building local capacity
We are committed to having a workforce that reflects the communities where we operate. In 2016, 94 percent of our employees worked in their home countries. We train the local people we hire, developing their skills and capabilities, and we have many programs in place that build capacity within the broader local communities.
We use customized approaches to develop national and local content for our major capital projects and our ongoing operations. Our processes are grounded in lasting partnerships. We collaborate with national and local governments, national oil companies, nongovernmental organizations and development agencies to identify high-impact, sustainable supplier and workforce development opportunities. We do this within our own supply chain and within our contractors’ supply chains. In Indonesia, our local business development program (LBD), launched in 2001 in East Kalimantan and West Java, has resulted in more than 7,800 contracts with local Indonesian companies, created nearly 52,000 jobs, procured more than $120 million (1.2 trillion rupiah ) in goods and services from LBD partners, and trained more than 4,100 local businesses.
After local companies are identified, we design and implement programs to help them meet industry standards and provide goods and services to Chevron and other oil and gas producers. Metrics are agreed upon with our partners and suppliers to make sure that desired outcomes—in terms of quality, timeliness and cost—are achieved.
Chevron recognizes that the positive local impact of our supply chain investments can be amplified by the sourcing decisions of our suppliers. So we encourage all of our major international suppliers of goods and services to form partnerships with local businesses and maximize the purchase of local goods and services. These partnerships create an opportunity for local businesses to gain access to new technology, bring their processes up to international standards and train their people on the latest industry practices.
In Kazakhstan, the Chevron-led Tengizchevroil (TCO) joint venture has done exactly this by collaborating with our international supplier, Nabors Industries Ltd., one of the world’s largest oil and gas drilling contractors. With encouragement from TCO, Nabors Industries has partnered with the Kazakh-owned KMG Drilling & Services. The new entity, KMG Nabors Drilling Company LLP (KMG Nabors), is one of the first Kazakhstani drilling companies to meet the standards and requirements of large operators such as TCO, and it has hired more than 100 Kazakhstani employees to support the contract with TCO. KMG Drilling & Services is also benefiting from the partnership, thanks to improved safety processes and practices as well as significant technology transfer: the local company now has two world-class drilling rigs, one of which is the most advanced in the region. In 2016, TCO spent $1.9 billion on goods and services that qualify as local content, which represents 40 percent of TCO’s total goods and services investment in Kazakhstan.
In 2016, we spent more than $570 million on goods and services from woman- and minority-owned businesses in the United States and more than $1.8 billion on goods and services from U.S.-based small businesses.
In Australia, from 2009 through 2014, we created 19,000 jobs, awarded nearly 1,000 contracts to local companies, and committed more than $5 billion to Australian goods and services.
Chevron is committed to supporting the economic development of the Richmond, California, community and is proud to sponsor the Contra Costa County Office of Education’s Regional Occupational Program (ROP). This program offers two separate courses that provide free job training and equip residents with the skills to compete for well-paying jobs, including technical jobs at Chevron’s Richmond Refinery. ROP courses help students develop strong communication skills strengthen their analytical skills and teach them how to work productively both independently and as part of a team.
Ohio, Pennsylvania and West Virginia
The Appalachia Partnership Initiative has committed $20 million from Chevron and encourages additional funding from regional corporations and nonprofit partners to build long-term, sustainable science, technology, engineering and mathematics education and technical training programs to develop a skilled workforce to meet the needs of the energy and related manufacturing industries through the development of new programs and expansion of existing work. Since 2014, leveraged partner funding has reached nearly $8 million, or 40 percent of Chevron’s investment.
In partnership with Casa de Amigos, Chevron supports a job-training program in the Permian Basin that helps equip low-income women and men with the skills to obtain high-paying jobs and attain financial security. In 2016, the program served 184 people who were able to gain access to skills training and preparation for future jobs.
In 2016, Chevron celebrated 10 years of partnership between our Pascagoula Refinery and the Mississippi Gulf Coast Community College (MGCCC). For the past decade, Chevron has supported the innovative Process Operations Technology program at MGCCC, which trains students to work at the refinery and other plants across the Mississippi Gulf Coast. Students in the program learn to work with equipment similar to that used at Chevron’s refinery, making it a natural and valuable pipeline of local talent to help meet our hiring needs. Since the inception of the partnership, Chevron has hired 86 program graduates, hosted 190 interns and co-ops , and provided course scholarships to more than 30 students.