Local Purchasing

Occidental's local purchasing programs seek to enhance the competitiveness of contractors and suppliers and their ability to meet the company's quality, environment and safety performance requirements. We work closely with our local suppliers to ensure sustained quality of service and provide additional training to some suppliers. Maximizing our use of vendors based in the countries where we operate leads to increased job creation and economic opportunities for local residents. Occidental's purchasing activity represents tens of millions of dollars in revenue for local businesses annually.

United States

In support of its domestic oil and gas business units, Occidental purchased more than $4.2 billion in goods and services from domestic vendors in 2015. In Texas, the company spent approximately $2.1 billion.

OxyChem purchased more than $3.4 billion in goods and services from domestic vendors in 2015. OxyChem's 2015 spending with domestic vendors in support of its Texas and Louisiana operations was more than $2.1 billion and $700 million, respectively.

Oman

In Oman, Occidental purchased approximately $2.1 billion in goods and services from approximately 600 Omani suppliers, representing nearly 74 percent of the business unit's total suppliers that year. Occidental's local purchases accounted for 88 percent of its total expenditures with suppliers in 2015.

Occidental Oman continues to support vendors through its Local Community Contractors (LCC) Program. The program enhances the ability of local contractors to compete by sharing best practices and providing assistance to select contractors on sustainable resource management, HES performance and skills development.  In 2015, Occidental Oman spent more than $40 million with local contractors participating in the company's LCC Program.

Occidental Oman's In-Country Value (ICV) Initiative and Small and Medium Enterprise (SME) Development Program fosters economic development and job creation for Omani national citizens.  In 2015, Occidental Oman added two new companies to its Small and Medium Enterprise (SME) Development Program. Through the SME Development Program, Occidental Oman provides tailored support that enhances the capacity and growth potential of Omani-owned SMEs. Company support includes non-financial aid such as business planning, policy development, hiring personnel, technical assistance and product launch trainings.

Qatar

Oxy Qatar's local purchasing program seeks to enhance the competitiveness of contractors and suppliers and their ability to meet the company's expectations regarding environment and safety performance and service quality. Oxy Qatar's iSupplier Portal, a web-based system designed to enhance the supplier relationship, prequalification and sourcing processes, allows purchasing managers to research qualified suppliers, assess the market condition, and develop suitable sourcing plans. By providing prospective local suppliers with the knowledge and tools to fulfill the company's technical requirements and HES standards, the iSupplier Portal and strategic sourcing program assists local suppliers in bidding on and retaining Oxy Qatar's business.

Oxy Qatar spent more than $455 million to purchase goods and services from 230 local vendors in 2015. This amount represented 75 percent of the business unit's total spending and more than half of Oxy Qatar's contracted suppliers for the year.

Colombia

Occidental Colombia contracted with more than 1,130 Colombian vendors in 2015, spending approximately $422 million in local goods and services. With relatively few vendors based in the towns near Occidental's operations, Occidental Colombia has continued to expand its program, first initiated in 2009, to strengthen the business capabilities of local vendors in the communities near Occidental's operations. Occidental has trained dozens of qualified local companies on management, finance and administrative topics. Every participating company receives a tailored development plan following an assessment of its strengths and needs.

Occidental Colombia's Contractor Strengthening Program supports 20 local suppliers working in the La Cira-Infantas (LCI) field that are certified under the Uniform Registration of the Health, Environment and Safety Assessment System for Contractors, or RUC. To further enhance business opportunities for local vendors, Occidental Colombia also provides its contractors working in the LCI Field with a consolidated list of local suppliers and subcontractors.  This promotes networking, the use of local products and services, and ultimately enhances economic opportunities for local businesses near Occidental's operations.  As a result of these efforts and others, local purchasing among Occidental Colombia's contractors in the LCI Field has increased more than 300 percent since 2012.