| June 10
June 10 Chevron Corp plans to nearly
double its donation to Nigerian social projects over the next
five years, part of a choreographed plan to improve the local
economy and bolster the company's supply chain in the African
country, its second-largest source of crude oil.
Chevron is donating $40 million to the Niger Delta
Partnership Initiative (NDPI), a nonprofit it helped form in
2010 with $50 million in seed money. The second round of funding
will make NDPI the largest recipient of Chevron donations in the
company's history, executives said.
The NDPI works with local organizations in the Niger River
Delta to help cull HIV transmission rates, teach cassava farmers
marketing techniques and connect catfish breeders with feed
suppliers, among other projects.
The militant group Boko Haram, which is trying to create an
Islamic state in northern Nigeria and recently kidnapped more
than 200 girls, has had little effect on southern Nigeria and
the Delta, executives and analysts said.
Still, criminal gangs have stolen oil and kidnapped
residents for more than a decade in the Delta, risks that
Chevron and Royal Dutch Shell, the largest foreign oil
company in Nigeria, have had to address.
"Our objective is for peace in the Delta. And the best way
we can contribute to peace, in our view, is the way we're
participating in NDPI," said Rhonda Zygocki, Chevron's executive
vice president of policy and planning.
Chevron has pumped oil in Nigeria, Africa's largest energy
producer, for more than 40 years.
In 2013, the company pumped more crude oil in Nigeria than
any other country in which it operates besides the United
States, the second year in a row the country has held such
import for the company.
Chevron's production, part of a partnership with Nigeria's
state-controlled oil company, has more than doubled in the past
seven years to 268,000 barrels of oil equivalent per day,
according to regulatory filings.
The NDPI operates in nine Nigerian states along the Gulf of
Guinea, though it is headquartered in the capital of Abuja, in
the country's geographic center.
Using the Chevron donation, NDPI finds small charities on
the ground and partners with them on various issues.
For example, the nonprofit gave $59,978 to Forward Africa in
2011 for a project designed to help residents of Nigeria's Imo
and Abia states get more involved in local government. Forward
Africa contributed $5,672 of its funds for the project.
While NPDI works with local banks to obtain financing for
some Nigerian projects, it tries to encourage local markets to
thrive without Chevron's influence, said Dennis Flemming, NDPI's
"We try not to distort a market when we do something here,"
Chevron and foundation staff acknowledged that donations to
communities in areas where the company operates are expected,
though they said it is not part of a quid pro quo arrangement to
obtain access to energy reserves.
(Reporting by Ernest Scheyder; Editing by Terry Wade and