PNG LNG Project Experience and Success with Implementation of a Site Specific Identification and Management Process for Environmental, Cultural and Social Issues.

Abstract

Abstract Papua New Guinea is a country in the South Pacific with a population of 6.7 million. Residents speak over 800 languages and live in a primarily rural agrarian society considered to be one of the world's biodiversity hotspots. Into this framework, Esso Highlands Limited, an affiliate of ExxonMobil Corporation is developing the USD $15.7 billion PNG LNG Project ("Project") and has realized considerable success in the implementation of a site specific process for identification and management of environmental, cultural, and social issues as a supplemental process to the Project's original Environmental Impact Statement. This site specific process was implemented to ensure timely Government approval of the Project's Environment Permit in order to meet the Final Investment Decision (FID) schedule, and to meet internal and external stakeholder expectations. This process required the completion of a P re-Construction Survey which provides a high quality assessment and review of environmental and social (E&S) issues at a local level and details the specific mitigation measures that are required to be implemented at a particular location. Overall, this process drives environmental and social performance at the field level by identifying very specific issues at individual worksites/locations for appropriate management while shifting some of the environmental assessment aspects from the pre-planning phase to the execution/construction phase. To date over 100 P re-Construction Surveys have been completed through a significant effort by the Project with great results. Ecological and cultural heritage features were identified and subsequently avoided and managed through site specific measures. Priority weeds and pests were identified for surveillance and control. Regulator acceptance of the surveys was obtained in a timely fashion thereby supporting the Project execution schedule. Overall, this approach supported the FID execution schedule for the Project with successful issuance of the Project's Environment Permit in early 4Q 2009 and allowed associated costs for the site specific approach to occur following the FID. It also enabled the Project to focus resources on the site specific examination/identification of environmental sensitivities to coincide with the Project's execution schedule.