Chevron has been operating in Nigeria for over four decades. Within this period, Chevron has established itself as the company of choice for its people, partnership and performance. Among the many milestones attained by Chevron in the Nigerian oil and gas industry is the discovery of Nigeria’s first successful offshore field, named Okan, in 1963.

In 1999, the Agbami field became the largest deepwater discovery in the nation’s history, targeting 900 million oil-equivalent barrels that are potentially recoverable. The company’s assets include land, swamp and near-shore con- cessions spanning over three million acres, and recently deepwater blocks estimated to hold billions of barrels of recoverable crude oil. It provides rich career development opportunities for over 2000 employees.

Deepwater Ventures

The Agbami Deepwater project, an all sub sea development, with wells tied back to a Floating, Production, Supply and Offloading (FPSO) vessel lies 70 miles offshore Nigeria. The Agbami FPSO vessel is an ultra large crude carrier weighing more than 100,000 tons. It has a processing capability of 250,000 bbl of oil per day and a storage capacity of 2.15 million bbl of oil. First oil from the Agbami field was achieved in July 2008, and production is planned to reach a plateau level of 250,000 barrels per day by the end of 2009.

Gas Development

Chevron Nigeria’s gas utilization and commercialization program is part of the company’s strategy to convert Nigeria’s abundant gas resources into wealth and make the environment safer. Chevron initiated the first Associated Gas gathering and processing plant (EGP-1) in 1997 which delivers high quality 130mm scfd for Nigeria’s domestic use through Nigeria Gas Company (NGC). It has further developed EGP-2 to expand the EGP-1 facility to a design capacity to process up to 285 mmscfd of associated gas (AG) and non-associated gas (NAG). Its on going EGP-3 projects will expand this gas processing capacity to 680 mmscfd. Chevron’s gas-to-liquid conversion facilities in Nigeria are designed to export ultra clean diesel fuels and naphtha. The company is also involved in the West Africa Gas Pipeline project (WAGP), and is currently pursuing other gas related and Independent Power Projects to support various government’s efforts.

Corporate Responsibility

Chevron has spent millions in U.S. Dollars to support its Corporate Responsibility initiatives in Nigeria. These initiatives include scholarship schemes for secondary school and university students. Every year, no fewer than 5,000 students, including the blind benefit from the NNPC/Chevron Scholarship awards. Chevron’s contribution to improving education also includes development of new schools and teachers’ residences; provision of and equipment of educational facilities like laboratories and research centers; and upgrade of such facilities where necessary in line with our strategic objectives. Chevron’s educational support initiatives also include sponsorship of competitions to improve the study of the arts and sciences. It collaborates with other organizations in several initiatives such as the Chevron, The Coca-Cola Africa Foundation and Discovery Channel Global Educational Partnership (DCGEP) Learning Center program. The company also sustains the arts and encourages the culture of reading and writing through its support for the Association of Nigerian Authors.

Chevron implements health programs including River Blindness eradication, Roll Back Malaria and HIV/AIDS campaigns and routinely donates facilities to several health institutions across the country. One of its striking initiatives in this sector is the River Boat Clinic, a mobile medical facility that Chevron introduced to provide medical support for the people in the creek communities around its areas of operations in the Western Niger Delta.

Environment

Environmental protection is integrated into every aspect of the Company’s activities and operations as prescribed by the Company’s policy on Protecting People and the environment. Chevron has received awards from the Nigerian Conservation Foundation (NCF), other non-governmental as well as governmental agencies concerned with the environment for its environmental protection activities. In 2005, the company won the US State Department award for good Corporate Citizenship. Community Engagement Chevron plays a major role in facilitating socio-economic development of communities around its areas of operations in particular and the larger Nigerian community in general. Chevron, working with other stakeholders in 2005, evolved a new model of community engagement called the Global Memorandum of Understanding (GMoU). The strategy fosters human capacity building, community ownership of developmental projects and programs sustainability. Its uniqueness is in building capacity within communities around Chevron’s areas of operations to initiate, develop and implement community development projects utilizing the accountability processes, transparency and funding support provided by Chevron.

Achievements recorded to date under the GMoU include provision of water transport boats, clean drinking water, electricity, roads with paved interlocking stones, complete drainage systems, rehabilitation of schools and cottage hospitals and micro-finance projects for several communities across the eight Regional Development Councils (RDCs) that implement the GMoU process in the Niger Delta. The successes being recorded under the GMoU are encouraging third party support from the Niger Delta Development Commission (NDDC), State governments and agencies, international donors as well as Non-Governmental Organizations (NGOs).

Local Content

Chevron is a leading promoter of the Nigerian Content initiative in the Oil & Gas industry. Its Agbami deepwater project delivered 9,000 tons of FPSO topsides, subsea manifolds, export buoy and suction piles fabricated in local yards in Nigeria with total Nigeria content of about 2.6 million man-hours. The company was honored with the Excellence Award for Nigerian Content development for its initiative in this respect at the 2008 Nigeria Oil & Gas Conference and Exhibition in Abuja.

Conclusion

In pursuit of Chevron’s vision and values, the company continues to deliver world class performance and earn the admiration of all its stakeholders - investors, governments, communities and employees, among others - not only for the goals we achieve but how we achieve them.