Professional Documents
Culture Documents
2014 en BP Response To Tiap Report PDF
2014 en BP Response To Tiap Report PDF
2014 en BP Response To Tiap Report PDF
BP RESPONSE TO THE
AND
PROPOSED EXPANSION
OF THE
MAY 2014
Acronyms and Indonesian terms
Bupati TheheadofaKabupatenorRegency
CAP CommunityActionPlan–thesupportprogrammetofacilitatecommunity-
drivendevelopmentprojectsinDirectlyAffectedVillages(DAVs)
DAV VillageidentifiedasbeingdirectlyaffectedbytheTangguhProject
DBH RevenueSharing
DBHSDA RevenueSharingofNaturalResources
GoI GovernmentofIndonesia
ICBS IntegratedCommunityBasedSecurity
IEDP IndigenousEnterpriseDevelopmentProgramme
IHT In-houseHumanRightsTraining
IPB UniversityofAgricultureinBogor
ISP IntegratedSocialProgramme–animplementationunitwithintheTangguh
Projectandthesocial-economicdevelopmentprogrammesitmanages
ITT InvitationtoTender
JUKLAP JointFieldGuidelinesforSecurity
Kabupaten DistrictorRegency
Kapolda PapuaChiefofPolice
Elsham PapuanHumanRightsNGO
LP3BH LawandHumanRightsAdvocacyNGO
LNG LiquefiedNaturalGas
Mmscfd MillionMetricStandardCubicFeetperDay
Musrenbang Participatorydevelopmentplanningrunbythegovernment
MoE MinistryofEnvironment
MoU MemorandumofUnderstanding
MRP PapuanPeopleCouncil
NGO Non-governmentalorganization
Pangdam PapuaMilitaryCommander
Perdasus Specialby-law
PLN StateElectricityCompany
PoD PlanOfDevelopment
Polda Indonesianregionalpolicecommand
Polres IndonesianRegencyPoliceStation
Polsek IndonesianDistrictPoliceStation
PONED BasicObstetricandNeonatalEmergencyServices
Proper AuditonAMDAL(EnvironmentandSocialManagement)compliancebythe
MinistryofEnvironment
1
PSC ProductionSharingContract
PSCM ProcurementandSupplyChangeManagement
PSKKUGM CentreforPopulationandPolicyStudiesatGadjahMadaUniversity
S&OR SafetyandOperationRisks
SKKMigas NationalUpstreamOilandGasImplementingAgency,theGovernmentof
IndonesiapartnerintheTangguhProject(whichreplacedBPMIGAS)
SMK VocationalSchool
SOA SupplyOfftakeAgreement
SPA SalesPurchaseAgreement
TEP TangguhExpansionProject
TIAP TangguhIndependentAdvisoryPanel
TNI IndonesianArmedForces
TPC ThirdPartyContract
UKP4 PresidentialWorkUnitforControlandMonitoring
UNIPA PapuaStateUniversityinManokwari,PapuaBarat
UP4B SpecialUnitonDevelopmentAccelerationofPapuaandPapuaBarat
VPSHR VoluntaryPrinciplesofSecurityandHumanRights
YSA YayasanSosialAgustinus(implementingpartnerforHealth)
YPTB BintuniBayDevelopmentFoundation
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Introduction
BPwouldliketothankthecurrentTangguhIndependentAdvisoryPanel(TIAP)foritsreportand
expertanalysis,challengesandguidance.TIAPfocusesprimarilyonsecurity,humanrights,
governanceandrevenuemanagement,butalsoaddressesothernon-commercialissues.Itscontent
complementstheexternalpanelreviewscarriedoutbytheTangguhLendersGroup.
RecommendationsprovidedbythecurrentandpreviousTIAPhavebeenveryhelpfulinsupporting
oureffortstomaketheTangguhLNGabenchmarkforsuccessfulcollaborationwithlocal
communitiesandotherpartnersinordertomanagecomplexsocial,economicandenvironmental
issues.TIAPishelpingusensurethatTangguhLNGoffersmutualbenefitforBP,thelocal
community,government,employees,customersandinvestors.
TIAP’spreviousvisittookplacefrom14Julyto25July,2012.ThereportwasissuedinOctober2012
andprovided29recommendations.Thetopicsweresecurityandhumanrights,governmentand
communityaffairs,socialprogrammes,employmentandtrainingofPapuans,governanceand
transparency,revenuemanagement,environmentandTangguhExpansion.BPhasrespondedtoand
actedontheserecommendations(seestatusupdateinAppendixA).
TIAP’sthirdvisittookplacefrom10Marchto18March2014andthereportwasissuedinMay2014.
Inthereport,TIAPhighlightedthechangeshappeningatanationalandlocallevelandtheresulting
challengesforTangguh.TIAPalsolookedmorecloselyatthechangeshappeningwiththeTangguh
ExpansionProjectanditsAMDAL.AlthoughTangguhhasimplementedsuccessfulsocialmeasures
sofar,TIAPhighlightedareasofriskandimprovementtoaddress.
Weareverygratefulfortheinsightfulandsharpexaminationinthiscomprehensivereport.We
believeitwillhelpusaddressthechallengeswefacetooperateTangguhinthelongtermand
supportsustainabledevelopmentforthelocalcommunity.
GaswasdiscoveredatBintuniBayin1994,with14trillioncubicfeetofprovedreserves.Gasis
extractedthroughwellsdrilledbytwounmannedandremotelycontrolledsix-legplatforms–
Vorwata-AandVorwata-B–andthentransported22kilometresthroughsubseapipelinestoa
liquefactionplantonthesouthsideofthebay.Thisplantoperatestwo‘trains’orsetsofLNG
processingequipment,withtotalcapacitytoproducearound7.6milliontonsofliquefiedgasperyear
for25years.Theliquidgasisstoredintwo170,000cubicmetretanksandpipedtotheendofajetty
forloadingintotankers.
ThefirstLNGproductiontookplaceinJune2009,withthefirstdeliverybytankertoSouthKoreaa
monthlater.Productionincreasedfrom103cargoesin2012to114in2013,exceedingtheoriginal
promiseof107cargoes.Bytheendof2013,morethan300cargoeshadbeendeliveredfrom
Tangguh,withtheplantachievinganannualaverageoperatingefficiencyof89%-upfrom81%in
2012.Thetargetistoachieve93%operatingefficiencyin2014.Theplanthasachievedandhasbeen
sustainingperformanceat100%designcapacity.TheTangguhLNGplantisoneofthehighest-
performingLNGplantsglobally,andthehighest-performingBPoperationsintermsofsafety,
productionandcost.Thisisbeingachievedwithintheboundaryofmeetingallournon-
technical/externalcommitments.
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TangguhhassevenSalesandPurchaseAgreements(SPA).ThesearetosupplyLNGtoPOSCOand
SKE&SCo.,LtdinKorea,SempraLNGInternationalLLCinMexico,CNOOCFujianLNGCo.Ltdin
China,andTohokuElectricPowerCo.,Inc.,ChubuElectricPowerCo.Inc.,andKansaiElectricPower
Co.Inc.inJapan.BPcontinuestofindopportunitiestomaximizethevalueofTangguhLNGcargoes.
Since2010,severalcargoesfromSempradiversionhavebeensoldtotheAsianmarketintheform
ofmid-termcontractsorspotsales.
Lookingahead,Tangguhaimstocontinuereliableproductionandincreaseoperatingefficiencyto
maintaintrains1and2atfullcapacity,whileanexpansiontobuildtrain3isplanned.TheTangguh
ExpansionProject(TEP)willexpandtheexistingLNGfacility.ItenteredDefinestageinDecember
2013.LNGtrain3andassociatedsupportfacilitieswillbelocatedadjacenttotheexistingtrains1and
2.Theprojectwilldevelop4.3trillioncubicfeet(Tcf)ofgas,throughtheadditionofastandardized
3.8milliontonnesperannum(mtpa)LNGtrain–forsaletomarketsinIndonesiaandAsia.
Offshore,16newwellswillbedrilledfromtwonew,normallyunattendedplatforms(Roabibaand
Wiriagar).TheplatformswillbetiedintotheonshoreLNGplantbypipelines.Start-upisscheduled
for2019.Whentheprojectiscomplete,theTangguhfacilitywillhaveatotalplantcapacityof
11.4mtpa.
Thereisadocument–calledThePlanofDevelopmentII(PoDII)–thatdescribesthefullproject
scopeacrosssubsurfaceandfacilitiesdevelopment,operations,health,safetyandenvironment
(HSE),socialimpactmanagement,procurement,finance,commercialandmarketing.Itwas
developedbyBPandsubmittedtotheGovernmentofIndonesia(GoI)upstreamregulator,SKK
Migas,inAugust2012.PoDIIapprovalwassecuredinNovember2012andrepresentedakey
milestoneofGoIapprovaloftheproject.AnotherkeymilestonewillbetheAMDALapprovalwhichis
expectedattheendofJune2014.AMDAListheenvironmentandsociallicencefromthe
government.Itcontainsthecommitmentstoaddresstheenvironmentalandsocialimpactsofthe
project.
BPwouldliketoprovideitsformalresponsetotherecommendationsmadebyTIAP.
1. As part of the renewal process of the JUKLAP (Joint Field Guidelines for Security),
there should be increased socialization of Integrated Community Based Security
(ICBS), particularly regarding necessary restrictions on fishing.
Response:
Weagreewiththisrecommendation.SocializationofICBSisdoneinthedirectlyaffected
villages(DAVs)atleastonceayear.Wewillintensifythisactivity,whichwillalsoinclude
othervillagesasTangguhExpansionProjectactivitiesinthebayincrease.
WearealsostrengtheningtheICBSprogrammetobemoresystematicwithprocesses-
basedapproachesandclearkeyperformanceindicators.ToimproveICBSperformance,we
needtoinvolveinternalandexternalstakeholders–suchasthecommunityandgovernment
apparatus.Theywillprovideinputandfeedbackontheirexpectationsandcontributions,
whichwillbecomeparamounttodevelopingaroadmapforamoresystematicandeffective
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ICBSprogramme.TomakeanICBSprogrammesustainableintheplaceweareoperatingin,
itshouldbeintroducedandacceptedbyothersimilarindustriesinPapuaingeneral,and
PapuaBaratinparticular,withthesupportofrelatedgovernmentinstitutions.
2. There should be annual training for security guards’ use of batons or other potentially
harmful equipment.
Response:
Weagree.Ourguardsandthelocalpolicehavereceivedtrainingontheappropriateuseof
batonsonvarioussecuritytrainingoccasionsi.e.theJointExercise(JE),VoluntaryPrinciples
ofSecurityandHumanRights(VPSHR)in-housetraining,andspecialsecurityguardstraining.
Recently,thePapuanpoliceinformedusthatthereisgoingtobenationalpoliceregulation
stipulatingthatprivatesecurityguardsarenolongerpermittedtousebatonsticks.Weare
immediatelywithdrawingallbatonsticksfromoursecurityguardsandwilladjustourtraining
accordingly.
Response:
Weagree.Togetherwiththepolice,TNItroopsinBintuniareinvolvedinhumanrights
trainingonanannualbasis.Wewillcontinuethispracticegoingforward.Tosustainthis
programme,wewillcontinuouslyengagethePangdamPapuaaswellastheMilitary
CommanderinSorong.
4. BP should work with the police to make the annual joint exercise a more realistic
simulation. In addition, the joint exercise should continue to be held separately from
human rights training or other activities.
Response:
TheJEisintendedtoprovidethelocalpolice(PolsekandPolres)withadryrunexerciseof
theJUKLAPandhumanrightsguidelines,inwhichtheyhavetohandleasimulated
demonstration.AftertheJE,weusuallydiscussthelessonslearnedwithallparticipantsand
sharewhatwentwellandwhatdidnotgowell,inthespiritofcontinuousimprovement.
BeforeweundertaketheJEthisyear,wewilldiscusstheagendaandsimulationscenario
withthepoliceandobtainfeedbacksowecanproduceabetter,fit-for-purposeandmore
realisticJEoutcome.
Tangguhwillcontinuetoholdthein-househumanrightstraining(IHT)separatelyfromtheJE,
aswehavebeendoingsincewestartedconductingtheIHTandJEin2008.DuringaJE,
therewillbearefresherhumanrightsclass.Thisisareminderonlyandisnotaimedatbeing
primarytraining.Thisrefresherisnecessarytopreparetheparticipantsforthesimulationas
partoftheJE.
5. The grievance system should be continually socialized, among both affected villages
and employees, to ensure that all understand it and can use it easily.
Response:
Weagree.WehaveconductedthegrievanceprocesssocializationtotheDAVsregularly,
includingin2013,andplantocontinuethisinthecomingyears.
6. BP should limit its support for police and TNI personnel activities in the villages to
communications and public forums that inform the community on security, human
rights and ICBS.
5
Response:
Weagreeandwilldosoaccordingly.TangguhwillsupportthepoliceandTNIpersonnelin
communicationsandpublicforumsthataredirectlyrelatedtotheirformalfunctionsinline
withICBS.
7. BP should have a plan to shut down the facility if there is a successful cyber-attack,
and should resist providing any external parties’ access to its operating systems.
Response:
Wehaveaproceduretohandlesituationsshouldourcontrolsystembecomeinoperable(due
tovariousreasonsincludingcyber-attack).Thepowerwillbeswitchedoffandtheplantshut
down.Thereisnoaccessfromexternalpartiestothefacilityoperatingsystem.Thecontrol
topreventattacksisalreadyinplace.Forexample,wehaveafirewallwhichismanagedand
controlledcentrally.Additionalinformationcannotbesharedforsecurityreasons.
Recommendations: Programmes for the DAVs and Teluk Bintuni
1. The CAPs provided unique and important benefits for the DAVs. Although they will be
discontinued in 2014, replacement discretionary benefits for the most affected coastal
villages should continue.
Response:
Weagree.AspertheexistingAMDAL,theCAPprogrammeintheDAVshasbeendelivered
for10yearsaspromisedandwillbediscontinuedin2014.TheCAPhasbuiltskillsinthe
communityforparticipatoryplanning,deliveringandevaluatingthevillagedevelopment
programmeusingtheallocatedfundsfromTangguh.InthenewAMDAL,weplantousea
differentapproach.ThiswillfocusontheindigenouspeoplelivinginthesurroundingTangguh
operatingareabeingbeneficiariesoftheprogramme.Tangguhwillallocatereplacement
discretionaryfundsforcommunity-drivenprogrammesthatcanbeaccessedbythe
community.Inaddition,Tangguhwillcontinuetosupporttheparticipatoryplanninginthe
Musrenbang(governmentprocessforbudgetaryplanning)fromvillagetoregencylevel.
2. New or renovated housing for north shore villages should be a long-term priority. BP
should support this program by producing lumber from felled trees at the LNG site.
Response:
Weagree.Tangguhwillsupportthehouserenovationprojectinco-operationwiththeTeluk
BintuniRegencyGovernment.WearecurrentlyworkingwithconsultantsfromLAPI-ITBon
theinitialassessmentandsurvey.Wearealsostartingtheformalprocesswiththelocaland
centralgovernmenttoreleasetimberfromTEPtree-cuttinginatimelymanner,sothatthe
timbercanbeused.
WehavemadeprogressontheNorthShoreHouseRestorationwithaMemorandumof
Understanding(MoU)signedon5December2013bytheTelukBintuniBupatiandBPin
Bintuni;basicdataandinformationforthepre-feasibilitystudybeingcollectedintheWeriagar
community;andakickoffmeetingheldinJakartaon9May2014tomarkthe
commencementofthefeasibilitystudyfortheNorthShoreHouseRestorationprogramme.
ThemeetingwasattendedbytheBupati,alongwithseniorofficersfromTelukBintuni
Regency,SKKMigasandBP.
3. Electrifying all the DAVs and Babo should be the highest near term priority. Until PLN
can install grid-based electricity, BP should support temporary diesel based power
generation in Babo.
6
Response:
Weagree.BPiscoordinatingcloselywithPLN,localgovernmentandUP4Btomonitorthe
progressindistributionofthetransmissioncablestotheDAVsinthesouthshoreandnorth
shore.WehavealsoinstigatedeffortstoassistTelukBintuniRegencywithimproving
electricitysupplyintheBaboarea.Thenear-termplanistolendadiesel-fuelledpower
generationunit(genset)whichwillbeoperatedandmaintainedbytheTelukBintuniRegency.
Weexpectthatthegensetwillstarttogenerateelectricitywithinafewmonths.Thelong-
termplanistoencouragePLNtoextendelectricitysupplycoverage(undertheAgreementto
SupplyandOfftakeElectricPowerbetweenPTPLN(Persero)andTangguhPSCContractors,
signedon3December2013)toincludethevillageswithinBaboDistricts.Forthemidand
long-termmeasures,wewillco-ordinatecloselywithPLNandPemdaTelukBintunito
explorethebestwaytoextendthePLNelectricitynetworkfromthePLNsubstationnear
TangguhtoBabo.
4. As the health care program is expanded, BP should first focus on improving capacity
and facilities at Babo, including emergency care capabilities, long-term personnel
capacity and emergency transportation to Bintuni or elsewhere.
Response:
Weagree.WehaveidentifiedseveralchallengesrelatedtohealthinBaboandBintuni:
• Thecommunityhaslimitedawarenessandknowledgeabouthigh-riskpregnancies.In
manyinstances,localpeopletreatedhigh-riskpregnancypatientsatthehealthcentreor
evenathome–althoughtheyshouldhavebeenbroughttothehospital.
• Lackofreliabletransportationtorespondtoemergencyandreferralcasesdueto
unavailabilityoffuelsupplyandpoorboatmaintenanceinBaboandBintuni.
• TheBaboHealthCentre,wherethepersonnelhavebeentrained,isstillunableto
providetheexpectedlevelofservicesduetolackofteamconfidence,on-goingfacility
constructionandunavailabilityofmedicalequipment(someisbeingprocured).
• BintuniHospitalmanagementandservicesstillhasagapinmanagingmaternaland
neonatalemergencycases.
• TransitHouse/RumahSinggahisprovidedandmanagedbytheRegencyHealth
DepartmentinBintuni.Ittemporarilyhostswomenwithhigh-riskpregnancycasesfrom
allvillageswhoplantodelivertheirbabiesinBintunihospital.Theoccupancyofthis
facilityisconsideredlowduetolackofmanagement.
Toaddresstheabovechallenges,TangguhissupportingthehealthcentreinBabo.Weare
upgradingthecapacityandfacilityoftheBaboHealthCentretoenablethemtomanage
obstetricandneonatalemergencycases(PONED),duetobecompletedinQ42014.The
TangguhCommunityHealthDepartmenthaddiscussedemergencytransportationwiththe
RegencyHealthDepartment.WeweretoldthatwhileBaboHealthCentrehashadaboatfor
afewyears,theenginehadbeenbroken.However,theRegencyHealthDepartmenthas
recentlyboughtanewboatengineforBaboHealthCentreandalsoisprovidingstand-byfuel
budgetforemergencytransportationtoBintuniHospital.
OurteamattheBabodistrict,ledbytheMCHProgrammeManager,isworkingcloselywith
BaboHealthCentre,theRegencyHealthDepartmentandotherstakeholdersinBabo.
Togethertheywillensurethehealthcentrehasthecapabilityandfacilitiestohandleobstetric
andneonatalemergencycases(PONED),aswellasmakingsurethetransportationtoBintuni
iswellmaintained.
5. BP should continue to build capacity of the Regency education department, continue
its support for primary education in the affected villages, support incentives to retain
effective teachers for longer periods, and focus its new education partnership on
development of flagship secondary schools.
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Response:
Weagree.Oureducationprogrammewillcontinuetosupporttheregencyeducation
departmentinprovidingqualityprimaryandsecondaryeducationinTelukBintuni.This
includes:Providingteachersandtheirhouses,schoolinfrastructureandfacilities,scholarship
andeducationaid,capacitybuildingforeducationagencyandlocalimplementationpartners,
teachertrainingandsupportforflagshipschools,boardinghouses,andinternetaccessin
schools.
6. BP should resolve stocking point pickup and payment issues with Indocater and
cooperatives in the villages that purchase the products from the community before
selling it to Indocater. If it cannot, it should include requirements addressing these
complaints in any extension of these contracts.
Response:
Weagree.Wewillprovidefinancialmentoringtotheco-operatives.Wewillalsofacilitate
discussionsbetweenIndocaterandco-operativesandalsoamongco-operativemembersto
resolveanydisputesonfinancialmanagement,suppliesorpayments.Thisincludes
facilitatingadialoguebetweenIndocaterandco-operativesonthepaymenttermsofthe
contract,tocometoacommonunderstandingandagreementtoensuresustainable
trade/businesstransactionthroughthelivelihoodprogramme.Therequirementsforthe
cateringcompanytoaddresscomplaintsfromthecommunitycanbeincludedinthecontract
andTangguhwillsupportthediscussionasneeded.
7. Livelihood development and household economic management programs should be
continued for the long-term, looking to develop added value products. Their long-term
vision should be toward creating a sustainable and self-reliant household economy.
This will sustain the household economy from adverse, cumulative impacts of the
multiple development projects that will come in to this area.
Response:
Weagree.Besidesexpandingthelivelihoodprogrammestoincreasemarketandproductivity
forthelocalcommunity,Tangguhalsocontinuestoprovidetrainingonhouseholdeconomy
andmanagingfunds.Duringtrainingwepromoteusinghouseholdincomewiselyandthe
practiceofsaving.Thisisespeciallyimportantbecauseweplantoincreaselocalparticipation
inprovidingsupporttoTangguhthroughtheIndigenousEnterpriseDevelopmentProgramme
(IEDP),whichwillfurtherincreasetheirincomes.
8. BP should support motor or electrical repair shops in each DAV where needed.
Response:
Weagree.Tangguhhassupportedthetrainingandestablishmentoftheengineworkshopsin
TaroyandSaenggasothatvillagerscanfixtheirboatmotorsandelectricalgenerators
themselves.Wewillsupportlocalcommunitieswhoareinterested,andhavethepotential,
toestablishmotororelectricalrepairshopsinothervillages.Thiswillbepartoftheoverall
IEDPthatwillprovideopportunitiesforPapuanstodevelopskillsandcompeteforbusiness
opportunitiesfromthegrowingindustryinBintuniandFakfak.
Response:
Weagree.Thebiennialcensus/surveywillbecontinuedtomonitortheprogressofsocialand
economicdevelopmentinBintuniincludingtheoutcomeofthelivelihoodprogramme.Inthe
2013socio-economiccensus/surveywestartedtoextendthescopetoincludeFakfak.We
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willalsoanalyseandmonitorthetrendofspendingandsavingstounderstandifthereis
changeinthewaythecommunitymanagesitsincometowardsbeingmoreself-reliant.
1. BP should pursue its new Papuan Operations and Maintenance (O&M) Technician
Development Program aggressively to meet hiring needs for current operations and
future operations. It should also support the development of trade centers in Papua to
deliver skilled Papuans for BP and its construction contractors’ hiring needs.
Response:
ThenewPapuanO&Mtechniciandevelopmentprogrammeisinprogress.Thedevelopment
programmewilltakethreeyearsandiscurrentlybeingprepared.Themarketassessmentto
identifyaqualifiedtrainingserviceproviderisinprogressandthebidisbeingconducted.The
targetistohavetheselectedserviceinplacebyQ42014.Thetechnicianswillbeselected
soon,withprioritiesbeingtheindigenouspeopleinBintuniandFakfak.
BPhasdonethemarketassessmentforlocaltrainingfacilitieswithinPapuaandidentifieda
fewpotentialgoodvocationalschoolsinPapuaBaratthathavegoodfacilitiesandcurricula
forsometrades.Furtherevaluationwillbedonetoindentifythetradesrequiredforproject
activities–andforroutinemaintenanceactivities.
2. BP should continue to provide English language training to all participants who seek it.
It should explore whether there is demand for this program in Sorong, Fakfak or other
locations.
Response:
Weagree.Wewillcontinuethetechniciantrainingprogrammeandimplementsome
improvementstoensurethatthetechnicianshavetherighteducationandskills.Weare
goingtopartnerwiththelocaltradescentreinPapuawhowillprovidethetrainingforthe
feederpooloftechnicians.
WewillmonitortheattendanceandprogressoftheEnglishlanguagetraininginManokwari
andJayapura.Iftheprogrammeissuccessful,wewillofferitinotherlocations(e.g.Sorong
orFakfak).Inaddition,BPhasestablishedtheupstreamlearningteam,whichwillsupportthe
effectiveexecutionofEnglishtraining.
3. BP must explain and enforce Papuan hiring targets on its contractors, including
financial penalties for failure to meet agreed upon targets.
Response:
Aspartofthetenderprocess,TangguhwillexplainthePapuanhiringtargetstocontractors.
ThisiscarriedoutaspartoftheonshorecontractInvitationtoTender(ITT)evaluationprocess
wheretheAMDALcommitmentsareprescribed.Contractswillincludespecificrequirements
tomeetthePapuahiringtargetsandTangguhwillimplementperformancemanagement
measurestoenforcedeliveryofthesetargets.Thiswillincorporatelessonslearnedfromthe
Tangguhtrains1and2constructionphase.
WealsomonitorthecommitmentofourexistingcontractorsinOperationstorecruitand
developtheirPapuanworkforce.Inthepasttwoyearswehavemanagedtointervenewith
ourmaincontractorstoprovidegreatersupportforPapuandevelopment.
4. Priority for all Papuan recruitment and training programs should be given to ethnic
Papuans, particularly those from the Bintuni Bay region.
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Response:
AsdefinedintheTEPAMDAL,thetargetedbeneficiariesofTangguhprogrammeswillbethe
indigenouspeople(IP)inthefourtribesfromthevillagessurroundingTangguhinBintuniand
Fakfak.ThisisachangeinfocusofthenewAMDALfromDAVstoindigenouspeople.The
definitionofIPforTangguhwillnotonlyincludeethnicPapuans,butalsothosewhoarenot
ethnicPapuansbuthavebeenlivingforalongtimeinthevillageandhavebeenacceptedas
partofthecommunity.Wewillprioritizeandtargettherecruitmentandtrainingprogramme
fortheethnicPapuansinthefourtribesfromthesurroundingvillages.However,wecannot
excludethenon-PapuanethniciftherearenotenoughornoqualifiedethnicPapuanstobe
recruited.
5. BP should focus its business empowerment program on those supplies and services
that will be needed during construction, and encourage its EPC contractor and its
subcontractors to use these firms, where possible. It should consider a preferential
system for firms that meet BP standards.
Response:
TheIEDPwillfocusitstrainingandempowermentprogrammeonlocalenterprisestosupply
goodsandservicesneededforTangguhoperationsandtheexpansionprojectaswellas
creatingopportunitiesforlocalindigenousfirmsinothermarketsinPapuaBarat.Working
withPSCM(ProcurementandSupplyChainManagement),IEDPwilldevelopcertaincriteria
toassesswhetheranindigenousfirmiscompetentandcanbeprioritizedbyTangguh
contractorstosupplygoodsorservices.
1. BP should continue its positive engagement with leaders throughout the construction
period, including maintaining regular contact with the Pangdam and the Kapolda.
Response:
Weagree.Wewillmaintainourengagementwithleadersinthegovernment,includingthe
PangdamandKapolda,throughoutconstructionandpost-construction.
2. BP public affairs should engage regularly with key media, and employ social media
tools to communicate more effectively.
Response:
Weagreetoengageregularlywithkeymediaatanationalandlocallevelthroughappropriate
communicationchannels.Thesewillbeselectedbasedonathoroughassessmentofthe
risksandbenefitsinvolved.
Response:
Webelievethatthegovernmentandcommunityshouldbethemainleadersofcommunity
developmentinBintuni.However,Tangguhremainscommittedtoempoweringandenabling
thecommunityandlocalgovernmenttoleadthedevelopment.Tangguhwillalsofacilitate
moreinvolvementandsupportfordevelopmentfromotherPSCsoperatingintheBintunibay
area.
Inaddition,weareincreasingourcampaignthroughnationalandlocalmediaregarding
Tangguh’scontributiontosocialdevelopmentinBintuni,aswellasourplantofurther
improvethewelfareofthewidercommunityinBintuni,FakfakandPapuaBarat(asstatedin
thenewAMDAL).
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4. Stakeholder forums should be resumed every year in Bintuni Bay, seeking input from
government, civil society, and other interested parties. BP should also maintain a
program of visits to the LNG site by village leaders during construction.
Response:
From2012toearly2014,Tangguhconductedintensivestakeholderengagementswiththe
community,localgovernmentandNGOsaspartoftheTEPAMDALprocessincluding
holdingpublicconsultationsfor62villagesinBintuniandFakfak.Tangguhalsosupportedthe
AMDALpublichearingsinBintuniinDecember2013andFebruary2014,ledbytheMinistry
ofEnvironment(MoE),whichinvolvedmorethan200participantsfromthevillages,NGOs
andlocalgovernment.Inthefuture,ascommittedintheAMDAL,Tangguhwillconduct
regularconsultationswithgovernment,civilsociety,community,mediaandotherinterested
parties.ThestakeholderengagementwillalsoincludevisitstotheLNGsitebyvillage
leadersandlocalgovernment.
1. Long-term support for more effective governance and transparency at the kabupaten
level is essential for Tangguh’s social programs to succeed and for Tangguh revenues
to be used soundly. For effective implementation, BP should avoid hiatuses and
disruptions in the program.
Response:
Weagree.Governanceprogrammesarecriticaltosuccessfullycreatingsustainable
developmentintheregion.Wearemakingafewsmallerbridgingcontractstoavoidgapsin
implementationwhilethemaingovernancecontractisbeingtendered.
2. BP should focus its support for the Papua Barat provincial government on greater
transparency and accountability.
Response:
WehaveprovidedseveralworkshopsforthePapuaBaratprovincialgovernmentontheoil
andgasindustryandrevenuesharing.WealsosupportedEITItoholdatransparencyseminar
fortheprovincialgovernmentin2012.ForfutureprogrammeswewillconsultthePapua
Baratprovincialgovernmentandoffercapacitybuildingfortheofficialstosupport
transparencyandaccountability.
3. BP should consult with the World Bank or other capable organization, the Governor
and the Bupati to determine whether an expenditure analysis of their respective
budgets could be conducted.
WewillconsultwiththeBupatiandGovernortodetermineiftheywouldbewillingto
performanexpenditureanalysisbytheWorldBankoranotherappropriateorganization.We
plantodothisduringourconsultationwiththemonthegovernanceprogrammeforthe
RegencyandProvince.
1. BP should support the local government’s use of a portion of the fund established by
the Perdasus on natural resource revenue sharing for recognition of any legitimate
adat claims relating to tribal ownership of natural resources.
11
Response:
Weagreethattheadatcommunity’srightsneedtoberespected.WhenthePerdasusDBH
isinplace,therewillbesubsequentspecialregionalby-lawsthatneedtobeissuedbythe
provincialandregencygovernment.ThesewillimplementthePerdasusaswellasdeliver
theirintentiontorecognizelegitimateadatrightsofnaturalresources,usingtherevenue
sharingestablishedbythePerdasus. Tangguhwilloffersupporttosponsorthelocal
universitytoprovidetheacademicpaperfortheaforementionedspecialregionalby-laws.
2. BP should assist the formation and capacity building of the management of the entity
that will administer the trustfund for the 10 % allocation of the oil and gas revenue
split by the perdasus.
Response:
Weagreethatthetrustfundneedstobemanagedproperly.Thelocalgovernmentand
communityshouldleadtheformationoftheentityandTangguhcanprovidesupport.
Furthermore,themanagementoftheadattrustfundwillbeuptotheadattrustfund
institutions.Tangguhcanprovidecapacitybuildingfortheinstitutions.
3. BP should encourage the Governor and the Bupati to implement the transparency and
accountability provision of the Perdasus DBH by supporting an expenditure analysis of
all natural resource revenues transferred to the province.
Response:
Asmentionedabove,wewillconsulttheBupatiandGovernortodetermineiftheywouldbe
willingtoperformanexpenditureanalysisaspartofimplementingtransparencyand
accountability.However,thetransferofDBH(revenuesharing)totheprovinceispooledas
naturalresourcerevenuesharing(DBHSDA),i.e.notspecifictoTangguhorotherprojects,
whichmeansthatdetailedtrackingofTangguhDBHattheprovinceandkabupatenlevelis
difficult.Theexpenditureanalysiscanbedoneonthewholeprovincialorkabupatenbudget
orontherevenuesharingofallnaturalresources(DBHSDA)aswellasontheportionfor
adatrecognition.
Recommendations: Environment
12
2. The regular survey of fish, shrimp and crab resources in Bintuni Bay as well as
environmental monitoring should continue, so that any impacts from construction and
future operations may be measured.
Response:
Weagree.Wehavebeenconductingregularenvironmentalmonitoringandsurveysoffish,
shrimpandcrabresourcesinBintuniBay.Withregardstothebaselinestudyon
contaminantspriortoTEPconstruction,wehaveincludedthisaspartoftheenvironmental
baselinesurveyin2012and2013.
3. BP should explore with SKKMigas options or new technology for reducing CO2
emissions.
Response:
Tangguh feed gas from current wells (in VR-A and VR-B platforms) contains about 12% of
CO2,whilefortheTangguhExpansionProject,theestimateisupto15%ofCO2.Thismeans
that increased production will generate increased CO2 emissions. We agree with the
recommendation to work with SKK Migas to monitor new technology, which can be
consideredasanoptionforGHGemissionsinfuture.
13
Exhibit A. Status of TIAP recommendations
TIAP recommendations from July 2012 visit
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
Securityand 1. BPshouldrequireanynewprivate Weagree,andhaverequiredallpastand Ontrack.Thisisanon-goingactivity.
humanrights securitycontractortocommitto currentsecurityproviders(threedifferent
retainingallPapuansecurityguardsin companiestodate)toretainPapuan
goodstanding
securityguardsinpost.
2. BPshouldworkwithGentingOiland WehaveactivelysharedourICBS Tangguhcontinuesitseffortstoinfluenceall
othercompaniesexploringinthe approachanditsbenefitstoGentingOil stakeholderswhoworkintheBintuniregion,
BintuniBayarea,andwithgovernment whichiscurrentlyexploringintheKasuri particularlyintheoilandgasindustry,to
andsecurityofficials,toencourage
block,adjacenttoTangguh.Throughouta implementtheprincipleofICBSduringtheir
adoptionoftheprinciplesofICBSin
theirsecurityoperationsand,atthe goodcooperationduringtheirrecent operationthroughSKKMigas.
veryleast,toofferhumanrights seismiccampaignwithintheperimeterof
theTangguhLNGareaanadoptionof WehavesuccessfullypersuadedGentingto
trainingtoanypolice,TNIorprivate
securitypersonnelbeingusedas ICBSprinciplesbytheGentingteamhas useprofessionalsecuritycompanies,with
securityforces beeninitiated.Positiveindicationforfull someguardshiredfromthesurrounding
villages.Inthepasttheyhaveusedmilitary
adoptionhasbeendemonstratedthrough
requestsmadebyGentingtoTangguhfor servicesduringseismicactivity.
amoreintensiveexpertisesharingonthe
Furthermore,wewillcontinuetoinvolveSKK
designandimplementationofICBSfor
Migasanduseotherchannelstointroduce
theirfuturedrillingandseismic
andpromoteICBSprinciples.
operations.BPMIGAShasrecognized
thisandasaresultTangguhhasbeen
requestedtoprovidebroaderexpertise
sharingtootherPSCsespeciallytothose
operatinginPapuaandPapuaBarat
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
provinces.ThroughBPMIGAS(nowitis
SKKMigas)initiative,wehavealsoshared
theadvantageofICBSconceptstoother
majorcompaniesoperatinginotherpart
ofEasternIndonesiaregionsuchas
Inpex.Asharingsessionforthemining
giantPTFreeportIndonesiahasalsobeen
conducted.
ThePapuaPoliceHeadquarters(POLDA)
hasconsistentlypromotedICBSinits
discussionswithothercompanies
operatinginPapua.Recently,LP3BH,a
localNGOprovidinglegalandhuman
rightsadvocacy,wroteanarticleinthe
localnewspapertopromotetheadoption
ofICBSbyallcompaniesdoingnatural
resourcesexploitationinPapua.
Ifothercompanies’securitymeasures
posearisktoouroperationsinfuture,we
willpromotethebenefitsofICBSeven
moreforcefullythroughrelevantGOI
offices,includingBPMIGASandthe
police.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
holdasmaller-scaleexerciseinvolving Tangguhsecurityguards.
districtandregencypolice.
In2013,JEtookplaceinBabofrom17-21
Forthisyear’sexercise,weareontrack November.Itinvolved127peopleincluding
toconductafull-scaleexercisein localpoliceandTangguhsecurity.Several
November2012.Akick-offmeetinghas localNGOs,suchasLP3BHandElsham,
beenheldbyBPMIGASinJakartaon23rd participatedinthetrainingasobservers.
OctoberattendedbythePoliceDirector
ofNationalVitalObjectSecurity
(Dirpamobvit)andBP.
townshipfrom2-6September,involving50
personnelfromthelocalarmy(TNIAD
KompiSenapanE/752).Furthertrainingwas
carriedoutfrom23-27September,involving
30localpolice(Bintara).ThelocalNGOs,
includingKOMNASHAMPapuaandLP3BH
Manokwariwerepresentasobservers.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
toManokwariwheneverpossible arealsoestablishingclosercontactinour respondingtoanyexternalconcerns,suchas
whenvisitingTangguh;theGovernor supportontheformulationofPerdasus theelectricityplan.
andseniorDPRDofficialsshouldbe foroilandgasrevenuesplit(DBH)tohelp
invitedtoTangguh;andinvitations Comprehensivecommunicationand
speedupthisprocess.Weintendto
shouldbeextendedtotheGovernor consultationwerealsocarriedoutinrelation
forbriefingsbyseniorBPofficials maintaingoodrelationshipswiththe
PapuaBaratgovernmentandother totheTangguhExpansionProjectand
whenhevisitsJakarta.
stakeholders,inlinewithTIAP AMDAL,aswellasduringthedraftingof
recommendations. PerdasusDBH(revenuesharingby-law)with
thelegislativebodyinPapuaBarat.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
BintunithefirstcityinthePapuaregionwith
a24-hoursupplyofuninterruptedelectricity.
ApressreleasewasissuedbyTangguhand
postedinthenationalnewspaper
(KOMPAS).Thesecondphaseofthe
electrificationprogrammewillinvolve
supplyinganother4MW,subjectto
successfulpowerplantefficiencyexercises
(undertakenbyTangguh)andtheextension
oftheelectricitydistributionnetworkby
PLN.Thesecondphaseoftheelectricity
programmeaimstoelectrifytheDAVsareas
intheSouthernShoreofTelukBintuni.
Meanwhile,Tangguhcontinuedto
strengthenthehospitalintheBintuni
township.Itwillbecomethemaincentrefor
healthservicesintheregion.In2013,
Tangguhdonatedmedicalcheck-up(MCU)
equipmentwithatotalvalueofUSD
140,000.Currentlythehospitalhasbeen
functioningandhasprovidedMCUservices
toTangguhcontractors,employeesandthe
communitysurroundingtheBintunibay
sinceFebruary2013.Thehospitalhasthe
capacitytoprovideMCUservicesfor15
peopleperday.BetweenFebruaryand
December2013,asmanyas243employees
haveusedMCUservicesintheBintuni
hospital.
AnothertangibleprojectfromTangguhisthe
publicgroundtransportationdevelopmentfor
theBintunitownshipthroughYPTB(Bintuni
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
Foundation).Acomprehensiveassessment
andcomparativestudyofpublictransport
wascarriedoutin2012and2013by
independentconsultantsfromLAPIITBand
relatedstakeholders.Theassessment
resultshavebeensharedwiththelocal
governmentforfurtherdecisionandaction.
Thescholarshipprogrammecontinuesto
givelocalstudentsopportunitiestoaccess
advancededucation.In2013asmanyas79
localstudents(DAVsandBintuni)fromhigh
schoolsanduniversitiesreceived
scholarshipsfromTangguh.Since2008,
Tangguhhasprovidedscholarshipsto379
studentsinhighschoolsanduniversities.
IndevelopingthenewAMDAL,Tangguhhas
identifiedseveraloutcomesthataremore
tangibleandvisibleforthepeopleinTeluk
Bintuni.Thesewillhelptomeetcommunity
expectationsandbuildtrustwithTangguh.
7. PublicaffairsactivitiesinJakarta Wehavebeenincreasingourpublic TheTangguhteamcontinuesto
shouldbeincreased.Informational relationsasTangguhexpansiontakes communicatewithvariousexternal
briefingsofbothmediaandsenior place.Wehavearrangedanumberof stakeholders,ledbytheGovernment
governmentofficialsshouldbe
highprofilevisitorstoTangguhthisyear, ExternalRelationsTeam.Thejointelectricity
increased.Whenappropriate,senior
governmentofficialsshouldbeinvited includingrepresentativesfromthe projectwithPLNcentralheadquartershas
toTangguh. MinistryofEnvironment,DPR alsoincreasedBP’sengagementwithcentral
Commission7onEnergyandMining, andregionalgovernments.
StateIntelligenceAgency,theHeadand
DeputiesofBPMIGAS,UP4B,UKP4and Goodrelationshipshavebeendeveloped
anumberoflocalgovernmentofficials. withvariouslocalandinternationalmedia
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
Wearealsousinglessonslearnedfrom personnel.InlinewithBP’scommitmentto
othercompaniestohelpusmake buildcapacityforlocaljournalists,training
Tangguhmorevisibletothemediaand andworkshopsforlocalmediawere
seniorgovernmentofficials. conductedinJakartaandManokwariduring
2013.
Thetrainingcontentincludedsharing
informationontheTangguhupdateandits
socialprogramme.Inaddition,BP,in
collaborationwithSKKMigasandotheroil
companies,supportedmediavisitstotheoil
andgasoperationareainSorong–and
providedanoverviewofoilandgas
activities.Asmanyas14mediaofficials
(eightnationalandsixlocal)participated.This
activitywillincreaselocalmediaknowledge
andawarenessofthecomplexityofoiland
gasprojects,aswellasminimizenegative
publicationsonTangguh.
FollowingthearticleonTangguhinthe
TEMPOmagazineinFebruary2014,BPsent
aresponsetoTEMPOtorefuteandclarify
thefactsinthearticle.BPhasalsotalkedto
othermediaoutletssuchasJakartaPostand
MetroTVtoprovideapositiveviewof
Tangguh.Wewillcontinueeffortstobuilda
positiveimageofTangguhandBPthatis
basedonfacts.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
invitinggovernment,civilsociety,and smaller-scalemeetingswithlocal AMDALpublicconsultationandhearings.
otherinterestedparties.BPshould government,civilsociety,themedia,local Theyinvolvecommunityrepresentatives
reportonTangguhprogramsandseek communitiesandotherinterestedparties. fromBintuniandFakfak,aswellasthelocal
inputfromallpartiesonBP’s
Thisyear,wehaveheldmeetingsin governmentsintheregenciesandthePapua
performanceandplansforthefuture.
Bintuniwithallthesegroupsaspartof Baratprovince.Twopublichearingswere
thepublicconsultationprocessforthe
proposedTangguhExpansionproject.
carriedoutinDecember2013andFebruary
2014bytheMoEtopresenttheAMDAL
commitmentsandobtainlocalendorsement
ofAMDAL.
Inaddition,meetingswithstakeholders,
particularlythelocalgovernmenthavebeen
carriedoutregularly.Aforumcalledthe
‘publicrelationforum’foroilandgas
companiesintheareaofPapuaandMaluku
regionwasformedbySKKMigas.Itwasset
uptoestablishandmaintaincommunication
onvariousissuesamongthecompanies,as
wellastobuildrelationshipswithexternal
partiesintheseregions.
Meanwhile,regularco-ordinationwithlocal
governmentwasalsoconducted,including
theplanningandevaluationofTangguh
socialprogrammes.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
implementingactivesurveillance,awareness
andcounsellingprogrammes–aswellas
earlytreatmenttopeoplewhoarediagnosed
withmalariaorasHIVpositive.A
collaborationprogrammewithprivate
companiesinTelukBintunihasbeen
developedtolookforopportunitiesforjoint
programmestoescalatetheefforts.
Currently,severalcompanieshave
implementedthemalariacontrolprogramme
intheirworkarea.
TocombatthespreadofHIVAIDSinthe
TelukBintuniregion,thePEHteamhas
supportedthelocalAIDScommissionto
buildacomprehensiveprogrammeincluding
apartnershipwithexternalsectors–aswell
asinternationaldonorssuchasCHAI
foundation,supportedbyUSAIDandGlobal
Fund.AspartoftheHIVAIDSprevention
programme,areferralclinicforSTIandVCT
hasbeenestablishedinRSTelukBintuni.
Theclinicprovidesfreecounsellingand
testingservicestopeopletounderstand
theirHIVstatus.Italsoencouragesahealthy
lifestyle.
10. BPshouldconsultwiththeBupatito Wehaveprovidedthenewhospitalwitha ThePEHteamhadacomprehensive
determinewhetherthereareany usefulsystemmanagementblueprintand discussionwithBupatiandhealthregency
importantimprovementsorother alsorequestedittocarryoutregular officialstostrengthentheBintunihospital.
needsatthenewBintunihospitalthat
medicalcheck-ups(MCU)forTangguh Recently,afive-yearstrategicplanto
Tangguhcouldsupport.
andcontractoremployees.Wewill developthehospitalhasbeencreated,
continuetoengageBupatitoseeifthere
areotherneedsforthehospital
includingwaystoimprovequality.The
Bintunihospitalwillbedevelopedasthe
maincentreforhealthservicesinthisregion
improvementandworktogetherwith
andisclassifiedasDtype.Thereforewewill
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
othercompaniesoperatinginBintunito continuallysupportthemwiththeirservice
coordinateoursupportinfuture. andmanagementtomeettherequired
nationalstandards.
Tangguhhasprovidedhospitalequipmentfor
theMCUprogrammeattheamountofIDR
1.4billion(USD140,000).
11. BPshouldworkwithBritishCouncilto Weagree.Inthefuture,wewillliaise Oureducationprogrammehascontinuedits
createadditionalbenchmarks, directlywithschoolstoassessthe effortstomonitorthequalityofeducation.In
monitoringorothermeansof integrityandvalidityofnationalschool additiontousingthestudentgraduationrate,
evaluationtoaudittheintegrityofthe theprogrammeevaluatestheprocessof
tests.Tosupportimprovementsin
resultsoftheeducationaltestingof learning,includingimplementingnational
studentsinBintuniBay. educationalstandardswehaveruna
curriculumstandardsinschools.
numberofprograms,focusingon:basic
education;teachertrainingandprovision;
betterinfrastructure;curriculum
Aqualitativesurveyoneducationqualityin
theTelukBintuniregionwillbecarriedout
thisyearbyindependentconsultantsfrom
development;andimprovedtoolsand
UNCEN.Theresultswillbeusedto
systems.Wewanttobenchmark
understandtheoverallstatusofschoolsin
progressevenmoreeffectivelyby
meetingnationalstandardsaswellas
includingkeyindicators(forexample
educationqualityintheregion.
student-teacherratioandteacher
competency)inourbi-annualeconomic Meanwhile,the2013socialcensusprovides
surveysandourevaluationreports.We understandingthatcanalsobeusedasa
willdelivertheimprovementsthrough benchmarktoevaluatetheeducation
BritishCouncil(BC)asourimplementing programme.
partnerorothereducationagencies.
12. BPshouldlookforopportunitiesinits Weagreeandareexpandingour Ontrack.
microenterpriseandprocurement livelihoodprogramsinlinewiththis
programstocaptureadditionstothe Theprogrammestillfocusesonassistingin
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
valuechainforbusinessesinBintuni recommendation.Specificexamples thedevelopmentofagricultureandfishery
Bay,andshouldsupporttheBupati’s includeabicyclerepairshopandanoutlet productstomaintainsupplytoTangguh
initiativeforanintegrated attheBabotosellproductsproducedby cateringandlocalmarkets.Thetotalsupply
transportationsystemasonewayto
theDAVs.Makingelectricitymorewidely ofvegetables,fruit,fishandprawns
securetheseopportunities.
availablefrom2013willalsosupport between2008andDecember2013is1,107
furthereconomicgrowthandperhapsin
newmicroenterprisesandcommercial
tonnes–theequivalenttoUSD3.2million.
TooptimizethedistributionofDAVproducts,
businesses. somenewinitiativeswerecreated,including
theexpansionoflocalmarketsthroughan
outletinBabovillageandBintunitownship.
Expandingthemarketsalsoextendedto
Currently,sevenstockingpointsare
MakassarandSorongregion.
alreadyestablishedandactiveinBintuni,
Arguni,TanahMerah,Babo,Tofoy,Taroy Thebicycleandmachineryworkshopsin
andWeriagartogatherallcommunity severalvillagesarefunctioningandreceiving
productstobesuppliedtoTangguh ordersfromtheTangguhmaintenance
cateringandotherstockingpointsinOnar departmentandthelocalcommunity.Awork
arebeingdeveloped.InJanuary– agreementwasestablishedbetween
September2012,atotalof268tonsof TangguhLNGmaintenanceandthe
fruits,vegetablesfish,crabandshrimp workshops.Thesebusinessesaremostly
hasbeendeliveredtoTangguhLNG managedbyindigenouspeople,whoreceive
Catering.Thesefiguresequalto6.7billion comprehensivetrainingintechnicaland
rupiahs.Alternativemarketsarebeing managementskills.
assessedtobringwideropportunities,for
exampleBintuni,SorongandMakassar. Currentmonitoringshowsthatabicycle
workshophasthecapacitytorepair15
bicycles(withatotalrevenueofIDR30
million)onaveragepermonth.
AnewprogrammeofIndigenousEnterprise
Developmenthasbeenformedtodevelop
localcompanies,sotheycanprovidesupport
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
servicestoTangguhoperations.
Thecensus/surveycoveredsocialand
economicissuesinordertounderstandthe
populationdynamicsintheregionandthe
resultsarenowavailable.
AnindependentauditofYTPBactivityanda
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
financialreportwasconductedin2012.It
resultedinasatisfactorystatus.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
Ifanyworkersarelaidoffinfuture, intervenedsothatthecontractoragreesto
severancepayandotherbenefitswillbe sendtheworkersfromtheDAVstotraining,
agreedinlinewithrelevantlegislation, whilethenon-Papuanworkerswillbehired
whileindividualsrehiredinfuturewillbe onlytemporarilytoperformtheworkwhile
selectedonthebasisofmeritor thelocalworkersareontraining..
nationality/ethnicifvacanciesinclude
positions‘setaside’forPapuans. Anewprogrammeforindigenousenterprise
Unskilledandlow-skilledpositionswillbe developmenthasbeeninitiatedtocreate
dedicatedforPapuansfromDAVsandthe opportunitiesforlocalbusinessestoprovide
Bird’sHeadarea;anumberofsemi- supportserviceswherelocalpeoplecanbe
skilledandskilledpositionswillalsobe hired.
prioritizedforPapuans.
Moreover,theTangguhexpansion
programmewillcreateemployment
opportunitiesforlocalsduringconstruction,
particularlyforindigenouspeople.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
allowthemtomaximizetheirresttime.
InJanuary2013anumberofother
improvementswillcomeintoeffect,
includingacommitmentfromline
managerstonominateemployeesfor
Englishlanguagetraining,anannual
trainingscheduledovetailingwithRota
andshiftpatterns,andaseriesofEnglish
language‘tournaments’tomotivate
participants.
Topic Issue and risk identified in TIAP visit
BP Response November 2012 Action plan and status
18. Recruitment,retentionand Weagreethatisimportanttoprioritize From2009uptoDecember2013,therewas
advancementofethnicPapuans therecruitmentofethnicPapuans,but progression/promotionofatotalof410
shouldremainapriority.BPshould believethatretentionandadvancement Papuanscurrentlyfillingsupervisoryand
providehigherskillopportunitiesand ofthoseemployedmustbebasedon teamleaderrolescoveringOperations,
offertrainingtocurrentPapuan
ability.Wehavetakenstepstopublicize WFM,CRP,Security,Maintenance,H&M,
employeesandotherBintunianswho
evidencethedeterminationtowork vacanciesforhighlyskilledworkersmore andH&S.
successfullyatTangguh. effectively-onsiteandatuniversities.
Inthefuture,Tangguhneedstofocuson
Oureffortstorecruitandadvance havingastructuredandintegrated
PapuansandBintuniansintohighlyskilled programmeforthenextAMDAL,including
rolescentersonthreespecificactions:
recruitingonlyPapuanstoworkas
thecommitmentstoincreasetheskillsof
indigenousandotherPapuanworkers.
OperationTechnicians(sinceBatch3); TangguhLNGhasalsocommittedto
openingvacanciesforsupervisoryand workingwithrelatedgovernmentagencies
teamleaderpositionstoPapuansonthe and/orvocationaltrainingcentrestoprovide
basisofmerit;activelyencouraging
PapuanstobecomeChallengersin
trainingforselectedindigenouspeoplefrom
thesurroundingarea.Theobjectiveisto
Operations,S&ORandProjectbyoffering empowerthemtobemorecompetitivefor
theminternshipstoachievethestandards jobopportunitiesinPapuaBarat.Todevelop
requiredtobecomeaChallenger. technicalskills,Tangguhwillcollaboratewith
Inlinewithourbroaderdevelopment
relevantstakeholderstoinvestindeveloping
aCentreforAssessment(Screeningand
commitments,wenotonlyoffertraining
forPapuansandnon-Papuansemployed
BasicTechnicalSkillsDevelopment),andin
establishingaPolytechnicSchool.
byBP,butalsoprovidegrouptrainingto
helpPapuansandBintuniansnotonour
payroll(TPC)acquiremarketableskills.
Wehavealsopilotedadevelopment
programforlowskilledPapuanand
Bintunianworkersemployedby
contractorstoacquirebasicskillsata
vocationaltrainingfacility(BLKISorong).
Thisshouldhelpthemtocompetefor
employmentinfuture.Afollow-up
programoffersscholarshipsfor
individualstocompleteasimilarprogram
withSMKMigas.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
Governance 19. BPshouldincreaseitslevelofsupport Ourprimaryfocusisonbuildingcapacity BPhasincreaseditsengagementand
and forgreatertransparencyand fortheregencygovernmentofTeluk improveditsrelationshipwiththePapua
Transparency accountabilityofthePapuaBarat Bintuni-includingtransparencyand BaratgovernmentinlinewiththeTangguh
provincialgovernment. ExpansionAMDALprocess.AttheAMDAL
accountability.Atprovinciallevelweare
hearingon18February2014,theGovernor
workinghardtoimproveourrelationship
withgovernment.Wehelda
waspresenttoprovidehissupportforthe
AMDALprocess.
‘transparency’workshopwithEITIinJuly
2012,whichwasattendedbyPapuaBarat BPactivelymediatescommunication
governmentofficials.Infuture,wewill betweentheprovincialandregency
workwithaspecialistpartnertorunothergovernmentandthecentralgovernmentto
ensuretherevenueflowistransparent.
awarenessbuildingeventsfocusedon
transparencyandaccountability. Inthefuture,BPwillworkcloselywiththe
PapuaBaratGovernmentandPapuaBarat
Province-OwnedCompany,toundertakethe
feasibilitystudyfortheconstructionofagas-
fuelledpowerplanttoelectrifyareasin
PapuaBaratandPapuaProvinces.Tangguh
hasconfirmeditisreadytosupplyupto0.16
mtpa(equaltoca.20mmscfd)ofLNGto
generateelectricityinPapuaBaratandPapua
Provinces.Inthestudy,BPwillcontinueto
encouragetransparencyandaccountabilityto
ensurethatthegasallocatedfromTangguh
willbeusedtogeneratepowertoelectrify
areasinPapuaBaratandPapua.
Governance 20. BPshouldconsultwiththeWorld Wewillassessthefeasibilityofupdating Wehadanagreementwithconsultantsfrom
and Banktodeterminewhetheranupdate ourPapuaExpenditureAnalysisin UGMtoprovidethisassessment.However,
Transparency ofitsPapuaExpenditureAnalysisfor partnershipwithanexperiencedspecialist UGMwithdrewfromthisworkinMarch
Papua,specificallyforPapuaBaratand organizationthatisknowledgeableand 2014.Wewillbelookingatothercapable
TelukBintuni,wouldbefeasibleand
hascredibilityinthisarea. institutions,includingtheWorldBankand
useful.
UniversityofIndonesia,toexplorethe
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
possibilityofthemcarryingoutthe
expenditurestudyforPapuaBaratandthe
TelukBintuniregency.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
foraconsecutive3yearstoachievethe
goldstatus.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
WiriagarandTomuDistrict.
AsstatedinthedraftofthenewAMDAL
programme,Tangguhwillworktogether
withtheTelukBintuniRegencygovernment
todesignajointprogrammetoimplement
directandtangiblebenefits.Itwillbe
executedinphases,followingapprovalof
theAMDALfortheTangguhExpansion
Project.
Atthemoment,apre-feasibilitystudyonthe
technicalandsocialaspectsofthehousing
projecthasbeencompleted.Thehousing
renovationprojectisexpectedtobe
completedatthesametimeastheTangguh
ExpansionProject.
Topic Issue and risk identified in TIAP visit BP Response November 2012 Action plan and status
supportsocialandeconomic alternativelivelihoodsbesidesworkingfor
developmentaswellasthesustainability Tangguh.
ofTangguhOperations.