When we begin operations in a country or region, we do everything we can to ensure that they have a beneficial impact on the development of industry and employment. In non-OECD countries, when the production base allows, we purchase equipment and services locally. We also support small businesses in host regions.

Local content and spending in non-OECD countries

Local content is the percentage of heavy equipment, goods and services purchased locally, as part of our operations. Many host countries implement local content policies that set contractual obligations that require oil companies to spend a specific percentage in the country, to encourage use of local human and industrial resources. We support local content policies, even through they may entail an extra cost, and form partnerships with local authorities, suppliers and contractors. Read the testimonial about local content in Nigeria.

Our local content programs are designed case by case, to accommodate a project's technical characteristics and the local industrial environment. They rely on an inventory of the industrial base and human resources that helps us to pinpoint the resources available in the country.

Training, the key to local content policies
Our deployment of local content policies is often stymied by inadequate educational levels and limited proficiency in technology. Training and skills transfer initiatives are therefore necessary before we can partner with local employees and businesses.
The Dalia project in Angola and the recruitment and training program for the Yemen LNG project are two examples.

We are also committed to integrating local managers in our subsidiaries. Making management more international is one of the core cornerstones of our human resources policy. To learn more, go to Diversity.

Revitalizing host regions in OECD countries
To offset the negative impact of restructuring, we are helping to accompany industrial developments and to revitalize the areas affected.

For instance, in France:

• In the Toulouse region, a number of support initiatives for local residents have been undertaken, including 1,866 commitments to create jobs in 2004, 300 of which directly concern Total.
• In southeastern France, a revitalization agreement was signed with the government in December 2005 to offset the negative impact of the closure of three units at the Saint-Auban plant in spring 2006. A total of 560 new jobs will be created in the region.
• In southwestern France, a long-term program is being implemented to ensure a smooth transition for the Lacq labor market area once the gas field is depleted. Read the Case Study

Supporting small businesses

Deployed for nearly 25 years in France, our long-standing commitment to supporting small businesses near our facilities has benefitted more than 3,000 companies.

This commitment relies on three types of support:

• In 2006, 56 companies benefited from our knowledge and expertise through technological support and experience sharing.
• A total of 123 companies received support for exports and international development to our host countries, in the form of intern or co-op placements in our subsidiaries for prospecting. In addition, four business missions were organized in Germany, the United Kingdom and the United Arab Emirates in 2006.
• A further 133 companies received financial support to create, acquire or expand small and medium-sized businesses, corresponding to 1,695 job commitments in 2006.

In addition, in southwestern France, Total provides help through industrial hosting as part of its economic revitalization policy to support the Lacq region's transition to non-gas-dependent activities:

• Read the Case Study

In 2007, to consolidate and expand this commitment:

• On March 28, Total's senior management and European Union federations signed a Europe-wide agreement on support for small and medium-sized businesses near our main European facilities. Employee intrapreneurs who would like to create or acquire a business will be given time off work and will have access to advice, resources, technical support and financial aid.
• In April 2007, the Group also signed the SME Pact, which is aimed at fostering contacts and interaction between innovative SMEs and large companies .

In recent years, we have expanded this support to non-OECD countries. Initiatives include:

• The Industrial Pointe-Noire project in the Congo.
• The PATH program in Madagascar.
• The Zimbo project in Angola.

Support for local microbusinesses

We also provide microfinance, which allows people to create microbusinesses that will generate income and improve their living standards. This is the case for example in Indonesia, Venezuela and Myanmar.