National Content Development
National content is our commitment to create sustainable value to the economy and people in the countries where we operate. We’re expanding our investments in advanced technology in mature and developing oil and gas markets. We’ve identified national content development as a key measure of our operational success in a country. Baker Hughes is committed to continuously advancing national content through three cornerstones. These are our global workforce, local suppliers, and communities. Within these focused areas, our region and geomarket management teams implement country-specific plans. These comply with the requirements of our host governments and help support the development of local citizens, businesses, and communities.
We engage our customers as a strategic partner. This requires a high-performing organization with the training, experience, and background to effectively deliver advanced technology. Baker Hughes employs a global workforce with local citizens represented in management, technical, operations, and support positions. They collectively deliver superior value at every point of customer service. Through our talent acquisition program, we are actively building national content by seeking outstanding students from universities on five continents. Our talent management program enhances the knowledge and skills of technical and nontechnical employees. It creates advancement opportunities for high performers.
The following “Percentage of Nationalization in Growth Countries” chart illustrates the percentage of national citizens in certain growth markets. We aim to continuously increase the composition of our workplace with national citizens. We also support their development as they accede in their careers.
Baker Hughes also addresses national content by developing partnerships with local suppliers. We recognize that the procurement needs of our business are an engine for local economic growth and job creation. We procure goods and services from local businesses and service providers who deliver without compromising quality, delivery, schedule, or cost. Our contract and procurement procedures ensure that local companies are treated equitably during the bid process. We also ask that our suppliers commit to similar principles of national content with their suppliers and subcontractors. In Nigeria, our barite grinding mill in Onne operates with all barite needs locally sourced. In Kazakhstan, we procured over $25 million in local goods and services in 2008. This represented 78% of our total spend with local providers. In India, our drilling fluids product line procures its chemicals from the local market. This generates approximately $1.8 million per year into the local economy.
In the community, Baker Hughes promotes national content through social contributions that are largely focused on education. In supporting education, we help to enhance the capabilities of local citizens. We also encourage their leadership and participation in the economic and social development of their countries for years to come. As we expand our national content plans, we seek opportunities to build on the success of our existing education programs.