Up Close: Local contractor development in Nigeria The Esso Exploration and Production Nigeria Limited Erha North project started production in September 2015, five months ahead of the planned February 2016 start date. The project, which is estimated to produce an additional 165 million barrels annually from the previously in-production Erha North field, was completed with more than 6 million man-hours in-country without a lost-time incident, and the final cost was $400 million under budget. The overall success of this project was in part due to strong performance by the local Nigerian suppliers and contractors that ExxonMobil employed, as well as a robust local content plan. The project team collaborated early in the project process with the Nigeria Content Management Board to identify local content opportunities to increase local supplier participation. The team also participated in regular communication with key stakeholders, including the Nigerian National Petroleum Corporation, co-venture partners, technical teams and suppliers to ensure strategic alignment and stay on schedule.
For example, more than 130 Nigerians were trained in various fields such as project engineering, scaffolding and fabrication, and 52 percent of trainees are now working full time on ExxonMobil projects. We also worked with several Nigerian companies to obtain necessary materials for the project, including sub-structures, pipes and mud mats. Throughout the project, ExxonMobil held multiple workshops with suppliers to help ensure that suppliers understood and complied with ExxonMobil’s supplier standards. In 2015, ExxonMobil was recognized for its extraordinary local content program in Nigeria as the Best Company in Local Content in Nigeria by Businessday , one of Nigeria’s most respected business newspapers. The award further recognizes ExxonMobil’s investments in Nigeria and the positive economic impact that our business has on communities where we operate. “The Erha North project demonstrates ExxonMobil’s disciplined management approach and expertise, and leveraged strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment, facilities and offshore installation. These contracts will bring direct and indirect benefits to the Nigerian economy through project spending and employment, consistent with project objectives.”
We operate several business support centers (BSC) that offer services to our global operations. We have 10,000 people working in centers around the world, including in Argentina, Czech Republic, Hungary and Thailand. These centers support our operations with a broad range of services, including financial, IT and customer services, and provide jobs and business opportunities for the communities in which they are located. In December 2015, ExxonMobil held an opening ceremony for a new BSC in Bengaluru, India. One of the purposes of this office is to leverage the significant pool of technical talent in India. To date, there are more than 250 locally hired individuals working at the BSC, half of whom are women. Local supplier development ExxonMobil works with a range of stakeholders, including host country governments, non-governmental organizations (NGOs) and local communities to develop local vendors for the supply of goods and services. We seek to build and maintain a qualified and globally competitive supply chain wherever we operate. Our goal is to nurture entrepreneurship and foster competitive businesses capable of contributing to the sustainable economic progress of host countries.
Nolan O’Neal Lead country manager, Nigeria
From left: Tom Walters, president of ExxonMobil Production Company; Alan Kelly, president of ExxonMobil Fuels, Lubricants and Specialties Marketing; and Bryan Milton, president of ExxonMobil Global Services Company celebrate the opening of the new business support center in Bengaluru, India.
Personnel in Nigeria work with cargo barges and installation vessels belonging to a local supplier.
Local development and supply chain management exxonmobil.com/citizenship
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