By far the fastest growing and most needed area of development is helping communities build the capacity to meet their basic needs such as infrastructure development, training, job creation, health education, sanitation and water supply. Many API member companies with global operations are forming more effective partnerships with communities, regions, host governments and international organizations to address these needs. The oil and natural gas industry plays a key role in cooperative technology development, transfer and capacity building. Often this means helping host communities in many different ways as illustrated in these partnership examples. Capacity building partnerships provide constructive “win-win” relationships between the public and private sectors, with the aim of developing the capability and skills to achieve sustainable development through the use of modern technologies, management systems, a competent workforce and appropriate laws and regulations.
There are numerous examples of capacity building. The Shell Oil Company Foundation recently announced the establishment of the Shell Center for Sustainability at Rice University in Houston. The Center with a $3.5 million endowment will be a hub for collaboration by experts dealing with societal and environmental issues arising as a result of economic activities. The Center will foster opportunities for improvement through new technologies, market-based incentives, and other initiatives. An ExxonMobil affiliate in Nigeria is partnering with the World Bank’s International Finance Corporation (IFC) to support micro-enterprise development and provide small business skills training through IFC’s Support and Training Entrepreneurship Program (STEP). ChevronTexaco is helping transfer western entrepreneurial knowledge to hundreds of local businesses in Kazakhstan. Joining with the United Nations, the European Bank for Reconstruction and Development and the U.S. Government, ChevronTexaco created the Small and Medium Business Enterprise (SME) program. An infrastructure partnership involves BP Solar and the Brazilian Government’s PRODEEM program to address the challenge of providing access to energy in rural areas. Through PRODEEM, stand-alone, clean solar energy is being installed for community-based applications.
Creating a Better Way for Communities to Prosper
At Anadarko Petroleum’s headquarters in Houston, we’re addressing the city’s most pressing social needs through our involvement with United Way of Texas Gulf Coast. Anadarko employees contribute generously, and the company matches employee donations dollar for dollar. In 2003, Anadarko gave $1.2 million to Houston United Way agencies. Similar efforts took place in Calgary, Rock Springs (Wyoming), Anchorage, and other communities throughout North America.
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Building a Home Together
When Anadarko made Montgomery County, Texas its permanent home in 2002, the company wanted to make a significant contribution to its new community. Partnering with Habitat for Humanity to provide one of its neighbors with another new home seemed like a perfect fit.
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Relationship with the Alaska Native Community
Alyeska Pipeline has a special relationship with the Alaska Native Community through its Alaska Native Program and its commitment to attain a 20% Alaska Native hire in the company by 2004. The company annually invests considerable sums to support education and development opportunities and provides scholarships to educational institutions, Native organizations or their subsidiaries, and Trans-Alaska Pipeline System (TAPS) contractors. The total commitment amounts to $3.75 million awarded Alaska Native students pursuing higher education since 1996.
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A Joint Human Rights Learning Initative
BHP Billiton’s Corporate Community Leadership Program examines impact of community development activities in India.
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Resettlement at Tanah Merah, Tangguh, Indonesia
We are using the World Bank’s Impoverishment Risk and Livelihood Restoration (IRLR) Model as a planning matrix, to analyse poverty risks and formulate strategies to overcome them. An Advisory Panel provides the project with detailed advice and assistance in programme planning. The Panel is also engaged in an oversight and assurance role throughout the resettlement implementation phase.
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Local Recruitment in Angola
BP is now only a few months away from planned sanction of the Greater Plutonio project, a deep-water development off the coast of Angola in Africa. Oil production from Greater Plutonio is expected to start by early 2007.
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Developing a Local Workforce in Vietnam
In setting up our new Vietnam operations, BP committed to recruiting and developing a local workforce from the local Vietnamese population.
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Building Homes in Durban, South Africa
Working long hours, but under trained supervision, our employees toiled hard for a week to help build houses for the homeless in Cato Manor, Durban. Habitat for Humanity International is a non-profit organization whose aim is to eliminate substandard housing and homelessness from the world.
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Building Community Links in Colombia
People living in and around Morcote have traditionally felt isolated from regional and national government and their daily lives are threatened by intermittent guerilla activity. BP has taken steps to help them, by establishing an innovative tri-sector partnership for the construction of a 22km road link between Morcote and the town of Nunchia.
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Supporting a Business Building Initiative in Tanzania
Acting as the lead company for the Psi (Private Sector Initiative) Tanzania, BP has been working with nine different partners from a wide-range of industry sectors to develop and increase the participation of local small and medium enterprises (SMEs) in their supply chains.
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Helping Children in Fort Worth
The Burlington Resources Foundation has contributed $20,000 to Cook Children’s Medical Center to help fund its “Answers for Abby” family assistance program. This effort assists families with such post-hospitalization needs as medical supplies, prescriptions and emergency lodging, thus helping prevent readmission to the hospital or further illness or injury.
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Other Philanthropic Giving
The Colonial Pipeline Company actively participates in and supports a variety of community partnership activities. See link above for examples.
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Meranti Pandak (Model Village) Indonesia Business Unit
A foundation formed by PT Caltex Pacific Indonesia (CPI) employees provided loans to fund the work. By 2002, after little more than three years, 25 houses had been renovated, each with clean water and electricity. Other developments were carried out, such as building a small mosque and youth recreation facilities. Flood control also was improved; Meranti Pandak has not flooded since.
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CPI Funds Master Plan for Indonesia's Riau Province
Evidencing ChevronTexaco’s deepening commitment to sustainable development, PT Caltex Pacific Indonesia (CPI) completed a 20-year blueprint for the future growth of Riau Province in 2003.
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Remote Communities Electrification
Nigeria - ChevronTexaco is addressing energy poverty in the remotest sections of the Niger Delta, where many communities lack commercial electricity.
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Western Niger Delta Development Program (WNDP) – Enhancing the Quality of Life
CNL Nigeria Limited (CNL) is implementing the Western Niger Delta Development Program (WNDP) as part of its efforts to improve the quality of life in host communities.
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Start-Ups in Kazakhstan
Through partnerships, ChevronTexaco helps transfer western entrepreneurial knowledge to hundreds of local businesses. Joining with the United Nations, the European Bank for Reconstruction and Development and the U.S. Government, the company created the Small and Medium Business Enterprise (SME) program in Atyrau.
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Technical Skills Acquistion Project
ChevronTexaco/Nigerian National Petroleum Corp. (NNPC) Joint Venture, in partnership with the International Foundation for Education and Self-Help (IFESH) and the Nigerian Opportunities Industrialization Centres (NOIC) – both initiated by the late Rev. Leon Sullivan – created the Technical Skills Acquisition Project in Warri, Delta State.
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Small Business to Big: A Bakery Grows in Angola
Marietta Tavares Alvarenga started her business, Pastelaria Rosy, in 1975, just days after Angola celebrated its national independence. But, like any ambitious small-business owner, Marietta wanted to expand her operations. ChevronTexaco’s Angola subsidiary, Cabinda Gulf Oil Co. Ltd., gave Marietta and other local entrepreneurs six weeks of business training in management, accounting, and marketing. Marietta was sent to a conference for African entrepreneurs in Addis Ababa, Ethiopia. The company signed a two-year, $200,000 catering contract with Pastelaria Rosy that helped Marietta renovate her bakery and expand to two other locations for restaurant and catering services.
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Sustainable Small Farms – Angola
Sustainable small-scale farming is the goal of a ChevronTexaco-sponsored self-help agricultural program that seeks to change the lives of more than 1,500 families in Angola’s Cabinda province.
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Caltex in the Community
ChevronTexaco Asia/Middle East/Africa (AMEA) Products Operating Company and the Caltex brand make sustainable contributions to Singapore through charitable giving, providing services and sponsoring events that underscore the ChevronTexaco vision “to be the global energy company most admired for its people, partnership, and performance.”
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Local Content Development
In 1999, Chevron Nigeria Limited (CNL) and the Nigerian National Petroleum Corporation (NNPC) established the Local Business Development/Global Procurement Unit to help implement a Local Content Development (LCD) policy. The overall aim of the policy – and the creation of the unit – is to promote indigenous businesses, and to facilitate CNL’s purchase of local goods and services.
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Good Will in Southeast Asia Helps
Because of company donations to the School Pocket Money Fund in Singapore, about 1,250 children from low-income families can pay for school expenses such as food, books and transportation. Our company was the first corporation to support this fund through a donation of $30,000. Administered by the National Council of Social Service, the fund is distributed to 25 family service centers that provide financial and emotional support to those in need.
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Committed to Latin America
Through grants to the Pan American Development Foundation (PADF). The company's grants assist the most disadvantaged people in Latin America and the Caribbean. PADF enables people to help themselves by providing disaster assistance, raising family incomes, improving technical training and health services, and strengthening democratic and social institutions.
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ChevronTexaco Partners with Harvard University on Major Corporate Responsibility
ChevronTexaco announced it is contributing $500,000 as a founding sponsor to a major initiative led by Harvard's Kennedy School of Government to enhance corporate responsibility effectiveness in addressing some of the world's most pressing social, economic, and environmental issues.
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ChevronTexaco Honored by the Trust for the Americas for Community Partnership Programs in Venezuela
ChevronTexaco was honored by The Trust for the Americas, the nonprofit arm of the Organization of American States (OAS), for "exemplary corporate programs aimed at alleviating poverty in Latin America." OAS Secretary General Cesar Gaviria presented ChevronTexaco Latin America Upstream with an Honorable Mention award in the 2004 Corporate Citizen of the Americas competition for its Western Venezuela Development Program, a community partnership initiative that improves health and education opportunities for children in the region.
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Addressing Community Needs
ConocoPhillips integrated sustainability into the project planning for a 2001 exploration appraisal project in the Orinoco Delta of Venezuela’s Gulf of Paria. The surrounding delta swamps are the homeland of the indigenous Warao peoples.
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Learning Marketable Skills
Procuring uniforms for the employees of ConocoPhillips’ Matak Island operations was a costly and complicated effort. The uniforms were made in Jakarta – two and a half hours away by plane. A tailor had to be flown in to take measurements, and ill-fitting uniforms had to be returned to Jakarta for tailoring. ConocoPhillips and the Matak community solved this problem through a tailoring training program for the Matak women of Payaklaman, the village closest to the company’s base.
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Assistance for the Motherless Babies Home in Lagos
The ConocoPhillips Nigeria business unit has focused its community efforts on “the needs of children, the future of Nigeria” for the sustainable provision of essential basic infrastructure and support to less privileged children in society, to ensure a better future for the country. For example, ConocoPhillips responded to the Nigerian government’s request for assistance for the Motherless Babies Home in Lagos.
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Closing the College Savings Gap
Parents and children should consider all options to pay for education. A wealth of information on education finance is available from Web sites operated by the College Board (www.collegeboard.com) and College Is Possible (www.collegeispossible.org). Now there’s a new option—rebates on everyday purchases.
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Good Works in Africa
Working with the World Bank, ExxonMobil and its partners are investing $3.5 billion to produce oil in Chad and move it by pipeline to the west coast of Cameroon for export. Local employment is currently 9,500 people, 85 percent of whom are Chadian or Cameroonian. The project will provide billions in royalties and taxes. Of this income paid to governments, 85 percent will be used for social programs to help local citizens. COM-EM-7
Building Business Skills in Nigeria
An ExxonMobil affiliate in Nigeria is partnering with the World Bank’s International Finance Corporation (IFC) to support micro-enterprise development and provide small business skills training through IFC’s STEP project (Support and Training Entrepreneurship Program).
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Helping Communities in Trouble
Calamity can befall any community. We have assisted residents of Central America recover from Hurricane Mitch by helping rebuild water supplies, donating fuel for rescue helicopters and for shipping critical supplies on tankers.
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Matching Gift Program
The Marathon Oil Company Foundation offers eligible MAP employees and retirees the opportunity to participate in its Matching Gifts Program.
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Ethics in Business
Since 2001, MAP’s Business Integrity Office annually has partnered with the Findlay, Ohio, Chamber of Commerce to present an Ethics Forum featuring a key note speaker and interactive discussion of business ethics issues.
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Alberta Ecotrust
Petro-Canada and the Pembina Institute for Appropriate Development partnered to create Alberta Ecotrust in 1991. Alberta Ecotrust supports sound and effective community-based environmental action.
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Creating New Business Opportunities in Canada
Petro-Canada’s MacKay River in situ oil sands development near Fort McMurray, Alberta is creating a wide range of business and employment opportunities in the Regional Municipality of Wood Buffalo (RMWB).
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Promoting Volunteerism
Under the banner of its Volunteer Energy Program, Petro-Canada has created initiatives that recognize the value of employee and retiree volunteerism and encourage involvement. This program was created to support the efforts of Petro-Canada employees and retirees and recognizes their personal choices to be involved in their communities.
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Shell Center for Sustainability
The Shell Oil Company Foundation announced the establishment of the Shell Center for Sustainability at Rice University in Houston. The Center with a $3.5 million endowment, announced in July 2002, will be a hub for collaboration by experts dealing with societal and environmental issues arising as a result of economic activities. The Center will foster opportunities for improvement through new technologies, market-based incentives, and other initiatives.
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Effective Partnerships for Self-Development
Shell has operated in the Gamba region in Gabon for nearly 40 years, but oil activities are declining. Today, a quarter of the local population of Gamba, about 2,000 people, are dependent on Shell for basic social amenities such as education and sea transportation (for food and other materials).
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Community Development
In 2000, Shell commenced an external stakeholder review of its community projects. The review, which is now conducted annually, provides independent advice and verification from external development experts, such as the World Bank, UNICEF, Pro-Natura and Nigerian Government agencies to help the company improve its community development performance.
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Solar Electricity Systems
Two billion people worldwide, living mostly in poor and remote rural areas, have no access to electricity. Shell Solar is bringing solar electricity and equipment directly to remote households, on commercial terms in six developing countries.
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Nanhai Petrochemicals Project
A joint venture between Shell, China National Offshore Oil Corporation and Guangdong provincial government is investing $4 billion in a major petrochemicals complex in Daya Bay, Guangdong Province, Southern China. By late 2005, the plant will be producing more than two million tonnes of plastics and chemical intermediates each year for China’s growing economy. The challenge is to develop the project while protecting the environment and creating real benefits for local communities.
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Building Local Capacity
Shell Canada is developing the Athabasca Oil Sands Project – a joint venture set to boost the GDP of the province of Alberta by C$2 billion in 2002. The company is helping build the community’s capacity to supply business services so that locals can benefit from the economic development. Training initiatives include the Aboriginal Apprenticeship Programme, devised to increase the participation of aboriginal people in high-demand trades.
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