2017 corporate responsibility report

2017 corporate responsibility report chevron in Nigeria

human energy R

chevron in Nigeria 1 2017 corporate responsibility report

2 chevron in Nigeria 2017 corporate responsibility report

“We are the partner of choice not only for the goals we achieve but how we achieve them”

At the heart of The Chevron Way is our vision … to be the global energy company most admired for its people, partnership and performance.

We make this vision a reality by consistently putting our values into practice. The Chevron Way values distinguish us and guide our actions so that we get results the right way.

Our values are diversity and inclusion, high performance, integrity and trust, partnership, protecting people and the environment.

Cover photo credit: Marc Marriott

Produced by: Policy, Government and Public Affairs (PGPA) Department, Chevron Nigeria Limited

Design and Layout : Design and Reprographics Unit, Chevron Nigeria Limited

chevron in Nigeria 3 2017 corporate responsibility report

the chevron way explains who we are, what we do, what we believe and what we plan to accomplish

4 chevron in Nigeria 20172017 ccorporateorpporatee resresponsibilityponssibility reportreport

table of contents

message from the CMD 6

about chevron in nigeria 7

social investments 8

health 9 education 12 economic development 16

partnership initiatives in the niger delta 20 engaging stakeholders 26

our people 29

operating responsibly 35

nigerian content 41

awards 48

chevron in Nigeria 5 2017 corporate responsibility report

of rapid change in the oil and gas industry, our focus remains on delivering that vision in an ethical and sustainable way.

Our corporate responsibility focus areas are aligned with our business strategy of delivering industry-leading returns while developing high-value resource opportunities. We make the difference in the energy sector by building solid partnerships with the government, our suppliers and the community. We are committed to continually improving the quality of life of the people of Nigeria through our social investments and community engagement initiatives.

Chevron remains focused on operational excellence, which drives our delivery of industry leading performance through safe, reliable, efficient and environmentally sound practices. We continue to be recognized for our efforts as a responsible, equal opportunity employer as reflected in our commitment to our people, who are our best assets and ambassadors. Our workforce is dedicated to our purpose of developing the energy that improves lives and powers the world forward.

Our 2017 Corporate Responsibility Report highlights activities and accomplishments from the year through the support of the Nigerian National Petroleum Corporation (NNPC), our partners, suppliers, employees, contractors, and other stakeholders. It provides details of a message from how Chevron is delivering positive social and economic programmes in Nigeria through effective partnerships and our achievements in jeffrey ewing the key focus areas of Stakeholder Engagement and Social Investments; Health, Safety and the Environment; Human Resource Development; and Nigerian Content Development.

At Chevron, we strive to build lasting In over five decades of operations in relationships to create prosperity now and for Nigeria, Chevron has continued to generations to come. This report reflects that distinguish itself as a responsible company commitment. by conducting business in a socially and environmentally responsible manner; respecting the laws, and contributing to the socio-economic development of the communities where we work. We are guided by our values anchored on our vision to be the global energy company most admired for its people, partnership and performance. Against the backdrop Chairman and Managing Director Chevron Nigeria/Mid-Africa Business Unit

6 chevron in Nigeria 2017 corporate responsibility report

about chevron in Nigeria

our company’s foundation is built on our values, which distinguish us and guide our actions to deliver results

Chevron is the third largest oil company operations. The company build on the communities’ focus on producer in Nigeria and one of the operates the Escravos Gas Plant growing small businesses, increasing largest investors in the country, with which is the processing facility for the household income and employment, billions in annual capital investments. Sonam Development Field. The 40 and aligning with the United Nations’ percent-owned and operated Sonam Sustainable Development Goals. Chevron companies in Nigeria have natural gas field is expected to deliver varying interests in nine Deepwater a total of 215 million cubic feet of the the chevron way blocks offshore, with the company natural gas per day to the domestic operating three of these blocks. gas market and produce a total of vision Chevron’s interests in Nigeria include 30,000 barrels of liquids per day. At the heart of The Chevron Way is the Agbami Field, which is Nigeria’s our vision: to be the global energy largest discovery. The Agbami Field Chevron takes its role as a member company most admired for its people, lies 70 miles (113 km) off the coast of the Nigerian community seriously, partnership and performance. of the central Niger Delta region, and is active in many corporate spanning 45,000 acres (182 sq. km). responsibility projects promoting enabling human progress Chevron also has a 30 percent non- health, education and economic We develop the energy that improves operated working interest in the Usan development. lives and powers the world forward. Field, located in 2,461 feet (750 m) of water, 62 miles (100 km) off the coast In 2005, Chevron pioneered a values of the eastern Niger Delta region. new approach to community Our company’s foundation is built on engagement in the Niger Delta to our values, which distinguish us and A Chevron company also operates improve community participation guide our actions to deliver results the and holds a 40 percent interest in in determining the social and right way. We conduct our business eight concessions in the onshore and economic needs of our neighboring in a socially and environmentally near-offshore regions of the Niger communities. This model, called responsible manner, respecting the Delta, operated under a joint-venture the Global Memorandum of law and universal human rights, to arrangement with the NNPC, which Understanding (GMoU), gives benefit the communities where we holds a 60 percent interest. communities a greater role in work. managing their own development Chevron is continuing its efforts to through Regional Development Chevron’s core values are: monetize recoverable natural gas Committees (RDCs). The objective ȼˏ %2!./%05ˏ* ˏ%* (1/%+* resources of approximately 17 trillion is to bring peace, sustainable ȼˏ $%#$ˏ,!."+.)* !ȓˏ cubic feet in the Escravos area development and stability to areas ȼˏ %*0!#.%05ˏ* ˏ0.1/0ȓˏ through a combination of domestic where Chevron operates. In 2015, ȼˏ ,.0*!./$%,ȓˏ* ˏ and export sales and use as fuel in the company launched GMoU+ to ȼˏ ,.+0! 0%*#ˏ,!+,(!ˏ* ˏ0$!ˏ environment.

chevron in Nigeria 7 2017 corporate responsibility report

social investments

60,000 49,808 N1.18 school children community members billion benefited from our benefitted from the worth of projects mass deworming River Boat Clinic were initiated by programme services 3 RDCs under the GMoU programme

8 chevron in Nigeria 2017 corporate responsibility report

social investments health interventions

Chevron adds significant value to Nigeria by supporting improved access to health care, education and socio-economic development opportunities

We believe that good health is other key stakeholders received comprehensive clinical care. The central to social progress. It is for environmental sanitation/hygiene and project also reached 6,844 women of this reason that we have committed malaria control education; 44 health reproductive age with HIV/antenatal substantial resources over the years workers and 74 sanitation officers care and PMTCT messages. toward improving access to quality were trained; and 3,500 long-lasting health care for people in our areas of insecticide-treated nets and 205 river boat clinic operation and beyond. We support refuse bins were distributed. In 2017, over 49,808 community programmes and partnerships to fight members benefitted from the River HIV/AIDS, Malaria, Tuberculosis and HIV/AIDS campaign Boat Clinic (RBC) services and other diseases. In 2016, Chevron announced an improved access to health care. The additional $1.4 million in funding RBC is a mobile clinic that serves mass deworming to support the second phase of communities located along the creeks In 2017, the company launched its the Prevention of Mother-to-Child and islets in the Escravos areas of the deworming campaign in Idanre, Owo Transmission (PMTCT) project known Western Niger Delta where there is no and Okitipupa Local Government as PROMOT II in Bayelsa State. Led access to health care. In 2017, about Areas of Ondo State. About 60,000 by Pact Nigeria in partnership with 19,273 patients received treatment school children benefited from the Community Based Organizations for illnesses and injuries; 8,937 people medicinal exercise, which contributes (CBOs) and Chevron, the primary received preventive health education; to their good health and nutrition. goal of the project is educating and 1,298 children under the age of and mobilizing the population in five were vaccinated or immunized. roll back malaria targeted communities to reduce In 2017, NNPC and Chevron carried mother-to-child transmission of HIV. Established in 2001, the RBC remains out its annual Roll Back Malaria PROMOT II focuses on healthcare- the first of its kind in Nigeria. Under programme in Yenagoa, Bayelsa State, seeking behaviors amongst women of this programme, the Delta State in partnership with the State Ministry reproductive age, particularly those government provides the medical of Health and the National Malaria living with HIV. personnel while NNPC and Chevron Elimination Programme (NMEP). The provide the boat and medical supplies. four-month programme focused on Overall, PROMOT II’s activities Environmental Sanitation, Community reached 7,085 direct beneficiaries other health interventions Awareness, Prevention and Capacity in 2017. The project counseled and Chevron continued to help strengthen Building. During the programme, tested 1,020 pregnant women. 19 the nation’s health care system 8,000 community members and HIV-positive women were provided through advocacy and awareness

chevron in Nigeria 9 2017 corporate responsibility report

“ We thank Chevron Malaria screening for children below the age of five was a major feature of the Roll Back initiative funded by the NNPC/ CNL JV in 2017 for the continued successful implementation of campaigns throughout the country Tuberculosis and provided training the PROMOT project during 2017. and counselling on treatment and and we assure you management of the infection. of our commitment ȼˏ 0.ˏ!!,30!.ˏ!0.+(!1)ȑˏˏ These campaigns were held in four to ensuring its Chevron company, and its parties local government areas in Akwa in the Agbami field, donated fully Ibom, Nasarawa and Oyo States. sustainability in furnished and equipped Chest Bayelsa State.… Going Clinics. ȼˏ +ˏ!*/1.!ˏ0$!ˏ/"!05ˏ+"ˏ%#!.%*ˏ forward, the State doctors, nurses and technicians, chapter of the Nigerian ȼˏ ))*1!(ˏ!*!.(ˏ+/,%0(ˏ Agbami parties worked with in Akwa Ibom State, one of the Federal Ministry of Health Medical Association the benefitting institutions of to publish Standard Operating will collaborate with the Chest Clinics, reported Procedures and National PROMOT and the a 26 percent increase in the Guidelines on Biosafety for Niger Delta University Tuberculosis cure rate from 2015 Tuberculosis Laboratories. These to explore capacity to 2017. critical manuals were developed by Nigeria’s top medical building in Polymerase ȼˏ $!2.+*ˏ* ˏ%0/ˏ
#)%ˏ,.0%!/ˏ practitioners to standardize the TB Chain Reaction (PCR)

partnered with local non- health care management system in testing, which is a key

governmental organizations Nigeria. component of the (NGOs) on campaigns to raise “ awareness on the dangers of project.

Prof. Ebitimitula Etebu, Commissioner for Health, Bayelsa State

10 chevron in Nigeria 2017 corporate responsibility report

Focus Story ‘PROMOT, a Life Saver,’ says beneficiary

Two days in the life of a young mother For Sampo, the priority was clear - smile. “I was told that nothing would and her unborn child; one, causing get Ebi into treatment and prevent happen to me or my baby if I took my dread, denial and hopelessness, transmission of the virus to her medication. I am healthy and my baby the other, bringing hope, joy and unborn baby. She enrolled Ebi in is, too,” she added. salvation. antenatal care and antiretroviral therapy at the health facility. Ebi also Pact’s partnership with Chevron began Kaiama is a small town in Bayelsa began the “adherence counseling” to in 2012, and to date, over 400,000 State in the Niger Delta region of make sure she stayed on treatment. individuals in Bayelsa State have Nigeria, about half an hour’s drive received HIV messaging under the from the capital, Yenagoa. Sampo When Ebi went into labour, she programme. About 1,000 HIV-positive Inemotimi, the community health knew what to do. She went straight women who knew their status through extension worker in the Primary to a health center so her baby girl the programme have been linked to Healthcare Centre, is also a Prevention could immediately be given the drug comprehensive HIV care. of Mother-to-Child Transmission of Nevirapine. Today, Ebi remains on HIV (PMTCT) mentor with PROMOT treatment, and she was ecstatic when While much of Pact’s work to stop II project. She conducts health her baby’s early infant test came back the spread of HIV has been publicly education programmes to reach out HIV-negative six months after she was funded, private-sector partnerships to mothers and young women in the born. like the one with Chevron have played semi-rural community where early a critical part in Pact’s response to the marriages are common. “I am very, very happy for the mother epidemic – both in accelerating impact and that the baby’s results came back and in making sure interventions are Ebi Patrick, a young mother of four unreactive,” said Sampo. successful. who was pregnant with her fifth child, had heard about the outreach Sampo “I am so happy because my baby is was conducting and volunteered not infected,” said Ebi with a wide for HIV testing. Ebi Patrick’s results came back positive. At first Ebi did not believe the results, but Sampo encouraged her to take a follow-up test, which confirmed her HIV status.

Having dealt with other cases before Ebi’s, Sampo knew support and follow up were critical to ensure a successful outcome. However, Ebi’s case was a bit more complex. She was also one of four wives. Ebi couldn’t believe her HIV status and had many questions begging for answers. How did she get infected? Who passed it on to her? How long has she had the virus? How would her husband react? What would the community and the other wives say? What should she do now?

Ebi Patrick and her baby

chevron in Nigeria 11 2017 corporate responsibility report social investments education

Chevron believes that if people and communities are to thrive, education and job training are of critical importance. The thrust of our educational support strategy is improved access to education for all Nigerians. Chevron and NNPC partner on many of these programmes.

Pupils of Regency College during the STEM Quiz competition community scholarship award: in higher institutions of learning. national university Between 2008 and 2017, the scholarship: This award is exclusively for company spent N2.48 billion on this communities located in the company’s program, which has attracted 11,499 This is a merit-based programme for areas of operation. Scholarships beneficiaries in the last 10 years. full-time, second-year undergraduates are awarded to students in both In 2017, 1,214 undergraduate and in Nigerian universities (Federal, secondary and tertiary institutions – post-primary school scholarships State and Private) in all states of the 60 percent for students in secondary were added to the pool of Community Federation including the Federal schools and 40 percent for those scholarship programmes.

12 chevron in Nigeria 2017 corporate responsibility report

Winners of the 2017 National Art Competition for Nigerian Secondary Schools in a group photograph with dignitaries during the Award and Exhibition

Edo, Enugu and Zamfara states to Capital territory (FCT). agbami medical and enable high performance in the In 2017, 300 scholarships were engineering professionals sciences. Since 2008, 33 such awarded comprising 231 males scholarship: complexes have been donated to and 69 females (33 percent of the institutions across Nigeria. beneficiaries are studying engineering while 20 percent are in medicine). In 2017, Star Deepwater Petroleum Limited, a Chevron company, and Star Ultra Deep Petroleum Limited Also in 2017, 279 scholarship and its partners in the Oil Mining beneficiaries graduated. Out of this its parties in the Agbami field, added 235 scholarships to the License (OML) 140 provided number, 35 emerged with First Class textbooks, computers, laboratory Honours, 128 had Second Class pool of high-performing university students to this program which equipment to five secondary schools Honours and 39 graduated in different in Imo state which impacted over branches of the medical field. commenced in 2009. Also in 2017, 2,334 beneficiaries graduated from 400 school children in 2017. Teacher- training sessions were also carried scholarships for the visually their various universities. Out of this number, 298 emerged with First Class out. impaired and physically Honours, 1,416 graduated with Second challenged: Class Honours and 619 graduated in different branches of the medical chevron employee volunteer These scholarships are for the visually field. programme: impaired and physically challenged who are indigenes of states where libraries and laboratory The Chevron Employee Volunteer Chevron operates. In 2017, 19 new complexes: Programme is an initiative that beneficiaries were added to the encourages employees to give back existing 47. The company has invested Agbami parties commissioned and to society in line with the company’s a total sum of N18 billion on the handed over fully equipped Science tradition of care. In 2017, employees various scholaship programmes Laboratories to schools in Abia, Delta, made significant contributions to during the year. various institutions and communities,

chevron in Nigeria 13 2017 corporate responsibility report

Star Ultra Deep Petroleum Limited (a Chevron company) and its partners in the Oil Mining License (OML) 140 during the donation of teaching aids to schools in Ogun State including the donation of educational There was also a science project materials to Government College competition for graduates of STEM (Boys) and Government Girls College, disciplines (specifically engineering both in Maiduguri; the construction graduates under the Agbami of a potable water borehole to the scholarship scheme) and secondary Command Secondary School, Iyana school students who made innovative Ipaja; the renovation and furnishing contributions to STEM. Between “ of the school library at Stella Maris The event, which attracted students 2008 and 2017, the College Okitipupa, Ondo State; the from both public and private provision of desks, chairs, windows secondary schools in Lagos, also company spent and doors at Ugbomro Primary featured an insightful panel discussion School Effurun Warri, Delta State; and on “STEM Education - Empowering N2.48 billion the provision of relief materials, food the Next Generation of Game on community and clothing to Internally Displaced Changers.” Persons (IDPs) in Makurdi, Benue scholarship State. competitions: programmes, which

support for STEM education: In 2017, Chevron Nigeria continued its has attracted 11,499

sponsorship of several competitions: beneficiaries in the To encourage the teaching and “ National Art Competition for Nigerian learning of the science, technology, Secondary Schools, with the aim last 10 years. engineering and mathematics (STEM), of raising and sustaining students’ Agbami parties hosted over 150 interest in the creative arts; Chris students to the second edition of the Ikomi Essay Competition; Awokoya STEM Symposium at the Honeywell Chemistry Competition for secondary Auditorium of the Lagos Business schools in Delta State; the Nigerian School. Media Merit Award; and the Wole Soyinka Award for Investigative Reporting.

14 chevron in Nigeria 2017 corporate responsibility report

Focus Story

scholar turns company owner

He graduated in 2014, but today, Vincent Ajilo is not only a successful engineer, he has also emerged as a fast-growing employer of labor in the Nigerian oil and gas industry. His story is a lesson in hard work and perseverance that inspires hope.

He was born into a relatively comfortable family. At the age of eight, the family hit a rough patch which threatened the future of the precocious child. As young as he was at the time, Vincent was not deterred. Even as a child, he realized that the only way to get his family out of the pangs of poverty was by working hard in school. He remained top of the class and though this was impressive and encouraging, he needed help or his dream of being an engineer would suffer. This is where his relationship with the Agbami Medical and Engineering Professionals Scholarship (AMEPS) programme started.

In 2009, the Agbami parties, including, FAMFA Oil Nigeria Limited, Statoil, Petrobras and the NNPC, established AMEPS to encourage science education in the country. Vincent, then a 200-Level undergraduate engineering student at the University of Ibadan, emerged as one of its pioneer beneficiaries.

The scholarship lifted a major burden off his shoulders, which enabled him to concentrate on his studies. “With this scholarship and other grants that I received, the distraction of wondering where my next meal would come from was no longer there and I could focus on my academics. AMEPS had a positive impact on my career development and supported my academic pursuits,” Vincent said.

After graduating with a First-Class Honours degree in Engineering, Vincent went on to obtain his Master of Science degree in Petroleum Engineering.

He is now the Chief Executive Officer of Ajivin Integrated Solutions, a private firm that delivers services to the oil and gas industry. His company is currently contracted to manage the construction of a 46-kilometer export pipeline as well as the installation of a Floating Storage and Offloading (FSO) vessel for a local company.

His family now has a support line through his business endeavours. The scholarship, according to him, acted as a ‘spark toward his life and career achievements.’ He said, “The Agbami Scholarship programme is highly needed by students. I am a living proof of its importance. It helps beneficiaries secure their educational needs - tuition, accommodation, food, and course materials. It also encourages them to study harder to remain on the scholarship programme, which is a requirement for continuous reimbursement. Ultimately, it helps beneficiaries achieve career goals. And for parents, the financial burden is totally removed or reduced. The Agbami scholarship program is a practical act of giving back to society.”

Vincent Ajilo

chevron in Nigeria 15 2017 corporate responsibility report social investments economic development

Multi stakeholder partnerships are at the heart of our innovative and strategic socio-economic investments in Nigeria.

Dividend of the GMoU: A Jetty at Ajama Zion, constructed by the Egbema Gbaramatu Communities Development Foundation to facilitate ease of transportation

areas of operation. Working through ȼˏˏˏ ˏ +))1*%05ˏ+3*!./$%,ˏ+"ˏ global memorandum of Regional Development Committees projects and programmes understanding (GMoU): (RDCs), the GMoU gives communities ȼˏ ,.+)+0%*#ˏˏ/!*/!ˏ+"ˏ!(+*#%*#ˏ greater roles in management of their in the business of the company In 2005, Chevron introduced development. The principles of the ȼˏ )+*%0+.%*#ˏ* ˏ!2(10%+* the Global Memorandum of GMoU are: Understanding (GMoU) a multi- ȼˏ ,.0% %,0+.5ˏ,.0*!./$%, The GMoU process has benefitted stakeholder participatory partnership ȼˏ 0.*/,.!* 5ˏ* ˏ +1*0%(%05 about 600,000 people in more model for community engagement ȼˏ /1/0%*(%(%05ˏ//1.* ! than 400 communities, villages and and community development to ȼˏ ,! !ˏ1%( %*# chiefdoms. Since 2005, Chevron and address community needs near our ȼˏ , %05ˏ1%( %*#ˏ the NNPC have contributed about

16 chevron in Nigeria 2017 corporate responsibility report

The Chevron booth at the 2017 Society of Petroleum Engineers (SPE) Exhibition in Lagos

N19.9 billion to fund the GMoUs. Areas of Rivers State in technical Nigerian PHD students to undertake In 2017, three RDCs (Ilaje, KEFFES, vocations such as welding and research work in fields related to Egbema-Gbaramatu Communities fabrication, fashion and design, nature conservation and sustainable Development Foundation) initiated automobile works, plumbing, and livelihood and the Walk for Nature 41 projects including electricity, computer repairs. The training also programme in commemoration of the health, transportation, and social focused on agriculture-based skills World Environment Day. infrastructure worth over N1.18 billion. acquisition in fish, snail and poultry Of those projects, 24 (worth over farming. Other reputable charities, professional N517 million) were completed and organizations, non-governmental and commissioned, benefitting over donations and sponsorships: nonprofit organizations supported 48,400 community members As a demonstration of the company’s by the company include; the Institute commitment to responsible of Chartered Accountants of Nigeria support for local businesses: environmental stewardship, Chevron (ICAN): the Chartered Institute of Personnel Management (CIPM); the Chevron continues to help secure a provides an annual subvention Nigerian Institute of Public Relations productive future for Nigerians by for the maintenance of the Lekki (NIPR); the Nigerian Mining and providing economic empowerment Conservation Centre (LCC), the Geosciences Society (NMGS); the initiatives to start up and support 78-hectare facility built by Chevron for Nigerian Association of Petroleum local businesses. We recognize that the Nigerian Conservation Foundation Explorationists (NAPE); the Society of skills acquisition is the bedrock of job (NCF), as a reserved sanctuary for Petroleum Engineers (SPE); Women creation. the rich flora and fauna of the Lekki Peninsula. N60.1 million was released in Management, Business and Public Services (WIMBIZ); and the Musical training and capacity building: in 2017 to the NCF for both capital and recurrent expenditures. We also Society of Nigeria (MUSON). Star Ultra Deep Petroleum Limited (a supported the Foundation’s activities Chevron company) and its partners in including the Chief S.L. Edu Memorial the OML 140 asset trained 55 young Lecture, annual grants to two persons from 12 local Government

chevron in Nigeria 17 2017 corporate responsibility report

N867 million leveraged in new investments from government and private sector

2,021 farmers trained via Aquaculture Service Providers (ASPs)

18 chevron in Nigeria 2017 corporate responsibility report partnership initiatives in the Niger Delta

The Foundation for Partnership Initiatives in the Niger Delta (PIND) was established in 2010 as a non-profit foundation in Nigeria to serve as the operational entity funded by the Washington, D.C.-based Niger Delta Partnership Initiative (NDPI).

PIND develops new solutions to the economic and social development challenges in the Niger Delta, and complements Chevron’s GMoU process, which has been an effective model for building relationships and managing risks from communities close to the company’s operations.

PIND’s regional social risk management strategy focuses on four main areas: Economic Development; Capacity Building; Peace Building; and Analysis and Advocacy.

economic development: Training includes: how to select and workshops for palm oil farmers, PIND’s agricultural value chain appropriate catfish species; how to processors and equipment fabricators interventions worked to improve the prepare, screen, and lime ponds; reached a total of 7,305 participants agronomic and business practices how to effectively use fertilizer, feed, in 2017. of farmers. By the end of 2017, it medicine, and water testing kits; and had leveraged over 841 million naira how to maintain proper records. Since 2010, PIND trained 17,795 in new investments from both the farmers on Best Management government and private sector The 20 ASPs trained by PIND reached Practices to improve field access, through partnerships in its supported another 7,025 farmers by September, ground cover management, herbicide aquaculture, cassava and palm oil up from the 3,610 reached in 2016, application, fertilizer application, sectors. and facilitated 782 full time jobs in pruning, canopy management, the process. It also catalyzed private harvesting, yield taking, record These investments catalyzed adoption sector fish feed companies to invest keeping, and work rate systems. of best practices and use of efficient in grants and loans totaling over 284 technologies, which increased the milion naira to run demonstration Through engagements with palm agricultural productivity of 13,279 ponds as part of their marketing oil stakeholders, including farmers farmers; lead to a net increased strategy to reach new markets. and processors, 20 agro-dealers and income of over N1.9 billion for 3,787 37 local fabricators trained by PIND smallholder farmers and Small-to- These improvements have had a continued promoting the Mechanical Medium Enterprises (SMEs); and significant impact on the profitability Adjustable Harvester (MAH) and facilitated the creation of 1,990 full- of fish farmers. Following PIND’s Malaysian Knife (MK), for more time jobs across the sectors. interventions, fish farmers had a efficient harvesting of palm fruits, combined net additional income of and the use of Small Scale Processing aquaculture: over 187 million naira in 2017. Equipment (SSPE) for increased PIND’s aquaculture programme efficiency in processing palm oil. increased the sustainability of its agronomics: demonstration ponds by training PIND continued its work to improve By the end of 2017, PIND facilitated aquaculture service providers (ASPs) agronomic practices, increase 337 new full-time employment to make a business out of training access to efficient technologies, and opportunities in palm oil, increased new entrants and existing fish improve farmers’ access to quality the availability of more efficient farmers on best agronomic practices. seedlings. The seminars, trainings technologies through the sale

chevron in Nigeria 19 2017 corporate responsibility report

Capacity Building- Bridget Affiah of Ideal Women’s Empowerment Initiative (center) in a workshop with local businesswomen in Warri, Delta State

of 74 SSPEs, 155 MKs and 57 To expand outreach to farmers, It also leveraged 274 million naira in MAHs (compared to 18, 110 and 28 demonstration plots were investments in small businesses. By respectively during the same period in established in Akwa Ibom, Abia, September 2017, 513 SMEs reported 2016). The improvements in practices Edo, Delta, Imo and Ondo states, that new sales had increased their net and access to technologies helped facilitating 204 jobs and reaching additional income by over 788 million increase 800 farmers’ net additional 2,451 farmers, of which 1,389 saw naira. Additionally, 337 new full-time income by over 767 million naira which increased net additional income of jobs were created. surpassed the 2017 target by 53%. over 209 million naira by the end of 2017. water, sanitation and hygiene cassava A key focus of the cassava PIND’s Water, Sanitation and Hygiene Following the successful pilot of programme was to ensure at least (WASH) programme garnered a cassava demonstration plot in 30 percent participation of women. support from international bodies Ubulu Uku, Delta State, PIND set-up The assessment of trainings done in during 2017. additional demonstration plots in Mbiri, Mbiri and Umukabia showed that out Delta State, and Umukabia, Imo State. of a total of 795 beneficiaries, 415 PIND continued its partnership with This work was done in partnership with were women (52 percent). International Rotary Club’s Water agricultural input companies Notore, Sanitation and Hygiene Rotarian Jubaili, and Harvest Field, leveraging business linkages Action Group (WASHRAG) to over 74 million naira from these private PIND’s economic development work improve WASH access in 30 Niger sector investments. This project also helped improve the business Delta schools. Toilet facilities were targets improving farmers’ agronomic outcomes and competitiveness built or refurbished in 14 schools. practices, such as land preparation, of small businesses via access to While building these WASH facilities, use of improved cassava stems, weed markets, finances, technical support PIND worked with each school to management, herbicides and fertilizer and business advisory services for set up student-led WASH clubs, application for higher productivity. select Niger Delta-based SMEs. which help to raise awareness of After the harvest, a post-pilot survey The working capital was provided better hygiene practices. PIND also showed improved practices in Delta through a Technical Assistance Fund. worked with WASHRAG to build local and Imo states and increased farmers’ organizations’ capacity by hosting a output from 8.33 tons per hectare to Working with nine business service training of trainers for government 18.6 tons per hectare (a 123 percent providers (BSPs) trained by PIND, and civil society actors on how to increase). the foundation reached 1,502 small effectively improve WASH practice in businesses with technical assistance. their areas.

20 chevron in Nigeria 2017 corporate responsibility report

PIND also completed delivery of its PIND facilitated the opening of P4P in grant making, ICT skills, financial Cooperation Agreement with the sub-chapters in two remote riverine management, monitoring and UNICEF to enhance peacebuilding areas where CNL’s Ilaje and KEFFES evaluation, resource mobilization, in 10 Local Government Areas in Regional Development Committees fundraising and social media, as five Niger Delta states. This was (RDCs) are located. This effort well as the Making Markets Work achieved by developing systems to involved local actors being trained in for the Poor (M4P) development mainstream conflict sensitivity in conflict mitigation and assessment. approach, done in collaboration with WASH programming and build the PIND’s Integrated Peace and UK Department for International capacities of local institutions to use Development Unit conflict incident Development (DFID)-funded Market these systems to strengthen social reporting and novel Short Message Development (MADE) project. bonding and mitigate conflict in Service (SMS)-based early warning project communities. platform increased its positioning as a PIND also boosted the ability of center for innovation and research for trained institutions to deliver improved The partnership produced standard peace building practices for the role services to communities by providing national training manuals on it is playing in reducing violence in them with small grants. These grants Delivering Effective WASH Training the region. In 2017, 157 stakeholders enabled them to procure more robust (DEWT) and Community Water Safety utilized its peace building data for information technology tools which, Planning, and trained over 100 trainers diverse purposes. in turn, improved their work efficiency on the methodologies. During the and productivity. It also linked the year, there was an increase in the capacity building: organizations to mentors to help improve their practices in key areas, number of agencies and organizations Through its Capacity Building and created a Community of Practice requesting and attending the DEWT programme, PIND continued to help to encourage peer-to-peer learning training, including the National transform government, civil society among the various civil society Water Resource Institute; the Federal and local communities into forces organizations. Ministry of Water Resources; United for social and economic change by Purpose; Action Against Hunger; and improving their capabilities to deliver By the third quarter of the year, Save the Children. social services and engage in public 44 organizations had created and decision-making, local governance applied new policies to improve The partnership also built the capacity and economic development project their organizational effectiveness. of two factories to produce standard management. clay filters for treating water at the PIND also supported local civil society organizations through the point of use to improve the availability During the year, PIND’s Capacity Strengthening Advocacy for Civic of affordable water filtration Building for Local Empowerment Engagement (SACE) program that it technology in Niger Delta homes. (CAPABLE) programme trained co-funds with USAID. 492 people from 44 organizations peace building: Initiated by PIND in August 2013, the Partners for Peace (P4P) Network has continued to grow. By the end of 2017, 843 individuals and 125 organizations had been newly-identified as peace agents, bringing the total of peace agents to 5,703 since inception. These peace builders are working in tandem with public and private sector stakeholders to mitigate conflicts at state and community levels throughout the Niger Delta. Information on the dynamics of conflict and the importance of peace reached over five million people in 2017. Efforts initiated in 2016 to assure P4P’s independence and ability to self-govern continued with the setting up of its Board of Trustees and the facilitation of numerous chapter-level trainings on resource mobilization to PIND’s, Integrated Peace and Development Unit Capacity Building Coordinator, David Udofia facilitating a training to members of various RDCs on early warning response systems at the ATED Centre enable the respective state chapters to raise funds effectively.

chevron in Nigeria 21 2017 corporate responsibility report

Producing Area Development long-term development plans for each A remarkable outcome of the capacity Commission (OSOPADEC) on State. strengthening support provided organizational strengthening and by PIND’s CAPABLE and SACE targeted investments for economic Through advocacy and stakeholder projects is the award of a grant for development in the state. engagements such as these, PIND £2 million from DFID to the Youth facilitated 7.7 million naira in direct Alive Foundation (YAF), a Niger PIND also partnered with the Nigerian investments to the region and nine Delta-based non-governmental Economic Summit Group (NESG) to collaborations among public and organization. The grant supports work produce the group’s annual summit private stakeholders in the region in in pursuit of the anti-corruption pillar – a first-ever discussion session on 2017, contributing to five policy briefs. of the Open Government Partnership. the Niger Delta. The outcome of To ensure the availability of YAF is collaborating in a consortium the panel discussions and breakout credible data to drive development with two other SACE beneficiary CSO sessions became part of the policy programmes, PIND relaunched partners – Center for Information recommendations made to the the NDLink, its website for sharing Technology and Development and presidency and fed into the 2017 development-related information Social Development Integrated Center edition of PIND’s annual Niger Delta on the Niger Delta. It diversified the – to implement the anti-corruption Development Forum (NDDF), thereby variety of content featured on the work. linking the NESG at the federal level platform, which resulted in nearly two with this regional audience for the million visits. analysis and advocacy: first time. In 2017, PIND advanced its Working through its SACE project, partnerships with Cross River and The NDDF also showcased PIND’s PIND made its mark on public Delta states on a 30-year Growth convening power as an organization discourse on governance issues in and Development Plan as well as a as it brought together key actors from the region by facilitating 44 public job creation policy. PIND also signed all states in the Niger Delta, along engagements on governance issues. a Memorandum of Understanding with private sector and civil society (MoU) with the Ondo State Oil actors, to create short, medium- and

22 chevron in Nigeria 2017 corporate responsibility report

Participants at the PIND-facilitated CAPABLE business service providers training at the ATED Demonstration Centre in Warri, Delta State

chevron in Nigeria 23 2017 corporate responsibility report

Chevron consistently In 2017, the company involves various facilitated trainings and arms of government participation in both local and international conferences in the execution for its government of the company’s stakeholders to broaden their social investment understanding of the oil and programmes gas industry.

24 chevron in Nigeria 2017 corporate responsibility report

engaging stakeholders

To remain a good corporate citizen and a welcome member of the community, Chevron builds trusting and mutually beneficial relationships by collaborating with various tiers of government in Nigeria.

In 2017, the company facilitated ȼˏ $!ˏ$!2.+*ˏ+2!.*)!*0ˏ
˚%./ˏ productive stakeholder and coordinated the visit of Dr. strategy session titled; “The engagement: Ibe Kachikwu, Minister of State for Reform Agenda in the Oil and Petroleum Resources to Chevron’s Gas Industry” had about 50 Corporate headquarters in San During the year, Chevron continued key officials from the executive Ramon, California, where he met with to sustain its partnership with and legislative arms of the the immediate past Chairman and government stakeholders and: Nigerian Federal government; Chief Executive Officer, John Watson, representatives of State and some members of the executive ȼˏ !( ˏ.!#1(.ˏ)!!0%*#/ˏ3%0$ˏ governments and international leadership to discuss issues of mutual government officials and oil companies; and community benefit. partners, and shared information leaders from three of the and best practices; GMoU Regional Development There was also an engagement Committees in attendance. The session between the Chairmen of ȼˏ *2+(2! ˏ.!,.!/!*00%2!/ˏ+"ˏ0$!ˏ session gave participants the Senate and House of Representatives various arms of government in opportunity to deliberate on Petroleum Upstream Committees and the execution of Chevron’s social prevailing reform agenda of the the Senate Gas Committee and Clay investment programmes; Federal government. Neff, President, Chevron Africa & Latin America Exploration & Production ȼˏ ,+*/+.! ˏ,.0% %,0%+*ˏ ȼˏ $!ˏ +),*5ˏ/,+*/+.! ˏ"+1.ˏ Company (CALAEP) on May 1, 2017 in of government officials to members of the National Houston, Texas. workshops and conferences Assembly to the 2017 Offshore within and outside of Nigeria; Technology Conference (OTC) and building strong partnerships: in Houston, where they gained insights into the nature and ȼˏ *##! ˏ* ˏ +*/1(0! ˏ3%0$ˏ Chevron facilitated trainings and scope of issues, technologies communities to plan work participation in both local and and innovations related to the oil programs and capital projects. international conferences for its and gas industry. government stakeholders, including:

chevron in Nigeria 25 2017 corporate responsibility report

The Government Affairs group held a strategy meeting with critical stakeholders in 2017 to discuss The Reform Agenda in the Oil and Gas Industry

ȼˏ $!ˏ (!.'ˏ+"ˏ0$!ˏ!*0!ˏ/ˏ+))%00!!ˏ3/ˏ(/+ˏ/,+*/+.! ˏ0+ˏ00!* ˏ0$!ˏȇȅȆȍˏ%#!.%ˏ%(ˏ* ˏ/ˏ Conference, and five Immigration officers were trained on Basic Offshore Safety Induction and Emergency Training (BOSIET) in Lagos.

ȼˏ $!2.+*ˏ" %(%00! ˏ2%/%0/ˏ0+ˏ0$!ˏ/ .2+/ˏ*'ˏ.)ˏ5ˏ0$!ˏ!(0ˏ00!ˏ+),0.+((!.ˏ+"ˏ ))%#.0%+*ˏ* ˏ members of the House of Representatives Committee on Environment and the Senate Committee on Gas Resources. These visits strengthened the relationships between the company and these critical stakeholders, and provided opportunities for the stakeholders to familiarize themselves with the company’s operations.

support for advocacy initiatives:

Chevron sponsored and partnered with relevant stakeholders on key government/ community advocacy initiatives in Education, Health and Environmental campaigns. Specifically, the company supported the Ondo State Ministry of Environment’s Oil and Gas Awareness campaign for schools in oil producing/impacted communities in the State. It also donated over 12,000 Science and Mathematics textbooks to 37 government secondary schools in Ondo and Delta States in collaboration with the State ministries of education and the Africa chapter of the Jewels of Africa Foundations, a U.S. Non-Governmental Organization.

26 chevron in Nigeria 2017 corporate responsibility report

Members of the Chevron Executive Leadership team during an engagement meeting with NAPIMS leadership in Lagos

chevron in Nigeria 27 2017 corporate responsibility report

Jeff Ewing, Chairman and Managing Director and the Chevron team during a visit to the Lagos State Governor, Mr. Akinwumi Ambode

“ I must commend Chevron for being in the forefront of regular tax payment and an industry leader in terms of corporate social responsibility, especially in the areas of education, health and economic empowerment

-His Excellency, Mr. Akinwunmi Ambode, Governor of Lagos State “

28 chevron in Nigeria 2017 corporate responsibility report

our people

45 5,377 employee’s children total number of benefited from the Chevron Nigerian employees International REACH and contractors as at (Recognizing Excellence and the end of 2017 Achievement) Scholarship Programme

chevron in Nigeria 29 2017 corporate responsibility report

our people

One of our enabling strategies for business growth is investing in our employees, our greatest assets. We invest in people to develop and empower a highly competent workforce that delivers results the right way. We maintain a fair and consistent recruitment process that embraces human resources best practices and upholds organizational confidence. At Chevron, every employee is a leader.

Jeff Ewing, Chairman/Managing Director with members of the “Chevron Orchestra” singing on stage during the NMA Employee Week

recruitment: Chevron provides career opportunities By the end of 2017, the total Recruiting Management System, a for Nigerians hired as employees and number of Nigerian employees and web-based tool to provide equal contractors. contractors was 5,377. The company’s access to opportunities for all recruitment policy is based on its qualified employees to expand their Our employees are united by common people strategy framework – the right horizons, build competencies and values and our drive to develop the people, with the right skills, in the grow their experiences. energy that improves lives and powers right place, at the right time, and at the world forward. Delivering energy the right cost. “Hiring right” is critical Externally, vacancies are advertised to the world requires a wide range to the health of our business. on a global recruitment tool to of technologies and the best and Open jobs in the organizations are provide equal access to opportunities brightest minds. posted on the company’s internal for all qualified candidates, regardless

30 chevron in Nigeria 2017 corporate responsibility report

of their location. The use of video Intelligence; and Safety Awareness, community members, the media, conferencing to interview candidates as well as training on Operations partners, government officials and outside Nigeria further demonstrates and Maintenance; Human Rights; other members of society. the equal opportunity, transparency Compliance; and other competencies and fairness of the company’s to develop capabilities. We also help employee educational recruitment process. pay examination fees in some cases. assistance: As part of our efforts to encourage employee employee development: new-to-chevron: This is a year- self- development, the company Our employee development long programme that starts from reimburses 75 percent of course fees philosophy is anchored on the need to the first week of employment. It is and the cost of books to employees equip employees with the right skills a combination of formal classroom who enroll for part-time courses that enable organizational growth and training, e-learning, mentoring at tertiary institutions in Nigeria. support business success. We invest and guidance to ensure that new The employees are also granted in people to strengthen organizational personnel understand the company’s time off to attend lectures and take capability and develop a talented operations, values and objectives. examinations. A Scholarship Board global workforce that gets results the oversees the process and determines right way. horizons and pathways: Many the suitability of such part-time Petrotechs and some functional courses to the employee’s current Career development at Chevron professionals are enrolled in a role and development plan. A total combines individual aspirations structured technical competency of 15 employees benefitted from this with business objectives to invest in development programme called programme in 2017. employees’ professional growth. Horizons for the first five years of their employment. Those who graduate The company also offers educational The company has a policy on from Horizons go through the scholarship programmes to support Study Leave, which grants leave to Pathways programme to help deepen children of employees and retirees. In employees who desire to pursue their technical and business skills. 2017, 45 children benefited from the higher academic or professional REACH scholarship programme while qualification. The jobs of employees training and development for 21 others were awarded the Chairman/ on Study Leave are guaranteed until Managing Director’s scholarship. employees return. stakeholders: Chevron sponsors and supports training and other For career enhancement, Chevron forms of development for students, funds employee memberships in many local and foreign professional organizations and encourages employees to join.

Some key trainings that have been developed to increase employee competencies include: structured leadership development: These programmes are designed to provide the opportunity for growth, learning and strengthening of the company’s organizational capability, covering skills and competencies required to become an effective leader. Some of the programs are open-enrollment while others require nomination. technical and soft skills: These include programmes in the areas of Communication; Personal Effectiveness; Emotional All for a Healthy Heart… A Peer Health Educator examining an employee during the Red for a Reason campaign

chevron in Nigeria 31 2017 corporate responsibility report

workforce health: In 2017, we continued to invest in world-class medical facilities and health programmes for our employees to promote healthy lifestyles, prevent ill-health and disability, and treat existing medical conditions. Examples include:

clinical medical care: Employees have year-round access to Chevron hospitals in Lagos, Warri and Escravos. These facilities provide general and specialized medical care, including pediatric, surgical, obstetric and gynecological, nutrition, and physiotherapy services. Employees in Abuja also have access to external Health is Wealth… Employees during the launch of the Operation Move campaign health facilities. Access to external specialists for dental and eye care is also provided in all locations.

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 to promote healthy life choices and track patients with chronic medical conditions.

fitness for duty (FFD): This is a standardized medical evaluation process used by Chevron worldwide CNL’s Sam Adoki and Amos Fortune during the Nigeria Oil and Gas Industry Games (NOGIG) Tennis finals designed to determine if an employee is mentally and physically capable of performing the essential functions of a job without risk of injury to the worker, co-workers or the environment. It ensures medical fitness for work that optimizes safety, increases productivity, retains experienced workers, and improves employee morale. The process specifically identifies health-sensitive and physically demanding jobs, and develops appropriate evaluations for the various job categories.

Members of the Executive Leadership Team and some of the Star awardees at the 2017 Long Service Award ceremony

32 chevron in Nigeria 2017 corporate responsibility report

occupational hygiene: aerobic exercise programmes occurred in all Chevron locations throughout Occupational hygiene and medical 2017 to prevent obesity, assist in weight reduction, enhance wellness and surveillance programmes are in place optimize heart health. and continue to protect workers from workplace exposures. peer health educators (PHEs): This programme is an integral part of the company’s commitment to the wellbeing of its employees and community health promotion and members in its areas of operations. The PHEs provide peer-to-peer health opportunities: Programmes education within the workforce on HIV, Malaria, Tuberculosis and cardiovascular on communicable and non- health. Peers also organize community outreach programmes. communicable diseases are offered throughout the year. Webinars, employee assistance programme and work-life services: seminars, lunch and learn sessions, The Employee Assistance Programme (EAP) promotes and sustains a and “health moments” are held on psychologically healthy and resilient workforce to support safe and successful relevant and topical issues including operations. It provides confidential consultation for work-related, personal and healthy lifestyle, high blood pressure, family problems. In 2017, EAP continued to provide support and interventions mental health, drug abuse and stress. regarding people and work group problems. Management of change, critical Chevron joined the global community incident debriefing, and stress management provides significant value to the to participate in activities on days organization through health, safety and the mental well-being of employees. designated by the World Health Organization to highlight 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. healthy heart programme: The Human Resources and Medical Department organized ‘Red for a Reason’ in 2016 as a follow up to the Healthy Heart Programme to help employees improve long- term health by supporting healthy lifestyle choices through heart and cardiovascular education and activities. The programme provides mitigation against individual risk factors identified through the Health Capacity Building…. Participants after a Manager Essentials training Risk Assessment tool. Online access to educational information, telephonic health coaching and education, specialist referrals and other support services provide integrated care. In the right people, with “ the right skills, in the 2017, Chevron launched ‘Operation

Move,’ focused on cardiovascular right place, at the right time, and at the right

health education and activities. cost. “Hiring right” is critical to the health of

“ physical fitness: Employees have our business. access to fitness centers in various locations. Group health walks and

chevron in Nigeria 33 2017 corporate responsibility report

90% 38% reduction of supply of total routine flaring domestic gas sales from 2008 to in Nigeria in 2017 2017

34 chevron in Nigeria 2017 corporate responsibility report

operational excellence

Everything we do begins with our fundamental commitment to safety. We are committed to protecting the safety and health of our employees and contractor workforce.

The Chevron Way places the highest company reviewed the activities contractor health, priority on protecting people and the representing the highest potential environment, safety environment. As such, Chevron has consequences, continued developing management (CHESM) a rigorous Operational Excellence workforce skills, and encouraged As part of Chevron’s efforts to Management System (OEMS) that commitment to hazard recognition partner with contractors on OE, we translates this priority into world-class and safeguard verification during held several events aimed at sharing operational performance. work execution. best practices and disseminating information to eliminate health, OE performance Chevron Nigeria also deployed fatality environmental and safety incidents, In 2017, we maintained our focus prevention tools. The Save Your Life and provided opportunities for on preventing serious incidents and Actions (SYLA) are the safeguards contractors to engage with Chevron fatalities. Our safety performance designed to prevent serious injuries leaders on OE topics. We also record included a Total Recordable and fatalities while performing work. increased the fluency of contract Incident Rate of 0.086 and a The Start Work Checks (SWC) are owners and contractors on the Days Away from Work Incident verification tools designed to help refreshed CHESM process and Rate of 0.023. We continued workers confirm that safeguards Information Technology tool, and to implement programmes to designed to prevent serious injuries conducted performance reviews for drive our OE performance with and fatalities are in place and 104 medium- and high-work-risk- emphasis on Preventing Serious functioning prior to starting work. The profile contractors. Injuries and Fatalities, Process SYLA program covers nine high-risk Safety, Environmental Stewardship, areas: emergency management Operational Discipline and OE Chevron places the highest priority on Assurance. ȼˏ /+(0%*#ˏ6. +1/ˏ*!.#5 incident prevention. However, a robust ȼˏ ˏˏˏ %"0%*#ˏ* ˏ%##%*# emergency management system is 2017 global OE focus ȼˏ 4 20%+* in place to manage emergencies if ȼˏ +.'%*#ˏ0ˏ!%#$0/ they do occur. In 2017, the company campaign ȼˏˏˏˏˏ+*˛*! ˏ, !ˏ*0.5 Our annual OE Focus campaign is a deployed the refreshed Emergency ȼˏ ˏˏ+))!. %(ˏ%2%*# Management (EM) Process, including week-long initiative that increases OE ȼˏ +0ˏ+.' awareness and provides learning and Incident Command System (ICS) ȼˏ !ȥ*!.#%6! ˏ(! 0.% (ˏ+.' 100, 200 and 300 training, to Asset fluency improvement opportunities ȼˏ *!.#%6! ȩ %2!ˏ(! 0.% (ˏ+.' for the workforce. The campaign, Emergency Management Teams across the business unit. themed ‘Operational Discipline on These new tools complement High Potential Consequence Tasks our existing Managing Safe Work - Preventing Serious Incidents,’ standards and tools to help ensure process safety was held at all Chevron locations in that everyone goes home safely at the In 2017, Chevron progressed the Nigeria. During the campaign, the end of each work day. implementation of four key process

chevron in Nigeria 35 2017 corporate responsibility report

safety standards: Asset Integrity Management, Operating Procedures, Technical Codes and Standards, and Process Safety Information.

Chevron enhanced the Operations Field Verification programme to help foster the OE culture, verify that key safeguards are in place and functioning, and reinforce overall ownership and accountability of facilities by broadening frontline supervisors’ engagements and adding experienced Health, Environment and Safety (HES) resources to the team.

The HES Risk Management Process is the foundation for the successful management of process safety in our facilities. We conducted 12 Process Hazard Analysis (PHA) studies for existing facilities in 2017, which systematically identify Support for the environment... Chevron is a major sponsor of the World Enviroment Day activities in Lagos and evaluate hazards and related accident scenarios to ensure that adequate safeguards are in place to prevent high consequence events. The OE Priorities and Assurance Plan and proactively identify and mitigate They also assure that the company was also developed and implemented risks. Environmental sustainability fully understands its risk profile and across Chevron Nigeria to improve actions in compliance with that efforts are properly focused commitment to executing high- regulatory requirements, stakeholder on implementing appropriate risk potential-consequence tasks safely. expectations, and best practices help reduction measures. These studies ensure that operations are carried out are conducted by multi-functional Other OE Assurance activities responsibly. teams with expertise in Operations, conducted as part of an Integrated Engineering, HES, Maintenance, Assurance program included a Level We conducted several environmental Mechanical Integrity and other 2 OE Audit and Functional Reviews assessments during the year. In relevant areas. focused on Managing Safe Work, the onshore area, we conducted Environmental Stewardship, Base Environmental Impact Assessments Also during the year, the company Business and Facilities Engineering. for a drilling campaign and conducted deployed Frontline Field Supervisor A focused audit on the Hazard Environmental Evaluation Studies Engagement to supervisors and other Communication Process was (EES) in line with regulatory leaders, and took new leaders in also carried out to validate the requirements. In the deepwater area, the field through the Process Safety effectiveness of safeguards and we conducted an EES of the Agbami onboarding program. We matured the provide assurance on compliance with Field as well as a Post-Drilling Seabed Safeguard Verification programme requirements. Survey of drilled exploratory wells in across all assets, and deployed Ofigbo and Nsiko. structured governance for continuous environmental stewardship improvement. Environmental Stewardship (ES) Chevron continued to invest in continued to be an OE focus available technology for tracking and area through 2017. This process managing its ecological footprint in OE assurance areas of operation. The theme for In 2017, the OE Assurance Process identifies, assesses and manages environmental risk from project the 2017 World Environment Day, was deployed to assure that critical “Connected to Nature,” resonated safeguards to prevent serious inception, through operations, and on to decommissioning. It also with the workforce and employees injuries and fatalities are in place and continued to support biodiversity functioning effectively as designed. allows us to understand the potential environmental risks from our activities conservation through several rescues

36 chevron in Nigeria 2017 corporate responsibility report

of sea turtles caught up in fishing for FGN policies, the nets that were safely returned to their company supplied natural habitats. 38 percent of total domestic gas sales in gas flare-out strategy Nigeria in 2017. Chevron remains committed to eliminating routine flares from our Chevron also retained operations and building a profitable its leadership position gas business through a portfolio of as a gas supplier to domestic, regional and export supply the power sector with facilities that fulfill our joint venture at least 70 percent Domestic Gas Supply Obligation of total domestic gas (DGSO) and support the Nigerian Gas supply going to the Master Plan. These facilities include: power sector in 2017. the Escravos Gas Plant; the Escravos Gas-to-Liquids plant; the Sonam Gas The company is a Development field; and the Abiteye member of many and Makaraba Non-Associated Gas organizations in Development projects. Nigeria, including the Nigerian Gas Chevron remains an industry leader Association (NGA) and in growing the supply of high quality the Oil Producers Trade gas for domestic and regional Section (OPTS) gas markets. In 2017, the company worked subcommittee. These collaboratively with the Escravos Gas organizations actively Plant and the Nigerian Gas Processing engage in advocacy and Transportation Company to and participate in manage incidences of breach to the policy review and Escravos-Lagos Pipeline System in dialogue aimed at such a manner that the environment improving the Nigerian was not adversely impacted. gas industry. Soil sampling to support Environmental Evaluation Study of Onshore Area Chevron and NNPC have been pioneers in associated gas commercialization in Nigeria through the “Zero Flare” operations drive. Routine flaring has been reduced by over 90 percent from 2008 to 2017.

There is zero routine gas flare in almost all currently operated leases and assets. However, recorded gas flares in some locations are either operational flares or due to the impact of third-party pipeline outages and there are solutions in place. gas utilization Chevron supports the Federal Government of Nigeria’s (FGN) goals to meet domestic gas supply obligations in accordance with the government’s Gas Master Plan, 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 Mr. Monday Ovuede, Director, NNPC/CNL Joint Venture (2nd left), engaging presenters during the 2017 OE Week poster session

chevron in Nigeria 37 2017 corporate responsibility report

$60 $2 million billion well drilling approximately contract awarded invested in Nigeria to indigenous Content in 2017 Oando Energy Services (OES)

38 chevron in Nigeria 2017 corporate responsibility report

developing Nigerian content

Chevron remains an industry leader in the development of indigenous capacity in Nigeria’s oil and gas industry thus boosting local economies, creating job opportunities, and generating related multiplier effects.

Chevron continues to play a leading To execute an onshore drilling recommended simulation software for role in building and sustaining the programme, Chevron patronized local improved results. capacity of indigenous companies contractors through a Third-Party and contractors in Nigeria’s oil Funding scheme. Oando Energy 2017 nigerian content key and gas industry. We consistently Services (OES) Limited was awarded achievements (projects) demonstrate our commitment an onshore well drilling contract worth Chevron consistently reserves to empowering Nigerian service over US$60 million which utilized the significant portions of job scopes providers and suppliers through rig OES Respect. OES is 100-percent for Nigerian contractors on its small, human and institutional capacity Nigerian-owned with 100-percent medium and major capital projects. development, creation of local jobs, shore-based national rig management, Highlights of Nigerian content success developing and sourcing from local and more than 96-percent rig-based stories include: suppliers, employing local workforces, Nigerian personnel running the OES local patronage, and the reservation Respect. The rig completed its 25th ȼˏ .0*!./$%,ˏ3%0$ˏ !)0! $ˏ(+(ˏ of work scope to benefit local Chevron well in December 2017, Engineering Services Limited, community contractors. achieving record performance with an a fully indigenous company, to average of one well in each of the last fabricate the wellhead jacket for Chevron also provides technical 25 months of the current contract. the Abiteye Non-Associated Gas support, support for asset acquisition, (NAG) Development Project. The and partnership on research and Chevron Nigeria also awarded a project was completed incident development to local community contract worth over US$7 million to and injury free. contractors. This has helped Nigerians SOWSCO Well Services (Nig.) Limited ȼˏ .+ 1.!)!*0ˏ+"ˏ(+ ((5ˏ//!)(! ˏ benefit from the proceeds of the oil for cementing and pumping services Zinox desktops and laptops from and gas industry while developing on another drilling campaign. Chevron local manufacturer Task Systems local commerce. partnered with the contractor to Ltd. and OEM - Zinox Systems. increase capacity related to the ȼˏ %.%*#ˏ+"ˏ)%(0+*ˏ! $*+(+#%!/ˏ Our investment in Nigerian Content handling of pumping equipment by Limited, a Nigerian manufacturing was approximately US$2 billion, while using Human Machine Interface (HMI) company, in partnership with Local Community Contractors spend and service. The company also helped Baker Hughes, an American on materials procurement was $74 SOWSCO improve its processes and General Electric company, to million (with $284 million expended on services).

chevron in Nigeria 39 2017 corporate responsibility report

upgrade the Chemical Blending Plant and Product Laboratory in Escravos. Benefits included job creation and value creation arising from the elimination of the importation of finished chemical products. ȼˏ /!ˏ+"ˏ%#!.%*ˏ*'/ˏȦˏ0* . ˏ Chartered Bank and United Bank for Africa (UBA) – to secure a US$1.2 billion loan for drilling 23 onshore and 13 offshore wells. ȼˏ
3. %*#ˏ+"ˏ +*0. 0/ˏ2(1! ˏ at over US$26 million to more than 16 Nigerian contractors for various services.

training Chevron Nigeria, in partnership with the Nigerian Content Human Capacity Development Initiative (NCHCDI), equipped Nigerians to deliver value through executive and management One of the Agbami subsea manifolds fabricated at Grinaker-LTA Port Harcourt, Rivers State training, technical and professional skills training, and on-the-job training during project execution.

In March 2017, Chevron commenced training of 26 Nigerians on its Sonam - Okan Pipeline Pig Receiver Fabrication Project. The 12-month classroom and on-the-job training covered: HES; Information and Communication Technology; Project Management; Quality Management; Fabrication and Assembly processes; Fabrication Engineering; Welding/ Fitting/Rigging/Scaffolding processes; Entrepreneurship; and Material Management. The training was conducted in partnership with NCDMB and Idmon Engineering Services Ltd. A US$180,000 contract was awarded to local consulting firm Lonadek to develop and pilot a Human Capacity Development Initiative training plan Soga Oduselu (2nd right) and Debo Lukanmbi (right) sharing Chevron’s Nigerian Content Development (NCD) success stories at aTechnical Business Forum organized by the Oil and Gas Trainers Association of Nigeria (OGTAN) for Chevron Nigeria’s Drilling and Completions Unit.

40 chevron in Nigeria 2017 corporate responsibility report

some notable trainings executed in 2017 The $180,000 contract awarded to local consulting firm, Lonadek to develop and pilot a Human Capacity Facilitating Institution/ Number of Beneficiaries Development Initiative (HCDI) Company Area of Training Received training plan for CNL’s Drilling and Star Deep Water Petroleum 6 young engineers The training was focused Completions Unit is ongoing. Limited (a Chevron company) successfully trained primarily on subsea in partnership with the Nigerian in France engineering on the Content Development and Agbami Phase 3 project key local community content Monitoring Board (NCDMB) and (LCC) accomplishments FMC Technologies Star Deep Water Petroleum 4 Nigerian graduates Subsea engineering on its Limited (a Chevron company) Agbami Phase 3 Project Chevron, in collaboration with PIND, in partnership with NCDMB and Transportation and facilitated connections between Marine Platforms Limited Installation scope large companies operating in the CNL in partnership 7 Nigerian graduates 12-month Earth-Science Niger Delta region and local subject with NCDMB internship program gave the students first-hand practical matter experts on a pilot capacity experience in Geosciences and development initiative in the poultry Drilling & Completions (D&C) business with active participation of Dorman Long in collaboration 150 Nigerians Non-Destructive Testing and five Local Community Contractors with NCDMB & Hyundai Heavy Project Management (LCCs). Perfect Works Limited, the Industries contractor that laid the foundation for NCDMB, CNL & OCO 14 Nigerians Tank fabrication and fitting Industrial Services on the Escravos Diesel a poultry broiler processing plant in Storage Tank Project Okitipupa, Ondo State, completed its Chevron Nigeria Limited 90 student participants Weekly lectures at the administrative block and conducted under its Facilities Engineering University of Lagos from training for out-growers in 2017. University Human Capacity the nine programmes in the Development Initiative Faculty of Engineering (FUHCADI) Chevron Nigeria, in collaboration CNL in partnership with NCDMB 10 Nigerians (comprising five Trained in Engineering, with the NCDMB, registered over 600 and Gramen Petroserve, a 100% graduates and five artisans) Welding and Fabrication on community graduates in the Nigerian indigenous company with 100% the Escravos System Project Oil and Gas Industry Content Joint Nigerian workforce (EESP) CNL in partnership with 4 Nigerian graduates 12-months training in NCDMB, NETCO and IESL Engineering Designs and Entrepreneurship on CNL’s Meji GGCP Debottlenecking Project CNL in partnership with 6 Nigerian graduates Six months training in NCDMB, NETCO and First engineering related disciplines Fossils Limited on the back of the Detailed Engineering Design (DED) scope of the Okan GGCP Debottlenecking Project CNL in partnership with NCDMB 5 young engineering graduates Trained on the Abiteye NAG and Hommaston Limited Development Project.

TOTAL BENEFICIARIES 296

Chevron remains an“ industry leader in the

development of indigenous capacity in

“

Nigeria’s oil and gas industry

CNL’s Debo Lukanmbi receiving an award at the inaugural edition of the Business Technical Forum organized by the Oil and Gas Trainers Association of Nigeria (OGTAN) in 2017

chevron in Nigeria 41 2017 corporate responsibility report

Qualification System (NOGIC JQS) Summary of 2017 Nigerian Content Success stories portal to help position community Area Contractor(s) Brief Description of Services graduates for capacity building Labor BeneProjecti Nig. Ltd; Baklang Provision of highly skilled/ opportunities in the oil and gas Consultants Ltd; Ariosh professional labor industry. The objective is to provide Limited, Sigmund Engineering, Bell Oil & Gas Ltd. etc. opportunities for these graduates to benefit from the project related Labor NUGA Consultants Ltd.; Provision of medium skilled/ trainings. Micronet Int’l Ltd.; Avidor Oil & unskilled labor Gas Co. Ltd.; Joceco Nig. Ltd.; Ozma Nig. Ltd. etc. industry collaborations Engineering Services NETCO, Cakasa, IESL, Ariosh, CNL’s Facilities Engineering/ Chevron and its affiliated companies Westfield Energy Resources Major Capital Projects leverage Ltd. etc. these Engineering Services sponsored industry forums and fairs Agreements (ESAs) for Front in partnership with the NCDMB and End Engineering Design and other industry stakeholders, including: Detailed Engineering Design ȼˏ ,+*/+./$%,ˏ+"ˏ* ˏ,.0% %,0%+*ˏ Fabrication & Construction ȼˏ !)0! $ˏ(+(ˏ ȼˏ !)0! $ˏ(+(ˏ*#%*!!.%*#ˏ Engineering Services Services Limited, a fully at the first Nigeria Oil and ȼˏ )+*ˏ*#Ȑˏ!.2% !/ˏ!0 Ȑ indigenous company, Gas Industry Research to fabricate Wellhead Jacket for its Abiteye and Development Fair and Non-Associated Gas Conference, organized by (NAG) Project. Project was NCDMB completed incident and injury free. ȼˏ *1#1.(ˏ! %0%+*ˏ+"ˏ0$!ˏ1/%*!//ˏ ȼˏ '*ˏ%#ˏ! !%2!.ˏ(0"+.)ˏ Technical Forum, organized (PRP) project Hook-up and Commissioning by Idmon by the Oil and Gas Trainers Engineering & Construction Association of Nigeria (OGTAN) Company, an indigenous ȼˏ %#!.%ˏ
**1(ˏ *0!.*0%+*(ˏ contractor Conference and Exhibition Tank repair & Upgrade (NAICE) of the Society of ȼˏˏ * 1/0.%!/ ȼˏ !,%.ˏ* ˏ1,#. !ˏ+"ˏ*'/ˏȆˏ ȼˏ ˏ%#!.%ˏ %)%0! & 8 in Escravos. Petroleum Engineers ȼˏ/ .2+/ˏ%!/!(ˏ0*'ˏ.!,%.ˏ ȼˏ ,+*/+./$%,ˏ+"ˏ0$!ˏ. 0% (ˏ and upgrade Nigerian Content Forum, Manufacturing / Assembly FMC Technologies Limited Installation of subsea organized by NCDMB equipment like flexible flowlines, umbilicals and jumpers for the first time by a Nigerian Contractor Transportation, installation and Marine Platforms Limited Trained in Engineering, pre-commissioning (MPL) Welding and Fabrication on the Escravos System Project (EESP) “ Human Capacity Development ȼˏ +* !'ˏ ȼˏ +*0. 0ˏ+"ˏȽȆȎȅˏ0$+1/* ˏ Initiatives (HCDI) awarded for development of Chevron ȼˏ ˏ˚/$+.! world class Human Capacity Development Initiative (HCDI) continues to training plan/curriculum for CNL’s Drilling & Completions play a leading unit and the Nigerian Oil & Gas industry in general continued. role in building ȼˏ  $+(./$%,ˏ0+ˏ%#!.%*ˏ seamen for training in Dynamic Positioning continued at PEM and sustaining Offshore Limited, a marine training facility. Contract is the capacity worth $200 thousand per of indigenous annum Logistics ȼˏ .%*!ˏ(0"+.)/ˏ %)%0! Supply of vessels for Agbami companies and ȼˏ
3.%0/!ˏ%#!.%ˏ %)%0! ˏ & Escravos- Gas-To-Liquids ȼˏ 1'1/ˏ * 1/0.%!/ˏ %)%0! operations contractors in

Procurement ȼˏ ) ,%*ˏ .%0%)!ˏ %)%0! Coastal supply of Automotive

Nigeria’s oil and ȼˏ +/0(ˏ+*/1(0/ˏ 0 Gas Oil (AGO) to Escravos.

ȼˏ %(ˏ *0!#.0! ˏ!.2% !/ˏ 0 Ȑˏ Desmobuk Rocket Nig. Ltd. “

gas industry

Pilot poultry capacity Perfect Works Integrated Local Community Content development initiative Services (LCC) in collaboration with the Foundation for Partnership Initiatives in the Niger Delta (PIND) - 5 Local Community Contractors are participating in the scheme 42 chevron in Nigeria 2017 corporate responsibility report aawards good corporate citizen and a partner of choice. The various recognitions and acknowledgements of our contributions to the socio-economic development of the country validate our vision of being the global energy company most admired for its people, partnership and performance.

Jeff Ewing, Chairman and Managing Director receiving an award from the Nigerian Business Coalition Against Aids (NiBUCCA) for the company’s support in the fight against the spread of HIV/AIDS in Nigeria

chevron in Nigeria 43 2017 corporate responsibility report

Excellence’ to Chevron Nigeria Some of the awards and recognitions influence Chevron’s strategy in as part of the activities, marking Chevron received in 2017 include the the wider region. its 5th Triennial National following: ȼˏ 0Ȑˏ %6%0+Ȟ/ˏ(%*% ˏ%*ˏ !''%ˏ Delegates’ Conference. Comrade recognized Chevron Nigeria for Olabode Johnson, National ȼˏ .1+*0 0ˏ %)%0! ȑˏ+.#*%6!.ˏ President of PENGASSAN, said of the Sustainability, Enterprise its commitment to excellence the award was in recognition and Responsibility Report and and support for Tuberculosis of Chevron’s commitment to Awards (SERAs) announced prevention in the country. partnership and labour relations Chevron Nigeria as winner of The recognition came at the in the oil and gas sector. the coveted ‘Best Company Genexpert Launch and Award in Education’ award for its Giving Day, organized by Loving ȼˏ *ˏ!.1.5ˏȇȅȆȎȑˏ$!2.+*ˏ various social investment Gaze Nigeria. Chevron helped received the “Best Performing projects in education geared renovate and has donated Upstream International toward improving the quality of a Direct Observe Treatment Company in Social Contribution” teaching and learning in Nigeria. Therapy center, Tuberculosis and Malaria drugs, mobile X-ray and the “Top Domestic Gas machine and chemistry auto- Producer” for 2016/2017” ȼˏ $!ˏ%#!.%*ˏ1/%*!//ˏ+(%0%+*ˏ awards from the Nigerian Against AIDSs (NiBUCCA), the analyzer to the clinic. Ministry of Petroleum Resources. voice of the Nigerian private sector response to HIV/AIDS, ȼˏ $!ˏ +),*5ˏ3/ˏ$+*+1.! ˏ acknowledged the leading with the ‘Exceptional Support role of Chevron Nigeria in the Award’ at the inaugural Lagos fight against the spread of HIV/ University Teaching Hospital AIDS in Nigeria with an award (LUTH) Amity and Benefits PHOTO CAPTIONS presented to the Chairman Awards for its contribution to and Managing Director, Mr. Jeff medical research and analysis in Nigeria. In 2014, Chevron and A Esimaje Brikinn, General Manager, Ewing. Policy, Government and Public Affairs the NNPC donated an ultra- (PGPA) receiving an award from modern Molecular Research the Nigeria-America Chamber of ȼˏ $!2.+*ˏ%#!.%ˏ.! !%2! ˏȝ!/0ˏ Commerce and Industry Exhibitor’ at the Nigeria Annual Laboratory to the hospital, which aids in the diagnosis, International Conference and B Members of the NMA Legal Team Exhibition (NAICE) of the management, treatment and awarded a place on The Legal 500’s GC Powerlist for its increasing ability Society of Petroleum Engineers. counseling of people with genetic disadvantages. to utilize strategic thinking and Frank Ogbuagu, Chevron innovation to adapt to changing reservoir simulation engineer, business needs in Nigeria also earned the prize for ‘Best ȼˏ $!2.+*ˏ%#!.%ˏ3+*ˏ0$!ˏ ‘Corporate Distinguished Mrs. Ihuoma Onyearugha, Director, Technical Paper.’ C Human Resources & Medical (3rd Achievement Award’ from left) receiving the Exceptional ȼˏ $!2.+*ˏ%#!.%Ȟ/ˏ !#(ˏ0!)ˏ the Petroleum Technology Support Award at the inaugural Lagos University Teaching Hospital (LUTH) was awarded a place on The Association of Nigeria for its innovative funding scheme Amity and Benefits Awards for CNL’s Legal 500’s GC Powerlist which contribution to medical research and identifies the most influential that provided capacity building analysis in Nigeria and innovative in-house teams opportunities for Nigerian contractors. D Jeff Ewing, receiving the Corporate working across Africa. The Distinguished Achievement Award team was recognized for its from the Petroleum Technology ever-increasing ability to utilize ȼˏ $!ˏ!0.+(!1)ˏ* ˏ01.(ˏ Association of Nigeria (PETAN) Gas Senior Staff Association for providing capacity building strategic thinking, innovation, opportunities for Nigerian contractors adaption to changing business of Nigeria (PENGASSAN) needs in Nigeria, and ability to presented an ‘Award of

44 chevron in Nigeria 2017 corporate responsibility report

A

B

chevron in Nigeria 45 2017 corporate responsibility report

C

D

46 chevron in Nigeria 2017 corporate responsibility report

Cautionary Statement Relevant to Forward-Looking Information

This Corporate Responsibility Report by Chevron contains forward- looking statements relating to the manner in which it intends to conduct certain of its activities, based on its management’s current plans and expectations. These statements are not promises or 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.

chevron in Nigeria 47 2017 corporate responsibility report

human energy R 2015 Corporate Responsibility Report Chevron in nigeria 2016 corporate responsibility report 2014 Corporate Responsibility Report Chevron in Nigeria a commitment to our values partnership for human energy creating wealth chevron in nigeria

2014 corporate responsibility report 2015 corporate responsibility report 2016 corporate responsibility report

contact: esimaje brikinn general manager, policy, government and public affairs chevron nigeria limited 2, chevron drive, lekki peninsula lagos, nigeria P.M.B. 12825

© 2018 Chevron Nigeria Limited. All rights reserved. Chevron and the Chevron Hallmark are registered trademarks of Chevron Intellectual Property LLC.

48 chevron in Nigeria