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.
We invest in workforce training and job skills development because we know that an educated and skilled workforce leads to economic growth, for our business and the communities where we operate.