Community Engagement Strategy

EXHIBIT H
Chevron Nigeria Limited

Community Engagement Strategy
1. GENERAL
1.1 This Exhibit defines Contractor and Company responsibilities for Local
Community manpower engagement in the Area of Operations. Company’s
objective is to maintain a mutually beneficial relationship with the Local
Communities in its areas of operations to ensure sustainable development.
Communities shall benefit through employment, and sub-contracts under
this Contract.
1.2 Company and Contractor relationship with communities shall be governed by the
Company’s Community Engagement Principles, Applicable Laws and
government policy on the promotion of local content.
1.3 Contractor shall comply with the provisions of this Exhibit (and ensure that all
member of Contractor Group comply). Contractor shall hire Local Community
Manpower and utilize local businesses as provided in this Exhibit. Contractor will
work with Company to give local community laborers opportunity to fill positions
for non-core services. These services should be attained at the established
prevailing community wages and conditions of service. CONTRACTOR will hire
skilled manpower from the local community for as much of the skilled jobs that
the Local Communities can provide, and hire unskilled manpower from the local
community for all unskilled jobs.
1.4 Contractor shall not make payments to local communities or to individuals as a
requirement for executing work. Any such threats or demand for money by any
person or group as a requirement for executing work must be immediately
reported to Company and the appropriate authorities.
2. CONTRACTOR COMMUNITY ENGAGEMENT PLAN & CONTRACTORS’ BRIEF
FORM
Within thirty (30) Days after the Effective Date of the Contract, Contractor shall submit a
comprehensive Community Engagement Plan for Company review and approval. The
plan will have three parts: (i) Project Background; (ii) Local Community Manpower Plan;
and (iii) Contracting and Sub-Contracting Plan.
2.1 Project Background
Below is an outline of the typical sub-titles to be found in the project background;
it must not necessarily contain all these and could also contain any other sub-title
which may be relevant.
 Introduction/Overview of the Project or Activity;
 Project Execution Plan (PEP);
 Opportunity Statement;
 Success Metrics;
 Objectives; and
 Stakeholders involved in the project.
COMMUNITY ENGAGEMENT STRATEGY

Technical ITT – Corrosion Prevention and Control Services
Bid No. OPR-20XX-CWXXXXXX
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2.2 Local Community Manpower Plan
Contractor’s Local Community Manpower Plan shall detail Contractor’s
procedures for administering Local Community Manpower including but not
limited to procedures for the following:
 Terms of employment including number of positions, skills required for the
positions, duration of work.
 Workforce make-up and demographics.
 Employment philosophy including opportunities for continued community
manpower service, work philosophies such as “no work, no pay”, etc.
 Medical examinations and services provided to subcontractor.
 Disciplinary policy.
 Workmen’s Compensation.
 Bonuses.
 Training.
 Annual paid vacation.
 Pension plan.
 Termination.
 Dispute resolution process between Contractor, subcontractors and Local
Community Manpower.
 Communication plan between Company and Contractor with regards to
community subcontractor and Local Community Manpower activities, events
and all items above.
 Evidence of compliance with statutory manpower regulations.
Contractor’s Manpower Plan shall conform to the requirements of the applicable
Company employment guidelines as provided by Company.
All wages and benefits must align with Contractor’s own workers doing similar
work.
Contractor shall be responsible for all manpower risks associated with execution
of the Local Community agreements including but not limited to the following:
 Availability  Termination
 Hiring  Housing/payment in lieu
 Quantity  Feeding/payment in lieu
 Payment  Transportation/payment in lieu
 Bonuses  Management
 Training  Administration
 Quality  Medical/payment in lieu
 Productivity  Occupational/industrial injury
 Discipline
2.3 Contracts and Sub-contracts
Contractor’s Community Engagement Plan (referred to in Clause 2 above), shall
contain a Contracting and Subcontracting Plan detailing Contractor’s strategy and
scope for subcontracting to community contractors from Local Communities.
Contractor shall work with Company to identify work within the scope of this
Exhibit and subcontract these scopes to Local Community contractors at
competitive rates. Company keeps a listing of potential local community
contractors, sub-contractors, and suppliers of services and equipment and
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Company shall provide this list to Contractor to use as a basis for local
community contractor selection.
If capable Local Community contractors and providers of services and equipment

are obtained from Company’s list and such Local Community contractors are
available to provide a particular commodity or service to an acceptable standard
as determined by Company and Contractor, Contractor shall offer right of first
refusal to the Local Community contractors for the Subcontract. Local community
contractor price should be negotiated to the lowest bidder’s price and awarded if
accepted but must be competitive, as benchmarked against other Local
Community contractors. Contractor should be prepared to justify and defend any
subcontract and suppliers of services and equipment that is not to be solicited
within the Community and such justification and defense shall be made to
Company and Contractor must obtain Company’s approval before such is done.
At all times, Contractor shall be responsible for all associated contractual risks
arising from execution of sub-contracts with Local Community contractor and
Company shall have no liability or indemnity whatsoever.
In addition, the Contractor shall fill the Contractors’ Brief Form (CBF), attached as
Schedule II before commencement of project or activity to reflect a true picture of the
manpower and equipment/supply requirements of the project or activity.
3. COMPANY RESPONSIBILITIES
Company will provide assistance to Contractor in securing manpower in accordance with
its community engagement principles, guidance and government policy on the promotion
of skills and standards in the Local Communities.
4. CONTRACTOR RESPONSIBILITIES
Contractor shall have a fair pre-qualification process to select the appropriate manpower
to match the job need. Contractor shall have the right not to employ any Local
Community applicant who cannot pass the Company pre-qualification tests and shall
also have the right to dismiss any worker who does not perform in accordance with
Company requirements as set forth in the Contract. Contractor shall review such
decision to dismiss with Company and get concurrence before doing so. Contractor shall
not, however create jobs for the sole purpose of bringing Community workers onto the
payroll. Contractor shall only hire workers to fill legitimate positions. Under all
circumstances unless specifically instructed by Company in writing, the “no work, no pay”
philosophy shall apply.
Contractor is required to hire Local Community Skilled Manpower for as much of the
skilled jobs that the Local Communities can provide, subject to technical competence,
and hire Unskilled Manpower for all unskilled labor jobs as guided by Company.
Contractor shall issue a list of Community Hires for Work Areas to Company.
4.1 Work Areas
Contractor shall be responsible for provision of all Skilled Manpower and
Unskilled Manpower required to complete the Work in accordance with the
Contract.

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4.1.1. Community Employment Requirements
Where wages for Contractor’s regular employees are less than what is
contained in attached Schedule I, Local Community Manpower hires shall
receive wages not less than as contained in the Schedule I (which rates
are reviewed from time to time). However, where Contractor’s wages for
its regular employees are the same or higher than in Schedule I,
community manpower hires shall receive wages as applicable to
Contractor’s regular employees.
4.1.2. Work Location
Contractor shall work closely with its Subcontractors, Company and
Company’s other contractors at the Work Areas to ensure Contractor’s
manpower policies do not adversely impact adjacent work.
Contractor shall issue a list of Local Community Manpower hires for the
Work Areas to Company.
5. REPORTING OF COMMUNITY RELATED WORK DELAYS OR STOPPAGES

Contractor shall, within twenty-four (24) hours of each occurrence, notify Company in
writing of all manpower disturbances or disputes of any nature.
All Community related delays or stoppages shall be reported in accordance with the
applicable Exhibit on Project Coordination Requirements.
In the event of strikes or absenteeism, Contractor shall have the right not to pay any or
all workers during the entire period of the strike action provided such strike action is not
induced by Contractor or its inability to comply with the Contract.
6. DEFINITIONS AND INTERPRETATION

Word/Phrase Meaning
6.1 Foreman A worker in charge of all the skilled and unskilled manpower.
6.2 Local Community or All the communities where Chevron has exploration and
Local Communities production operations or other form of presence such as
logistics base and administrative offices within Nigeria.
6.3 Local Community Manpower available from the Local Communities.
Manpower
6.4 Skilled Manpower Proficiency or Certification in Class 1 & 2 skills as listed below:
 Class 1 - Carpenters, Electricians, Painters, Fire-Watch
Men, Masons, Plumbers, Assistant Operators, etc.
 Class 2 - Riggers, Scaffolders, Welders, Fitters, Crane
Operators, etc.
6.5 Unskilled Manpower General labor hands or helpers that do not require any technical
ability/skills.

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EXHIBIT H

Chevron Nigeria Limited

COMMUNITY ENGAGEMENT STRATEGY

If capable Local Community contractors and providers of services and equipment

COMMUNITY ENGAGEMENT STRATEGY

5. REPORTING OF COMMUNITY RELATED WORK DELAYS OR STOPPAGES

6. DEFINITIONS AND INTERPRETATION

COMMUNITY ENGAGEMENT STRATEGY

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