuja
“
*A good number of these employees hold senoir leadership positions in their areas of assignment
“
*
The process focuses on achieving career fulfillment for the employee as well as ensures business growth for the company
Chevron in Nigeria 37
2014 Corporate Responsibility Report
•
Health Education/ Awareness Programs o Health Education Sessions/ Talks are delivered to employees on topical issues (e.g. High Blood Pressure, Obesity/Overweight, Nutrition). Attendance at each session in 2014 ranged from 30-120 persons. About 50 sessions occurred across all CNL locations. o The company also held its annual Health Fair in all locations and joined the rest of the world to celebrate the days designated by the World Health Organization to highlight specific health issues including HIV/AIDS; Malaria, Tuberculosis, Diabetes etc.
Medical personnel working in the company’s heart Laboratory
• Preventive Periodic Medical Screening (PPMS) The PPMS program provides medical screening for employees, spouses and dependants. The goal is to proactively manage the health of these groups of persons through early detection of disease conditions, and by “keeping healthy individuals healthy.”
“ Chevron
•
Nigeria places the highest priority on the health and safety of its workforce
“
38 Chevron in Nigeria
Fitness for Duty (FFD) FFD is a global standardized process designed to enable employees safely perform physical, psychological and cognitive requirements of their job without risk to self, others or the environment. It ensures medical fitness for work that optimizes safety, increases productivity, retains experienced workers, and improves employee morale. The process identifies health-sensitive and physically demanding job and develops appropriate evaluations for the different categories
Peer Health Educators (PHE) Program The Peer Health Educators are programme is an integral part of the company’s commitment to the wellbeing of its employees and communities in its areas of operations. The PHEs provide peer to peer health education within the workforce on HIV, malaria, tuberculosis and cardiovascular (heart) health. They also hold community outreach programmes. • Healthy Heart Program (HHP) The company introduced the HHP in 2014 to help employees improve long-term health by supporting healthy lifestyle choices through cardiovascular (heart) health education and activities. The programme consists of a Health Risk Assessment (HRA) tool to identify risk and stratify employees into low, medium and high risk. Online access to educational information is provided for all risk groups, and telephonic health coaching is provided for high risk persons. The program includes health education (lunch and learn) sessions and access to other support services.
2014 Corporate Responsibility Report
•
Physical Fitness Programs o The company has continued to encourage its employees to participate in the 10k- aday walk programme during which they are encouraged to take a minimum of 10,000 pedometermonitored steps every day. o Aerobics sessions are held weekly across locations. Over 6,500 persons participate (cumulatively) in 2014 o Group Walks: This is a weekly activity that is championed by the health and medical group. About 13,265 employees and contractors participated in the group walks while 10, 921 participated in aerobic sessions in our various locations. 10,781 employees and contractors also participated in other sports in 2014. o Automated Blood Pressure machines are provided at office and offshore locations to encourage employees to self-monitor and track their blood pressure readings o BMI stations are also situated in office and offshore locations for employees to self-monitor weight, height and body mass index
• Employee Assistance program (EAP) & Work-life Services EAP promotes and sustains a psychologically healthy and resilient workforce to support safe and successful operations. EAP provides: o Confidential consultation for work related, personal and family problems o Assessment and follow-up for drug and alcohol cases o Management, business partner consultations regarding people and
work group problems and interventions o Change and stress management training o Critical incident debriefing o Threat of violence assessment and consultation. 2014 Key Diversity Programs Chevron has inclusive work environment and actively embraces diversity of people, ideas, talents and experiences. In Nigeria, the company has three main employee networks. These are the Chevron Women Network (CWN); The Boomers Network and the XYZ Network. These networks organized mentoring and networking programmes among employees; volunteer teaching in secondary schools in Lagos and Warri and Port Harcourt. They also made donations to orphanages in those areas. Internship Program Internship is a pre-professional work experience that provides students, recent graduates, and those seeking to change careers, the opportunity to gain experience in their chosen field. Interns can be college/university/High school students, or post graduate adults seeking skills for a new career. In Nigeria, CNL Management approved 188 industrial training slots to be utilized annually to enable students gain necessary experience in their chosen fields. Students schooling in Nigeria who want to participate in the program sit for aptitude test, which is conducted simultaneously in four (4) locations namely; Abuja, Lagos, Delta and Rivers states three (3) times in a year. Since the inception of the online aptitude testing in October 2012, CNL has received Nine Thousand Seven Hundred and Seventy (9770) applications, while seven thousand and seventy (7,070) candidates participated in the aptitude testing. In 2014 alone, 206 candidates were engaged in the organization for internship programs.
Below: Work station personnel safety programmes help prevent physical disabilities
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2014 Corporate Responsibility Report
Operating Responsibly We conduct our operations in a responsible manner with regard to protecting people and the environment. In this section
6
•
Million
•
miles driven without recordable Motor Vehicle Crash
•
•
For all 4 quarters in 2014
1,000,000 hours with Zero Restricted Duty Injuries at our operation in Escravos
40 Chevron in Nigeria
•
•
We have an Operational Excellence (OE) culture anchored on the belief that incidents are preventable. CNL remains committed to its strategy aimed at eliminating routine gas flaring within its operations. Sustained performance on Motor Vehicle Safety with a total fleet of more than six million miles driven without recordable Motor Vehicle Crash. The Safety of our contractor workforce remains paramount to us. Continued our support for the Nigerian Conservation Foundation to promote environmental conservation in Nigeria, To further create awareness on road safety, we, in collaboration with our key partners, sponsored several road safety campaigns and programmes.
2014 Corporate Responsibility Report
Operational Excellence At Chevron, everything we do begins with our fundamental commitment to safety… We are committed to protecting the safety and health of our employees and contractor workforce.
Field employees on regular facility inspection
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themed Preventing Serious Injuries and Fatalities. We had an improvement in our safety performance with the total recordable injury rate of 0.23, and 0.03 days away from work rates, being under the threshold for 2014. Our Operations in Escravos received a Corporate, Personal Safety - Zero is Attainable award for all 4 quarters in 2014. The Personal Safety ZiA Award is based on Zero Day Away From Work (DAFW) and Zero Restricted Duty injuries in 1,000,000 hours; recognized on a quarterly basis. The Deepwater operations received two Corporate Process Safety Zero is Attainable awards. This award covers a 6month period, and based on Loss of Containment incidents over the period.
Chevron’s Escravos Terminal, Delta State, Nigeria
Our Chevron Way values places the highest priority on protecting people and the environment. Chevron has a rigorous Operational Management System that translates this priority into world-class performance.
“ Our Chevron
Way values places the highest priority on protecting people and the environment
“
42 Chevron in Nigeria
Our Operational Excellence Management System (OEMS) is a comprehensive, proven means of systematic management of process safety, personal safety and health, the environment, reliability, and efficiency. Through disciplined application of OEMS, we identify risks and integrate operational excellence (OE) processes, standards, procedures and behaviors into our daily operations. Safety To advance our OE culture, we build on the belief that all incidents are preventable, and we actively communicate with and engage our employees and contractors regarding our OE related policies and objectives. We started the year with “I’m Committed to Always” campaign-
Process Safety Process Safety refers to management systems and processes which are intended to reduce risk of accidents typically involving uncontrolled release of hazardous materials. Within Chevron, Process Safety is a defining area of focus on aspects of our Operational Excellence Management System (OEMS) that are essential in preventing serious process incidents. Process Safety is interwoven with OEMS and touching 8 of the 13 OE elements impacting multifunction, initiatives and processes. An area of focus in 2014 was improvement of process safety awareness and fluency. The Frontline Field Supervisor Engagement Program was rolled out in 2014 to support leaders with serious incident and fatality prevention. The program focuses on hazard recognition, safeguard verification and field oversight. Its purpose is to provide leadership with materials to enable frontline field supervisors to be more successful in preventing process safety incidents and fatalities. The implementation of the 2014-2017 shaping plan to address the gaps in
2014 Corporate Responsibility Report
corporate process safety standards progressed well and we are on track to meeting our commitment for full implementation in line with the shaping plan. Another focus area and key highlight for 2014 was Operating Procedure. The Upstream Operating Procedure Project (UPOP) was rolled out early in the year. This is an IT tool to create, manage, store, analyze, report and track Operating Procedures for Chevron Upstream Organization using the SmartProceduresTMsoftware. This enables NMA to have a standardized procedure template, incorporate multiple types of content; (photo, video, drawings etc.), have a single system of record and include Human Performance Analysis of procedures. CNL also aligns to industry standards in the measurement and review of process safety metrics. The four-tier system of metrics helps to track and improve our process safety performance. This has helped us ask, what the main Process Safety risks are on our assets and what we are doing to mitigate them. Further metrics may be added to our current list with slight adaptations to the metric definitions over time to drive continual improvement of metric effectiveness and to ensure maximum value is obtained from the data collected. Our Flares Out Strategy CNL remains committed to its strategy aimed at eliminating routine gas flaring within its operations. We continue to carry out specific capital projects aimed at reducing and ultimately eliminating routine flares while ensuring that all future projects are designed to the environmental performance standard which we have adopted. Our strategy to eliminate routine flaring includes a number of projects which includes the Onshore Asset Gas Management (OAGM) project, Escravos Gas Project (EGP) and the Escravos Gas
Above: NORM assessment at
to Liquid Project (EGTL). In 2014, we continued to make progress in our programmes which are targeted at flares out. We have reduced routine flaring by 21% from 2013. We also completed the installation of the Meren GGCP Jacket and Topside in 2014 as part of the EGP3A project which will eliminate flares in our North Offshore Operations Area and we plan to commission this project in 2015. Chevron is on a solid track to ensure that we meet our target of eliminating routine flares by 2016.
a remediated site Below: Safety Stand Down
at a project site
Environmental Stewardship Protecting people and the environment is one of our company’s core values. For us, getting results the right way happens all through the life of our facilities- from planning and construction through operation and decommissioning Our Environmental Stewardship
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2014 Corporate Responsibility Report
chemical, and physical processes occurring in the first few centimeters of sediment, pore-water, and the important benthic boundary layer of water. Environmental Impact Assessments (EIAs) of our projects and operational activities continue to be implemented in line with statutory regulations of the Department of Petroleum Resources (DPR) and Federal Ministry of Environment, and our Operational Excellence Environmental, Social and Health Impact Assessment (ESHIA) requirements. Several field data gathering activities to acquire baseline and current environmental data were carried out, and mitigation and compliance monitoring implemented for ongoing projects and operations. New projects as required were subjected to public stakeholders scrutiny through the regulatory public forum held in 2014.
Nature lovers at NCF’s
401-Meter Canopy Walk, Lagos
efforts focus on minimizing CNL’s environmental footprint, from initial exploration through the life cycle of an asset. The environmental stewardship process, part of our Operational Excellence Management System (OEMS), helps us manage activities that have the potential to affect the environment, while enhancing beneficial aspects. In 2014, pre-developmental environmental baseline data gathering activities were completed around several areas which future monitoring of environmental performance will be evaluated. The year 2014 also saw the application of the cutting edge Sediment Profile Imaging (SPI) technology in obtaining real time seabed photography documenting the interface between the seabed and the overlying water in our proposed offshore locations. This technology provided the capability to measures or estimate biological,
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Stimulating Scholarship and Public Discourse on Environmental Issues Chevron has continued to demonstrate its commitment to environmental conservation by partnering with the Nigerian Conservation Foundation (NCF) to establish the Lekki Conservation Centre. We also sponsor the annual Chief S. L. Edu Memorial Lecture that is aimed at instigating public discourse of environmental issues and policies; and the Chief S. L. Edu Memorial Research Grants Award for doctoral students in Nigerian tertiary institutions. For 2014, another set of two postgraduate students were awarded the Chevron-sponsored Chief S. L. Edu Annual Memorial Grant Award. The students, Michelle Iyabo Fashona of University of Lagos, and Paul Nkem Diagboye of University of Ibadan, received the award at the 12th Chief S.L. Edu Annual Memorial Lecture which took place at the Nigerian Institute of International Affairs, Victoria Island, Lagos on Wednesday, January 15, 2014. The students got the award for undertaking best research work in fields related to nature conservation and sustainable livelihood.
2014 Corporate Responsibility Report
Road Safety To further create awareness on road safety in Nigeria, Chevron and its partners in the Arrive Alive Road Safety Initiative (AARSI) held several road safety campaigns and programmes in 2014. During the year, the company through the Arrive Alive Initiative established Road Safety Clubs in four schools including Ikota Primary School where it also installed speed calming road safety measures like rumble strips, school zone vertical signs, speed signs, and bridge-ahead sign. The company also trained Crossing Guards to aid the school children; organized Road Safety Education and outreach to school teachers and pupils; School Bus Drivers’ Orientation and trained FRSC officers on the use of Breathalyzers.
In all about 16,581 people directly benefitted from the various programmes including 14,230 school children under age 18; 471Teachers/ Drivers/Child Minders and 1,660 motorcyclists Donation to Lifeline Care Association Charity Walk: CNL donated Two hundred and fifty thousand naira (N250,000.00) to support the annual charity walk of Lifeline Care Association, a Non-Governmental Organization (NGO) in Abuja, Federal Capital Territory. The NGO undertakes lifesaving activities which include rescue of victims of road traffic accidents and general public awareness about road safety. CNL had previously donated an ambulance to the Association for the purpose of rescuing accident victims around the Federal Capital Territory.
Chevron land transportation unit
“
The company also extended its road safety campaign to motorcycle riders. In all about 16,581 people directly benefitted from the various programs
“
The company also extended its road safety campaign to motorcycle riders in Ita Opo community in Epe, a suburb of Lagos where it also distributed crash helmets to the commercial motorcyclists.
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2014 Corporate Responsibility Report
Nigerian Content
CNL spent
$3.9
Billion on Nigerian Content in 2014
46 Chevron in Nigeria
In this section • We have a four-pronged approach to Nigerian Content Development • Several local companies benefitted from our Nigerian Content programmes in 2014. • The Escravos Export System Project (EESP) held a pre-production meeting to signify commencement of the production phase of its 30” line pipes at SCC Mill, Abuja • 59 young Nigerians graduated from the Operations & Maintenance training in Ogere while a new batch of 101 commenced training. The Vocational Training Program (VTP) at the Training & Conference Centre, Ogere. • The Sonam NWP Jacket fabricated at Nigerdock was successfully loaded out and installed at project site. • CNL utilized the services of Gramen Petroserve Nigeria Limited, a 100 percent Nigerian company with a 100 percent Nigerian workforce to execute its Escravos Produced Water Disposal (EPWD) and Meji Living Quarters projects. • 24 trainees completed a one-year Offshore Front End Engineering and Design (FEED) training under the Funiwa Gas Project.
2014 Corporate Responsibility Report
Nigerian Content Development We demonstrate our commitment to Nigeria and the communities where we work by creating jobs, developing and sourcing from local suppliers and employing local workforces. This business strategy establishes Chevron as a company of choice that helps to build local economies and improve livelihoods
Meren GGCP /Sonam Ready for Load-Out (RTLO) Jacket ceremony at Nigerdock
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2014 Corporate Responsibility Report
builds the capacity of local contractors in Nigeria include; o
o
o
o Chevron Nigeria partnered with an indigenous contractor, BeneProjecti Nigeria Limited, to acquire a new Platform Support Vessel (PSV)
“
Chevron developed and implemented a policy on Local Content Development (LCD) even before the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010. The main objective was to encourage the participation of Nigerian companies in the oil and gas industry through the deliberate creation of business opportunities for Nigerian service providers and suppliers.
Chevron developed and implemented a policy on Local Content Development (LCD) even before the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010
Chevron provides technical support and patronage to local contractors. The company also sponsors Chevron Energy Technology Company (ETC) audits and design assistance for the manufacturing processes during the establishment of new plants and facilities or upgrade of existing plants and facilities. For example, CNL is supporting Lolite Energy Limited in building a manufacturing plant in Enugu for the production of integrated fasteners, stud bolts and nuts in-country. CNL facilitated an ETC audit of the company’s technical partners in India in January 2014. CNL has issued several purchase orders to the vendor for the supply of stud bolts.
“
Other specific areas where Chevron
48 Chevron in Nigeria
*
Provision of demand and consumption estimates together with CNL’s material specifications to prospective suppliers/investors (e.g. Cameron Valves Nigeria). Scope reservation - CNL consistently reserves significant portions of job scopes to benefit indigenous companies and communities around its areas of operation. Training- This includes Executive/ management training, technical/ professional skills training, on the job training & Nigerian Content Human Capacity Development Initiative (NHCDI) training through project nominations. Organization of supplier forums to educate on the requirements of CNL, opportunities within the NC Act and compliance imperatives.
Funding: ◊ advance payments (backed by bank guarantees) ◊ reduced payment terms ◊ funding of selected phases of Capacity Development Initiatives (CDIs) ◊ Equipment leaseback arrangements o Collaboration with other International Oil Companies (IOCs) at the Oil Producers’ Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry level to implement Capacity Development Initiatives (CDIs) in designated areas such as the manufacturing of valves, line pipes, establishment of a National Welding Center, development of the local barite mining industry etc. o Sponsorship of local Research and Development o Focus on Local Contracting & Local Fabrication of Structures/
2014 Corporate Responsibility Report
o o
o
Equipment Community Development Programs Supporting NipeX utilization Ensure utilization of Nigerian contractors through the approved tendering process. Sponsorship of seminars, conferences, multimedia programs, etc. to promote Nigerian Content Development
Chevron utilizes the preferential selection and scope reservation in handling local content issues and opportunities. By this, CNL consistently reserves significant portions of job scopes to benefit indigenous companies and communities around its areas of operation. The company’s philosophy on Local Content Development and Nigerian Content Development (NCD) is to ensure compliance with the Nigerian Content (NC) Act, deliberately and consistently grow Nigerian Content, employ and empower Nigerians to take on leadership roles, empower community Contractors (CCs) to participate in the oil and gas industry and develop processes and procedures to facilitate Nigerian Content. CNL is committed to supporting economic growth in Nigeria by building capacity in the nation’s oil and gas industry, empowering Nigerian service providers and suppliers through human and business capacity development, local patronage, work scope reservation and fostering of business partnerships. This has helped Nigeria build wealth from the proceeds of oil and gas while developing local commerce and industry. Some local contractors that have successfully partnered with Chevron and developed capacity in the process include; o BeneProjecti Nig. Ltd; Baklang Consultants Ltd; Dataflex Nig. Ltd, Avidor Nig. Ltd. & NUGA Nig. Ltd. Provided skilled professional
o
o
o
labor. Delta Afrik Eng. Limited, Cakasa, NETCO etc.- CNL Facilities Engineering/Major Capital Projects (FE/MCPs) leverage these Engineering Services Agreements (ESAs) for Front End Engineering Design (FEED) & Detailed Engineering Design (DED) Dec Oil Engineering & Gramen Petroserve, Dorman Long Engineering, Dec-Kohasa Oil & Gas Ltd.Fabrication of Offshore Platform, jacket, Main deck, Cellar deck, Axillary sump deck, Boat landing, Bridge, Surge vessels, Jacket piles and pig traps (launcher & receiver) for Escravos Produced Water Disposal (EPWD) Project SCC Pipe Mills, LUDA Nigeria Ltd. etc.- Supply of line pipes for Escravos Export System Project (EESP); Supply of flanges for Meren
One of the participants of the one-year Offshore Front End Engineering and Design training under the Funiwa Gas Project
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2014 Corporate Responsibility Report
conference by the Honorable Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke. The compendium includes our Nigerian Content achievements amongst others. o The Escravos Export System Project (EESP) held a preproduction meeting to signify commencement of the production phase of its 30” line pipes at SCC Pipe Mill, Abuja. SCC Mill, an indigenous line pipe manufacturing company is responsible for fabricating the 30” Line pipes for the Escravos Export System Project (EESP). Approximately 42km of line pipe will be procured.
Some of the trainees under the Funiwa Gas Project during their passing out parade
Gas Gathering Compression Platform (GGCP) & Sonam Development Project o Nigerdock Plc- Fabrication of topsides, jackets, Piles & Bridges for the Sonam Non-Associated Gas Well Platform (NWP). Construction training for 160 Nigerians on welding, fabrication & craft. o BeneProjecti Nig. Ltd. / Marine Platforms LimitedSupply of vessels for JV & Agbami operations. o A&E Petrol Nig. Ltd, Sukunu Hydrabase Concept Ltd, Coastal Consults Ltd, Desmobuk Rocket Nig. Ltd. etc. - Coastal supply of Automotive Gas Oil (AGO) to CNL facilities. Some significant achievements/ success stories of Nigerian Content in 2014: o
50 Chevron in Nigeria
The OPTS Compendium was launched in Abuja during the 2014 Nigeria Oil & Gas (NOG)
o 59 young Nigerians graduated from the Operations & Maintenance training in Ogere while a new batch of 101 have commenced training. The Vocational Training Program (VTP) at the Training & Conference Centre, Ogere is a Chevron initiative to develop young Nigerians for the Oil & Gas industry in support of the Federal Government’s Nigerian Content policy. o PEM Offshore Facility, an incountry DP Marine Training School which Chevron supported with a $1million scholarship to Nigerian Seamen over a period of 5 years, was commissioned by the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) in June. o CNL utilized the services of Gramen Petroserve Nigeria Limited, a 100 percent Nigerian company with a 100 percent Nigerian workforce for its Escravos Produced Water Disposal (EPWD) and Meji Living Quarters projects. The EPWD
2014 Corporate Responsibility Report
project consists of jackets and topsides totaling over 1,100 tons. Engr. Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), during a site visit to Gramen’s Yard in Warri; Delta State applauded CNL’s commitment to local content development. Sonam NWP Jacket Loadout: The Sonam NWP Jacket fabricated at Nigerdock Nigeria Plc, was successfully loaded out and installed at project site. The Sonam Development Project covers approximately 4,600 metric tonnes of fabrication work at Nigerdock facility, Snake Island.
o
Unveiling of MV Queen Ofonime – CNL supported an indigenous contractor, BeneProjecti Nigeria Limited, to acquire a new Dynamic Positioning (DP2) Platform Support Vessel (PSV). It is the first of two vessels that Chevron Nigeria Limited is supporting BeneProjecti to procure.
o
o
Concluded CNL-led OPTS’ Community Development Initiative (CDI) to support the expansion of Cameron Valves, new valve assembly facility in Onne. The new plant was commissioned in October with expanded capacity from 3,300 to 7,000 valves p.a. Nigerian Content Human Capacity Development Initiative Training (in partnership with the Nigerian Content Development & Monitoring Board (NCDMB) in the following areas:
•
•
Earth Science training: A total of eight (8) recently graduated Nigerian Earth scientists are currently being trained at various Chevron facilities. The training is in partnership with the Nigerian Content Development & Monitoring Board (NCDMB). Funiwa Offshore FEED Training: A total of 24 trainees completed a oneyear Offshore Front End Engineering and Design (FEED) training under the Funiwa Gas Project. The training, an initiative of Chevron Nigeria Limited (CNL) in partnership with the Nigerian Content Development Monitoring Board (NCDMB) was aimed
One of the welders trained on the Escravos Produced Water Disposal project (EPWD)
“
CNL utilized the services of Gramen Petroserve Nigeria Limited, a 100 percent Nigerian company with a 100 percent Nigerian workforce for its Escravos Produced Water Disposal (EPWD) and Meji Living Quarters projects.
“
o
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2014 Corporate Responsibility Report
with the Nigerian Content Development Monitoring Board (NCDMB).
Marine Platforms Ltd (MPL) secured its first major subsea contract with Chevron’s Star Deep Water Petroleum Limited
at equipping participants with the requisite skills that would enable them to be employable or set up their own businesses. •
“ 2014 Local Community Contractors (LCC) spend in materials procurement was $89.1MM and services were $157.8MM.
“
52 Chevron in Nigeria
•
Kick-off ceremony of FGP Onshore Feed: A total of 12 Nigerians commenced oneyear Front End Engineering Design (FEED) training under the Funiwa Gas Project. The training which is being held at Delta Afrik / Hommaston facility in Lagos, focuses on HES, Engineering, Project management, Cost management and Entrepreneurship amongst others. Welders training: 10 Nigerians completed a oneyear welders training on Escravos Produced Water Disposal (EPWD) Project. The training, an initiative of Chevron Nigeria Limited (CNL) was in partnership
In 2014, key milestones and accomplishments were achieved in the area of Local Community Contracts; o Deployment of Contractors Management Process (CMP), an automated bidders selection tool to enhance equitable distribution of job opportunities among registered contractors. Competent contractors will use the platform as an opportunity for growth. o Partnership with PIND on CDIs and other intervention programs would stimulate the local economy and help accomplished contractors to diversify their investment to other sectors of the economy. The Poultry Pilot Community Development Initiative (CDI) was deployed in 2014 and is due to be concluded in 2015. o The CNL Local Community Content (LCC) unit, in collaboration with the Nigerian Petroleum Exchange (NipeX), a division of the National Petroleum Investment Management Services (NAPIMS), NNPC, organized workshops in Port Harcourt & Warri for our LCC contractors. The workshops were aimed at sensitizing local community contractors on the value addition of NipeX registration for increased contract opportunities in the oil and gas industry. NipeX is an electronic contracting platform for the Oil & Gas industry. The twoday workshop was well attended by community contractors from our Western & Eastern Operational Areas. CNL spend on Nigerian Content in 2014 was $3.9 billion or 66% of total expenditures (including company labor costs.) 2014 LCC spend in materials procurement was $89.1MM and services were $157.8MM.
2014 Corporate Responsibility Report
Awards Through what we do, various stakeholders recognize us as a good corporate citizen and a Partner of Choice.
In 2014, Chevron Nigeria companies received several awards and honours for their significant contributions to the socioeconomic development of the country and for their innovation and exemplary corporate citizenship. Some of the awards are: •
Mr. Clay Neff, Chairman/Managing Director receiving the award for the company’s contributions to the success of the 2014 edition of the Biennial Health, Safety and Environment (HSE) Conference on the Oil and Gas Industry in Nigeria
In recognition of its contributions to the socio-economic development of the country, the Federal Government of Nigeria in December 2014, named Chevron Nigeria Limited as one of the top 100 companies in the country. CNL and the other companies were hosted to a dinner by President Chevron in Nigeria 53
2014 Corporate Responsibility Report
Goodluck Jonathan at the Banquet Hall of the Presidential Villa, Abuja. •
CNL was honoured for its pioneering work in the provision of cutting edge equipment and training for the detection and management of the Ebola Virus with the “Heroes of our Community” award presented by the Lagos-based Change-a- Life (CAL), Foundation, a nongovernmental organization. According to Ms. Funmi Iyanda, founder of the Change-a- Life Foundation, Nigeria’s successful containment of the Ebola Virus scourge was one of the country’s highlights of 2014.
• In recognition of its contribution and support to Tuberculosis (TB) control and management, the Federal Government through the Ministry of Health honoured Star Deep Water Petroleum Limited and its partners in the Agbami field at the launch of the National Tuberculosis Prevalence Survey Report and the National Strategic Plan for TB Control 2015-2020. •
In acknowledgement of the company’s best human resources practices, policies, and robust employee engagement in HR issues, CNL won two awards at the 2014 edition of the Chartered Institute of Personnel Management (CIPM) of Nigeria’s Conference and Award ceremony held at the International Conference Centre, Abuja. The company was adjudged winner of the HR Best Practice in the Oil & Gas category. CNL also won the overall prize for Best HR Practice and Policy in all categories.
•
Chevron Nigeria Limited won two awards at the 2014 edition of the International Biennial Health Safety and Environment (HSE) Conference on the Oil and Gas Industry of Nigeria which took place in Lagos. The awards were; a Gold medal for the company’s contributions to the success of the conference and second Best Exhibitor award
54 Chevron in Nigeria
Above: Mr. Deji Haastrup receiving the “Heroes of our Community” Award presented to Chevron Nigeria Limited by the Governor of Lagos State, Mr. Raji Fashola (SAN)
Below: The Federal Government in 2014 honoured Star Deep Petroleum Limited (a Chevron company) and its co-venturers in the Agbami field for its contribution and support to Tuberculosis (TB) control
2014 Corporate Responsibility Report
Cautionary Statement Relevant to Forward-Looking Information This Corporate Responsibility Report by Chevron Nigeria contains forward-looking Statements relating to the manner in which it intends to conduct certain of its activities, based on management’s current plans and expectations. These statements are not promises or guarantees of future conduct or policy and are subject to a variety of uncertainties and other factors, many of which are beyond our control. Therefore, the actual conduct of our activities, including the development, implementation or continuation of any programme, policy or initiative discussed in this report, may
differ materially in the future. The statements of intention in this report speak only as of the date of this report. Chevron Nigeria undertakes no obligation to publicly update any statements in this report. As used in this report, the term “Chevron Nigeria” and such terms as “the company,” “their,” “our,” “its,” “we,” and “us” may refer to one or more of the Chevron companies in Nigeria or to all of them taken as a whole. All these terms are used for convenience only and are not intended as a precise description of any of the separate entities.
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2014 Corporate Responsibility Report
TM
2012 Corporate Responsibility Report
2014 Corporate Responsibility Report Chevron in Nigeria
Chevron in Nigeria
Human Energy
2012 Corporate Responsibility Report
2013 Corporate Responsibility Report
Human Energy
2014 Corporate Responsibility Report
Contact: Deji Haastrup General Manager, Policy, Government & Public Affairs Chevron Nigeria Limited 2 Chevron Drive, Lekki Peninsula Lagos, Nigeria P.M.B. 12825 © 2015 Chevron Nigeria Limited. All rights reserved. Chevron and the Chevron Hallmark are registered trademarks of Chevron Intellectual Property LLC.
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