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Corporate Responsibility Report: The Chevron Way of Empowering Human Progress
Vision
At the heart of The Chevron Way is our vision to be the global energy company most admired for its people, partnership and performance. The human energy company. ™We develop solutions to the world’s energy challenges through human ingenuity.
Values
Our company’s foundation is built on our values, which distinguish us and guide our actions to deliver results. We conduct our business in a socially and environmentally responsible manner, respecting the law and universal human rights to benefit the communities where we work.chevron’s core values are:
• Diversity and inclusion: We learn from and respect the cultures in which we operate. We have an inclusive work environment that values the uniqueness and diversity of individual talents, experiences and ideas.
.High performance:We are passionate about delivering results and continuously strive to improve. We hold ourselves accountable for our actions and outcomes. We apply proven processes in a fit-for-purpose manner and always look for innovative and agile solutions.
• Integrity and trust:We are honest with ourselves and others and honor our commitments. We trust, respect and support each other. We earn the trust of our colleagues and partners by operating with the highest ethical standards in all we do.
• Partnership: We build trusting and mutually beneficial relationships by collaborating with our communities, governments, customers, suppliers and other business partners. We are most successful when our partners succeed with us
• protecting people and the environment: We place the highest priority on the health and safety of our workforce and protection of our assets, communities and the environment. We deliver world-class performance with a focus on preventing high-consequence incidents.
Chevron is proud to have been in Nigeria for nearly 60 years. During this period, we have operated with excellence and continued to focus on our corporate vision to be the global energy company most admired for its people, partnership and performance. Our values ensure we provide energy responsibly while protecting people, the environment and working with our partners to strengthen communities that are close to our operations and Nigeria in general. A core company belief is that our success relies on the goodwill, cooperation and overall well-being of the communities in which we operate. To be a welcomed member of any community is an essential part of our corporate visionWe have robust Corporate Responsibility principles that guide our engagements with stakeholders and promote ideals and programmes that foster sustainable development in all facets of the Nigerian society, create prosperity, deliver industry leading returns, develop high-value resource opportunities and energy that improves lives and move the world forward. We are committed to continually improving the quality of life of the people of Nigeria through our social investments and community engagement initiatives. Chevron Nigeria remains focused on operational excellence, which drives our delivery of industry leading performance through safe, reliable, efficient and environmentally-sound practices. We are proud to be recognized for our efforts as a responsible, equal opportunity employer as reflected in our commitment to our employees, who are our best assets and ambassadors. Our 2019 Corporate Responsibility Report highpoints the activities we accomplished during the period through the support of the Nigerian National Petroleum Corporation (NNPC), our partners, suppliers, employees, contractors, and other stakeholders. It shows how Chevron Nigeria, with the full support of the NNPC, employees and other stakeholders initiated and executed projects and programmes that brought positive changes and improved the quality of life of the people, especially those in our areas of operations.
At Chevron, we are focused on operating safely, protecting our workers, contractors, communities close to our operations and dealing ethically with our partners and the public. We are committed to helping our communities prosper.This report shows that commitment.Jeff Ewing
Chevron is one of the largest oil producers and investors in Nigeria. The company has been making significant investments in the country for nearly 60 years.Through Chevron’s principal subsidiary in Nigeria, Chevron Nigeria Limited (CNL), the company operates and holds a 40 percent interest in eight concessions in the onshore and near-onshore regions of the Niger Delta under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC). Chevron also does business through other subsidiaries in Nigeria.CNL supplies about 30 percent of Nigeria’s domestic gas consumption, and the company is one of the largest contributors of high-quality domestic gas in Nigeria. Through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90 percent in the last 10 years.
deepwater
Chevron holds acreage positions in three operated and six non-operated deepwater blocks, with working interests ranging from 20 percent to 100 percent.The Agbami field is located 70 miles offshore the central Niger Delta, spanning 45,000 acres. The 67.3 percent-owned and operated field spans OML127 and OML 128. Infill drilling continued in 2019 to further optimize production.Chevron holds a 30 percent non-operated working interest in the Usan field in OML 138. The Aparo field in OML 132 and OML140 and the third party owned Bonga South West field in OML 118 share a common geologic structure and are planned to be developed jointly. Chevron Nigeria holds a 16.6 percent non-operated working interest in the unitized area.
gas
Chevron Nigeria continues with its efforts to monetize recoverable natural gas resources in the Escravos area through a combination of domestic, export sales and use as fuel in company operations. Chevron Nigeria operates the Escravos Gas Plant (EGP) with total processing capacity of 680 million cubic feet per day of natural gas and an LPG and condensate export capacity of 58,000 barrels per day. Chevron and NNPC also operate the 33,000-barrel-per-day Escravos Gas to Liquids (EGTL) facility.The Sonam asset, which is 40 percent owned and operated by Chevron Nigeria is designed to process natural gas through the EGP facility to deliver 215 million cubic feet of natural gas per day to the domestic market and produce a total of 30,000 barrels of liquids per day.
Chevron in Nigeria
Our company’sfoundation is built on our values, which distinguish us and guide our actions to deliver result the RIGHT WAY
West African Gas Pipeline
Chevron Nigeria is the largest shareholder in the West African Gas Pipeline Company Limited, which owns and operates the 421-mile (678-km) West African Gas Pipeline. The $1.2 billion flagship Economic Community of West African States (ECOWAS) project led by Chevron Nigeria is designed to transport up to 475 million cubic feet of natural gas per day from Nigeria to markets in Benin, Togo and Ghana.
Corporate responsibility
Chevron takes its role as a member of the Nigerian community seriously and is active in many corporate responsibility projects promoting health, education and economic development. In 2005, Chevron adopted a new community-led, participatory partnership approach to community engagement in the Niger Delta to improve community participation in determining the social and economic needs of our neighboring communities. This model, called the Global Memorandum of Understanding (GMoU), gives communities a greater role in managing their own development through Regional Development Committees (RDCs). The objective is to bring peace, sustainable development and stability to areas where Chevron operates. In 2015, the company launched GMoU+ to build on the communities’ focus on growing small businesses, increasing household income and employment, and aligning with the United Nations’ Sustainable Development Goals.
Social Performance
Chevron Nigeria in collaboration with its affiliates, partners and parties in the Agbami field invest in improving public health, bolstering education and developing local economies. This strategic inter-vention, which reaches thousands of people in the Niger Delta area of Nigeria and Nigeria in general is predicated on our belief that our business succeeds best when communities close to our opera-tions prosper.
Social investment
Health
Chevron Nigeria invests in initiatives and programs aimed at improving health to unlock progress and prosperity in communities close to our operation and beyond. Through partnerships, our experience, leadership and financial resources, we assist the government and institutions in addressing the health risks that have the greatest potential impact on Nigerians. The interventions in health support the United Nation’s Sustainable Development Goal 3 on good health and wellbeing with the following programmes:
Other Interventions in health by NNPC/Chevron joint venture.
Donation of a digital X-ray machine to St. Kizito clinic to upgrade an analogue X–ray machine provided to the clinic some years ago by the company.
In line with United Nation’s Sustainable Development Goal 3, on good health and wellbeing, we executed two major health intervention programmes:roll back malaria:The roll back malaria programme has a dual aim of scaling back the scourge of malaria prevalence in the country while simultaneously enhancing environmental sanitary conditions particularly in the rural communities. The programme which was carried out in ten rural communities in Ondo and Delta state, benefitted 593 households. The focus groups were pregnant women and children under the age of five and a total of 3,935 persons were tested and treated. Over 1,085 health workers and volunteers were trained on the pathophysiology, etiology while preventive methods of malaria and 6,400 Long Lasting Insecticide-Treated Nets (LLINs) were distributed to residents.deworming programmeThe NNPC/Chevron Joint Venture deworming programme is aimed at addressing the wellbeing of school children. The initiative serves as a preventive measure against other diseases. The 2019 deworming campaign was carried out in Yenagoa, Ekeremo Kolokuma/Opokuma and Sagbama Local Government Areas of Bayelsa State and benefited 41,000 primary school pupils in these areas.
The intervention is part of the company’s contribution to the fight against tuberculosis and to improve the quality of healthcare in Nigeria. St. Kizito clinic services more than 20,000 patients annually.
Social Investment
Education
Chevron Nigeria advances quality and innovative education programmes that help nurture and position young Nigerians to tackle the most complex challenges of the future. The NNPC/Chevron joint venture has partnered in implementing these programmes, which aligns with the United Nation’s Sustainable Development Goal 4: support for inclusive and equitable quality education. The following programmes were executed:
National university scholarship scheme
This is a merit-based scholarship award in specific fields of study funded by Chevron Nigeria in partnership with the NNPC. The annual scholarship is designed to support university undergraduates in all states of the Federation including Abuja, Nigeria’s Federal Capital Territory. It comprised N30,100,000.00 to new recipients for the 2018/2019 academic year and N93,600,000.00 to existing beneficiaries.
Community Scholarship programme
This programme caters for students in both secondary and tertiary institutions from Chevron Nigeria’s GMoU and Non-GMoU communities. Scholarships/bursaries for the GMoU communities are fully administered by the Regional Development Committees (RDCs). Over N250M is allocated annually to the RDCs for scholarship/bursaries and administrative cost since 2009. In 2019, a total of N9,440,000.00 was paid to 184 new beneficiaries, while N28,100,000.00 was disbursed to existing awardees to make a total sum of N36,160,000.00 paid to beneficiaries in 2019.
Scholarship for the blind and physically challenged
The NNPC/CNL JV Scholarship for the blind and physically challenged is targeted at enhancing access to quality education for the visually impaired and physically challenged students in all states of the federation, including Abuja. The scholarship award is N150,000.00 per academic session for each student. In 2019, the joint venture spent N3,900,000.00 for 26 existing beneficiaries and N8,250,000.00 for 55 new beneficiaries.
Educational Competitions:
Chevron Nigeria with its NNPC joint venture partner support educational competitions such as National Art competition, Awokoya Memorial chemistry competition and Chris Ikomi essay competitions to further boost quality education in Nigeria. The theme for 2019 edition of the National Art competition was “Advancing Nigeria through technology”. Over 539 entries from about 100 schools nationwide were received. Three past winners of the competition witnessed the 2019 edition: they include a practicing artist, an art teacher who fell in love with the art profession through the competition and the founder of an art NGO “Art saw a need”, whose launch pad was the National Art competition.The company also encouraged and supported visit to Chevron facilities by educational institutions to expose visiting students to the oil and gas industry.
Tennis Programme
In line with its 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. One of such support is the sponsorship of the annual NNPC/Chevron junior tennis programme which includes a summer coaching clinic and National Junior Masters Tournament. The initiative serves as a launch pad for budding players who have gone ahead to win other national and international tennis competitions. Over 200 youth participated in the 2019 edition.
Employee Volunteer Programme
Chevron Employee Volunteer Programme provides opportunity for employees to contribute to the quality of life of the communities around and beyond the company’s areas of operation, Chevron matches employees contribution to fund projects identified by employees. In 2019, N41,252,590.82 was spent by Chevon and employees on 14 projects executed in different parts of Nigeria.
The contributions/efforts include;
• medical treatments and supplies to pensioners
• renovation of hostels and classroom blocks in Lagos and Anambra
• library upgrade and donations of computers to institutions in Lagos and in Ogidigben community.
. Provision of sick bays to six primary schools in Lagos,
• provision of Laboratory equipment, educational supplies to schools in Borno and Kaduna states,
• educational support and provision of bunk beds and baby cots to charity organizations.
Sponsorships and Contributions
Chevron Nigeria support organizations and professional bodies engage in areas such as environmental protection, safety, capacity building, and economic empowerment. Some of the beneficiaries of the support in 2019 are: Nigerian conservation foundation (NCF) – lekki conservation centerChevron Nigeria supports Lekki Conservation Centre (LCC), which is managed by the Nigerian Conservation Foundation (NCF) as part of its support for the environment.
The NCF is the premier Non-Governmental Organization (NGO) dedicated to nature conservation and sustainable development in Nigeria. A five-year Grant Agreement between Chevron Nigeria and NCF was signed in 2018 to support the management of Lekki Conservation Centre. Chevron also supports programmes of the foundation such as the Walk for Nature programme, Chief S.L Edu Memorial Lecture and Annual fund-raising dinner dance. Other sponsorships by Chevron Nigeria in 2019 includes – support for Women in Management and Business (WIMBIZ); Nigerian Environmental Society (NES); PSRG/ Richardson Health, Safety, Security and Environment; Musical Society of Nigeria (MUSON) and American Association of Petroleum Geologists.
The Nigerian American Chamber of Commerce; Society of Petroleum Engineers and Nigerian Association of Petroleum Explorationists, were also supported by Chevron Nigeria.
Social Investment
Chevron Nigeria Deepwater Community Engagement (DWCE)
Chevron Nigeria’s Deepwater Community Engagement (DWCE) social investmentprogrammes have continued to positively impact community stakeholders, opinion leaders includingmembers of the society at large. Impactful footprints of our DWCE projects are spread across the 36 states of Nigeria and the Federal Capital Territory (FCT), Abuja , due largely to the robust stakeholder engagement and communications strategies deployedfor selection, execution and commissioning of projects.
Economic development infrastructure development
• 28 chest clinics• 23 hybrid libraries
• 1 medical diagnostic lab,
• 10 model classroom blocks,
• 9 mother and childcare centers and 39 science laboratories.
Other support for infrastructuredevelopment
• Renovation of classrooms and provision of water borehole and treatment plant for Ajiran Community Primary School, Lekki, Lagos.
• Provision of fully equipped science laboratory complexes to schools in Abia, Delta, Edo, Enugu and Zamfara states.
• Provision of two hybrid libraries and one science laboratory to Internally Displaced Persons (IDP).
Chevron and its agbami parties arepartnering with the federalgovernment to execute and donatethe following on-going projects:
• Two mother and Child Referral Centers in Borno State located at General Hospital Bolori 2, Maiduguri and at the General Hospital Gajiram, Dikwa.
• Two mother and Child Referral Centers at Melford Okilo Memorial Hospital Yenagoa, Bayelsa State and Amaku General Hospital Complex, Awka, Anambra States. health interventionstuberculosis awareness campaignThe 28 chest clinics provided by StarDeepwater Petroleum Limited, (aChevron company) and other partiesin the Agbami field contributed to about 3% of the national presumptiveTuberculosis (TB) cases registered and3% to the National aggregate of TB cases registered.TB Awareness campaigns in three endemic states- Anambra, Ondo, and Abuja F.C.T where 11,700 direct beneficiaries were sensitized on the challenges of Tuberculosis.
Over 800 cases of Tuberculosis were detected.educationagbami medical and engineeringprofessionals scholarshipIn 2019, Chevron and its parties inthe Agbami field added 230scholarships to the pool of highperforming university students in theareas of Medicine, Dentistry, Pharmacy and Engineering to bring the total beneficiaries of the scheme to 16,547 since its inspection in 2009.
Over N8.7 Billion has been spent on the Agbami Scholarship since its commencement. The scheme has produced 851 first class graduates since inception. STEMWorking with our partners, we take a wide-ranging activity to encourage students develop interest in key subjects of science, technology, engineering and mathematics (STEM) and, ultimately pursue STEM coursesand career.
FAMFA Oil Limited, Equinor Nigeria Limited, Nigerian National Petroleun Corporation (NNPC) and Prime 127 Nigerian Limited sponsor annual STEM symposium promotes the teaching and learning of STEM subjects in secondary schools. The objective of the support is to equip students with skills to explore careers and opportunities, create viable means of livelihood and ultimately build prosperous and sustainable communities and the society at large.The initiative, which started in 2015 is executed in partnership with Lagos Business School (LBS) and Working to Advance STEM Education for Africa Women (WAAW) foundation.
In 2019, 60 students and 60 teachers participated in a five-week STEM programme with the theme – “Advancing Innovation & SustainableDevelopment through STEM”. There was also an innovation’s challenge event in which Iju Senior Grammar School, Sanya Senior Grammar School and Abibat Mogaji Millennium Senior Secondary School Iloro, Agege came first, second and third respectively.The event attracted both private and public schools in Lagos State, officials from the State and Federal Ministries of Education, members ofthe academia, non-governmental organizations and representatives of Agbami parties among others.
provision of educational supplies and capacity building
Star Ultra Deep Petroleum Limited and its co-venturers in the Oil Mining License (OML) 140 provided textbooks, computers, laboratory equipment to five secondary schools in Cross River state which benefitedover 3,850 school children in 2019. Teacher-training sessions were also carried out.
Our investments in economic development span the globe, including partnerships in communities as diverse as the Niger Delta.
Social investment economic development
Our investments in economic development span the globe, including partnerships in communities as diverse as the Niger Delta.
GMoU
In 2005, Chevron Nigeria effected a paradigm shift in its community engagement approach by deploying and signing a multi-stakeholder participatory model – the Global memorandum of Understanding (GMoU) with eight clusters of communities close to its operations in the Niger Delta. These communities are grouped together along ethnic lines referred to as Regional Development Committees (RDCs).
The divestment of Chevron assets in Imo and River states in 2016 affected three of the RDCs – Kula, Idama and Jisike.
The GMoU is a community-led, participatory partnership model for community engagement designed to manage relationships, promote sustainable development, give greater ownership of development to local communities and provide a conducive environment for business operations.
The GMoU has a governance structure that involves the activities of several committees designed to ensure judicious, transparent and accountable use of resources deployed into the GMoU.
The committees are populated by representatives of CNL, the RDCs, State Government, NDDC, Local Government, States Petroleum Area Development Commissions (PADECs) and some NGOs. Each RDC is responsible for designing and managing its own development programmes, within the governance structure.
The committees include an oversight body known as the Community Engagement Management Board (CEMB), which sits atop the entire process and makes the final decision on policies, budget and expenditure.Periodic evaluations of the GMoU and its implementation in CNL’s area of operations are carried out with the involvement of all critical stakeholders.
These evaluations were carried out in 2008, 2011 and 2015 to determine the strengths, challenges and seek ways of improving the performance of the GMoU process.
The evaluations involved key stakeholders in the GMoU process.
The GMoU process has benefitted about 600,000 people in more than 400 communities, villages and chiefdoms. Since 2005, chevron and the NNPC have contributed several billions of Naira to fund the GMoUs.
Key 2019 achievements
• Itsekiri Oil & Gas Producing/Impacted Communities Development Committee (IPCDC), formerly known as Itsekiri Regional Development Committee (IRDC) completed and commissioned 52 projects.
• Incorporated Trustees of Ilaje Rural Development Advocacy Committee (ILRDC) formerly known as Ilaje Regional Development Committee (IlajeRDC) with the Amalgamation of Ilaje Ugbo Coastal Communities Association (AMAICCOMA) commenced the construction of CCDC Mother and Child Healthcare projects. On completion, the project is expected to benefit many in Ondo State.
• EGCDF secured partnership arrangement with Delta State government for the management of a cottage hospital built by the foundation.
• Evaluation of the GMoU with five existing Regional Development Committees (RDCs). Itsekiri Oil & Gas Producing/Impacted Communities Development Committee (IPCDC), Delta State. Ilaje Rural Development Advocacy Committee Initiative (ILRDC) Ondo State.
Egbema Garamatu Communities development Foundation (EGCDF), Delta State. KEFFES Communities Rural Development Foundation, Bayelsa State. Dodo River Communities Rural Development Association, Bayelsa State.
Partnership Initiatives in the Niger Delta
The complexities of operating within the Niger Delta have been widely documented. As part of its forward-thinking approach, Chevron, in partnership with others evolved innovative models for engaging its communities and stakeholders.
The models are the Global Memorandum of Understanding (GMoU) – a strategic and participatory model for community-driven development and the Partnership Initiatives in the Niger Delta (PIND) – which focuses on developing new solutions to the wider, regional economic and social development challenges of the Niger Delta.
PIND shares CNL’s approach of placing multi-stakeholder partnerships at the heart of its strategic socio-economic interventions.
As a regional social risk management strategy, PIND works across the entire Niger Delta building partnerships for peace and equitable economic development.
At a macro level, its programmes and projects provide a buffer to, and extend risk management beyond activities within communities close to CNL’s operations which the GMoU focuses on.
By addressing the root causes of instability and insecurity within the region, PIND complements the GMoU especially as the GMoU communities do not exist in isolation of the problems in the entire region and pressures on them persist and may limit the effectiveness of the GMoU in mitigating social risks within CNL operational areas.
PIND’s social risk management strategy focuses on four main and mutually reinforcing areas:
• Economic Development
• Peace Building• Capacity Building
• Analysis and AdvocacyPIND’s Economic Development programme grows businesses, boosts productivity and income for smallholder farmers and Micro, Small and Medium Enterprises (MSMEs).
It does this by applying the Market Systems Development (MSD) approach, which focuses on developing sustainable market systems, rather than doling out handouts.
To enable integrated peace and economic growth, PIND’s Peace Building program strengthens conflict resolution mechanisms and fosters stability through a regional network of peace actors.
Also, the Capacity Building programme works with diverse partners to build the service delivery and engagement capacities of governments, civil society organizations (CSOs), and communities to stimulate broad-based economic growth.
PIND’s Analysis and Advocacy program works to influence development policy and practice and create an enabling environment for growth through data analysis and understanding of systemic constraints to growth within the region.
Socio-economic development and peaceful coexistence of communities in the region are key to Chevron’s success in the Niger Delta.
Therefore, promoting multi-stakeholder partnerships through PIND contributes to creating lasting solutions to the complex problems faced by communities in the region, enables efficient use of resources, facilitates knowledge sharing and helps to produce sustainable positive outcomes.
Many of the ideals of the Sustainable Development Goals (SDGs) such as no poverty, zero hunger, quality education, gender equality, climate action, and environmental action are particularly relevant to the Niger Delta Region and PIND has been one of the co-partners working to attain the SDGs in the region through the direct and indirect contributions of its programmes as actions taken towards one SDG often serve to advance other goals.
SDG goal 1: end poverty in all its forms everywhere
In 2019, PIND leveraged N4.3 billion in new investments into the aquaculture, cassava, cocoa, palm oil, poultry and clean energy sectors, and other agro-allied small businesses from both the government and private sector through fostered partnerships.
These investments helped to grow businesses, and boost productivity and net income for 33,892 smallholder farmers and small enterprises who experienced additional income of N13.4 billion and created 8, 582 new jobs in the sectors, thereby reducing poverty.
Goal 2: end hunger, achieve food security, improve nutrition, and promote sustainable agriculture.
Increasing food security through productivity boostIn 2019, PIND continued to equip local service providers – fabricators, agro-input and equipment companies, farmers’ associations, financial institutions, among others with the right skills, tools, platforms and connections to sustainably provide viable market solutions that address the root causes of poor performance by farmers and enterprises in the region.
This approach was deployed to support poor farmers in aquaculture, cassava, cocoa, palm oil, and poultry, sectors that present the most viable agricultural value chains in the Niger Delta.
Through a network of service providers, PIND facilitated practical demonstrations of best agronomic and business practices and efficient technology solutions to 59,818 farmers and enterprises and enabled them to access finance and varieties of high yielding feed and seed during the year.
Aquaculture
Under aquaculture, PIND’s approach is to facilitate aquaculture service providers (ASPs) to make a business out of selling services to new and existing fish farmers on best agronomic practices.
These includes practices on how to select appropriate catfish species; prepare, screen, and lime their ponds; effectively use fertilizer, feed, medicine, water testing kits and maintain proper records.
In 2019, PIND trained aquaculture service providers worked with input companies, fabricators and other market actors to promote best pond management practices and introduced efficient and appropriate processing technologies (the Chorkor oven and Smoking Klin) to 9,358 fish farmers and processors across the Niger Delta.
The service providers also supported fish farmers and processors to access market opportunities, finance, and inputs such as fish feeds.
Over 2,800 fish farmers and processors who applied the best pond practices and adopted the processing technologies gained a net additional income of N875 million and triggered a total of 1,426 new jobs in the aquaculture sector for the year.
Cassava
PIND worked with lead input firms and agro-dealers to provide training for cassava farmers on improved practices and business skills. Cumulatively three input companies and 35 agro-dealers reached 19,886 cassava farmers through various outreach initiatives. Average yield per hectare increased to 17.4 tons from the average of 8 tons.
The additional yield contributed to an increased income of 2.7 billion Naira for 20,807 cassava farmers and created 795 new jobs in the region’s sector.
Cocoa
PIND collaborated with agro-input and equipment dealers to demonstrate three post-harvest technologies (Pele bongo for cocoa pod breaking, Fermentation Box for cocoa bean fermentation and Platform Dryers for cocoa bean drying) to farmers in Ondo State and partnered with an equipment dealer to promote the improved mechanical pruning machine that helps farmers to prune their cocoa trees for increased yield. Overall, farmers, off takers and other PIND partners invested N10.5 million to purchase 132 cocoa harvesting and post-harvesting technologies to enhance the productivity of the sector.
Palm oil
During the year, PIND reached 13,822 farmers with information on best management practices through training, demonstrations and other ancillary support provided by input companies, agro-dealers and lead farmers. Over 50 demonstrations were held across the Niger Delta to reach farmers on best practices such as planting high-quality seedlings, applying sufficient quantities of fertilizer, controlling pests and diseases and managing the crops during the pre-maturity phase. The initiative attracted a total investment worth N159 million into the palm oil sector from both public and private sector investors including farmers. Processors gained a 48% increase in the quantity of palm oil realized from using the improved processing technologies. Farmers harvested more fruits.
Poultry and Small Businesses
The Foundation’s trained poultry service providers worked with input companies to train hundreds of poultry farmers on good poultry practices, facilitated access to finance market and provided business support to both farmers and chicken processors in the region. Farmers who adopted the good poultry practices experienced a rise in the average number of birds per cycle from 2,110 to 4,541 birds, had a 12% decrease in mortality rate from a baseline of 16% to 4% of deaths and sold 96% of their stocked birds at maturity.
Testimonial
Gloria Ezekiel, a fish smoker in Ogunigbene Community, in Bayelsa State, is a proud user of the Chorkor oven fish smoking technology: ‘’These ovens you made for us are good, it dries fish faster and the fish also tastes better than the ones dried using the altars. I use the Chorkor Oven more because it is quick, it dries the fish in less than 2 hours. But the other one takes more than 5 hours and still does not dry the fish up completely. If it was with the drying altar (local oven), if I buy 5,000 naira worth of firewood, it might finish today or tomorrow but with the Chorkor oven, I can use the same 5,000 Naira worth of wood for up to 1 month’’.
Goal 4:
Ensure inclusive and equitable quality education and promote life-long learning opportunities
Building skills for promoting sustainable development
PIND’s Capacity Building for Local Empowerment (CAPABLE) training programme benefitted 293 persons from Civil Society Organizations (CSOs) and Business Membership Organizations (BMOs). Training enabled 24 CSOs/BMOs accessed funds and grants to implement sustainable development interventions.
Other capacity training initiatives:
• Co-sponsorship of Making Markets Work for the Poor training with the DFID-funded Market Development (MADE) project for 73 persons from 32 organizations.
• Equipping of 49 programme managers and monitoring and evaluation (M&E) officers from 25 organizations in the Niger Delta with skills on programme monitoring and results measurements (MRM) and gender mainstreaming.
Goal 5:
Achieve gender equality and empower all women and girls
Fostering opportunities for women, tackling women’s issues
PIND’s peacebuilding interventions focus on increasing women’s active involvement as both participants and leaders influencing conflict management and peacebuilding decisions in communities. In 2019, 535 women joined the PIND supported Partners for Peace (P4P) Network. Three women head three of the 10 sub-chapters of the Network formed – showing increased interest of women in leading peacebuilding efforts.
PIND also awarded small grants to four NGOs in Akwa Ibom, Delta, Edo, and Rivers State to address gender-based violence (GBV) in the Niger Delta in commemoration of the 16 Days of activism against gender-based violence.
PIND forged a strategic partnership with two private media stations in Delta and Bayelsa States – Quest FM, Ughelli and Raypower FM, Yenagoa respectively that saw both stations repackage the content of their agricultural radio programmes to respond directly to the needs and production preferences of smallholder farmers through capacity-building support from. The radio programmes deliberately featured the views of women farmers where there was no gender consideration previously and the production teams also undertook recording trips to coastal communities to understand and create awareness on the issues of the women farmers in the region.
Goal 6:
Ensure availability and sustainable management of water and sanitation for all.
Promoting community-led, environmental-friendly water, sanitation and hygiene infrastructure
Social entrepreneurs trained by PIND continued to facilitate access to safe water by promoting and demonstrating the use of the Biosand filters in coastal communities across the region. This led to the adoption of 241 Biosand filters (BSFs) in the riverine and peri-urban communities in 2019 with at an average of nine persons using one bio-sand filter, availed 2,169 persons with safe water. The intervention by PIND reduced smoke inhalation for families in the region. Upgraded and installed WASH facilities inclusive of water boreholes and storage facilities, toilets and handwashing stations in three schools in Delta State and Rivers States that provided over 2,300 students with safe water in partnership with Procter & Gamble, Water and Sanitation Rotarian Action Group (WASRAG), H20 for Life and Rotary Clubs of District 9141 and 9142, PIND
Goal 7:
Ensure access to affordable, reliable, sustainable, and modern energy for all.
Powering coastal communities with clean energy
PIND collaborated with power company, A4&T Power Solutions Limited to deploy a 15-kilowatt solar energy mini-grid in Gbagira community, a fishing settlement in Ilaje local government area of Ondo State. The energy grid serves 16 small-scale enterprises, nine households, a medical clinic and 2 fish smoking kitchens benefiting more than 20 women fish smokers.
PIND facilitated power purchase exclusivity agreement between eight coastal communities in Bayelsa and Delta States and two different energy service providers to scale up the model and enable more communities access affordable, reliable, sustainable, and modern energy
Goal 8:
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Modeling productive market-led youth employment pathways
With funding from the Ford Foundation and in collaboration with its implementing partners. Completed the first year of the pilot phase of the Niger Delta Youth Employment Pathways (NDYEP) project that is designed to foster youth job-readiness, workforce development and job creation in key growth sectors in Abia, Akwa Ibom and Rivers States.
The initial pilot year equipped 1,468 youth with market-relevant technical and soft skills in ICT, construction and agriculture. This included youth who had no prior livelihood skills.
Three hundred and ninety-two and 253 of the 645 youths who completed the various training programmes have either transitioned into waged employment or initiated a small enterprise or start-up respectively in 2019.
ntswere given to 16 eligible partner organizations to provide demand-led training and post-training support for work and job creation to an additional 1,390 youths in the pilot states.
Testimonial
Sylvia Chinwenda Nwito is an ICT graduate of Niger Delta Youth Empowerment Pathways (NDYEP) who now enjoys job offers due to the skills she acquired from the program: ‘’What has changed for me? Number 1 is job offers. Yes, before the NDYEP opportunity, I didn’t have ICT experience. I begged to get into the companies because I didn’t have skills but now, I am getting job offers as a Front End Developer for some companies here in Port Harcourt and even in Lagos. My self-esteem has gone up.
Other job creation initiativesCollaborated with the Skills Development for Youth Employment – SKYE programme of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and EdoJobs to train and professionally certify 206 youth from Edo State on how to install, operate, maintain and market small to medium solar PV renewable energy technology solutions. The trained youth were matched with PIND’s solar expert partners to handhold for nine months.
Influencing development oriented policies and practices
• A PIND – supported 30-year growth and development strategy for Cross Rivers State was launched.
• We provided technical support to Abia and Edo States to develop long-term plans that are integrated with the three dimensions of the Sustainable Development Goals (SDGs) – economic, social, and environmental.
• Provide technical support to Ondo, Delta, and Edo States to produce five-year agriculture policies aimed at addressing hunger and malnutrition, poverty, water and energy use, climate change, and unsustainable production and consumption.
Goal 16:
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
Building stable communities for sustainable development
PIND’s Partners for Peace (P4P) Network of self-identified agents of peace strengthens grassroots conflict resolution initiatives within the Niger Delta region to promote a more enabling, integrated, and peaceable environment conducive for economic growth.
With presence in all nine States and in 119 out of 185 local government areas in the Niger Delta, 2,047 new members including traditional rulers, government officials, civil society actors, youth leaders, women leaders and others joined the Network in 2019, bringing the total membership strength of the peace Network to 9,610 from 7,563 in 2018.
Goal 17:
Strengthen the means of implementation and revitalize the global partnership for sustainable development
Coordinating development partnerships for greater impact
In 2019, PIND’s advocacy work fostered nine strategic partnerships and collaborations to build synergies for social and economic development in the Niger Delta that influenced N2 million investment into the region for development activities. Additionally, PIND incentivized private investors and entrepreneurs including farmers, governments and social enterprises to invest an additional N4.3 billion to assist in good agricultural practices, technological innovations and business upgrading solutions – bringing the cumulative investments attracted into the region by PIND in 2019 to 4.4 billion Naira.
Working with its partners, the Foundation convened advocacy events aimed at influencing stakeholders and coordinating development efforts for greater impact in the region. The event was attended by 2,053 stakeholders. PIND also partnered with DFID’s MADE and FOSTER projects and Stakeholder Democracy Network (SDN) to host two Niger Delta Donor and Partners Coordinating Forum meetings that developed mechanisms and activities to drive better cooperation and harmonization of development efforts and prevent the duplication of interventions in the region.
Engaging Stakeholders
Partnership with stakeholders is a core value for Chevron. We are committed to being a good partner focused on building productive, collaborative, trusting and mutually beneficial relationships with the government in Nigeria. Our government stakeholder engagement strategy focuses on federal and state government issues management and advocacy. The issues management and advocacy are in respect of the formulation or implementation of the several laws and policies which govern oil and gas operations in Nigeria.
We track legislation issues from the legislature while policy issues are tracked from Administration and other officials of the Executive arm of Government, at both the federal and state level with Stakeholders Engagement and Issues Management tool which includes the Issues Register. Engagement plans are also implemented – using approved Communication and Advocacy plans.
Our Communication and Advocacy plans are aimed at advancing Chevron’s goal of cultivating and nurturing strategic partnerships, ethical business practices and developing mutually benefiting relationships that contribute to the socio-economic development in countries where we do business.
Stakeholders’ engagement in 2019
• We worked with the government to ensure continued successful implementation of the Global Memorandum of Understanding (GMoU) involving Chevron, cluster of community representatives known as Regional Development.
Committees (RDCs) and Government of the states we have operations
• We collaborated with the Delta State Government to run a River Boat Clinic which provided healthcare delivery to communities close to Chevron operations in the Niger Delta.
The Chevron- sponsored River Boat Clinic was rested in 2019 after over two decades of service of providing medical services to thousands of creek community stakeholders in the western Niger Delta
• We also worked with government stakeholders to ensure the socio-economic interventions of Chevron Nigeria Deepwater/Petroleum Sharing Contract group and its partners aligned with those of government stakeholders.
• Engaged returning and new government stakeholders across the tiers of Government after the 2019 election in the country ensure continuity of our relationship with them
Chevron Nigeria sustained its partnership at all government levels through strategic and focused group engagements.
The engagements were between:
• Chevron CALAEP President and the Minister of State for Petroleum Resources Chief Timipre Sylva
• Chevron CALAEP President and NNPC management led by the Group Managing Director.
• Management of Chevron Nigeria and the Minister of State for Petroleum and NNPC.
• Chevron Nigeria management and NNPC Management to resolve the EGTL cost disputes and signing of EGTL disputes resolution agreements.
• Chevron management and Chairmen of Senate and House of Representatives Petroleum Upstream Committees, and Senate Gas Committee in Houston at the 2019 Offshore Technology Conference (OTC).
• Delta State Governor, Ifeanyi Okowa and Chevron management
• Governor of Ondo State, Rotimi Akeredolu and Chevron management.
In 2019, Chevon Nigeria also had strategic meetings involving the IOCs and Nigeria’s Vice President Yemi Osinbajo, Speaker of the House of Representatives, Femi Gbajabiamila and the former Chief of Staff to the President, Late Abba Kyari.
Building strong partnerships:
Chevron facilitated trainings and participations in both local and international conferences for its government stakeholders. They include:
• Strategy Session in Abuja where key government stakeholders deliberated and exchanged ideas on topical issues to promote the growth of the oil and gas industry. Through the organized strategy sessions, industry operators gained deeper understanding of “thoughts of the Administration and the Legislators on critical oil industry laws to be passed in 2020, The forum provided opportunity for participants to share perspectives and critical information on prevailing conditions impacting the oil and gas industry that Government may consider in passing new legislations.
• Sponsorship of four National Assembly members to the 2019 Offshore Technology Conference (OTC) in Houston where they gained insights into the nature and scope of sector related issues, modern technology and innovation.
Our People
Our people strategy is a long-term focus to link people with business need and investing in people to achieve our strategies.
This involves developing world-class global workforce leaders that deliver superior results in a culturally diverse complex global energy company; managing our talent to ensure they have the requisite capabilities, experience and skills to execute our strategies and ensuring they are committed to our values.
Our People Strategy is implemented professionally through a Recruitment process that attracts and identifies potential candidates from within and outside the organization for evaluation and employment.
2019 key achievements
Employee Week
Chevron Nigeria Employee Week has been held annually since 2017 to further promote the importance of inclusive behaviors by employees in line with Chevron Way Values.
The initiative fulfills the following:
• motivate, engage, energize and appreciate the workforce.
• celebrate our achievements in the past years
• foster closer relationship between supervisors and employees
The theme for 2019 employee week was winning together.
CMD’s distinctive award
The Chairman and Managing Director (CMD) Distinctive Leader Award was held as part of efforts by Chevron Nigeria to celebrate and promote consistent exemplary leadership behaviors and attitude demonstrated by employees who align with the company’s leadership expectations.
The award is aimed at reinforcing positive behaviors by employees. It is a critical part of Chevron Nigeria Limited’s Consequence Management Framework and Chevron’s Global We Lead Programme. The Chevron We Lead programme recognizes that there is a leader in everyone, and everyone is a leader. The award is the highest level of recognition by the Chairman and Managing Director.
Employee capacity enhancement trainings held in 2019
• Structured Leadership Development: The programme is designed to strengthen the skills and competencies required for leadership role. In 2019, an attendance count of 688 was recorded for Leadership programme.
• People Skills: The initiative covered training on Communication, Personal Effectiveness, Emotional Intelligence, Diversity and Inclusion, among others. An attendance count of 1,529 was recorded. The initiative has further enabled effective interaction and securing alignment among members of the workforce.
• Technical Skills: 59,631 attendance count was recorded for technical skills /online trainings in Safety Awareness, Operations and Maintenance, Compliance, and other competence enhancing initiatives to develop technical capabilities required for performing specific functions.
• Horizons and Pathways: Seventeen Petrotechs and some functional professionals graduated from the Horizons programme in 2019. Horizon is a structured technical competency development programme. Graduates from Horizons go through the Pathways programme to further deepen their technical and business skills.
Network activities – building capacity
Chevon Nigeria has three registered Employee Networks. They are XYZ Network, Women Employee Network (WEN) and Boomers Network. In 2019, the Networks held several programmes to support Chevron’s diversity and inclusion initiative. The networks also carried out community outreach programmes in line with the company’s tradition of care; mentorship session for interns and knowledge sharing initiatives focused on equipping members of the workforce with the right knowledge for creating value and leading effectively in today’s world.
Preventive periodic medical screening (PPMS):
The PPMS programme provides medical screening for employees, spouses and dependents. The goal is to proactively manage health through early detection of disease. The screenings also provide opportunities for healthy life choices and tracking of the conditions of patients with lingering medical situations. NMA achieved 99% participation of employees in the 2018/2019 PPMS exercise.
Fitness for duty (FFD):
The initiative supports the business in optimizing Fitness for Duty (FFD) and FFD-related compliance. FFD is a standardized medical evaluation process used by Chevron worldwide. It is designed to determine if an employee is mentally and physically capable of performing a job without risk of injury to the worker, co-workers or the environment. The process specifically identifies health-sensitive and physically demanding jobs and develops appropriate evaluations for the various job categories.
Occupational hygiene:
Occupational hygiene and medical surveillance programme was in place to protect workers from workplace exposures throughout the year.
Health promotion opportunities:
In 2019, 26 programs on communicable and non-communicable diseases – that covered relevant and topical issues including healthy lifestyle, high blood pressure, mental health, drug abuse and stress were held. Chevron Nigeria also joined the global community in 2019 to participate in activities on days designated by the World Health Organization to highlight health issues including HIV/AIDS, Malaria, Tuberculosis, Heart Health and Diabetes. Automated blood pressure machines are provided at office and offshore locations to encourage employees to self-monitor and track their readings. Employees are also encouraged to use stations located in offices to self-monitor weight and body mass index.
Wellness programmes: In 2019, the medical division brought health care to the offices of the workforce by deploying the fourth and expanded programme on ‘Red for a Reason’ (RFAR) – tagged Red for a Reason Plus. RFAR provides opportunities to proactively identify health issues and significantly improve the cardiovascular health of the workforce. Nutrition Traffic Light programme – This is an interventional health and wellness initiative that utilizes education and advocacy to help employees voluntarily change their dietary behaviours. It was extended to more Chevron Nigeria locations. Healthy you, a corporate programme was deployed with good uptake.
The Total Wellbeing Challenge (TWC) was also deployed. TWC comprised of health and wellbeing webinars; Step challenge; weight loss challenge and aerobics.
Physical fitness: Throughout 2019, employees accessed well equipped fitness centers in all Chevron Nigeria locations for group health walks and aerobic exercise programmes to prevent obesity, assist in weight reduction, enhance wellness and optimize heart health.
Peer health educators (PHEs): PHEs initiative is an integral part of Chevron Nigeria’s commitment to the wellbeing of its employees and community members in its areas of operations. The PHEs provide peer-to-peer health education on HIV, Malaria, Tuberculosis and cardiovascular health.
Employee assistance programme (EAP) and work-life services:
The Employee Assistance Programme (EAP) promotes and sustains a psychologically healthy and resilient workforce to support safe and successful operations. In 2019, EAP provided confidential consultation for work-related, personal and family challenges.
Diversity/inclusion programmes: There were several key Diversity and Inclusion programmes in 2019. They include the following:
a. Diversity Language Classes: Employees benefitted from six Diversity Language classes on Spanish, French, Hausa, Yoruba, Igbo and Itsekiri. Employees volunteered to facilitate or participate in those classes to learn a new language. The initiative encourages an inclusive environment where employees learn and respect other cultures.
b. Cultural Celebrations: The cultures of two Nigerian ethnic groups – Yoruba and Itsekiri cultures were celebrated. The events helped employees to further understand and appreciate other people’s culture, history and traditions.
c. D&I Early Adopter Programme: The D&I Early Adopter Programme was successfully deployed. Classes were held in Lekki and video-conferenced to other locations. Over 180 employees participated in the training session organized by Chevron Corporation but facilitated locally by the Office of the Diversity and Inclusion.
Operational Excellence
At Chevron, we place the highest priority on the health and safety of our workforce and protection of our assets, communities and the environments in which we operate. We strive to deliver world-class performance with a focus on preventing high-consequence incidents.
Our Operational ExcellenceManagement System (OEMS) anchored on The Chevron Way is the framework Chevron uses to systematically manage workforce safety and health, process safety, reliability and integrity, environment, efficiency, security, and stakeholders in order to meet our OE objectives which include the following:
• Eliminate fatalities, serious injuries and illnesses
• Eliminate high-consequence process safety incidents and operate with industry-leading reliability.
• Access and manage significant environmental risks
• Use energy and resources efficiently
• Prevent high-consequence security and cybersecurity incidents
• Address OE business risks through stakeholder engagement and issues management.
OE performance
In 2019, we sustained our focus on Operational Excellence (OE) and this resulted in preventing serious incidents and fatalities. We continued to implement programmes to drive our OE performance with emphasis on Preventing Serious Injuries and Fatalities, Process Safety, Environmental Stewardship, Operational Discipline and OE Assurance. Our consistent use of the Save Your Life Actions and Start Work Checks, Verification and Validation Coaches, Operating Procedures, Safe Work Practices, Tenets of Operation and Stop Work Responsibility ensured that critical safeguards were in place to prevent high consequence incidents throughout the year. Our safety performance record included zero serious incidents and fatalities.
2019 global OE focus campaign
A week-long OE Focus campaign was held at all Chevron locations in Nigeria to further increase OE awareness and provide learning and fluency improvement opportunities for the workforce. The campaign – themed Assuring the Presence and Effectiveness of Safeguards deepened workforce’s fluency and knowledge on the prevention of serious injuries and fatalities by ensuring critical safeguards were always in place and functioning effectively.
Other 2019 OE milestones/achievements
We deployed and conducted the following initiatives:
• Verification and Validation (V&V) Coaching Programme at all locations of Chevron in Nigeria to sustain the Save Your Life Programme
• Contractor Fitness for Duty Programme as part of our Contractor HES Management (CHESM) initiative• High consequence scenarios (risk profiles and bow ties) and associated critical safeguards (including assurance activities) to the workforce
• Environmental Evaluation Studies (EES) for our JV Offshore and Onshore fields, as well as for our Deepwater Agbami field
• A “Worst Case Discharge” scenario emergency response drill exercise for continual improvement in emergency management.
Environmental Stewardship
The Environmental Stewardship (ES) OE Process is the framework that helps us understand and manage potential environmental, social and community health impacts across the life of our assets. Our Environment focus area enables us to protect the environment through responsible design, development, operations and asset retirement.
In line with our OE objective to assess and manage significant environmental risks, we conducted environmental assessment across our assets to support development, operations and asset retirement. These assessments include Environmental Impact Assessments [EIAs] to support exploratory and development drilling. We conducted the Environmental Evaluation Studies [EESs] of Deepwater (Agbami) and JV offshore operational areas as well as the Environmental Monitoring Plans developed for projects and operations in line with regulatory requirements and our Environmental Aspect Management initiatives to mitigate potential environmental impacts.
We use business processes and technology to identify, track and manage environmental footprints and reduce potential environmental impacts in our areas of operation.
We apply environmental design standards to guard selection of safeguards that: i. prevent accidental releasesii
. Reduce air emissionsion
. Conserve energy and reduce greenhouse gasesiv
. Manage waste and wastewater
. Conserve and protect water and natural resources
. Retire assets and reclaim impacted sites.
Key 2019 Achievements:
Gas utilization and commercialization: Chevron Nigerian in 2019 continued its support to the Federal Government’s Gas Master Plan now known as the National Gas Policy 2017 by meeting its domestic gas supply obligations, including implementation of the Gas Sale and Aggregation Agreement contract regime and the eventual transition to a willing-buyer-willing-seller contract regime. As evidence of Chevron’s support for FGN policies, the company executed two Gas Sales Aggregation Agreements (GSAAs) with Dangote Fertilizer and Olorunsogo Power Plant. The GSAAs further boosted availability of domestic gas in Nigeria.
Reduction of routine gas flare
Chevron has invested substantially in projects aimed at eliminating routine flares from its operations and executing a profitable gas business through a range of domestic, regional and export supply facilities that fulfill our joint venture Domestic Gas Supply Obligation (DGSO) and support the Nigerian Gas Master Plan. The projects include the Escravos Gas Plant; the Escravos Gas-to-Liquids plant; the Sonam Gas Development field; and the Abiteye and Makaraba Non-Associated Gas Development.
In 2019, routine flares were significantly reduced by 90 percent thereby increasing utilization of NNPV/CNL’s JV’s produced gas.We also support the SDG through our gas programme
SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all: Chevron Nigeria Limited plays a vital role in helping Nigeria to meet its domestic gas needs and power.
Operational excellence
Chevron Nigeriagas programme
Chevron Nigeria is committed to gas development in support of the Nigerian Government’s Gas Master Plan. Our gas strategy is four-fold, and includes efforts geared towards ending routine gas flaring; boosting domestic power supply; boosting regional economic development, and engendering diversification and commercialization of gas resources through the Nigerian gas pipeline system, Escravos Gas-to-Liquids (EGTL) Plant, and the West African Gas Pipeline.
Key 2019 achievements:
Gas utilization and commercialization: Chevron Nigerian in 2019 continued its support to the Federal Government’s Gas Master Plan now known as the National Gas Policy 2017 by meeting its domestic gas supply obligations, including implementation of the Gas Sale and Aggregation Agreement contract regime and the eventual transition to a willing-buyer-willing-seller contract regime. As evidence of Chevron’s support for Federal Government of Nigerian (FGN) policies, the company executed two Gas Sales Aggregation Agreements (GSAAs) with Dangote Fertilizer and Olorunsogo Power Plant. The GSAAs further boosted availability of domestic gas in Nigeria.
Reduction of Routine Gas Flare:
Chevron has invested substantially in projects aimed at eliminating routine flares from its operations and executing a profitable gas business through a range of domestic, regional and export supply facilities that fulfill our joint venture Domestic Gas Supply Obligation (DGSO) and support the Nigerian Gas Master Plan.
The projects include the Escravos Gas Plant; the Escravos Gas-to-Liquids plant; the Sonam Gas Development field; and the Abiteye and Makaraba Non Associated Gas Development. In 2019, routine flares were significantly reduced by 90 percent thereby increasing utilization of NNPV/CNL’s JV’s produced gas.
We also support the United Nations Sustainable Development Goals (SDGs) through our gas programme
SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all: Chevron Nigeria Limited plays a vital role in helping Nigeria to meet its domestic gas needs and power supply. In 2019, Chevron Nigeria Limited and its senior partner, NNPC supplied substantial percent of total domestic gas sales in Nigeria. Chevron also retained its leadership position as the highest gas supplier to the power sector with at least 70 percent of total domestic gas supply going to the power sector in 2019.
The Company’s gas programme helps to ensure Nigerians have access to electricity and energy for domestic and industrial purposes.
Nigerian Content
The commitment of Chevron Nigeria to Nigerian Content Development (NCD) predates the NOGICD Act. CNL had a functional Local Content Policy as far back as 1999, before the NOGICD Act was promulgated.
Our four-pronged approach to NCD includes: selection of qualified local contractors; facilitation of partnerships and alliances between indigenous companies and foreign firms; capacity building; and development of local competencies.
To further demonstrate our commitment to NCD, the CNL Local Content policy has been updated to also give contracting preference for competent Nigerian companies and promotion of technology transfer.
Chevron and its affiliates in Nigeria continuously play a leading role in building and sustaining the capacity of indigenous companies and contractors in Nigeria’s oil and gas industry. We consistently demonstrate our commitment to empowering Nigerian service providers and suppliers through human and institutional capacity development, creation of local jobs, developing and sourcing from local suppliers and employing local workforce, local patronage, work scope reservation to benefit local community contractors from our areas of operation and fostering of business partnerships.
This business strategy establishes Chevron as a compliant company of choice that helps to build local economies and improve the livelihood of Nigerians. In addition, our company provides technical support, support for asset acquisition as well as partnership on research and development to local community contractors. This has helped Nigerians build wealth from the proceeds of oil and gas while developing local commerce and industry.
Our investment in Nigerian Content in 2019 was approximately $1.45billion. Of this amount, expenditure on materials and services obtained from Local Community Contractors was approximately $358million. Substantial part of Chevron Nigeria’s spends on local content in 2019 supports the United Nation Sustainable Development Goals.
The company partnered with many indigenous companies to build and strengthen
• Escravos Export System Project (EESP)
• Okan GGCP Debottlenecking Project,
• Meji GGCP Debottlenecking Project
• Consolidated Maintenance Workshop Projectlocal capacity and capabilities during execution of the following Major Capital and Small Projects Chevron Nigeria also helped to build the capacity of local businesses via the following preference selection and patronage:
Utilization of indigenous assets & nigerian-made goods
• Award of drilling contract Oando Energy Services Limited, an indigenous company, which used its Swamp Rig “OES Respect” for safe delivery of seven onshore wells
• Procurement of locally assembled Zinox desktops and laptops from a local manufacturer – Task Systems Ltd and the OEM – Zinox Systems.
Research & Development
Contracts were awarded to many Nigerian companies for Reservoir Characterization, Earth modelling, Forecasting, Seismic acquisition and processing. Some of them are:
Training
Chevron Nigeria in partnership with Nigerian Content Human Capacity Development Initiative (NCHCDI) enhanced the skills of Nigerians to deliver needed value in the oil and gas industry via executive and management training; technical and professional training, and on-the job training.In 2019, 184 Nigerians benefited from quality training valued at over $5million in technical/professional skills and on-the-job. A batch of four NCDMB-nominated graduates completed a 12-month Earth Science Internship programme at CNL office and field locations
Industry Collaboration
• Chevron Nigeria collaborates with other International Oil Companies (IOCs) and National Oil Companies (NOCs) in developing templates for categorization of service providers in the Oil & Gas Industry.
• The company also organizes supplier forums to educate suppliers on its contracting/tender processes; supports community contractors to register on NipeX and the utilization of approved tendering process by Nigerian contractors.
• Chevron Nigeria also sponsors seminars, conferences, multimedia programmes and to promote Nigerian Content Development.
• Personnel of Chevron Nigeria occupy many leadership positions in Nigerian and Gas Industry: They are:
• Jeff Ewing, Chairman and Managing Director is a member of the Executive Committee of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI).
• Ms. Anike Odunlami, General Manager, Nigerian Content Development (NCD) is a member of the Nigerian Content Sub-Committee of the OPTS (OPTS NC Subcom), member of the Oil Producers Sectoral Working Group of the Nigerian Content Consultative Forum (NCCF) – established by NCDMB), member of the Steering Committee for NCCF and a member of the Advisory Council for the Nigerian Content Development Fund (NCDF).
Sponsorship and Partnership
• Chevron and its affiliated companies in Nigeria sponsored industry forums, conferences and exhibitions in partnership with other industry stakeholders.
Some of them are:
• Nigerian International Petroleum Summit in Abuja
• Nigeria Oil & Gas Opportunity Fair Conference & Exhibition organized by NCDMB in Yenagoa.
• Nigeria Oil & Gas (NOG) Conference & Exhibition in Abuja.
• Society of Petroleum Engineers (SPE) 2019 Annual International Conference & Exhibition, Lagos
• Nigerian Association of Petroleum Explorationists Annual International Conference and Exhibition, Lagos
• Nigerian Content Forum in Yenagoa, Bayelsa State
Key Local Community Content (LCC) accomplishments
• Chevron in collaboration with the Foundation for Partnership Initiatives in the Niger Delta (PIND) facilitated partnerships and alliances between large companies operating in the Niger Delta region and local small and medium-sized enterprises (SMEs). An example is a pilot capacity development initiative on poultry business which involved five LCCS and Perfect Works Limited, one of the participating contractors that completed its Broiler Processing plant in Ondo State.
• The company with the support of NCDMB trained over 220 Community contractors to build local capacity and strengthen indigenous participation in the Oil & Gas Industry.
Testimonials
Chevron is doing well in empowering Local community contractors – Blessing Omagbemi
Blessing Omagbemi is the Chairman/CEO of Lead Ultimate Resources Limited and CEO of Perfect Works Integrated Services Limited, two companies he built from scratch to international standards. In a recent interview, he enumerated the various ways Chevron Nigeria continues to play a leading role in building and sustaining the capacity of indigenous companies and Local Community Contractors (LCCs) in Nigeria’s oil and gas industry.
Chevron Nigeria consistently gives opportunities to people with goodattitude, professionalism, creativity and the zeal for excellence. These are the attributes we demonstrate in our interactions with Chevron.
The support from Chevron is tremendous.Chevron is also doing well in terms of empowerment and capacity building of local Communities. For instance, through EGTL project, the company opened a huge door of opportunities for LCCs. Many of the LCCs are still waxing stronger and stronger in service delivery to Chevron Nigeria, other IOCs and off the shores of Nigeria. I started with Gibles Nigeria Limited.We handled blasting and paintin jobs.
The opportunity and support we gotenabled us to float another company-Lead Ultimate Resources Limited, which, from a humble startup rose to handled complex jobs in thermal insulation, and research and development.
We have completed a warehouse to be used in collaboration with foreign partners for paints production. We also provide composite cables range, which include electrical, optical and hybrid subsea underwater cables, high voltage cables as well as composite underwater communication cables, under water TV and video cables, tethers, umbilicals and polyurethane or polyethylene jacketed cables.
We have also diversified into the agricultural sector through Perfect Works Integrated Services Limited and completed the construction of 100ton/month capacity chicken processing plant at Okitipupa, Ondo State. We partnered with NCDMB to train and empower 120 farmers (outgrowers), who will raise chicken for the plant.
It is important to note that Chevron, through its socio-economic development programmes in Nigeria has positively touched the lives of people in communities close to its operations and beyond. For me, I see this as a huge plus because the effort has reduced poverty and unemployment among vulnerable people such as women and children. These vulnerable groups have been trained and start-up grants made available to them. Many of them are now in positions to provide for themselves and members of their families.
Chevron Nigeria encourages and supports local community contractors – Eric Jemijereye
Eric Jemijereye is the Managing Director of JEMTECH Global Engineering Company Services Nigeria Ltd, Ubeji, Warri in Warri South Local Government Area of Delta State. He spoke on how the opportunities Chevron Nigeria gave Jemtech enabled it to move from being a little coating firm to a formidable oil and gas servicing company. Before we got to where we are now, we were a little company involved in coating which was the only opportunity available to local community contractors at that time. As time went on, we moved from coating to welding and fabrication and installations. We have also been handling piling installation, civil and mechanical engineering as well as intro-flushing, hydro-testing, stress relief and a wide range of activities.
When we started, local community contractors were very few. We were given small scope of job to handle and we did it timely and safely. Safety is our number one priority. If it’s not safe, we do not do it. We have that orientation from Chevron.
The truth must be told. Chevron encourages community contractors and others. Once you can perform, Chevron will always support you to grow. I started from a very small unit, but now I am growing bigger and bigger. I remember McDon – an expatriate. He was construction superintendent. The man encouraged me and advised to use the money from the contracts I got from Chevron wisely and invest in my firm. If you can perform, Chevron will be there for you and make sure you succeed.
If not for Chevron, many of the local community contractors will not have the opportunity to prove their capability and competency in the oil and gas sector. Our outputs from test given to us by Chevon proved that local community contractors can deliver to specifications, safely and timely.Our aspiration at Jemtech is to develop our local communities, encourage our people and develop the youth through skill acquisition programme. We have in-house training for our people, and we have been doing that for years.
Awards
Some of the awards Chevron Nigeria received in 2019 for outstanding performance in the oil and gas industry
Awards for supporting the hydrocarbon industry and best performing upstream company in social contribution: Chevron Nigeria received two awards for its contributions to the hydrocarbons industry and excellence in Corporate Social Responsibility. The awards were presented at the 2019 Nigerian International Petroleum Summit (NIPS) organized by the Federal Ministry of Petroleum Resources.
Awards for supporting TB control and elimination: Star Deep Water Petroleum Limited (a Chevron affiliated company and operator of the Agbami field) with other Agbami Parties – Famfa Oil Limited, Nigerian National Petroleum Corporation, Prime 127 Nigeria Limited and Equinor Nigeria Energy Company was honored by the wife of Nigeria’s President, Dr. (Mrs.) Aisha Muhammadu Buhari for their contributions to controlling and eradicating Tuberculosis (TB) in Nigeria.
Awards for leadership and support for local content development: Technology Association of Nigeria (PETAN), an association of oil and gas industry service providers in Nigeria presented PETAN Leadership Award to Jeff Ewing, Chairman and Managing Director of Chevron Nigeria in recognition of his leadership and outstanding contribution to the development of Local Content and the Nigerian Oil and Gas industry at the Offshore Technology Conference in Houston.
Award for Media Support: Association of Energy Correspondents of Nigeria (NAEC) bestowed on Chevron Nigeria an as ‘Outstanding Social Investment Company’ award at the association’s annual conference.
Cautionary statement relevant to forward-looking information
This Corporate Responsibility Report by Chevron contains forward-looking statements relating to the manner of which it intends to conduct certain aspects of its activities, based on its management’s current plans and expectations. These statements are neither promises nor 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 undertakes no obligation to publicly update any statements in this report.As used in this report, the term “Chevron” 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. © 2020 Chevron Nigeria Limited. All rights reserved.
Contact:
Esimaje brikinngeneral manager, policy, government and public affairschevron Nigeria limited2 chevron drive, lekki peninsulalagos, nigeriaP.M.B. 12825© 2019 Chevron Nigeria Limited. All rights reserved.Chevron and the Chevron Hallmark are registered trademarks of Chevron Intellectual Property LLC.