In over forty years of operating in Nigeria, CNL has established itself as a leader in oil and gas exploration and production. In 1963, the company discovered Nigeria's successful offshore field - Okan - located in the Western Niger Delta. It again blazed the trail in gas utilization when in 1997 it commissioned the Escravos Gas Project - Nigeria's first major gas utilization scheme. Chevron Nigeria Limited is the operator of the NNPC/Chevron Joint Venture in which the NNPC holds 60 percent, with Chevron retaining the balance of 40 percent.

Deep Water Venture
In December 2000, the Nigerian government awarded some deepwater concessions through open competitive tenders, Chevron won the highly coveted OPL 250 marking the company's entry into the deepwater exploration frontier in Nigeria. Production Sharing Contract (PSC) agreement for the lease was signed in 2001, paving the way for the field's technical and geological development. Apart from OPL 250, CNL also won stakes in two other leases - OPL 214 and 318 - in the bid. The Company, along with its partners in these leases, is already working out technical plans for their development.

Gas Development
CNL has in place a four-pronged gas development programme that will ensure the maximization of the benefits (Environmental and commercial) of the gas produced in its operations. This programme is making the gas available for domestic use, exporting it as LPG to the international market, and will, in the near future, produce and pipe it to the West African sub-region while converting a large volume of it into liquid fuel for export. The first part c plan was realized in May 1997, when Chevron, along with its Joint Venture partner, the NNPC, commissioned the first phase of the Escravos Project (EGP). The EGP has an onshore gas plant from where dry gas is piped into the Nigerian Gas Company (NGC) facility for local usage export of Liquefied Petroleum Gas (LPG), another integral part of the strategy, was realized on September 30, 1997, when the Joint Venture exported Nigeria's first shipload of LPG-30,000 metric tons (334 barrels of oil equivalent), produced at the EGP-to the world market. The supply of gas to the sub-region is being handled through the West African Gas Pipeline Project (WAGP), which will pipe gas from Nigeria's fields to three other West African countries - Benin Republic, Togo and Ghana. Chevron is playing the role managing sponsor in a consortium of six Companies involved in the WAGP. The Gas-to-Liquids project is being handled by Chevron in partnership with Sasol of South Africa. It involves the conversion of gas to environmentally friendly liquids such as naphtha and diesel. A purpose-built plant for this will be sited adjacent to the onshore gas plant of the Escravos Gas Project.

The Symbol of Partnership
In the ever-competitive environment of oil and gas production in Nigeria, Chevron Texaco makes the difference by rooting its business in a solid partnership with the people, the environment and the government. This has over the years led to substantial investments in community development. Since 1991, Chevron Texaco and its partners have invested more than USD$56 million in community development projects, and this has manifested in substantial improvement in the quality of life, through improved health care, schools, scholarships, roads, as well as employment - and income - generating schemes, particularly in the Company's areas of operation.

The Environment
Chevron is proud of its efforts in conducting its operations in an environmentally sensitive manner and, over the post few years, both the Nigerian Conservation Foundation and the Federal Environmental Protection Agency (FEPA), among other organizations concerned with the environment, have recognized these efforts. Chevron gives top priority to environmental protection and employs its high environmental standards in every aspect of its activities wherever it operates. The company's policy Protecting People and the Environment emphasizes safe operations, compliance, pollution prevention and community outreach. In recent times, Chevron has been engaged in the significant upgrade of its production facilities, including the installation of improved equipment to reduce discharges and reduce the risk of oil spills. This project is costing the company about $400 million.

The Western Niger Delta Development Programme
The company has committed itself to a five year project called the Western Niger Delta Development Programme to address critical social, economic and developmental problems in the area. This project, over which a total of USD$5 million is being spent over a period of five years, will lead to skills training, basic education, teacher training and health education for the people and the establishment of small businesses.

Scholarships
The NNPC/Chevron Joint Venture operates two scholarship programmes as part of its contributions to the education of the Nigerian youth and the development of superior manpower in Nigeria. One is exclusively for the company's areas of operation, while the other is a national merit programme for beneficiaries throughout the country. Both cover secondary and tertiary education. Approximately, 3000 beneficiaries are on both programmes at any given time.

Local Business Development
Consistent with Chevron's commitment to identifying closely with the aspirations of its neighbours, the Company has initiated measures that promote indigenous participation in the oil industry. In line with this objective, Chevron became the first multinational oil company to relinquish its stake in a marginal field to an indigenous operator Niger Delta Petroleum Resources Ltd. (NDepartment of
  Petroleum
  ResourcesL). In addition, the company, in April 2001, staged a first of its kind Local Content Fair in Nigeria's oil industry. Put together by a unit established specially for ensuring the success of the company's local content goals, the Fair featured, among other things, exhibitions by about 40 companies with a wide range of services to the oil industry.