Supply Chain Management

Ensuring Sustainability In Our Supply Chain
Marathon Oil expects our suppliers to share our commitment to safety, environmental stewardship, ethical business conduct, sound labor practices and human rights.

Our supply chain efforts include a robust monitoring program, respect for human rights, seeking out suppliers that represent our diverse local communities and building strong, long-lasting relationships.

Marathon Oil’s vice president of Global Supply Chain oversees our supplier relationships, which are governed by the Third-Party Services element of our Responsible Operations Management System (ROMS), Procurement and Contracting Policy, Anti-Corruption Compliance Policy, Code of Business Conduct and our health, environmental and safety (HES) standards and policies.

In 2020, our Global Supply Chain team focused on changing processes and procedures to fit new COVID-19 safety guidelines. This was especially difficult in Equatorial Guinea (EG), where internet reliability and network support challenged our ability to work remotely. See our Equatorial Guinea Highlight for more details.

As a result of our continuous efforts to work with and support our suppliers, as well as the implementation of our COVID-19 response plan, our North American operations did not sustain any supply chain shortages. We also created COVID-19 Safety Protocols for field employees and contractors, which represent the minimum expectation for our suppliers. Our Global Supply Chain team performed ongoing risk assessments to review the number of COVID-19 cases in an area or with a particular supplier and created plans to shift crews and suppliers as needed to keep our business units operating safely. In late 2020, we collaborated with our suppliers to develop safe reopening plans.

Ensuring Safe Operations
Compliance throughout our supply chain protects our employees, contractors and communities

Supply Chain Monitoring

Before working with a new supplier, Marathon Oil follows a vetting process to determine technical capabilities, complexity and risk of the associated service, and a supplier’s health, environment and safety record. Potential suppliers within specified higher-risk categories may need to successfully complete an added layer of due diligence and be approved by Marathon Oil’s Law function before engagement. Our supplier agreements mandate adherence to relevant standards and policies as well as our Code of Business Conduct, which covers ethical, social, labor and anti-discrimination standards.

Once approved, suppliers are informed of Marathon Oil’s anti-bribery policies, have the opportunity to participate in Marathon Oil’s anti-bribery training, and are informed about how to report potential violations of our code, policies or standards to our Integrity Helpline. Our Global Supply Chain team monitors compliance with our Procurement and Contracting Policy as well as our Anti-Corruption Compliance Policy. Suppliers may also undergo internal contracts and compliance audits.

Marathon Oil is committed to working with suppliers who uphold the law and applicable regulations, including those related to employment, the environment and safety. We proactively research companies developing emerging technologies that meet our criteria of safety, commercial viability and those that help us reduce GHG emissions. Additionally, we’re committed to ensuring that human rights violations and human trafficking don’t exist in any part of our business. We also regularly assess critical vendors for financial stability and, when beginning work with a new critical supplier, visit their operations in-person when possible.

Supporting Local Content

Through our supplier diversity efforts, we work to increase collaboration with local suppliers. We regularly engage with Indigenous communities in discussions about ongoing and new business opportunities, seeking to understand how those communities and Marathon Oil can work together in a way that is culturally sensitive and enhances the community’s economic capacity.

To help develop local capacity in the Bakken, Marathon Oil strives to award business to companies that comply with the Tribal Employment Rights Office (TERO) on the Fort Berthold Indian Reservation.

In Equatorial Guinea (EG), we continue to increase the procurement of goods and services from local suppliers. Strengthening local content continues to be a focal point in 2021 and beyond. Read more in our Equatorial Guinea Highlight.

Additional HES Assessments for Safety-Sensitive Suppliers

Before a supplier is approved to work with Marathon Oil, we conduct an assessment of its HES performance and capabilities. We develop management plans for safety-sensitive suppliers aligned with recognized industry HES practices such as those published by API and IOGP. These plans are based on the supplier’s potential to impact the safety of other workers, the public, the environment or our facilities. Suppliers who provide personnel for safety-sensitive work in the United States must first register with ISNetworld, a global online source that manages, evaluates and qualifies suppliers based on Marathon Oil’s criteria.

All safety-sensitive suppliers are required to complete our HES orientation and Life Critical Expectations course before they’re allowed on our work sites. Our HES team conducts formal, structured safety leadership engagements with critical and new suppliers, as well as those with HES performance concerns. These engagements may include a review of the suppliers’ internal policies and procedures, and interviews with their leadership and field workforce to gauge their understanding of their employer’s policies and programs. We also work with suppliers on corrective actions with specific deadlines. If safety and operational performance does not improve, the contract could be terminated.

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