Early social impact management of an oil and gas development in a NT Aboriginal society—a case study

Abstract

In 2005 a draft Social Impact Management Plan (SIMP) for the Blacktip Project was prepared by James Kernaghan on behalf of the Blacktip Joint Venture. The SIMP was prepared for the purpose of providing a basis for consultation with the communities that would be potentially affected by the project and the means through which social impacts could be managed. After Eni Australia became 100% owner and operator of the project in December 2005, the SIMP was revised to reflect the values and practices of Eni globally.

This paper presents a case study of the early development of social impact management practice for the Blacktip Project in the southern Bonaparte Gulf, northern Australia, in the period from discovery to the middle of the construction phase (end 2001 to end 2007). The primary outcomes, so far, of the social impact management process for the Blacktip Project have largely been positive and work continues to ensure that this remains the case. From a management perspective, the key outcomes have been a Social Impact Assessment (SIA) report, a Social Impact Management Plan (SIMP) and the establishment of an Social Impact Advisory Committee incorporating representatives from the key external stakeholder groups.

The paper starts with descriptions of the project and affected communities and the law and policy context in which the project sits. This is followed by a detailed account and discussion about the land acquisition process and the social impact assessment and management plan development, including the scope, methodology and analytical framework used in the SIMP. The paper then provides an account and discussion of the nexus between project development and social impact management. The conclusion gives some observations about the experiences had in the SIMP implementation to date, during the first two construction phases of the project.

Often there are a very wide range of social and economic issues that get touched upon in the development of a social impact management plan for a resource project. The resolution of these broader issues is naturally beyond the scope and capability of any company or project and there are often misconceptions in communities about what can be done. The best that a company can do is to approach the management of social impact in a way that tries to build a practical foundation for community development, through consultation with stakeholders in an open and participatory process.

The people and organisations that live and work in a region are responsible for the social and economic development of that region, as a part of that community. Some contributions can be made by resource developers, however it is up to the people themselves, the individuals and the families in any community to choose and then pursue their individual and collective destiny. Others cannot do it for them.

The paper attempts to provide some insight into the cultural, political, social and commercial realities associated with the development of the project in the particular society involved. In doing so, it is hoped that a useful early case study in the field of social impact management will emerge that may be useful for oil and gas developments and developing communities elsewhere in Australia and the world.