Extractive Industries and Indigenous Peoples

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Extractive Industries and Indigenous Peoples
BG Group experience of operating in areas of IPs
Hugh Attwater, Social Performance Manager
4 December 2008
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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

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Countries of current operation
Active in 27 countries
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Operating in areas of IPs
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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

Understanding the context
Managing impacts, risks and opportunities
Rigorous processes
Closely linked to IFC Performance Standards
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BG Group SP Standard, section 5 Indigenous
Peoples and Vulnerable Groups

• BG Group guidelines linked to IFC PS7
• Identifying IPs and seeking to avoid impacts
• Ascertaining whether a particular group is
  considered indigenous may require technical
  judgement
• Scheduled Tribes, Aboriginals, First Nations,
  Native Americans etc.
• Understanding the scale and nature of IP issues
• Defining informal land rights and natural
  resource ownership
• Host country legislation / gap analysis against
  requirements of IFC PS7
• Appointing experts to develop and Indigenous
  Peoples Plan (IPP)
• Consultation, good faith negotiation and
  partnerships
• Develop, implement, monitor IPP
• 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

• 2007 08 exploration activity in Colville Hills,
  Fort Hope, NWT
• Kasho Gotine Charter Community agreement for 2D
  seismic survey
• Winter drilling 2008 09 requires more extensive
  agreements
• Land Access Agreement
• sum negotiated
• Impact management agreed
• Benefits Agreement
• Kasho 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)
• 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
• Annual benefits agreements negotiated
• Challenging political context
• 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

• Consultation
• 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
• Life-of-project benefits agreements no one
  size fits all
• How are they negotiated
• Setting the quantum / value
• How are the benefits divided
• Capacity building for those benefitting
• Whats the role of the government?
• Factoring in sustainability and flexibility?
• Dispute resolution
• Accessible, responsive, scaled to meet needs of
  project and communities
• Use of third parties
• Access to legal remedies maintained