Community

Oil Search enjoys a good relationship with the local community 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 upon 7 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 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 & Capital Projects support, Community Relations, Community Development and Sustainable Development planning activities.

Although not necessarily legislated, many Community Affairs activities demonstrate the Oil Search best practice, 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 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 K60 million annually

Community Relations & Development

• Administration of an education sponsorship programme enabling local people to attend vocational, technical and tertiary training courses
• Administration of a donations programme that is able to assist local health and education programmes
• Management of a Community Area Planning (CAP) programme. matching community inputs in development projects & activities
• Facilitation of field visits for government personnel 
• Recruitment of local people as village liaison officers
• Organisation of training for local-level government councilors and officials
• Production of awareness materials, newsletters and radio programmes
• Operation of a malaria monitoring and control programme

Support of Development NGO’s

Oil Search supports the core operational budgets of two NGOs : the CDI Foundation (CDI) and the WWF Kikori Integrated Conservation & Development Project (KICDP).

• CDI, with staff in training centers in Moro, Kikori and Samberigi promotes sustainable community development through the operation of public health, education and training, agricultural and natural resource development and capacity building programmes
• CDI also operates an FM radio station.KICDP, based in Moro and Kopi, 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

Tax Credit Scheme

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

• Community Affairs is involved in project identification and facilitating the approval process by Government entities
• Tax credit scheme enables strategic selection of projects to address project area government and community concerns
• Budgeted expenditure for tax credit in 2004 was US$17 million, including US$10.6 million for road maintenance and construction

Sustainable Development Planning

• Maintenance of dialogue with all project area stakeholders - 3 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, LO 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

Click here to view photos of Oil Search in the PNG Community