Local Purchasing
Oxy routinely chooses suppliers located near its operations, provided that safety and quality standards are met. On an annual basis, Oxy’s purchasing activity represents millions of dollars in revenue for local businesses in our core operating regions.1
In 2010, our oil and gas segment spent about $3 billion on purchases from domestic vendors in states including Texas, New Mexico, California, Kansas, Oklahoma, Utah and Colorado.
OxyChem purchased more than $2 billion in goods and services from domestic vendors in 2010. During the year, OxyChem spent over $1 billion on purchases from Texas vendors, and nearly $100 million on purchases from Louisiana vendors.
Oxy Colombia used 463 Colombian vendors in 2010, spending over $48.5 million — 52 percent of its total spending for the year. Among the 463 national vendors were 43 suppliers in the Arauca province near the Caño Limón Field; and 31 suppliers in the Santander province, home to Oxy’s operations at La Cira-Infantas Field (LCI). Purchases from suppliers in the immediate vicinity of Caño Limón and LCI each represented 5 percent of Oxy Colombia’s in-country expenditures.
With relatively few vendors based in the towns near Oxy’s operations, Oxy Colombia has expanded its program to strengthen the business capabilities of selected local suppliers that currently provide limited services or goods to the company. In 2010, Oxy Colombia provided training on management, finance and administrative topics to the original 10 participating Arauca companies and added four other local companies to the program. Each of the new participants received a customized action plan following an assessment of its strengths and needs.
Oxy Qatar made approximately $230 million in purchases from 423 local suppliers in 2010. This represented 50 percent of its total spend and 54 percent of all vendors it used during the year. The majority of Oxy Qatar’s 2010 supply orders were awarded on the basis of the company’s competitive tendering process.
Local purchases accounted for 83 percent of Oxy Oman’s total spend on suppliers in 2010. The company used 696 local Omani suppliers during the year, spending more than $1.3 billion — an increase of over $90 million compared to 2009.
Taxes
In 2010, Oxy paid more than $3.4 billion in worldwide taxes.
1 The spending figures presented in this section reflect purchases from local and national third-party vendors, and exclude utilities, rent, royalties and fees paid to government agencies.