press release

Occupation of Escravos Ends as Chevron and Ugborodo Community Sign Agreement

This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, Chevron Nigeria Limited, and archived here for record purpose.

LAGOS, NIGERIA, July 17, 2002 -- Chevron Nigeria Limited and the leaders of Ugborodo communities signed today a Memorandum of Understanding (MOU) that outlines their joint obligations towards the sustenance of a mutually beneficial partnership. The agreement also ended the 10-day long occupation of the NNPC/Chevron owned Escravos TankFarm by over 200 community women.

Under the MOU, the NNPC/Chevron Joint Venture is committed to further enhancing the quality of life in the Ugborodo communities through regular offer of jobs to the people, the establishment of income and wealth generating schemes as well as through the provision of vital infrastructure such as school blocks, town halls, electricity and potable water. The communities, on their part, are obliged to maintain the peace and embrace dialogue in their relationship with Chevron.

"We are delighted that this crisis has been resolved peacefully through dialogue, even though the process has been very painstaking. The agreement reached today between us and the community demonstrates our unwavering commitment to being a good partner focused on building productive, collaborative, trusting and beneficial relationships with our communities and other stakeholders,'' said Mr Jay Pryor, Chairman and Managing Director, Chevron Nigeria Limited.

Principal stakeholders in Government and the communities have actively supported the peaceful negotiation of the crisis which began with the invasion of the TankFarm on July 8. Among them are the paramount traditional ruler of the Itsekiris, the Olu of Warri; the Governor of Delta State, Chief James Ibori; and the Management of the NNPC. During the occupation, vital oil and gas operations, from the company's producing fields in the Western Niger Delta, were disrupted.

Meanwhile, another batch of women from Ijaw communities yesterday invaded four NNPC/Chevron owned flowstations located in the swamps of the Western Niger Delta. Before the arrival of the women, the Company had evacuated its employees from the facilities located at Abiteye, Makaraba, Otunana and Olero creek. Negotiations towards a peaceful resolution of the invasion will begin soon.

Updated: July 2002