We believe that societies and local communities where we work should benefit from our presence.
BP's projects and operations have the potential to affect local communities in a positive way by creating jobs, generating tax revenues, providing opportunities for local suppliers and supporting community development initiatives. We work with governments, non-governmental organizations and international agencies to foster good governance in countries where we operate, by improving transparency. BP believes in the importance of consultation with communities throughout the life cycle of the project and operations. Our ability to operate safely and continuously can depend on obtaining the necessary official permits from the authorities and on the informal permission and support of the communities in the surrounding area. Our operations can bring about positive and negative impacts to societies and communities. We screen for possible socio-economic impacts in the early stages of our project planning process. We also conduct impact assessments to help us to better understand how we can avoid or mitigate negative impacts and identify opportunities for positive impacts throughout the life cycle of our project and operations.
Tangguh Environmental & Social Impact Assessment
At the start of new projects, we assess what the short and long-term impacts of our activities might be. Projects that are subject to our environmental and social practices are required to carry out an early screening to evaluate the potential environmental and socio-economic sensitivities in the area, and how our activities might affect them.
Screenings assess a number of factors including the needs of indigenous people, human rights implications, security, community needs, workforce welfare and local employment, the cultural heritage of the area, and the physical and economic aspects of involuntary resettlement. Environmental and social aspects of the Tangguh LNG plant was evaluated against this, as well as Indonesia's Environmental and Social Impact Assessment (AMDAL) regulation and international standards. Official approval of the existing Tangguh operations was received in 2002. The new AMDAL for the Tangguh Expansion Project was approved by the Indonesian Government in July 2014.
Independent advisory panels have helped BP in recent years to navigate social complexities and challenging socio-economic circumstances.
Tangguh Independent Advisory Panel (TIAP)
The implementation of BP's social programs at Tangguh is under the close scrutiny of the Tangguh Independent Advisory Panel (TIAP) and the Tangguh Lenders Group. Since 2002 TIAP has provided independent advice to BP in Indonesia, assessing and suggesting areas for progress on non-commercial aspects of Tangguh LNG. Reports from TIAP and BP's responses can be found here. The first panel was chaired by former U.S. Senator George Mitchell and includes Lord Hannay of Chiswick from the U.K., Ambassador Sabam Siagian from Jakarta, and the Reverend Herman Saud from Jayapura. In July 2009 a new Panel was appointed with Pak Augustinus Rumansara based in Jayapura, and in June 2011 he was joined by former United States Senate Majority Leader Tom Daschle who chairs the new TIAP.
Tangguh Lenders Group
As compliance to Tangguh's financing requirements, BP together with lending institutions for the Tangguh project assigned an independent consultant consisting of environmental and social experts to conduct regular and periodic monitoring towards Tangguh's environmental and social commitments. They meet with Tangguh stakeholders and community beneficiaries. Tangguh's financing sources include the Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC), as well as international and Indonesian commercial banks.
Security & Human Rights
Our approach to security is based on human rights principles, which we call the Integrated Community Based Security (ICBS). ICBS is designed to minimize the potential for conflict, and is one of the first applications of the Voluntary Principles on Security and Human Rights (VPSHR).
We believe that security and respect for Human Rights should, and can be, compatible if reinforced through partnerships involving local communities, police and other stakeholders. These partnerships can be created by running community forums on security and through SKK Migas’ Memorandum of Understanding with the police – referred to as the 'Field Guidelines' or 'Juklap' for short. The Field Guidelines establish human rights standards required for the security of oil and gas companies working in Papua Barat province. These include adoption of the Voluntary Principles and the restrictions on the use of force established by the UN’s Basic Principles on the Use of Force and Treatment of Offenders. The Field guidelines also require use of a community policing system, in which dialogue with communities and mechanisms for conflict prevention and resolution play a key part. The standards are reinforced through regular training for all Tangguh security personnel.
How ICBS works
ICBS establishes shared responsibilities in maintaining security. Local communities, government bodies and security forces are all given a role in resolving conflict issues. In line with the Field Guidelines, Tangguh does not provide weapons or ammunition directly, or through funding, to police. Incidents, either by Security or the police involving the use of force will be reported. Any payments to the police for assistance must be approved by BP and the Indonesian upstream oil and gas regulatory body SKK Migas in compliance with Indonesian government standards. Any payments will made will be publicly disclosed. ICBS has become a model program as a result of its systematic approach to human rights and its establishment of principles that have won support from police and military. The government's positive stance towards ICBS has been shown in its encouragement of other oil and gas operations to adopt the same approach.