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Cablegate: Due Diligence for Chevron for Corporate Excellence Award

VZCZCXYZ0015
OO RUEHWEB

DE RUEHML #1725 2260648
ZNR UUUUU ZZH
O 140648Z AUG 09
FM AMEMBASSY MANILA
TO SECSTATE WASHDC IMMEDIATE 4890

UNCLAS MANILA 001725

SIPDIS

SENSITIVE BUT UNCLASSIFIED

STATE FOR EAP/EP
STATE FOR EEB/EPPD NSMITH-NISSLEY
STATE PASS EXIM, OPIC AND USTR
TREASURY FOR OASIA

E.O. 12958: N/A
TAGS: BEXP EINV ELAB ETRD KSEP SENV RP
SUBJECT: DUE DILIGENCE FOR CHEVRON FOR CORPORATE EXCELLENCE AWARD

REF: State 78538

1. (U) Post is pleased to learn that Chevron is on the short list
for the Secretary's 2009 Award for Corporate Excellence. We believe
that Chevron would be an excellent choice for this year's Award for
Corporate Excellence and submit the following in response to reftel
follow-up questions:

A) Are there possible negatives or risks of U.S. embarrassment that
could result from the potential selection of your nominee? We are
not aware of any information concerning Chevron that would be an
embarrassment to the U.S. government.

B) Do you have any information concerning job creation in the United
States resulting from the operations of company you nominated? The
company is headquartered in the U.S. and has investment activities
in over 180 countries which generate revenues, employment and
economic growth for the U.S.

C) What is your assessment of the company's trade and investment
activities with regard to helping stimulate economic growth in the
U.S. and increasing American exports (what is the U.S. content of
its products)? Chevron is the second largest U.S. oil and energy
exploration company with over 22,000 U.S. employees. Its operations
in the Philippines create a demand for equipment, as well as
specialized engineering and management services, provided by its
U.S. employees and other U.S. companies.

D) What is the state of labor conditions in the company's facilities
and are workers unionized? Chevron supports its Philippine labor
union and has worked constructively to develop and abide by its
Collective Bargaining Agreements.

E) Are you aware of any litigation pending in local courts involving
the company? We are not aware of any such pending litigation.

Mission members involved in Chevron's nomination do not have
financial interests in the company.

2. (SBU) Caltex is a trademark/brand from Chevron's downstream
business unit. In the Philippines, there are four Chevron business
units: Chevron Malampaya LLC (upstream natural gas); Chevron
Geothermal Philippines Holdings, Inc. (upstream-renewable); Chevron
Holdings, Inc. (upstream-renewable), Chevron Holdings, Inc. shared
services); and Chevron Philippines Inc. (downstream petroleum
marketing for Caltex).

KENNEY

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