Chevron opens up on local content footprints, secrets of host community relations
Leading operator of NNPC’s Joint Venture and international oil giant, Chevron Nigeria Limited (CNL) has given convincing instances showing that even before the introduction of Local Content Development Act in the petroleum industry, it has been applying the principles in its operations.
Making the revelations in his presentation at the ongoing 2017 Class of Advanced Writing & Reporting Skills (AWARES 17), School of Media and Communications, Pan Atlantic University, Lekki, the General Manager, Nigerian Content Development, Mr. Olusoga Oduselu said “before the official introduction of the Local Content Act in the industry few years ago, Chevron has gone far in the policy as part of its determination to grow Nigerian content in the sector”.
He said as far back as year 2000, the company introduced Local Business development and Global Procurement Unit as an industry model in empowering the capacities of local services companies.
With the performance of the Unit in encouraging local content, the company in 2001, won special laurels in the 2001 Local Content Development fair in Lagos and in 2008, bagged an Excellent Award in overall Nigerian Local Content.
Oduselu revealed further that in 2009, CNL deepened local community content structuring with guidelines which lead to the formation of Local Community Content Development team to carry out implementation of related projects.
Some of the results include Meren GGCP which was designed to grow local gas development to drive power supply.
He said though the platform was built in Korea by HHI, “Most of its components were fabricated in-country by some local firms including Doman Long and Niger Dock”.
He also revealed that in collaboration with the Local Content Development Board (LCDB), CNL drove Sonam Development with fabrications in Nigeria, including bridge, and entire platform by NigerDock. He also revealed that pipeline coatings were done in Nigeria by a local firm.
He said apart from partnering with NigerDock to upgrade its yard capacity, CNL also brought in its United States firm who upgraded SCC Pipe Mills procedures and that singular act raised the delivery capacity.
One of the platforms gaining from the activities of SCC group includes the Escravous Export System Project.
Oduselu listed other local content exploits of Chevron to include Gramen PetroServe Limited which Chevron provided human and infrastructural assistance to grow.
It also provided about $5m for the development of jetty as a way of capacity development initiatives.
According to him, the company domiciled about $1.8bn in the development of Agbami FPSO even before the introduction of local content which paved way for several Nigerian companies to be part of associated fabrications.
Other companies which CNL had worked with in growing local content include Marine Platforms Limited, development of Remotely Operated Vehicles (ROV) and fast tracking of indigenous Asset Ownership of Bene Project Nigeria Limited.
The Nigerian Content Development boss at Chevron said part of the reasons considered by CNL in growing capacities of Nigerian companies include increment of footprints in Nigeria, easy access of indigenous service providers, and general capacity development in the sector.
He however agreed that there are gaps in terms of skills on the side of indigenous firms. But due to the commitment of CNL, the firms are still in business and growing daily in capacities.
In his presentation, the General Manager, Policy, Govt & Public Affairs, Mr. Esimaje Brikinn revealed that Chevron has changed the narratives in the entire oil industry community relations strategy by introducing what he described as Global Memorandum of Understanding (GMoU).
Represented by the Manager, Communications, Mr. Sola Adebawo , he said “With the policy, all development projects in host communities are idealized and conceptualized by communities while the implementation are done by the communities with funding coming from Chevron”.
According to him, “the GMoU has changed the age long scenario of seeing developments projects as gifts from oil companies to projects seen by communities as their own because all we do is to encourage communities to form development associations which think out projects good for their communities and implement same by themselves with supervision by themselves and only funding from Chevron.
“Before the GMoU, we used to implement projects and invite communities to the commissioning ceremony, but with the policy of GMoU, the community does everything from concept to delivery and only invites Chevron to come and witness the commissioning”.
Adebawo revealed further that several other International Oil Companies (IOCs) have approached Chevron to study the policy and equally adopted it in their host community relations.
