Marathon acquired production interests on Bioko Island, Equatorial Guinea (EG), in 2002. In establishing operations in EG, the Company set out to have a positive and meaningful impact on the people and country, as well as to create economic value for the Company and its business partners. Marathon's experience and results in EG serve as a model when the Company enters and builds relationships in new regions.

Marathon's efforts have been guided by its CSR principles, and informed and shaped by ongoing stakeholder dialogue with government ministries, communities, non-governmental organizations and business partners.

While its main commitment is to select, train and employ a local workforce, Marathon also implements a CSR strategy to develop meaningful, sustainable social changes. To achieve the best results, Marathon partners with knowledgeable, experienced third parties whenever possible.

 

Community Development
A key focus in EG is promoting healthy, productive communities. A leading example is the Bioko Island Malaria Control Project (BIMCP), a public-private partnership launched in 2003 to support a comprehensive approach to preventing and treating malaria. The potentially deadly mosquito-borne disease threatens the health and well-being of Equatoguineans and strains the national health care system.

By year-end 2007, the BIMCP had reduced the percentage of children on Bioko Island with malaria parasites in their blood by an estimated 49 percent, while the number of malaria cases treated at government health facilities declined by 74 percent from 2005 to 2006. The $15.8 million investment in malaria control by Marathon, its business partners and the EG government also reinforced the nation's efforts to alleviate poverty. With Marathon's support, the EG government was able to leverage the life-saving BIMCP strategies and secure a $26 million grant from the Global Fund to expand malaria control to mainland EG in 2007. With the first phase of the BIMCP scheduled to conclude at the end of 2008, the goal of Marathon and its partners is to develop a sustainable control project that can maintain malaria at very low levels of transmission.

Marathon's environmental stewardship initiatives in EG also aid community development. For example, its gas reinjection project achieves the goals of the Global Gas Flaring Reduction initiative's Voluntary Standard, which are to reduce direct emissions of methane and to reduce poverty through collaborative efforts with governments. The gas reinjection project supplies associated gas to a 28 megawatt electrical generating plant. Electricity from the plant supplies all of the electricity to EG's capital, Malabo.

 

Education and Training
Marathon is expanding the localized workforce in its operated production facilities in EG. Ultimately, its goal is for almost the entire Marathon workforce in EG to be national employees.

The Company prepares Equatoguineans for positions of increasing responsibility, and also provides recruitment and training services to the methanol and liquefied natural gas businesses in which Marathon is a major shareholder. These businesses and Marathon's operated facilities, collectively known as the Punta Europa gas processing complex, invested a combined total of more than $16 million for training and development of the national workforce in 2007.

To aid recruitment, in 2007 the Punta Europa companies placed 18 interns in jobs in Malabo, Houston and Aberdeen, Scotland. They also funded scholarships for 16 EG students at universities in the U.S. and EG. Workforce training programs were provided in English language, computing and business support skills, as well as development assignments and training outside of EG for 20 employees.

Job training for Punta Europa operations and maintenance staff is a key training component. In addition to 73 trainees who will transition from English instruction to vocational training in 2008, 66 existing staff members are participating in competency-based programs and specialized skills training.

Marathon supports childhood education initiatives to create a talent pipeline in EG. The employee-led Books for Bioko program is providing books and supplies to schools in the Malabo area. In 2007, the Books for Bioko program shipped more than $110,000 in supplies and textbooks to the area.

 

Capacity Building
Marathon seeks to enhance the ability of individuals and institutions in EG to sustain business activities and their economy. In 2007 Marathon hosted a customized program to develop specialized skills in petroleum accounting and auditing procedures. The 10-day seminar provided 55 participants from government ministries and national energy companies with a deeper understanding of the complex contractual arrangements used in the oil and gas industry.

Attendees at the accounting program gained specific expertise to support EG's participation in the EITI, a primary measure of external revenue reporting. To support financial transparency, Marathon works with the EG government and with other energy companies in EG toward implementing the EITI principles and full disclosure of revenues.

The Company continues to be a willing partner when the EG government sees a need or desires to improve capacity in business, technology and other critical areas.

 

Rule of Law and Human Rights
Consistent with the Company's commitment to good governance and the rule of law, Marathon's Law organization hosted a course in oil and gas law for legal and government professionals and national energy company representatives in 2007. EG's Minister of Mines, Energy and Industry and the President of the Supreme Court participated in the event and observers from the International Bar Association attended.

Marathon follows the Voluntary Principles on Security and Human Rights in EG. Its activities include training employees in the Voluntary Principles and communicating its commitment to human rights to government officials and business partners. The Company promotes human rights with a U.S.-based contractor providing security consulting services and training to the EG government. The contractor has incorporated Marathon's Voluntary Principles training materials into its training package for security forces.