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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.

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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 Company shall provide this list to
Contractor to use as a basis for local community contractor selection.

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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.
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

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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.

END OF EXHIBIT G

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