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Environmental and Social Impact Assessment (Executive Summary)

Project Number: 49222-001 August 2016

INO: Tangguh LNG Expansion Project

Prepared by Greencap for the Asian Development Bank The environmental and social impact assessment executive summary is a document of the project sponsor. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Term of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of or any territory or area.

TANGGUH EXPANSION PROJECT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) EXECUTIVE SUMMARY

PT GREENCAP INDONESIA

I

31 August 2016

EXECUTIVE SUMMARY

Tangguh Expansion Project

Environmental and Social Impact

Assessment Report



II

TABLE OF CONTENTS

GLOSSARY: ACRONYMS & INDONESIAN TERMS ............................................................. iv

1. INTRODUCTION ................................................................................................... 1

2. EXISTING TANGGUH LNG TRAINS 1 and 2 .............................................................. 3

3. TANGGUH EXPANSION PROJECT (TEP) DESCRIPTION ............................................. 6

4. TEP ENVIRONMENTAL AND SOCIAL SETTING ......................................................... 7

5. TEP ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) ......................... 10

Occupational Health, Safety, Environmental and Social Management System .......... 11

Assessment of Occupational Health, Safety, Environmental and Social Risks

and Impacts ................................................................................................................. 11

Management of Environmental and Social Risks and Impacts .................................... 13

Labor and Working Conditions .................................................................................... 16

Resource Efficiency and Pollution Prevention ............................................................. 17

Community Health, Safety, and Security ..................................................................... 24

Land Acquisition and Involuntary Resettlement ......................................................... 26

Biodiversity Conservation and Sustainable Management of Living Natural

Resources .................................................................................................................... 26

Indigenous Peoples ...................................................................................................... 28

Cultural Heritage .......................................................................................................... 31

Public Consultation and Disclosure ............................................................................. 32



III

LIST OF TABLES

Table 1 Signifcant Impacts and Corresponding Mitigations ........................................... 14

Table 2 Summary of core ILO Conventions ratified by GOI ............................................ 16

Table 3 Flaring and Air Emissions ................................................................................... 19

Table 4 TEP Air Ambient Standards and Latest T1/2 Monitoring Results (µg/m3) ......... 19

Table 5 TEP Noise Standard and Latest T1/2 Monitoring Results .................................. 20

Table 6 GHG Emissions Estimate Based On Tangguh LNG T1/2 ..................................... 20

Table 7 Prediction of Air Emission Dispersion Modeling – Elevated Terrain .................. 21

Table 8 Prediction of Air Emission Dispersion Modeling – Flat Terrain.......................... 21

Table 9 TEP Water and Waste Discharge Standards (Select T1/2 monitoring results

in parentheses; highest level over July-December 2015 period cited) .............. 22

Table 10 BAP Overview based on the Hierachy of Management Measures .................... 28

Table 11 Location of Sacred Objects ................................................................................ 32

Table 12 Indicative TEP AMDAL Socialization Plan ........................................................... 38

LIST OF FIGURES

Figure 1 Trains 1 and 2 (existing) and Future Train 3 Footprint ........................................ 2

Figure 2 Tangguh Project Location ..................................................................................... 4

Figure 3 Tangguh Layout and Buffer Zone ......................................................................... 5

Figure 4 Tangguh Historical Development ......................................................................... 6

Figure 5 Schematic of T3 Expansion (in green) and Integration with Trains 1 and 2

(in white) – left; existing offshore production platform – right. .......................... 7

Figure 6 Administrative Boundaries and Settlements ....................................................... 9

Figure 7 Impact Evaluation Steps ..................................................................................... 13

Figure 8 Hierarchy of Mitigation Measures ..................................................................... 15

Figure 9 GHG emission as function of energy source ...................................................... 24

Figure 10 Detail of South Shore Fishery ............................................................................. 26

Figure 11 Administrative Boundaries and Settlements ..................................................... 29

Figure 12 Produce (tons) at Stocking Points Destined for Tangguh .................................. 29

Figure 13 Concerns raised during the July 2016 Socialization ........................................... 37

Figure 14 Grievance Resolution Flow Chart ....................................................................... 39

Figure 15 Overview of Monitoring and Evaluation Process for TSDP ................................ 40



IV

GLOSSARY: ACRONYMS & INDONESIAN TERMS

AAQS Ambient Air Quality Standards

Adat Traditional customs, laws and dispute resolution system

AMDAL Analisis Mengenai Dampak Lingkungan–Environmental and Social Impact

Assessment

ANZEEC Australian and New Zealand Environment and Conservation Council

ADB Asian Development Bank

AGI Acid Gas Incinerator

ASS Acid Sulphate Soil

BAP Biological Action Plan

BOF Bulk Offloading Facility

CBD Convention on Biological Diversity

CEMS Continuous Emission Monitoring System

CHA Critical Habitat Assessment

CITES Convention on International Trade in Endangered Species

DCRI Directional Cutting Re-Injection

EHS Environmental, Health and Safety

ESDD Environmental and Social Due Diligence

ESMS Environmental and Social Management Plan

ESIA Environmental and Social Impact Assessment

GHG Greenhouse Gas

GOI Government of Indonesia

HRSG Heat Recovery Steam Generator

HSSE Health, Safety, Security and Environment

IFC International Finance Corporation

ILO International Labour Organization

IP Indigenous Peoples

IPCC Intergovernmental Panel on Climate Change

IPDP Indigenous Peoples Development Plan

IPP Indigenous Peoples Plan



V

ISO International Organization for Standardization

ISP Integrated Social Program

IUCN International Union for Conservation of Nature

JBIC Japan Bank for International Cooperation

LARAP Land Acquisition and Resettlement Action Plan

LESC Lenders Environmental and Social Consultant

LNG Liquefied Natural Gas

MP3EI Masterplan for Acceleration and Expansion of Indonesia's Economic

Development

MTPA Million Tons Per Annum

PCDP Public Consultation and Disclosure Plan

PLN Indonesia’s state electricity company

QRA Quantitative Risk Assessment

RAV Resettlement Affected Village

RKL Environmental Management Plan

RPL Environmental Monitoring Plan

SKK Migas Upstream Oil and Gas Regulator of Government of Indonesia (replaced

BPMIGAS)

SOP Standard Operating Procedure

SPS Safeguard Policy Statement

Tangguh T1/2 Tangguh Trains 1 and 2, existing facilities

TCF Trillion Cubic Feet

TEP Tangguh Expansion Project (T3)

TIAP Tangguh Independent Advisory Panel

TMB Tanah Merah Baru

TOR Term of Reference

TSDP Tangguh Sustainable Development Program

TSM Tangguh Social Management

SIA Social Impact Assessment

UNFCCC United Nations Framework Convention on Climate Change



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1. INTRODUCTION

1.1 The Tangguh Expansion Project (TEP) is a brownfield development that expands the

existing Tangguh LNG facility. It is located on the south shore of Bintuni Bay in West Papua,

Indonesia.

1.2 The Tangguh LNG expansion project aims to optimize LNG production of the existing

reserve providing benefits for the Government of Indonesia, the community, and

proponent, among others:

Contribute in fulfilling domestic gas needs, considering the majority of LNG Train 3's

production will be allocated to the domestic market;

Support local governments (West Papua Province, Teluk Bintuni Regency, Fakfak

Regency) in fulfilling local electricity demand by allocating gas produced under the

TEP as fuel for electric generators to be constructed in West Papua;

Support the improvement of local livelihoods in Teluk Bintuni Regency by selling

excess power produced by TEP to the State Electricity Company (PLN);

Increase revenue for the national and local governments based on LNG sales and the

related taxes;

Open up job and business opportunities for the local community assisting in

increasing income levels and promoting livelihood diversification;

Strengthen existing partnerships and continue investments in economic and social

development of the local community and the community in Teluk Bintuni;

Strengthening the capacity and expertise of Indonesian manpower, especially local

Papua community, in the oil and gas technology sector through training and

assistance; and

Increasing access to healthcare and education through community investment

programs.

1.3 The TEP will initially add one LNG liquefaction train (Train 3 or T3) to the two existing

trains (Trains 1 and 2 or T1/2) which have been operating since 2009 (Figure 1). The TEP

will be constructed within the footprint of the existing facility and will increase LNG

production capacity from 7.6 million tons per annum (mtpa) to 11.4 mtpa. Construction

will start in Q4 2016, with first production expected in 2020.



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Figure 1 Trains 1 and 2 (existing) and Future Train 3 Footprint

1.4 Future development may include the development of up to nine offshore platforms

with a total of up to sixteen well slots on each platform, the development of up to nine

subsea pipelines, supporting facilities including an additional LNG tank and an additional

condensate tank, and the development of LNG Train 4 based on the considerations of BP,

Tangguh Affiliates and the Government of Indonesia.

1.5 Per ADB Safeguard Policy Statements (SPS) and the TEP characteristics, the project is

designated as Category A for Environment (SPS 1) and Indigenous Peoples (SPS 2) and

Category B for Resettlement (SPS 3).

1.6 National and international standards and regulations apply to the TEP, which

collectively comprise the Environmental and Social Impact Assessment (ESIA).

Conformance to the following national protocols and regulations is mandatory:

Applicable laws and regulations issued by the Government of Indonesia (GOI) and

regional government entities, including AMDAL commitments;

Development policies established by Central Government as specified in Presidential

Regulation No. 65 Year 2011 concerning Development Acceleration of Papua and

Papua Barat Provinces;

Spatial planning according to Regional Regulation of Teluk Bintuni Regency No. 4 Year

2012; Regional Gazette of Teluk Bintuni Regency No. 81 Year 2012 concerning

Regional Spatial Plan of Teluk Bintuni Regency; Regional Regulation of Fakfak Regency

No. 8 Year 2012 concerning Regional Spatial Plan of Fakfak Regency; and

International protocols voluntarily accepted by the GoI (e.g. ILO, CBD, UNFCCC).



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Conformance to the following international requirement is also implemented:

ADB Safeguard Policy Statements of 2009;

IFC Environmental and Social Performance Standards of 2012;

IFC General and Sector Specific Environment, Health and Safety (EHS) Guidelines of

2007 (IFC EHS Guidelines);

Equator Principles of 2013; and

JBIC Environmental and Social Guidelines of 2012.

1.7 The Indonesian Government environmental and social impact assessment – AMDAL

– was formally approved in July 20141 and is the key component of the ESIA. It was

prepared to comprehensively meet both Indonesian regulatory and international

requirements. The TEP AMDAL replaces the previous AMDAL for Tangguh LNG T1/2 project

approved in 2002, but incorporates all its commitments and obligations.

1.8 In 2016, an independent Environmental and Social Due Diligence (ESDD) was

conducted resulting in the following actions:

Acid Sulphate Soils Management Plan;

Effluent and Water Management Plan;

Greenhouse Gas Management Plan;

Critical Habitat Assessment and Biodiversity Action Plan;

Resettlement and Indigenous Peoples Plan; and

Community Emergency Response Plan.

2. EXISTING TANGGUH LNG TRAINS 1 AND 2

2.1 The Tangguh LNG T1/2 project involves three Production Sharing Contracts (PSC);

Berau, Wiriagar and Muturi. BP Berau Ltd (BP) is the operator on behalf of the following

shareholders:

1. BP Berau Ltd. 34.24%

2. BP Muturi Holdings B. V. 0.21%

3. BP Wiriagar Ltd. 2.71%

4. CNOOC Muturi Limited 13.90%

5. Indonesia Natural Gas Resources Muturi, Inc. 7.35%

6. KG Berau Petroleum Ltd. 8.56%

7. KG Wiriagar Petroleum Ltd. 1.44%

8. MI Berau B. V. 16.30%

9. Nippon Oil Exploration (Berau), Ltd. 12.23%

10. Talisman Wiriagar Overseas Limited 3.06%

1 Adb website; Government approval of the TEP AMDAL implies compliance of the environmental assessment with Indonesian

laws and regulations at the time.



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2.2 Tangguh includes five gas reservoirs (Vorwata, Roabiba, Wiriagar Deep, Ofaweri and

Ubadari) and two prospective reservoirs (Teteruga and Kepe-Kepe) beneath and north of

Bintuni Bay (Figure 2). The Vorwata field alone contains proven reserves of 16.9 trillion

cubic feet (tcf) of natural gas. The CO2 concentration in the natural gas supplied to T1/2

averages about 12% but this will increase for the TEP when the Weriagar and Roabiba

reservoirs are tapped as these have a CO2 content of about 15%.

2.3 The existing Tangguh LNG Facility comprises two LNG trains with associated onshore

infrastructure, two offshore platforms, two sub-sea pipelines, and fourteen producing

wells. It is centred on the south shore of Bintuni Bay in the West Papua (Papua Barat)

Province of Indonesia and lies within the Teluk Bintuni Regency (Figure 2). It has a capacity

of 3.8 mtpa for each train giving a combined LNG production capacity of 7.6 mtpa.

Figure 2 Tangguh Project Location

2.4 The onshore facility is located within a 3,266 ha fenced area of former production

forest which was allocated to the Tangguh LNG T1/2 project under a Forestry Release

Decree (Figure 3)2. About 404 ha was cleared for construction of Tangguh LNG T1/2 facility

and potential future development. An area of approximately 2,600 ha acts as buffer zone

for security and future development.

2 A condition of the Forestry Release Decree was that Tangguh LNG will restore an area of 6,984 ha of degraded forest in West

Papua. The timing is not specified



5

Figure 3 Land Closure Conditions at the Tangguh LNG Buffer Zone, Based on Landsat 5

and Landsat 7 ETM Images Year 2011

2.5 Figure 4 presents Tangguh’s overall development chronology with key milestones

including the TEP. Environmental and social baseline studies for T1/2 were completed

between 1999 and 2002 and the AMDAL was approved in October 2002. The first LNG

shipment was made in July 2009.



6

Figure 4 Tangguh Historical Development

2.6 A thorough Environmental and Social monitoring process by independent external

consultants has been ongoing since 2004 and continuing to the present time. This regular

compliance monitoring by an independent External Panel has been undertaken on an

annual basis and compliance reports published. Throughout operations, there have been

some corrective actions completed and ongoing to meet full compliance.

2.7 An Indigenous Peoples Development Plan (IPDP) was prepared for the Tangguh LNG

T1/2 project supported by five year Integrated Social Plans (ISPs) which were subject to

mid-term and final reviews. ISP1 ran from 2006 to 2011 and ISP2 from 2011 to 2015.

2.8 The Tangguh LNG T1/2 project required the relocation of the Tanah Merah

community to newly constructed resettlement villages and was subject to a detailed Land

Acquisition and Resettlement Plan which was closed out in 2014. The three clans residing

at Tanah Merah Lama relocated to Tanah Merah Baru and Onar Baru villages; BP has

agreed to assist with obtaining land titles.

2.9 As part of the 2016 TEP ESDD a compliance audit of the Tangguh LNG T1/2 project

against ADB Safeguard Policy of 2009 has been completed.

3. TANGGUH EXPANSION PROJECT (TEP) DESCRIPTION

3.1 The TEP proposes to add a third LNG train (T3) of similar capacity to the existing T1/2

(each 3.8 mtpa) with first construction to commence in Q4 2016 and first LNG shipment in

2020 (Figure 5). The TEP development includes two offshore platforms (WDA and ROA),

connecting subsea pipelines, the onshore LNG train, additional Onshore Receiving Facility

(ORF), Bulk-Off Loading (BOF) facility, and expansion of supporting facilities. Train 3 will be

located on an area previously cleared during for the original Tangguh LNG T1/2 project

development (Figure 1 and Figure 3). About 250 ha of the buffer zone will be cleared for

TEP workforce accommodation and workshops.



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Figure 5 Schematic of T3 Expansion (in green) and Integration with Trains 1 and 2 (in

white) – left; existing offshore production platform – right.

3.2 The construction workforce for the TEP will peak at about 10,500; additional

operational workforce will total about 1,000 adding to the 1,500 already employed on site.

There is a commitment to maximise Papuan employment from the current 55% to a target

of 85% by 2029.

3.3 Given that the TEP is to be constructed on a brownfield site and that the positions of

offshore pipelines and subsea pipelines are determined by the geometry of the gas fields,

options for project alternatives are limited. The process technology successfully employed

for the Tangguh LNG T1/2 project will be replicated with little modification.

4. TEP ENVIRONMENTAL AND SOCIAL SETTING

4.1 The Bintuni and Berau Bays form a 200 km-long sheltered body of water in the Bird's

Head Peninsula of West Papua and comprise a sensitive but not pristine environment

(Figure 2). There is increasing development of palm oil plantations and commercial logging

and both the Central and Regional Governments have plans to promote industrial zones in

the area. Commercial fishing in the Bay was for a time suspended due to over fishing and

increased fuel prices but several commercial fishing licences have been reissued.

4.2 Tangguh LNG is located near the equator and has a local type monsoon influenced

climate with temperatures ranging from 20°C to 38°C, precipitation occurring in all months,

with high humidity throughout the year. The northwest monsoon wet season is generally

from December to March, while the southeast monsoon dry season is from May to

October. Annual rainfall varies between 2,500 and 3,500 mm.

4.3 The terrain is flat to gently undulating, with several low east–west trending ridges

extending to 50 m above sea level. Extensive swamps border the coast and extend inland

along river estuaries. Further east, extending around the eastern and southern perimeter

of Bintuni Bay, the swamps form a vast mosaic of islands and promontories, separated by

estuarine channels.



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4.4 Bintuni Bay is a partially mixed estuarine system with numerous inflowing rivers from

the north, east, and south forming large dendritic onshore drainage networks. Most of the

Tangguh LNG site is drained by three ephemeral watercourses (Siripa, Burma Hill, and

Bofora Creeks). The two main watersheds draining the Tangguh site are the Manggosa

River on the eastern site boundary, and the Saengga River to the west. Both rivers are

tidally influenced several kilometers inland. The Saengga watershed includes a large oil

palm plantation. Water quality in both rivers and their tributaries generally meet ambient

surface water standards, but with uniformly high levels of fecal coliform.

4.5 High turbidity levels in the Bay waters are reflected in high concentrations of Total

Suspended Solids and low water clarity which combine to restrict the development of coral

reefs and seagrass. Seawater quality is generally well within the regulatory standard with

the exception of nitrate and phosphate. This feature of nitrate and phosphate

concentrations in offshore waters at Bintuni Bay is also seen in nearshore waters and could

be related to other activities in the Bintuni Bay catchment including runoff from palm oil

plantations.

4.6 Marine and river sediments show natural exceedances of some metals compared to

the Australian and New Zealand Environment and Conservation Council (ANZEEC)

guidelines, including nickel and arsenic.

4.7 The bay waters are relatively shallow but with water depths near the center

increasing to 65 to 70 m. These relatively shallow depths facilitate platform installation.

Shallow water also limits options for offshore disposal of dredged spoil.

4.8 Most of the bay is well protected from large deepwater ocean swells and wave

extremes are limited, the largest fetch being from the west through the Berau Bay

entrance. Waves reaching the LNG facility shoreline are mostly short-period and wind-

generated. The strongest currents within the bay are tidally dominated. Tides are

semidiurnal (two highs and two lows daily), and the tide gauge at Tanah Merah near the

LNG facility has a range of about 4 m. Boat access to communities and to the LNG site

needs to be timed to coordinate with high tides.

4.9 The bay’s surface, water column, and benthic communities are typical of tropical

Indo-Pacific waters, containing phytoplankton, zooplankton, polychaetes, crabs, shrimps,

sponges, fish (brackish and marine), marine mammals, turtles, other reptiles, and birds.

Bintuni Bay is home to Sousa and Spinner dolphins (IUCN data deficient, considered

vulnerable), as well as several turtle species (IUCN endangered and critically endangered),

two types of sea snakes and the estuarine crocodile. The Tangguh site is about 70 km away

from recognised turtle nesting areas, mainly at Kokas and Arguni beaches. One endemic

Arfak rainbowfish (Melanotaenia arfakensis) was found. Additional information is

presented in the Biodiversity Action Plan.

4.10 The eastern reaches of the bay consist of extensive mangrove swamps and estuaries

and are designated as a Nature Conservation Area. This area contains diverse flora and

fauna including endemic species. Bintuni Bay fringing mangrove forest is considered a

sensitive ecosystem under Presidential Decree No 32/1990, and nationally protected under

Minister of Forestry Decree No.891/KPTS-II/1999.



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4.11 The onshore Tangguh LNG area comprises a mosaic of five vegetation types: lowland

tropical forest, beach forest, savannah, isolated mangrove stands and Nypa-Metroxylon

(nipah-sago) swamp forest. Lowland forest covers most non-flooded ground between the

Saengga and Mangossa Rivers. The beach forest is a localized type that occurs on sandy,

non-inundated soil of mangrove forests between Tanah Merah and Manggosa River. A

sparse cover of trees and shrubs dominates anthropogenic savannah patches characteristic

of the Tangguh site and vicinity, while mangrove communities form a fringe between the

open Bay and extensive inland freshwater sago/swamp and peat swamp forests. Each

vegetation type contains characteristic fauna associations-of mammals, amphibians,

reptiles and birds.

4.12 Tangguh LNG operates in a modified habitat, with natural and high conservation

value habitat in the buffer zone. Tangguh Flora and Fauna Studies which are routinely

conducted confirm that the Tangguh buffer zone area is rich in biodiversity. More than 800

plant species have been found, of which 30 species are protected (by IUCN, CITES and/or

Indonesian regulation).

4.13 There are at least six indigenous tribes in the Bintuni/Berau Bay coastal areas that

are influenced by Tangguh, spread throughout several sparsely populated coastal and

inland districts and villages (Figure 6). The tribes include Sebyar, Simuri, Irarutu, , Patuanan

Sekarpikpik, Patuanan Wertuwar, and Petuanan Arguni. These communities follow a

variety of traditional livelihoods - fishing, agriculture, hunting and gathering - as well as

some trading and modern employment.

Figure 6 Administrative Boundaries and Settlements



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4.14 The population near Tangguh LNG area is estimated at about 18,660 people including

both indigenous (adat) communities and recent migrants from other parts of Indonesia.

Infrastructure is limited with boats providing the main form of transportation.

4.15 Wider development has continued to attract in-migrants with whom indigenous

populations have difficulty competing. There is evidence of indigenous marginalization

elsewhere in Papua and Papua Barat Provinces, and increasing potential around Bintuni

and Berau Bays. Critically, adat communities are identified as vulnerable. When compared

to non-Papuan migrants, this indigenous population lags in numerous development

indicators, notably health, education, and economic participation.

4.16 Existing socio-economic baseline conditions within the study area are affected by

ongoing activities – 10 years of Tangguh T1/2 operation, palm oil plantations, timber

concessions, wood chip processing, fishery operations including trawling and third-party oil

and gas exploration such as Genting Oil & Gas.

4.17 Genting undertakes onshore oil and gas exploration in the Kasuri Production Sharing

Contract in Bintuni, Papua Barat. Two wells were tested in 2014. Both wells struck oil and

gas, the first discoveries of oil in the Bintuni Basin. The drilling of two new exploration

wells commenced in 2014. New seismic surveys have been conducted covering 140 km2

and some 165 km2.

4.18 Papua should also be seen in the context of the central government which has set a

number of major programs (e.g. agriculture, mining, energy) in collaboration with

government ministries and the private sector. GOI’s Masterplan for Acceleration and

Expansion of Indonesia's Economic Development (abbreviated as MP3EI) aims to direct

economic development more evenly. MP3EI seeks to develop economic corridors based on

each region’s potential. The Papua-Moluccas corridor will focus on the development of

food, fisheries, energy and mining.

5. TEP ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA)

5.1 The ESIA is mainly being accomplished through the Indonesian regulatory TEP

AMDAL, and also addresses IFC Environmental and Social Performance Standards. It is also

being supported by 2016 ESDD actions:

Acid Sulphate Soils Management Plan;

Effluent and Water Management Plan;

Greenhouse Gas Management Plan;

Critical Habitat Assessment and Biodiversity Action Plan;

Resettlement and Indigenous Peoples Plan; and

Community Emergency Response Plan.

5.2 Although the TEP AMDAL covers two additional trains only T3 will be constructed

initially. However many of the projections in the TEP AMDAL, such as air quality and

effluent modelling, are based on 4 trains rather than 3, making effluent and dispersion

modelling projections significantly conservative.



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Occupational Health, Safety, Environmental and Social Management System

5.3 The TEP will leverage the following policies, procedure, plans and commitments that

have been applying to the Tangguh LNG T1/2 project:

BP Asia Pacific HSE Policy;

Health, Safety, Security, Environmental and Social (HSSE) Management Plan; and

Environmental and Social Management System (ESMS), accredited to ISO 14001 since

2010, which contains a broad suite of plans and Standard Operating Procedures for

management, monitoring and mitigation of impacts. It requires annual monitoring

and 3-yearly recertification audits by an independent party. The latest ISO

14001:2004 audit was conducted by PT Sucofindo in October 2015. Separately, the

ESMS is subject to regular internal audits.

Assessment of Occupational Health, Safety, Environmental and Social Risks and Impacts

5.4 Given that the TEP is a brownfield development on an existing operational site using

similar facilities, equipment and processes (that are effectively an increase in activity level

of the existing Tangguh LNG T1/2 operations), environmental and social risks are known

and well-understood.

5.5 Tangguh LNG protects the integrity of its workforce by imposing best practice

occupational health and safety management plans. Employees receive personal safety

equipment as required and safety training to minimize work related accidents. Strict safety

requirements apply to the ‘Red Zone’ (defined as processing and tank storage areas). The

Red Zone is fenced-off and access is only through a security gate with proper authorization.

5.6 An HSSE Management Plan is in place including provisions for effective

communication of health and safety policies, plans, and procedures, safety performance

measurement, hazard assessment, and risk management programs. The HSSE

Management Plan also addresses incident reporting and investigation, personal protective

equipment, hazardous material controls, traffic safety regulations, excavations and

openings, electrical equipment, emergency response plans, medical and first aid services,

alcohol and drugs, and fire prevention and protection programs. Tangguh LNG also

recognizes the responsibility to ensure that all its workers are adequately trained for the

job to be performed, that all potential hazards are reviewed, and that all measures are

taken to eliminate or minimize the hazards prior to starting each job. The HSSE

Management Plan applies to employees as well as to contractors and subcontractor staff.

5.7 The TEP ESIA comprehensively assessed environmental and social impacts associated

with the development. These impacts mirror those which have been successfully managed,

mitigated and monitored during the construction and operations phases of the original

Tangguh LNG T1/2 project. Continued identification of environmental risks and impacts is

addressed through the Environmental Aspect & Impact Identification Procedure contained

in the Tangguh LNG ESMS.

5.8 Impact evaluation considered the entire TEP project zone of influence of onshore

and offshore infrastructure and associated processes over the entire life cycle – pre-

construction, construction, operation and post-operation. Per the AMDAL and associated



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internal BP processes, TEP impacts were screened against the following general

parameters:

Waste (hazardous and non-hazardous)

Water

Air (Ambient/ Stack)

Biodiversity

Natural Resources

Natural Hazards

Land and Marine Use

Noise and Light

Public Health

Social and Cultural Resources

Public Services

Population, housing and employment

Transportation and Traffic

Utilities and Service Systems

Aesthetics and Reputation

5.9 Impact prediction and significance evaluation used the following references:

Environment Minister Regulation PERMENLH No16/2012, IFC methodologies, and BP

guidelines. Potential impacts, positive or negative, were considered in terms of scale,

intensity, likelihood, and duration, as well as the sensitivity of environmental and social

receptors.

5.10 The impact evaluation follows the steps shown in Figure 7 in order to determine

impact significance to determine whether a hypothetical significant impact that has been

identified through the scoping process in the Terms of Reference is an "insignificant

impact" or a "significant impact."



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Figure 7 Impact Evaluation Steps

Management of Environmental and Social Risks and Impacts

5.11 The Environmental Management (RKL) and Environmental Monitoring (RPL) Plans

(collectively referred to as EMP) detail how the TEP impact management commitments will

be implemented in order to minimize negative impacts and enhance positive impacts of

the project. The management and monitoring budget is annually proposed for approval to

SKK Migas, the Indonesian Government oil and gas regulator3.

5.12 Similarly the social impacts, as summarized in the Tangguh Social Management Plan

and further elaborated in the Resettlement and Indigenous Peoples Plan which integrates

the Tangguh Sustainable Development Plan for 2017-2021, are well understood. They will

continue to be managed by a dedicated team numbering about 40 who maintain close

contact with the communities and have established several bases in the main population

centres and villages. The Tangguh team will work closely with the local government to

ensure the success of the social programs which will now be undertaken through the local

government planning process or “musrembang”. The organizational structure and

allocated human resources is sufficient for managing environmental and social aspects

associated with operations. Not only does BP have the experience from the Tangguh LNG

T1/2 project construction and operations, but similar projects globally over decades.

5.13 The operation of LNG facilities in Indonesia is subject to a number of safety

requirements by the Directorate Generate of Oil and Gas under the Ministry of Energy and

Mineral Resources (Ditjen Migas) and to regular government inspections. These

requirements also compel the TEP to be prepared to respond to process upset, accidents

and emergency situations. The TEP will operate under the existing Tangguh Operational

3 The Government of Indonesia (as the ultimate owner of oil and gas assets managed under Production Sharing Contracts)

generally objects to publishing budget information.



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Management System, which includes an Oil Spill Contingency Plan, Emergency Response

Plan, Hazardous and Toxic Materials Management Procedures, Incident Management and

Emergency Response Guidelines, Babo Airport Operating Manual and TEP HSSE

Management Plan.

5.14 As with all management systems, continual improvement is also a fundamental

component of BP’s environmental, health, safety and social approach to capital project

development and operations.

Based on the screening, scoping and impact analysis, significant impacts were identified,

along with their corresponding mitigation, as summarized in Table 1.

Table 1 Signifcant Impacts and Corresponding Mitigations*

Significant Impact Mitigation

Public concern and interest in employment Detaild in PCDP and IPP, and includes:

Engage with host communities, especially before and during

construction

Meet local Papuan employment target (85% by 2029)

Job opportunity Detailed in Workforce Management Plan and includes:

Prioritize employing IP for unskilled and low skilled jobs

Region priorization recruitment hierarchy: IP, Bintuni and Fakfak,

West Papua, Papua, and National

Local business growth Detailed in TSDP, and includes:

Optimize local products from agricultural and fisheries sectors

Assist financial access for IP

Assist local products for wider market

Fishermen’s income Detailed in TSDP, and includes:

Implement livelihood diversification program

Implement recovery program

Socio-Culture Detailed in TSDP, and includes:

Conduct public consultation to affected communities

Resolve grievances

Population migration, structrure and growth Detailed in TSDP, and includes:

Liaise with Development Institutions to support the implementation

of Civil Administration and Information System

Liaise with Development Institutions to implement governance

program and civil society strengthening

Public Health Detailed in TSDP, and includes:

Liaise with local community centre in the implementation of

disease dissemination and transmission prevention

Support the provision of infrastructure, access, paramedic and

medicines in villages

Promote healthy living behaviour

Education Detailed in TSDP, and includes:

Provide scholarship for students from IP to a leading university in

Papua and other parts of Indonesia

Strengthen the provision of teaching staff in schools

Develop flagship schools in the surrounding areas

Fishing disturbance during construction Detailed in PCDP and IPP, and includes:

Engage with host communities, especially before and during

construction

Compensate for any income loss

Marine and terrestrial biodiversity Detailed in Critical Habitat Assessment (CHA) and Biodiversity Action

Plan (BAP) and includes:

Regular fisheries and marine mammals survey

Conduct revegetation



15

Significant Impact Mitigation

Land clearing only to a designated areas

Air/ GHG emissions Environmental design criteria, including adoption of applicable

International standards and guidelines; includes:

Use Dry Low NOX Burner in gas turbines

Adopt energy efficient design, such as Heat Recovery System

Generator (HRSG to recover waste heat to produce high pressure

steam

Install CEMS in adherence to applicable regulation

Acid sulphate in soils (construction) Detailed in Acid Sulphate Soils (ASS) Management Plan, and includes:

Source identification

Disposal method

Runoff treatment

Effluent and water management Detailed in Effluent and Water Management Plan, and includes:

Build wastewater discharge line at -6m LAT

Efforts to minimize wastewater

Treat wastewater prior to discharge in adherence to applicable

regulations

Total Suspended Solids (TSS) from overboard

discharge of drilling mud and cuttings

Detailed in drilling mud and cutting management plan for overboard

discharge method, and includes:

Execute discharge activity in compliance with applicable dumping

permit issued by Ministry of the Environment and Forestry

Noise from onshore activities Detailed in Land Clearing and Tree Cutting Procedure, and includes:

Maintain buffer zone

Routine equipment maintenance

Soil erosion and surface runoff Detailed in Soil and Erosion Control Procedure, and includes:

Erosion and sedimentation control

Revegetation

*complete list detailed in the 2014 TEP AMDAL

5.15 Mitigations follow the analytical framework hierarchy contained in Figure 8.

Figure 8 Hierarchy of Mitigation Measures

5.16 Mitigations are subject to the RPL monitoring requirements, as well as monitoring

and continual improvement actions found in the internal BP management system.



16

Labor and Working Conditions

5.17 The high level of process automation reduces manpower requirements. Tangguh

LNG T1/2 employs about 1,500 people; the TEP will increase operation workforce by about

1,000. The construction workforce will peak at 10,500 personnel and be accommodated in

a construction camp located inside the Tangguh buffer zone. Accommodations will adhere

to international standards.

5.18 Indonesian labor regulations are comprehensive, and as such fully conform to ILO

core requirements (Table 2). The TEP will comply with GoI regulations and leverage

Tangguh LNG T1/2 approach, namely adopting its Human Resources Policies and

procedures in accordance with local regulations reflected in a formal Company Labor

Handbook. It is approved by management and the GOI and appropriately communicated to

employees. The Handbook clearly details Working Conditions and Terms of Employment.

Indonesian law prohibits harmful child labor and forced labor. It also requires equal

employment opportunity and includes articles against workplace harassment.

5.19 A Workforce and Industrial Relations Management Strategy was also prepared for

TEP. EPC Contractors will be required to deelop and implement their own workforce

management plans to address workforce and industrial relations. The strategy defines the

contractor minimum requirements for managing workforce and industrial relations and

details the interfaces between TEP, Contractor, BP’s Community and External Affairs with

respect to workforce resourcing, industrial relations, workforce grievance redress

procedures and disciplinary requirements, cultural induction, IP and other Papuan

requirements, mobilization and demobilization, ensuring compliance with core labor

standards, among others.

Table 2 Summary of core ILO Conventions ratified by GOI (Source: Indonesian Labour

Law Number 13/2003 regarding Labour)

Four Core Conventions Ratified by GOI

ILO Convention 87 on Freedom of Association and Protection of the Right

to Organize

ILO Convention 98 on the Right to Organize and Collective Bargaining

In force in 9 Jun 1998

In force in 15 Jul 1957

ILO Convention 29 on Forced Labour

ILO Convention 105 on the Abolition of Forced Labour

In force in 12 Jun 1950

UU-19-1999

ILO Convention 138 on Minimum Age (of Employment)

ILO Convention 182 on the Worst Forms of Child Labour

UU-20-1999

UU-01-2000

ILO Convention 100 on Equal Remuneration

ILO Convention 111 on Discrimination (Employment and Occupation)

UU-80-1957

UU-21-1999

5.20 While the TEP recognizes the importance of equal employment opportunity, it is

committed to continue to deliberately focus on Indigenous People. This approach affects

most aspects of its business, from recruitment, training, and development, to supply chain

(purchasing). The EMP aims to ensure gender equality by creating job opportunities to

women. The Public Consultation and Disclosure Plan (PCDP), a document which is

integrated into the Resettlement and Indigenous Peoples Plan (RIPP), identified the head

of women’s group and youth as key stakeholders.



17

5.21 An Environmental, Health and Safety (EHS) Management Plan is in place including

provisions for effective communication of health and safety policies, plans, and

procedures, and safety performance measurement, hazard assessment, and risk

management programs. The EHS Management Plan also addresses incident reporting and

investigation, personal protective equipment, hazardous material controls, traffic safety

regulations, excavations and openings, electrical equipment, emergency response plans,

medical and first aid services, alcohol and drugs, and fire prevention and protection

programs. The TEP also recognizes the responsibility to ensure that all its workers are

adequately trained for the job to be performed, that all potential hazards are reviewed,

and that all measures are taken to eliminate or minimize the hazards prior to starting the

job. The EHS Management Plan applies to employees as well as to contractors and

subcontractor staff.

5.22 With respect to the supply chain, as has been the case with the Tangguh T1/2

project, contractual safeguards are incorporated into contractual provisions for suppliers

and compliance with the BP Corporate Human Right Policy is required of suppliers.

Resource Efficiency and Pollution Prevention

5.23 Effluents, emissions and wastes will increase roughly 50% over levels currently

produced by the existing Tangguh T1/2 project and can be readily managed by the

additional facilities (planned for the TEP). These aspects are subject to the management

and monitoring program of the the EMP, which has applied to the Tangguh LNG T1/2

project from its inception. They are also subject Acid Sulphate Soils Management Plan,

Effluent and Water Management Plan and GHG Management Plan, which resulted from

the 2016 ESDD.

5.24 The Environmental Design Criteria (EDC) of the TEP AMDAL incorporate parameters

and guideline values from the following references:

Applicable laws and regulations issued by the Government of Indonesia (GOI);

Applicable regulations issued by regional government authorities;

General and sector-specific International Finance Corporation (IFC) Environment,

Health and Safety (EHS) Guidelines of 2007 (IFC EHS Guidelines); and

World Health Organization (WHO) guidelines.

5.25 The TEP applies pollution prevention and control technologies and practices that are

consistent with International requirements to avoid or, where avoidance is not feasible,

minimize or reduce adverse impacts on human health and the environment while

remaining technically and financially feasible and cost-effective. The TEP’s Environmental

Design Criteria are the stricter of Indonesian regulatory standards and IFC EHS Guidelines.

Past operational experience demonstrate that the TEP emissions will meet these standards

(Table 3 and Table 4) because the technologies to be used for the TEP replicate those in

the Tangguh T1/2.

5.26 Table 3 to Table 6 outline air ambient and emission performance standards,

specifying adopted TEP standards and indicating associated Government of Indonesia and

IFC standards where they exist. Lower TEP standards are based on Tangguh LNG T1/2

performance. If not otherwise specified, T1/2 monitoring results are from 4th Quarter 2015.



18

Sources of the main gaseous emissions from the TEP are generated from the following

activities:

• Mixed Refrigerant and Propane Gas Turbines;

• Acid Gas Incinerators;

• Boilers;

• Regeneration Gas Heaters; and

• Flares (Dry, Wet, and Tankage).



19

Table 3 Flaring and Air Emissions

TEP Flare Standard and Latest T1/2 ORF Monitoring Results*

Parameter GoI IFC TEP ORF Flare

Opacity 40% - 40% <20%

TEP Boilers Emission Standards and Latest T1/2 Monitoring Results (mg/Nm3)

Parameter GoI IFC TEP Boiler-Stack A

Nitrogen Oxide (NOx) as NO2 400 320 320 93.0

Opacity 20% - 20% <20

Sulphur Dioxides (SO2) 150 - 150 <1

Total Particulate 50 - 50 1.1

Hydrogen Sulphide (H2S) - 5 5 <0.1

TEP Acid Gas Incinerators (AGI) Emission Standards and Latest T1/2 Monitoring Results (mg/Nm3)

Parameter GoI IFC TEP AGI 1 & 2

Sulphur Dioxide (SO2) 873 2,600 2,600 <3

Hydrogen Sulphide(H2S) - - 5 <0.1

TEP Regeneration Gas Heaters (RGH) Emission Standards and Latest T1/2 Monitoring Results (mg/Nm3)

Parameter GoI IFC TEP RGH 2

Nitrogen Oxide (NOx) as NO2 400 320 320 108.0

Opacity 20% - 20% <20

Sulphur Dioxides (SO2) 150 - 150 <1


Hydrogen Sulphide (H2S)9 - 5 5 <0.1

TEP Gas Turbine Emission Standards and Latest T1/2 Monitoring Results (mg/Nm3)

Parameter GoI IFC TEP Gas Turbine PR2

Nitrogen Oxide (NOx) as NO2

(15MWth to <50MWth) 320 51 51 18.7


Sulphur Dioxide (SO2) 150 - 150 <1

Hydrogen Sulphide (H2S) - 5 5 <0.1

*TEP will apply similar technology to T1/2 and predicted emission are expected to be in the same range as current actual

emissions

Table 4 TEP Air Ambient Standards and Latest T1/2 Monitoring Results (µg/m3)

Parameter Measuring

Time GoI IFC TEP

Monitoring Station

Soccer Field Log Pond

Sulphur Dioxide

(SO2)

1 hour

24 hours

900

365

-

20 (Guidelines)

900

20

<20 <20

Carbon

Monoxide (CO)

1 hour

24 hours

30,000

10,000

-

-

30,000

10,000

<100 <100

Nitrogen

Dioxide (NO2)

1 hour

24 hours

Annual

400

150

100

200

-

40

200

150

-

<5 <5



20

Parameter Measuring

Time GoI IFC TEP

Monitoring Station


Ozone (O3) 1 hour 235 - 235 <20 <20

Hydro-

carbon(HC) 3 hours 160 - 160 <5 <5

PM10 24 hours 150 50 (Guidelines) 50 73.6 37.8

PM2.5 24 hours 65 25 (Guidelines) 25 31.8 20.7

Ash (TSP) 24 hours 230 - 230 132 87.7

Lead (Pb) 24 hours 2 - 2 <0.001 <0.001

Table 5 TEP Noise Standard and Latest T1/2 Monitoring Results

Area TEP Standard (dbA) Monitoring Station


Noise (Lavg) 55 (day)

45 (night) 32.9 30.8

Table 6 GHG Emissions Estimate Based On Tangguh LNG T1/2

GHG (CO2) T1/2 Emissions Predicted TEP-

Trains 1-3 2010 2011 2012 2013 2014 2015

Kilo Tons 4,561 4,513 4,656 4,730 4,735 4,780 7,800

5.27 Air emissions modeled in the AMDAL used AERMOD software and the pollutants are

assumed as conservative pollutants, inferring they do not experience physical-chemical

transformation in the atmosphere. In practice NO2, SO2, CO and particulates will

experience physical-chemical transformations such that the actual ambient concentrations

will be less than predicted.

5.28 To analyze the effect of topography in the study area more clearly, the predictions

were conducted under two different scenarios; elevated terrain condition taking into

account topography around Tangguh LNG site and flat terrain condition which assumes the

whole area of the model is flat.

5.29 Air emission dispersion modeling presented in the TEP AMDAL 2014 concluded

that the maximum concentration of the parameters NO2, SO2, CO and particulates

calculated at hourly, 24-hour and annual average are within the applicable standards of

Government Regulation No. 41 Year 1999 on Air Pollution Control (Table 7 and Table 8).

Topography is shown to have a marked influence in determining the concentrations of

pollutants and the locations of predicted maximum concentration. According to the

modelling result, the maximum concentration could occur at a distance of up to 10 km

from the emission source. However, the concentrations of NO2, SO2, CO and particulates

that reach villages within this 10 km radius are far below the regulatory standard and will

not have any impacts on the health of the residents.



21

Table 7 Prediction of Air Emission Dispersion Modeling – Elevated Terrain

Averaging

Period

NO2 (µg/m3) SO2 (µg/m

3) CO (µg/m

3) Particulate (µg/m

3)

Prediction

Standard

Prediction

Standard

Prediction

Standard

Prediction

Standard Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Hourly

Average 155.4 156.8 400 15.6 15.7 900 115.0 116.0 30,000 8.3 8.3

24-Hour

Average 23.7 23.9 150 2.2 2.2 365 10.48 10.57 10,000 1.6 1.6 230

Annual

Average 1.7 1.7 100 0.2 0.2 60 0.7 0.7 0.1 0.1 90

Note:

1. Ambient Air Condition – ambient temperature at 26.6°C and pressure at 757 mmHg

2. Standard Condition – temperature at 25°C and pressure at 760 mmHg

3. Standard – The National Ambient Air Quality Standard, Government Reguation No. 41 Year 1999

Table 8 Prediction of Air Emission Dispersion Modeling – Flat Terrain

Averaging

Period

NO2 SO2 CO Particulate

Prediction

Standard

Prediction

Standard

Prediction

Standard

Prediction

Standard Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Ambient

Air

Condition

Standard

Condition

Hourly

Average 52.4 52.8 400 7.2 7.3 900 68.2 68.9 30,000 2.9 2.9

24-Hour

Average 9.9 10.0 150 1.0 1.0 365 7.7 7.7 10,000 0.6 0.7 230

Annual

Average 0.4 0.4 100 0.03 0.03 60 0.16 0.16 0.02 0.02 90

Note:

1. Ambient Air Condition – ambient temperature at 26.6°C and pressure at 757 mmHg

2. Standard Condition – temperature at 25°C and pressure at 760 mmHg

3. Standard – The National Ambient Air Quality Standard, Government Reguation No. 41 Year 1999



22

Discharge to Water

5.30 The five main wastewater streams at Tangguh Trains 1 to 3 (Table 9):

Sewage from camps and dormitories.

Brine water reject from the desalination units.

Chemically contaminated wastewater.

Oily contaminated wastewater.

Produced water.

Table 9 TEP Water and Waste Discharge Standards (Select T1/2 monitoring results in

parentheses; highest level over July-December 2015 period cited)

Parameter Produced

Water*

Chemically

Contaminated

Water

Brine Reject Sewage

pH 6 – 9

(8.9)

6 – 9

(8.75)

6 – 9

(8.66)

8

(7.3)

Chemical Oxygen Demand 200mg/l (100) 200mg/l

(3)

Temperature 40◦C

(33.7)

Total Suspended Solids 100 mg/l

(21)

100mg/l

(21)

Oil and grease 25mg/l

(2)

10mg/l

(5)

BOD 100mg/l

(25)

Discharge salinity

+/-5% ambient

conditions

(31.3)

* Due to amine content from the production system causing high COD level, oily contaminated wastewater is now

routed to the produced water tank for treatment.

5.31 IFC PS 3 requires resource conservation and energy efficiency measures to be

incorporated into projects. In the case of the TEP this requirement is met with the installed

heat recovery system using the off-gas from the gas turbines as energy input. Produced

electricity is used internally and sold to Indonesia’s state electricity company PLN to serve

the local electricity grid providing electricity to the nearby host villages.

5.32 Sea water is desalinated and used as process water and for other purposes. Sea

water desalination is a proven technology which has seen significant technology

improvements in recent years.



23

5.33 The TEP commits to regular environmental monitoring in adherence to AMDAL and

applicable Indonesia and international requirements. All emission sources will be

monitored regularly by external accredited laboratory using manual sampling equipment.

Besides manual monitoring, Continuous Environmental Monitoring Systems (CEMS) will be

installed at the Gas Turbine, Boiler and Acid Gas Incinerator units, which are the largest

emission sources.

5.34 Treated wastewater from each treatment stream will be monitored to ensure

compliance with water quality standards prior to marine discharge via a common outfall.

Wastewater monitoring will be conducted at each facility effluent sampling point on a

regular basis by external accredited laboratory as part of AMDAL commitments, by

leveraging the following from the Tangguh T1/2 project:

Wastewater Discharge Permit – MoE Decree No. 125/2013 valid to April 2018;

Wastewater Management Procedure and Environmental Sampling and Analysis

Protocol (External Laboratory Procedure) of the ESMS;

Reduce, Reuse, Recycle (3R) Principles for waste management;

Non-hazardous wastes are segregated and disposed accordingly, as follows:

o Recyclable wastes including aluminium/tin can and plastic bottles are compacted

and shredded and subsequently transported to recycling facility off site;

o Organic wastes are composted on site and some disposed to the waste landfill;

o Inert wastes including Polyvinyl Chloride (PVC) pipes, Styrofoam and High Density

Polyethylene (HDPE) materials are disposed to the waste landfill;

o Tires and bio-sludge are disposed to the waste landfill;

o Non-hazardous combustible wastes including papers, and cardboards are

incinerated; and

o Biodiesel from recycling of cooking oil in the current operation has been

successfully trialed in laboratory scale. The product is used to fuel some modified

light vehicle trucks.

Hazardous and Non Hazardous Waste management procedures of the ESMS.

Hazardous wastes will be temporarily stored in the licensed Hazardous Waste Storage

for < 90 days prior to shipment, complete with manifests, using licensed transporters

to permitted Hazardous Waste Treatment and Disposal Facilities off site; and

Standard Operating Procedure for Pesticide Management (of the ESMS).

5.35 Acid sulphate soils were encountered during the Tangguh T1/2 project construction

and were disposed at designated area causing elevated levels in groundwater quality for

some parameters. Provisions are in place to ensure proper acid sulphate soil management

during the TEP.

5.36 Regarding climate change and GHG emissions, total GHG produced from Tangguh

T1/2 in 2012 amounted to about 4.7 million tons of CO2. Total CO2 emission from Train 3

operation is estimated to be 3.1 million tons annually. Total CO2 emission from the

operation of LNG Trains 1, 2, and 3 is estimated to reach about 7.8 million tons annually.

This compares to world CO2 emissions of 45 billion tons as of 2012. GHG emissions will be

monitored and reported according to international and BP protocols. Most CO2 emissions



24

in the gas field are in the form of naturally occurring CO2, separated from natural gas and

vented into the atmosphere. There are no cost-effective or practical options available for

reducing these GHG emissions.

5.37 75% of T3 LNG will be allocated for supply to domestic electricity producers which to

a large extent rely on coal and oil as energy source. Combusting natural gas will potentially

reduce GHG emissions by up to 50% compared to combustion by coal (Figure 9).

Figure 9 GHG emission as function of energy source

(Source: www.world-nuclear.org)

5.38 There is minimal risk to the TEP from climate change. Climate projection for 2050 is

addressed in the Tangguh internal Environmental and Social Screening Document. The

Model for Assessment of Greenhouse Gas Induced Climate Change (MAGICC) and Scenario

Generator (ScenGen) Model from Intergovernmental Panel on Climate Change (IPCC) was

used and showed that temperature is expected to rise steadily with an ultimate increase of

0.9 to 1.45°C. Sea level is expected to increase by 12.5 to 16 cm. Flood and droughts may

increase in intensity but not to the extent that they have required any project design

changes.

Community Health, Safety, and Security

5.39 The TEP will be constructed adjacent to T1/2. A perimeter fence limits access to the

buffer zone, as indicated in Figure 3. The processing areas are separately fenced, and

access to these areas is through security gates. At night, lighting allows visual monitoring of

the fence and the premises.

5.40 Risks and impacts to the health and safety of the affected community were

evaluated during design and will continue to be evaluated during construction, operation,

and decommissioning phases. Preventive measures are in place to address the identified

risks and impacts.

http://www.world-nuclear.org/



25

5.41 The Tangguh site is a brownfield site but the TEP will be a newly constructed facility

using materials and equipment that conform to International requirements in community

health, safety and security. The operation of the TEP is subject to Indonesian Safety

requirements; annual government inspections ensure compliance.

5.42 Management of hazardous materials will follow existing practice with secondary

containment provided for the main hazardous materials storage area. A wide buffer zone

exists between the site and the nearest settlement.

5.43 The TEP is designed to largely operate automatically. An automatic system shuts

down the process facility, or parts of it, in the event of a hazardous situation, providing a

“First Out” announcement to the operator informing the reason for the shutdown. The

high level of process automation reduces potential for human error. Operational personnel

are trained in emergency response.

5.44 The Quantitative Risk Assessment (QRA) summarized in the Tangguh ERP OSC

Tactical Guide indicates that the worst emergency credible scenario at Tangguh involves:

BLEVE (Boiling Liquid Expanding Vapor Explosion). Overpressure modelling study

conducted for Tangguh LNG shows that the explosion impact is within a radius of

around 1,300 meter from the epicenter, still within fencing coverage; and

Oil spill incident. Environmental sensisitivity assessment was conducted in order to

prioritize sensitive areas to be protected from any spill.

5.45 BP’s existing health care program has been recognized by the Tangguh Independent

Advisory Panel (TIAP) as a great benefit to the broader community. A recently-built

hospital in Bintuni, supported by Tangguh, has improved access to quality health care in

the region. Community Health Centers in Babo and Bintuni and health clinics in villages

have all been part of the successful fight to end malaria and to diminish other infectious

diseases with results varying with village location, availability of clean water provision and

hygienic conditions. Various public health initiatives as part of the overall social investment

program that also addresses education, public infrastructure and employment, focused on:

HIV incidence, which is high in Papua and increasing in the Bintuni Bay area.

Measures are being implemented at local health clinics to better monitor and

educate communities on HIV prevention;

The Malaria Control Program successfully maintains its zero malaria transmission

record. Malaria prevalence, which has seen decreases in the region from 9.2% in

2006 to <0.1% in 2015;

Death rate from diarrhea, which fell from 4.7% in 2006 to 1.6% in 2013; and

Infant death, which declined from 13.5% in 2006 to 2.7% in 2011.



26

Land Acquisition and Involuntary Resettlement

5.46 The TEP does not require land acquisition or involuntary resettlement. Economic

displacement due to offshore exclusion zones around the platforms and bulk off loading

facility (BOF) and jetty was identified as a potentially significant impact during screening,

but after a detailed review by experts from University of Gadjah Madah University (UGM)

in 2016 it was determined that this impact was not significant. The fishery study by UGM

concluded that fishing:

Offshore by the Indigenous Peoples Weriagar community extends no more than two

nautical miles (nm) offshore, and the platforms and exclusion zones are greater than

2.8 nm offshore. Furthermore, the platforms are located in water depths greater

than 40 m, a depth not normally fished by the communities.

Foot fishing nearshore which is mainly for fulfilling additional daily nutrition/

consumption for their families by 17 foot fishermen from Tanah Merah near the BOF

area (Figure 10) will be temporarily affected. Construction of the jetty facilities and

associated dredging activities would not affect any other fishing activities. Dredged

material disposal is in designated approved areas in deeper waters.

It can be concluded that there is no significant economic displacement expected from the

project. No physical displacement is also expected.

Figure 10 Detail of South Shore Fishery (Source: IPB- Bogor Agricultural

University, 2014)

Biodiversity Conservation and Sustainable Management of Living Natural Resources

5.47 Bintuni Bay and surroundings comprises largely natural habitat areas. The Tangguh

site is not located in or near legally protected or internationally recognized areas. A

number of endangered species have been identified which according to ADB SPS 1

definition may classify Tangguh as critical habitat. However the ESDD concluded that there



27

was no formal Critical Habitat Assessment (CHA) in the TEP AMDAL. Accordingly a CHA and

BAP4 have been prepared, with the main objective being to achieve a no net loss in

biodiversity through application of mitigation hierarchy of avoidance, minimization,

restoration and offset.

5.48 The CHA used criteria defined by ADB (2009) and IFC (2012b), which are: critically

endangered (CR) or endangered (EN) species (Criterion 1); endemic or restricted range

species (Criterion 2); migratory or congregatory species (Criterion 3); unique species

assemblages associated with key evolutionary prcesses or providing key ecosystem

services (Criterion 4); biodiversity of significant social, economic, or cultural importance to

local communities (Critierion 5); protected areas or proposed for protection (Criterion 6);

highly threatened and/or unique ecosystem (Criterion 7). In the absence of a specific

approach recommended by ADB, the CHA follows the methodology explained in IFC

Guidance Note (2012b). This guidance uses numerical thresholds for the first three critical

habitat criteria (i.e. CR/EN, endemic/restricted-range and migratory/congregatory species)

to be assigned to Tier 1 or Tier 2 critical habitat designation

5.49 Based on the CHA 16 species and 1 group of endemic orchids are identified as

priority species for conservation including among others Calophyllym insularum

(endangered and endemic species), Hawksbill turtle Eretmochelys imbricate (nationally

protected and critically endangered) and Great knot Calidris tenuirostris (endemic).The

associated habitats identified for those priority species are swamp forest, lowland forest

and estuarine waters. Only fishing grounds are considered as priority ecosystem services.

5.50 The assessment also provides additional evaluation of project-related direct, indirect

and residual impact on the critical habitat features i.e. land clearing, discharge of drilling

mud and cutting, foreshore development and dredging, wastewater discharge, presence of

offshore platforms and vessels, sound emission and underwater noise. In addition to the

impacts discussed in the AMDAL (2014), three additional aspect of the overall project also

been assessed, i.e. invasive species, shipping traffic and unintended release in terms of

their potential impact to the priority species and their associated critical habitat.

5.51 The BAP sets the objectives, actions and monitoring activities of the project to

ensure the planned project has no long-term net loss in biodiversity. Table 10 provides the

summary of the BAP that will be implemented by the project in the mitigation hierarchy.

4 Although a Biodiversity Action Plan was prepared and implemented during the early stages of the Tangguh LNG T1/2 project, its

objectives were achieved prior to construction of Trains 1 and 2 (Tangguh LNG 2003). The Biodiversity Action Plan was an

aspirational plan to raise the awareness of biodiversity preservation and management in Indonesia, Papua and Bintuni Bay.

Therefore a BAP was required



28

Table 10 BAP Overview based on the Hierachy of Management Measures

Generic Measures Adequate environmental capability at site

Avoidance Use of HDD, no activity at savannah scrub and no removal of major

permanent river.

Minimization Optimization of land clearing, effort to minimize disturbance to

marine mammal, strict no fishing and no hunting policy, spill

control capability in place.

Restoration Re-vegetation post construction, priority flora species seed

collection during pre-construction survey.

Offset Offset commitment. (Note: A biodiversity offset of 6,984 ha is a

condition of the Forestry Release Decree of the Tangguh LNG T1/2

project.)

Monitoring Pre-construction survey for priority species, during construction

flora fauna survey and post-construction flora fauna survey,

including effectiveness of re-vegetation.

5.52 The Tangguh LNG T1/2 project addresses biodiversity with a Marine Mammals and

Sea Reptiles Protection Procedure and Flora and Fauna Protection Procedure and this will

continue to apply to the TEP.

5.53 The current TEP Tree Harvesting Plan document estimates 250 ha of trees to be

cleared. (The 500 ha of clearing indicated in the TEP AMDAL is a combined total for T3/4.).

Mitigation measures will be designed to achieve, at a minimum, no net loss of biodiversity.

No TEP activity will be implemented in areas of critical habitat unless the following

requirements are met:

There are no measurable adverse impacts, or likelihood of such, on the critical

habitat which could impair its high biodiversity value or the ability to function.

The project is not anticipated to lead to a reduction in the population of any

recognized endangered or critically endangered species or a loss in area of the

habitat concerned such that the persistence of a viable and representative host

ecosystem be compromised.

Indigenous Peoples

5.54 The local population surrounding Tangguh is approximately 18,660, with a majority

being Indigenous People. The percentage of Indigenous Peoples varies by village and the

overall percentage of Indigenous Peoples is decreasing (relative to migrants). There are at

six indigenous tribes in the Bintuni/Berau Bay coastal areas that are influenced by Tangguh,

spread throughout villages in the sparsely populated coastal and inland districts (Figure

11). Tribes include Sebyar, Simuri, Irarutu, Patuanan Sekar Pikpik, Patuanan Wertuwar and

Petuanan Arguni. These communities follow a variety of traditional livelihoods such as

fishing, agriculture, hunting and gathering as well as some trading and modern

employment.



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Figure 11 Administrative Boundaries and Settlements

5.55 All stakeholders surrounding Tangguh are regularly engaged (see Public Consultation

and Disclosure section below). A Grievance Mechanism also covers all external

stakeholders and is intended to capture complaints and manage them to closure. As

previously indicated, the TEP is a brownfield site that does not require land acquisition or

resettlement.

5.56 Adat (traditional customary) rights apply to use of resources by Indigenous Peoples

and mainly relate to above-ground fishing grounds and land, including timber. Gas

allocation and revenue sharing were identified as issues during the AMDAL. Adat claims

and compensation for below-ground resources like natural gas are not legally recognized in

Indonesian law, but the local government can recognize such rights and compensate. This

matter must be negotiated between adat communities and the local government. The TEP

does not bear any obligation for such adat claims.

5.57 Over the last 15 years, the socio-economic transition has been pronounced for

Indigenous People who were until recently defined predominately by hunter gathering and

fishing. Similar changes and transitions from agrarian to industrial have occurred in more

developed societies, but in a more gradual manner over decades or centuries. Existing

socio-economic baseline conditions have been affected by the Tangguh T1/2 project

operations, as well as other development like palm oil plantations, timber concessions,

wood chip processing, fishery operations and other oil and gas exploration. West Papua

should also be seen in the context of the Central Government which has set a number of

major programs (e.g. agriculture, mining, energy) in collaboration with government

ministries and the private sector. GOI’s Masterplan for Acceleration and Expansion of

Indonesia's Economic Development (abbreviated as MP3EI) aims to direct economic



30

development more evenly. The Papua-Moluccas corridor will focus on the development of

food, fisheries, energy and mining.

5.58 Tangguh overall has been a catalyst for development and the quality of living for

Indigenous Peoples has improved progressively since the inception of the Tangguh LNG

T1/2 project due to the additional revenues accruing to local government and community

development initiatives under the Tangguh Sustainable Development Program (TSDP, see

also Figure 12):

A village electrification initiative. Tangguh provides 4MW of power to the national

electricity company PLN for electrification of local villages;

North Shore housing improvement scheme;

Basic literacy rates in villages around Tangguh have improved by more than 5% since

2007; 953 teachers received training to improve their teaching capacity; 185 senior

high school and university level students have received scholarships from Tangguh;

school attendance is increasing and a model school has been developed in Tanah

Merah;

Between 2009 and 2012, local household incomes grew by 166%. Villagers trained in

post-harvest production of food products sell to Tangguh and local markets in Babo

and Bintuni. Between 2008 and 2013, more than 1,278 tons of local produce, valued

at Rp 27.2 billion was supplied to Tangguh;

Based on periodic fishery surveys commissioned by Tangguh LNG T1/2, the reliance

on fishing of the Tanah Merah community has been steadily declining. Conversely

volume and value of fish catch has been rising due to improved fishing methods and

use of outboard motors;

Community members in Tanah Merah and Saengga were provided with outboard

motors to allow them to fish further out into the Bintuni Bay and given land access to

the Manggosa fishing camp to the east of the LNG site;

The target of 85% of workforce being Papuan by 2029 is a key objective of TSDP.

Recently, some 55% of Tangguh’s workforce comes from Papua;

Tangguh LNG T1/2 has organized eight apprenticeship cycles with 136 apprentices

participating; and

Since 2006 some 177 companies have participated in mentoring on enterprise

management, administration, business sustainability.

Figure 12 Produce (tons) at Stocking Points Destined for Tangguh



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5.59 Annual monitoring of livelihoods, health, education and welfare confirm this

improvement which is expected to continue through the TEP. While Indigenous Peoples

perceptions of welfare and prosperity are improving, the reality is that Indigneous People

have lower standards of living compared to migrants and a growing dependency-culture.

Also, as with many infrastructure investments in remote areas of developing countries,

jelousy among communities can occur and that has been the case in the Tangguh region.

The TEP is committed to advancing its next phase of community development and

engagement activities in health, education scholarships and livelihoods with a more

deliberate focus towards Indigenous People. The TEP will increase the benefits to the local

communities and their livelihoods, particularly the Indigenous People.

5.60 The Social Impact Assessment (SIA) undertaken as part of the TEP AMDAL 2014

involved experts in the baseline data collection, analysis and assessment of impacts. Social

impacts generally reflect those successfully managed and monitored during the

construction and operation of the Tangguh LNG T1/2 project. Mitigation measures have

been outlined in detail in the ESMP documents. Regular auditing and reporting will

continue, with compliance reports published.

5.61 BP has implemented a comprehensive social development plan over the last 15

years. The Tangguh Sustainable Development Program (TSDP) for 2017-2021 is based on

the Tangguh Social Management (TSM) in the TEP AMDAL RKL Chaper 1.4 and a

continuation of Integrated Social Program (ISP)/Indigenous Peoples Development Plan

(IPDP) for the Tangguh LNG T1/2 project plus an extensive public consultation and

disclosure process, including TEP AMDAL engagements. The TSDP sets out programs to

address Tangguh’s social, economic and cultural impacts thus meeting TEP AMDAL

requirements. The TSDP is designed to continue building on achievements under ISP1

(2005-2010) and ISP2 (2011-2015). The AMDAL consultations and IPP identified issues that

were integrated into the preparation of the TSDP and into programs that specifically target

Indigenous Peoples communities. Focused socialization of the TEP ESIA with communities

directly affected by construction is underway (as of July 2016).

5.62 Regular program monitoring and recent research show that the proportion of

Indigenous Peoples as part of the local population is decreasing and will continue to do so

over time. Despite the socio-economic progress since the early 2000s, Indigenous Peoples

lag in key development indicators, e.g., health, education, and economic participation.

While a wide range of information and documentation related to Indigenous Peoples is

available in the TSDP, an RIPP has also been prepared to meet the ADB SPS for Involuntary

Resettlement and Indigenous Peoples.

Cultural Heritage

5.63 The TEP consulted with affected communities to identify any physical cultural

resources of importance (Table 11). TEP has identified appropriate measures for avoiding

or mitigating disturbance to sacred objects. Planned mitigations include:

Provide dedicated access from the Bulk Off Loading to avoid disturbance to the

sacred house within Tangguh site

Preserve and maintain sacred objects



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Protect and facilitate access to sacred sites

Deliver cultural awareness training to workforce and orientations to visitors

Provide communication forums with Adat leaders and support arts and cultural

events).

Table 11 Location of Sacred Objects

Location Description

Kali Kobara Small river in a valley located between LNG Plant 1 and 1st

Security Post, estuary surrounding Jetty Construction

Kali Mai (Nene Mai) Located next to Kali Kobara, and between Tanah Merah Lama

cemetery and 1st

Security Post

Tanah Merah Lama Cemetary Located next to Construction Jetty

Kayu Besi (Iron Wood) Located at the peak of hill between LNG Plant 1 and 1st

Security Post

Sacred Stone House Located outside western side of the perimeter fence between

Tanah Merah Baru Village and LNG Site

Public Consultation and Disclosure

5.64 Public Consultation and disclosure has been an established and ongoing process at

Tangguh during more than 10 years of activities in the Bintuni Bay area, based on the

concept of Free, Prior and Informed Participation and Consent achieved through

comprehensive and proactive engagement. All stakeholders surrounding Tangguh,

including Indigenous People, are regularly engaged, based on an actively maintained Public

Consultation and Disclosure Plan (PCDP). The Tangguh LNG T1/2 project has had in place a

Grievance Mechanism that covers all external stakeholders and is intended to capture

complaints and manage them to closure. The conformance of the grievance mechanism to

International requirements is independently reviewed regularly by the Tangguh LNG T1/2

project External Panel.

5.65 Additional socialization of the TEP AMDAL was conducted in the Teluk Bintuni and

Fakfak Regencies in July 2016 with particular emphasis on the north shore and south shore

villages potentially impacted by T3 construction and operation.

5.66 The Tangguh social team comprises about 40 Papuan and non-Papuan members with

community support personnel based at various locations including the LNG site, Tanah

Merah, north shore, Babo, Bintuni and Manokwari. Liaison with the communities which

commenced prior to start of the Tangguh LNG T1/2 operations in 2009 continues on a

regular basis.

5.67 Information disclosure during the environmental assessment was exemplary and

further feedback to communities on agreed mitigation measures will be undertaken during

the planned socialization of the Indigenous Peoples Plan. An exhaustive public consultation

and disclosure process was conducted as part of the TEP ESIA and broad support for the

expansion from affected communities and local government exists. AMDAL-required

consultations were conducted from 7 March 2012 to 18 February 2014, which involved



33

dissemination of AMDAL information through public and technical hearing with

stakeholders. Further socialization is planned and documented in the RIPP.

5.68 The TEP has provided affected communities with access to relevant information on:

the purpose, nature, and scale of the project;

the duration of proposed project activities;

any risks to and potential impacts on such communities and relevant mitigation

measures;

the public consultation and disclosure process; and

the grievance mechanism.

5.69 The AMDAL process required a public announcement followed, in the case of the

TEP, by lengthy and substantive public consultations with potentially affected parties,

reaching out to close to 1,800 villagers. Outcomes were incorporated into the scoping

process that determined the content and limits of the AMDAL study, as documented in the

ANDAL Terms of Reference. Stakeholders were broadly defined and included national and

local government authorities, affected communities, NGOs and others (Box 1).



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Box 1: Summary of TEP AMDAL Consultation

2012 TEP AMDAL Consultation Locations

2012 Public Hearings Illustrated

Consultation and Socialization Timeline

2012

TEP KA-ANDAL Public consultation in 17 locations (covering 62 villages) in Teluk Bintuni and

Fakfak Regencies. Note that the T3 development only takes place in Teluk Bintuni Regency

2013



35

Routine consultation through program activities

KA-ANDAL development and approval process

2014

Post KA-ANDAL consultation with communities

Consultations by University of Indonesia

AMDAL public hearings in Bintuni and Fakfak with representatives from communities, and

local and central government

2016

AMDAL socialization in 11 locations of the north shore and south shore region (covering 45

villages)

5.70 Public Consultation for the TEP AMDAL study was completed two years before the

Environmental Permit was released by the Ministry of Environment. This meets the timely

engagement criterion. Records of Indigenous Peoples and other stakeholder engagements,

such as meeting minutes, are detailed in the TEP ANDAL.

5.71 Consultations occurred at village and regency levels in order to collect a

representative spectrum of views, ascertain issues, and receive feedback, aspirations and

questions from stakeholders. In total, 1,286 important issues, aspirations and questions

(both oral and written) were recorded during the public consultation process. Issues raised

included the following:

Revenue allocation and management

Gas allocation

Adat compensation

Housing improvement

Employment

Scholarships

Village and other infrastructure

Clean water

Improving village economic growth

Business opportunities

Fishery and marine transportation disturbance

5.72 Some 72% or 1,286 aspirations came up during public consultation in 17 locations

and indicate that Indigenous Peoples felt free to express their aspirations. There was no

evidence of security personnel being present including police or army as seen in selection

of photos in KA-ANDAL. Demands for adat compensation had the highest importance in

the north shore. On the south shore it was public infrastructure. In Fakfak regency it was

their desire to be involved in the AMDAL process and public infrastructure. These findings

were fed into the preparation of the AMDAL study document.

5.73 Community representatives were expected to ensure views from all members of

community were captured in the public consultation and disclosure process.

Representatives consisted of village, community, Kampung Officials, women and adat

leaders. In early 2016, it became apparent that a number of the community members were

unfamiliar with the activities and plans of the TEP. It was discovered that selected



36

representatives who had attended the AMDAL meetings and signed the attendance

records had not relayed the outcomes of the meeting to their communities. Therefore, the

socialization schedule wasbrought forward and was conducted in July 2016.

5.74 The results of public consultations were presented at a forum at the Provincial Level

(Manokwari) in February 2013. It was attended by about 120 people from parliament, the

MRP and various provincial government agencies.

5.75 TEP commits to regular disclosure of its implementation progress through formal

channels in parallel with AMDAL reporting obligations, annual stakeholder forums and

ongoing engagement, generally following this schedule:

Dissemination of information to community via KaDaTe tabloid – bimonthly;

Impact management reporting (AMDAL/RKL and RPL) – 6 monthly;

Community visits to site, for cemetery, ceremony and monitoring – annual;

External Panel and Lenders consultations as part of monitoring – annual;

TIAP consultations with government and NGOs – 18 monthly; and

Stakeholder visits to project – ad hoc event as necessary.

5.76 The TEP also is encouraged to engage externally by the Environmental

Communication Procedure. As the TEP implementation proceeds, activities expected to

have impact will require socialization and community engagement, such as:

Mobilization or transportation of large equipment affecting sea access (e.g.

platforms or vessels) or creating visual/perception impacts (e.g. new signage);

Recruitment activities, including data base development, selection requirements,

and mob/demobilization (e.g. timing, demand, process);

Plans for local food supply chains (e.g. timing, type, volume, quality, packaging,

processes) through the stocking point program developed for community members;

Intermittent noise associated with construction; and

Workforce presence.

5.77 After FID approval in 1 July 2016, Tangguh conducted socialization to stakeholders in

Teluk Bintuni and Fakfak in order to:

1. Inform and update the AMDAL and TEP, including schedule, job and economic

opportunities; and mitigation of impacts, if any.

2. Engage the affected people who are identified by ADB SPS SR 3 as impacted by

economic displacement in Tanah Merah Baru.

5.78 The socialization was undertaken from 20 to 28 July 2016 at the following locations

covering 45 villages in the north shore and south shore regions.

5.79 The socialization events involved local government, representatives of Tangguh LNG,

BP Group Subject Matter Expert on Indigenous People and ADB observers and were

attended by 1,245 people from villages and districts surrounding Tangguh LNG, and

participant included the targeted groups IP, women, youths, adat and religious groups.



37

5.80 Minutes of Meeting were signed by representatives of local government, village

heads and BP representative. The minutes also attached the attendance list, summary of

presentation topics, and concerns by community.

5.81 This recent socialization raised 316 concerns (Figure 13) of which only 5% related to

environmental issues mainly to potential impacts on fishing grounds. These concerns were

similar to those raised during AMDAL TEP consultation and no additional issues were

raised. The Issues summary follows,

Figure 13 Concerns raised during the July 2016 Socialization

5.82 Indicative future TEP socialization of the AMDAL is described in the Public

Consultation and Disclosure Plan (PCDP) with the schedule being linked to construction

activities (Table 12).



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Table 12 Indicative TEP AMDAL Socialization Plan

Ceremonies

Ceremony prior to Ground Breaking/1st

Mobilisation September 2016

Ceremony prior to Land Clearing/Tree Cutting September 2016

Visit Sacred Sites October 2016

Ceremony prior to BoF Construction December 2016

1st

Visit to Graveyard – Christmas (annual visit) December 2016

Ceremony prior to New LNG Jetty February 2017

Ceremony prior to Trai 3 Piling March 2017

1st

Visit to Graveyard – Easter (annual visit) April 2017

1st

Visit to Graveyard – Eid Al-Fitr (annual visit) June 2017

Ceremony prior to Drilling September 2017

1st

Visit to Graveyard – Eid Al-Adha (annual visit) September 2017

Ceremony prior to Platform Installation August 2018

Ceremony prior to Pipeline Laying January 2019

Ceremony prior to First Gas July 2020

Cultural Heritage

Assessment and Clearing for new sites October 2016

Local Purchasing

Visit for Introduction to Co-operatives/Stocking Points October 2016

Purchase Agreements November 2016

1st

Monitoring of Contractor’s Puchasing Process (Quarterly monitoring) January 2017

5.83 The Community Emergency Response Plan will be prepared by December 2016.

5.84 Tangguh has developed Community Grievance Procedure with the intent to receive

and resolve complaints and other disagreement in relation to community development,

program implementation, workforce recruitment and handling, boat passages and other

issues related to Tangguh activities in Bintuni and Berau Bay. The grievance resolution flow

chart is presented in Figure 14.



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Figure 14 Grievance Resolution Flow Chart

5.85 TSDP provides a basis for effective frameworks for monitoring and evaluation of the

programs. An overview of the monitoring and evaluation process is presented in Figure 15.



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Figure 15 Overview of Monitoring and Evaluation Process for TSDP

5.86 Tangguh has allocated budgets based on agreed programs and activities with the

Indonesian government and local community. From 2009 to 2013 Tangguh has spent

approximately US$30 million on the social programs. Going forward, there is the ability to

adjust budgets based on the pace of local development and business needs, as well as

approval by SKK Migas. Since 2014 Tangguh has increased the involvement in people

resources and funds of local stakeholders, in the design and implementation of its social

programs. As stipulated in the AMDAL, Tangguh believes that sustainable development can

be achieved through partnership with local stakeholders, which will reduce dependency on

Tangguh.The spend for the social programs during T3 construction period is estimated at

around $26 million for five years. However, the actual budget will be various depending on

diverse factors including national economic situation, oil and gas price and approvals from

the regulatory body (SKKMIGAS). The activities will be planned on an annual basis. Tangguh

will involve several implementing partners including local universities, contractors with

expertise on the subject programs, and NGOs.

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