Local Content and Supplier Diversity

We place a high priority on purchasing goods and services locally and are committed to giving local contractors and suppliers the opportunity to participate in projects through a competitive bid process. As an example, in Alaska during 2006, we spent over $1 billion on goods and services with local companies, which in turn employ thousands of Alaskan workers. Other regions in which we work also employ local purchase strategies. Throughout the United States, we calculate the amounts spent with local suppliers. In 2004, we set a goal to raise our local supplier spending by 10 percent a year. We have averaged an 18 percent year-on-year increase, and in 2006 achieved a 22 percent increase. Our 2007 goal is to raise our local spending by 20 percent.

We use a similar approach in other countries. For example, we received an award from the Australian Petroleum Production and Exploration Association for achieving 53 percent Australian industry supplier involvement in our Darwin LNG project. Australian residents comprised 95 percent of the construction work force and now make up 95 percent of the operational staff.