Our Responsibilities

Oil Search enjoys a good relationship with local communities in the project areas where it is Operator - from Hides in the Southern Highlands to the Kikori River delta in the Gulf Province.

Oil Search-operated facilities, production and pipeline licences cover more than 1,800 square kilometres, straddle several provinces and impact 10 local-level government areas, 13 language groups, hundreds of clans and more than 25,000 people resident in 110 villages.

The Company employs Community Affairs personnel who manage the interface with local landowners, their companies and representative government bodies throughout this large and culturally diverse project area.

More than 50 multi-skilled Community Affairs staff, operating from camps at Hides, Ridge, Moro, Gobe and Kopi, are active in Local Business Development, Lands, Industrial Relations, Education Sponsorship & Donations, Exploration support, Community Relations, Community Development and Sustainable Development planning activities.

Although not necessarily legislated, many Community Affairs activities demonstrate Oil Search’s socially responsible approach to working with petroleum project-impacted communities. These activities, some of which are outlined below, contribute significantly to mitigating landowner concerns and expectations by addressing issues that are of ‘core’ interest to the community.

Local business development

• Advice to, and support of, representative local landowner companies.
• Assistance in contract negotiations between local landowner companies and Oil Search or its contractors.
• Monitoring of local landowner company performance and compliance.
• Assisting local landowner companies diversify their activities and investments for long-term sustainability.
• Service contracts awarded to local landowner companies for security services, camp maintenance, catering, road maintenance, road transport, labour supply, civil construction, vegetable supply and similar total more than K120 million annually.

Community Relations & Development

• Administration of an education sponsorship programme, funded at a level of K650,000, enabling approximately 100 local people to attend technical and tertiary training courses each year.
• Administration of a donations programme that is able to assist local health and education programmes through targeted assistance.
• Management of a Community Area Planning (CAP) programme at a funding level of K500,000 a year, matching community inputs in development projects and activities.
• Facilitation of field visits for government personnel.
• Recruitment of local people as village liaison officers.
• Production of awareness materials, regular newsletters and radio programmes.
• Operation of a malaria monitoring and control programme.
• Focus on sustainable development activities such as local-level agriculture, education and sport.

Support of Development NGO’s

Oil Search supports two Non Government Organisations (NGOs): the CDI Foundation (CDI) and the WWF Kikori River Programme and works in partnership with a number of faith-based health extension services.

• CDI, with staff in training centres in Port Moresby, Moro, Kikori and Samberigi, promotes sustainable community development through the operation of public health, education and training, agricultural programmes and also operates an FM radio station.
• WWF, based in Moro, carries out scientific surveys and community projects, activities and education to conserve the biodiversity of the Kikori River Basin through sustainable management of natural resources.
• Oil Search Public Health Unit works closely with the Nazarene based Community Based Health Care (CBHC), Gulf Christian Health Services and the ECPNG health extension services.

Tax Credit Scheme

This scheme allows expenditure of a percentage of petroleum joint venture partners’ tax on assessable income on Government approved infrastructure construction and maintenance projects.

• Oil Search’s Community Affairs Department is involved in project identification and facilitating the approval process by Government entities.
• The tax credit scheme enables the strategic selection of projects to address project area, government and community concerns.

Sustainable Development Planning

• Monitoring of the project area socio-economic situation through regular village and household surveys and the production of an annual Social and Economic Report.
• Maintenance of dialogue with all project area stakeholders - all levels of Government, NGOs, statutory bodies, companies and landowners.
• Support of project area NGOs.
• Coordination of stakeholder inputs in the project area – tax credit scheme, various levels of government, EIC operation, aid donors, Oil Search field activities, NGOs, MRDC managed landowner trust companies, with a view to long-term sustainable socio-economic development managed by local institutions.

Technical Field Support of Oil Search Operations Activities

On-ground support of exploration drilling, seismic and capital construction activities, through:

• Secondment of Community Affairs officers to work locations.
• Preparation of location specific Community Affairs management plans.
• Completion of necessary ground-truthing, social mapping or SEIS reports on impacted communities.
• Liaison with impacted communities on lands, industrial relations and local business development matters.