Extractive Industries and Indigenous Peoples
BG Group experience of operating in areas of IPs
Hugh Attwater, Social Performance Manager
4 December 2008
BG Group
• Integrated gas major:
– FTSE top 10 company
– Market capitalisation ~£30bn
– 5 000 employees; 65% outside UK
• Gas and Oil:
– Production approximately
70% gas; 30% oil
– Active across the entire gas chain from
source field to market
2
Countries of current operation
Norway
UK
Canada
Kazakhstan
Italy
Israel / PA
USA
Oman
Tunisia
Algeria
Chile
Argentina
Active in 27 countries
China
Thailand
Philippines
Libya
Trinidad &
Tobago
Bolivia
India
Nigeria
Brazil
Egypt
Malaysia
Singapore
Uruguay
Madagascar
Australia
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Operating in areas of IPs
Canada
India
Bolivia
Australia
4
BG Group SP Standard and Guidelines
• Socio-economic Baseline
• Impact Assessment
• Consultation
• Involuntary Resettlement
• Indigenous Peoples
• Cultural Heritage
• Social Investment
• Social Performance Plans
• Mngt, integration & metrics
Closely linked to IFC Performance Standards
Understanding the
context
Managing impacts,
risks and opportunities
Rigorous processes
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BG Group SP Standard, section 5:
Indigenous Peoples and Vulnerable Groups
•
BG Group guidelines linked to IFC PS7
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Identifying IPs and seeking to avoid impacts
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Ascertaining whether a particular group is considered indigenous may require
technical judgement
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Scheduled Tribes, Aboriginals, First Nations, Native Americans etc.
Understanding the scale and nature of IP issues
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Defining informal land rights and natural resource ownership
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Host country legislation / gap analysis against requirements of IFC PS7
•
Appointing experts to develop and Indigenous Peoples Plan (IPP)
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Consultation, good faith negotiation and partnerships
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Develop, implement, monitor IPP
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Independent review of consultation process, impact management measures,
compensation and benefits package, plus commentary on degree of IPs
support and consent
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Canada – NWT exploration
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2007 – 08 exploration activity in
Colville Hills, Fort Hope, NWT
K’asho Gotine Charter Community
agreement for 2D seismic survey
Winter drilling 2008 – 09 requires
more extensive agreements:
Land Access Agreement
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$$ sum negotiated
Impact management agreed
Benefits Agreement
–
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K’asho Gotine Fund established
Employment, training, capacity
building, infrastructure and
community development initiatives
agreed
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Australia – Queensland Curtis LNG
• 1993 Native Title Act
• Ethnographic / cultural heritage
studies underway
– 8 Native Title parties identified
• Indigenous Land Use
Agreements (ILUAs)
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‘One project’ principle
‘As if’ principle
Benefits to be negotiated
QCLNG Project Fund proposed
Quantum terms to be determined
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Bolivia – Chaco Region gas production
•
Weenhayek IPs territory
–
•
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Annual benefits agreements
negotiated
Challenging political context
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Constitutional reform
–
2005 Hydrocarbons Law
–
Pro-autonomy / pro-Morales
tensions
BG Bolivia Palo Marcado project
–
Test case for new requirements on
consultation and participation
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Summary
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Consultation
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Life-of-project benefits agreements – no ‘one size fits all’
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Early identification of IPs; early engagement
Baseline / ethnography / expert input to ensure full representation
FPIC through good faith negotiations resulting in life-of-project
benefits
How are they negotiated
Setting the quantum / value
How are the benefits divided
Capacity building for those benefitting
What’s the role of the government?
Factoring in sustainability and flexibility?
Dispute resolution
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Accessible, responsive, scaled to meet needs of project and
communities
Use of third parties
Access to legal remedies maintained
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