By developing a variety of capable local suppliers, we are able to nurture entrepreneurship and foster globally competitive businesses. Our goal is to build and maintain a qualified, competitive and sustainable supply chain wherever we operate.
In some of the more remote locations where we operate, local suppliers sometimes do not have the experience or capacity to provide competitive goods and services to support our business. We use a number of tools to overcome this challenge. For example, in areas where we are growing our business, we conduct business process training covering topics such as health, safety and security; business ethics; costing and tendering; finance and credit; and international standards and codes. We look for opportunities to reach out to new suppliers either through membership in chambers of commerce or similar organizations, or through advertising. In some cases, we also advertise supplier requirements early in the contracting process in order to allow local suppliers sufficient time to prepare their bids.
At our Sakhalin-1 project in Russia, Exxon Neftegas Limited (ENL), a subsidiary of ExxonMobil, has developed an effective program to increase participation of Russian companies. We use a systematic outreach program to inform Russian companies of the opportunities and project requirements in advance of when goods and services are required. The end result is a healthier and more competitive supply chain for the project, increased business opportunities for Russian companies and more jobs in the regional economy. Approximately $13.3 billion in contracts – two-thirds of the total contract value with third-party vendors – has been awarded to Russian companies or joint ventures from 1996 to 2013.