building local capacity
We are committed to having a workforce that reflects the communities where we operate. In 2018, more than 90 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 goods and services, known as “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, 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 in content from our partners and trained more than 4,100 local business owners.
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 content. These partnerships create an opportunity for local businesses to gain access to new technology, bring their processes up to international standards and train their workforce on the latest industry practices.
In the United States, we spent more than $1.8 billion on goods and services from small businesses in 2019, of which $650 million was with woman- and minority-owned businesses.
From 1993 through 2019, TCO made direct financial payments of over $146 billion to Kazakhstani entities, including Kazakhstani employees’ salaries, purchases of Kazakhstani goods and services, tariffs and fees paid to state-owned companies, profit distributions to Kazakhstani shareholder and taxes and royalties paid to the government.
In Kazakhstan, the Chevron-led Tengizchevroil (TCO) joint venture continues to increase spending on local content. In 2019, TCO spent more than $4.6 billion on goods and services from domestic producers, including more than $3.25 billion to support the next phase of expansion at the Tengiz Field – the exciting Future Growth Project–Wellhead Pressure Management Project (FGP-WPMP). Since its inception, TCO has invested more than $32.9 billion in Kazakhstani goods and services and continues to identify methods to increase spending on quality local goods that meet the challenging operating conditions in the field. TCO believes that the best way to achieve its local content commitment is to generate long-term opportunities for the in-country suppliers of goods and services. To do so, TCO continues to support the sustainable development of Kazakhstani suppliers by encouraging appropriate investments in infrastructure, the development of Kazakhstani capability and capacity, and the creation of employment opportunities. Kazakhstani citizens also hold 80 percent of positions in TCO’s Base Business and FGP-WPMP. Excluding the FGP-WPMP workforce, Kazakhstani citizens hold 89 percent of TCO positions compared to 50 percent in 1993.
In Australia, from 2009 through 2016, we created almost 19,000 jobs, awarded nearly 1,000 contracts to Australian companies to develop the Gorgon and Wheatstone projects, and committed more than $50 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, both for our business and for the communities where we operate.