Community Collaboration Front and Centre for PNG’s Mining, Oil & Gas Leaders
Community collaboration and new legislation are the main talking points on the mining, oil and gas agenda, according to this morning’s Upcoming Projects in PNG event hosted by the French Australian Chamber of Commerce.
Panellists Ian Black, AGX Project Director at Oil Search; Bryan Bailie, Executive General Manager Projects ? Wafi-Golpu Joint Venture; Peter Cox, Vice President ? Pipelines & Terminals at Worley; and John Walsh, Managing Director at Spiecapag Australia, discussed the opportunities and sentiment in PNG’s project space ahead of 2020.
Our Managing Director Kristine Berry and Regional Manager ? PNG & Asia Pacific Fraser Hawkins share their takeaways from this morning’s breakfast:
Oil Search’s work so far
As the company marks its 90th anniversary since being established in 1929, keynote speaker Ian Black shared examples of the extensive work the company has undertaken as one of the largest investors in PNG.
Of particular note was the company’s response and ongoing community development support following the 2018 earthquake. On the commercial front, much of the company’s recent activity has been centred around the recent expansion into Alaska, and preparations for P?nyang and a Papua LNG Project.
Community collaboration front and centre
If there was a central theme to this morning’s panel discussions ? this was it.
As part of the planning of the long-awaited Wafi Golpu project, community collaboration has been front and centre.
Bryan Bailie from Wafi Golpu highlighted the importance in providing the community the opportunity to participate in projects, nurturing a relationship that’s sustainable which was evidenced by their 60+ staff in community liaison alone.
For those unfamiliar with the Wafi project, this long-awaited copper-gold project would prove to be one of the country’s largest developments if given the green light. With a 100km project footprint and a challenging location, careful planning and community involvement is key.
Image source: Newcrest
Lessons learned
The panel discussed lessons from previous projects, and how recent positive developments in community liaison and engagement will continue to shape how the mining, oil and gas industry plan and progress projects to ensure community inclusion.
Peter Cox from Worley summed it up well:
?If you don’t have the support of the community, you don’t have a project.?
Ian Black from Oil Search shared how community engagement is a true process ? where skill development that outlasts the project is the key to success.
Image from: Oil Search
While some projects like Wafi-Golpu will extend into multiple generations, shorter projects especially must focus on a holistic method of building up the community around them.
For example, Oil Search has worked with local communities on agricultural projects including rice milling and chicken farming, focusing on ensuring women in patriarchal societies are given the tools they need to drive this development.
New Prime Minister and new mining legislation
While the panel welcomed positive steps forward in PNG’s national agenda, there was an air of uncertainty around the PNG Government’s plans for the mining, oil and gas sector.
This mammoth project roughly $1 billion already invested in the extensive exploration stage of the project, and another $3 billion set to be spent to make the mine operational, and another $3 billion required to maintain and deliver the project in the first 5 years ? it’s clear to see why the company is now seeking to understand what the ?rules of engagement? are and how the project will uplift the community.
With the introduction of new legislation and amendments to the Mining Act, the panel were keen to understand how changes would impact their existing agreements, studies and approvals, and how they could move forward with the Government as true industry partners.
Moving forward
Looking into the future in PNG, talk is still positive and there is optimism around the potential for success if projects are launched soon.
For PNG, a significant opportunity exists to fill a predicted gap in global LNG supply due in 2024, however ? as the panel urged ? the time to act and be able to take advantage of that gap is now.
Image source: Shell
For the panel ? the consensus is clear:
If consultants, Governments and communities can be positive and work together to see and value the potential in these projects, the positive impact for project communities (and Papua New Guinea as a whole) is boundless.
We look forward to seeing how the projects progress and the opportunities for local community involvement ? it could be just another way to carve out PNG’s status as a player of the world resources stage.
What do you think?
For more Papua New Guinea industry news, head to www.peopleconnexion.com/png
Peopleconnexion PNG: Recruitment, Training, Payroll & HR Services