Corporate Social Responsibility

We are aware of the impact of our operations on the environment and local communities. Petro Matad Group is keen to operate in accordance with all relevant laws and regulations whilst ensuring environmental and social sustainability, avoiding adverse impacts on local communities (community refers to the people who live in the vicinity of our operations, or who are otherwise affected economically, socially or environmentally by our activities) and liaising with communities and local governments to understand the issues they face through the development of supportive and engaging principles and policies. Wherever we operate, we seek to reduce negative impacts by understanding the social, environmental and economic conditions of the local communities.

 

Social Performance Plan

Petro Matad has developed a Social Performance (SP) Plan based on socio-economic and social impact assessments, which sets out the socio-economic context, identifies the key stakeholders and associated consultation process, community grievance management mechanism, social investment strategy and commitments including the required resources and budget.   Petro Matad’s strategic SP objective is to support the business needs primarily through managing social risks and building broad based stakeholder support for the project to enable on-time and within budget project delivery.

 

The strategic SP objectives are to:

  • Manage on the ground social impacts and engage closely with local communities on the management of these risks;
  • Ensure community access to timely and accurate information on the projects;
  • Maintain an effective community grievance mechanism to resolve complaints promptly and appropriately;
  • Support contractors to avoid, minimise or mitigate adverse social and cultural impacts on surrounding communities; and
  • Support contractors to optimise local participation in the project through direct employment or procurement of goods/services.

 

Stakeholder Engagement

The core objective of Petro Matad’s SP stakeholder engagement strategy is to build relationships, strengthen trust, gain broad-based support and broaden understanding of the communities in which Petro Matad is operating, in so doing providing for effective social risk management.

 

Petro Matad conducts community and stakeholder engagement ahead of the exploration programme with the objectives of:

  • Introducing the project, its background and status, current and planned activities to community members in the areas where seismic work is being conducted;
  • Gaining the support of herders and other stakeholders for the exploration programme;
  • Building trust between the project and affected community members;
  • Building a constructive working relationship with local authorities;
  • Obtaining a better understanding of community concerns about the seismic acquisition programme and other issues; and
  • Managing stakeholders’ expectations related to the project and its benefits.

 

Social Investment Activities

Petro Matad Group has developed and adopted a Social Development Policy (Policy) to contribute to the social developments of communities located near and impacted by our exploration and drilling activities in Blocks IV, V and XX. Through meaningful engagement with communities and stakeholders, we identify opportunities to make contributions that are beneficial to everybody. We emphasize on the delivery of accessible and meaningful assistance to the community.  Our social development policies are focused on the quality and comfort of local community life through supporting developments in local regions and provinces, rather than providing temporary reliefs.   Below a list of specific assistance and contributions Petro Matad Group have made to the communities in Blocks IV, V and XX. By April 2016, approximately MNT336,4 million have been provided in form of donations, assistances and community relations expenses for all 3 blocks.

Education

Installation of outdoor playground equipment in Bayangol Soum of Uvurkhangai Aimag, Matad Soum of Dornod Aimag and Erdenetsagaan Soum of Sukhbaatar Aimag

2011-matad-soum-children-playing-at-the-new-playground-300x225In 2011, Petro Matad aided in the installation of outdoor playground equipment for 2 kindergartens in Bayangol Soum of Uvurkhangai Aimag and Matad Soum of Dornod Aimag.  The outdoor playground equipment that were installed were modern, high quality and safe for children.  There were 90 children enrolled in the Bayangol Soum kindergarten and the addition of the playground were very well received by them.  In Matad Soum, a new kindergarten was built and Petro Matad purchased and installed outdoor playground equipment to accompany the new building. In Erdenetsagaan Soum, Petro Matad purchased and installed outdoor playground toys and equipment for children of all age groups in the Soum centre. ……………………………………………………………………………………………………………………………………………………… Contributions to the students’ dormitory in Bayan-Ovoo Soum of Bayankhongor Aimag

2011-bayan-ovoo-soum-bayankhongor-aimag-meeting-the-children-residing-at-the-schools-dormitory-300x225There are 164 students studying in Bayan-Ovoo Soum’s school. Over 70 children stay in the school’s dormitory as their homes are located far from the Soum centre and school and they have to travel long distances to school.  The school planned to establish a recreational, media and learning room for the children staying in the dormitory to encourage them to spend their free time wisely.  In 2011, Petro Matad contributed tables, chairs, computers, printer and a television to the school’s dormitory. ………………………………………………………………………………………………………………………………………………………. Contributions to the Youth Development Centre in Bumbugur Soum of Bayankhongor Aimag

2011-bombogor-soum-bayankhongor-aimag-presenting-the-computers-to-the-youth-development-centre-workers-300x225A Youth Development Centre in Bumbugur Soum was established and was recently connected to the internet. The centre desired to create an ecology studies room to impart ecology and environmental knowledge to school children of all ages. Petro Matad donated 3 computers to assist in setting up the ecology studies room in 2011.   ……………………………………………………………………………………………………………………………………………………….. Essay and art contests

img_5280Petro Matad held essay and art contests amongst school children in 6 Soums where the Company operated in 2015 and 2016. The essay and painting contests were themed “My Dream Soum” to highlight the benefits that could be derived from oil and gas exploration and production and how it could further contribute to their Soum’s development. The contests were also aimed at contributing towards the development of creative abilities of children. Many excellent entries were received and the winners were awarded accordingly.

Health

Donation of supplies to herders during hoof and mouth disease crisis in Matad Soum of Dornod Aimag

In 2010, during the hoof and mouth disease crisis in Dornod Aimag, herders residing in the area were badly affected.  Even Petro Matad’s exploration and drilling activities on Block XX had to be suspended as the area was quarantined and movement were limited and restricted. Petro Matad provided 39 families in the quarantine zone with food supply and clothing. ……………………………………………………………………………………………………………………………………………………… Contributions to the Immigration Office of Mongolia

2011-ulaanbaatar-gym-equipment-donated-to-the-ioms-new-fitness-centre-300x225In 2011, the Immigration Office of Mongolia planned to construct a recreational and fitness centre for its employees as part of their celebration of the 10th anniversary of inauguration. Petro Matad contributed gym equipment to the new fitness centre. ……………………………………………………………………………………………………………………………………………………… Contributions to Biger Soum Hospital in Gobi-Altai Aimag

contributions-to-biger-soum-hospital-in-gobi-altai-aimagBiger Soum hospital caters to patients from 4 other Soums in the area as well. There is a certified dentist and a dental machine at the hospital however it lacks dental care equipment and medications. As such the hospital was unable to provide the necessary dental consultations and care to patients suffering from gum diseases and tooth decay.  It was recorded that 80% of the residents especially children suffered from gum diseases and tooth decay. In 2011, Petro Matad donated medications, anesthetics, supplies and dental care equipment to the hospital.  The hospital is now able to treat patients with gum diseases and tooth decay and provide consultations free of charge. ……………………………………………………………………………………………………………………………………………………… Contributions to the Fitness Centre in Guchin-Us Soum of Uvurkhangai Aimag

2011-guchin-us-soum-uvurkhangai-aimag-new-fitness-centre-for-the-residents-of-guchin-us-soum-300x225In 2011, the Ministry of Health ran a campaign themed “improving fitness and health”. The Soum hoped to build a fitness and physiotherapy centre for its residents as part of the campaign. Petro Matad contributed gym equipment to the new fitness and physiotherapy centre. ……………………………………………………………………………………………………………………………………………………… Contributions to Nariinteel Soum Hospital in Uvurkhangai Aimag

2011-nariinteel-soum-uvurkhangai-aimag-presentinglaptop-printer-and-projector-to-the-soum-hospital-doctors-300x225Nariinteel Soum hospital hoped to establish a Disease Prevention Centre in their hospital to advise residents and patients of disease prevention measures and for sharing of medical information.  Petro Matad assisted in the established of the centre by contributing a laptop, printer and projector in 2011. ……………………………………………………………………………………………………………………………………………………… Contributions to Tugrug Soum Hospital in Uvurkhangai Aimag

2011-tugrug-soum-uvurkhangai-aimag-soum-hospital-director-receiving-the-new-ultrasound-machine-300x225Tugrug Soum hospital provides 5600-6000 consultations per year to patients.  Statistics showed that 85% of the consultations required ultrasound scans.  As the Soum hospital did not have ultrasound machine, patients often have to travel to Aimag centers or Ulaanbaatar to have their scans. Petro Matad contributed an ultrasound machine to the hospital in 2011. With the ultrasound machine, the hospital plans to provide free scans to patients and it is estimated that approximately 21million MNT will be saved on behalf of patients per year. ……………………………………………………………………………………………………………………………………………………… Contribution of van to Biger Soum Hospital in Gobi-Altai Aimag

hospital-vehicle-to-biger-soum-in-govi-altai-aimagBiger Soum hospital lacked a vehicle to transport doctors and patients when necessary. In 2015, a newly purchased van was contributed to the hospital for transportation of doctors and patients. ……………………………………………………………………………………………………………………………………………………… Contributions to Guchin-Us and Baruunbayan-Ulaan Soums’ hospitals in Uvurkhangai Aimag

contributions-to-guchin-us-baruunbayan-ulaan-soums-hospital-in-uvurkhangai-aimagIn 2016, Petro Matad donated medical and physiotherapy equipment to the local hospitals in Guchin-Us and Baruunbayan-Ulaan Soums. With the new medical and diagnostic equipment, the hospitals can provide improved first aid response. With the new physiotherapy equipment, the hospitals hope to extend the benefits of traditional rehabilitation after care, acupuncture, physiotherapy, and increase the application of non-medical treatments to local residents. ……………………………………………………………………………………………………………………………………………………… Contribution of medical equipment to Baatsagaan Soum of Bayankhongor Aimag

contribution-of-medical-equipment-to-baatsagaan-soum-of-bayankhongor-aimagIn 2016, Petro Matad purchased and installed 8 medical equipment in the Baatsagaan Soum hospital in Bayankhongor Aimag for emergency treatment of mothers, children and residents. The donated equipment will enable the hospital to provide emergency treatments without delay, diagnose injuries and serious illnesses, prevent degeneration of sicknesses and reduce fatalities, all to the benefits of the 3200 residents of the Soum.

 

 

 

Water Supply

Water well repaired in Chandmani Soum of Gobi-Altai Aimag 
waste-dumpsite-clean-up-in-baatsagaan-soum-of-bayankhongor-aimagThe water well in Chandmani Soum centre was damaged by strong wind in 2012 and residents had difficult time drawing water from the well. The well had also not received any servicing since 1991.  In 2013, Petro Matad assisted in servicing and repairing the water well.

……………………………………………………………………………………………………………………………………………………… Water well drilled in Tugrug Soum of Uvurkhangai Aimag

tugrug-soum-center-well-building-in-uvurkhangai-aimagIn 2013, a water well was drilled per the request of Tugrug Soum residents. The 1200 residents of Tugrug   Soum are now able to consume good quality water from the well. ……………………………………………………………………………………………………………………………………………………… 2 water wells drilled in Baatsagaan Soum of Bayankhongor Aimag

baatsagaan-soum-2-wells-building-in-bayankhongor-aimagPetro Matad funded the drilling of 2 water wells in areas specified by the residents of Baatsagaan Soum. The first water well drilled in Bag 5 in a common animal grazing area. The other well was drilled in Bag 1 and will be valuable water source for 30 families, 150 people and circa 2000 animals. The drilling 2 water wells in these areas were well received by herders and the local residents as a nearby water source became available once again for the grazing animals and herders.

 

 

Infrastructure

Contributions to the Sukhbaatar Aimag Police Department

2011-sukhbaatar-aimag-general-manager-b-dendevchuluun-presenting-desktop-laptop-and-printer-to-the-aimag-police-dep-300x225In 2011, Petro Matad donated a desktop, laptop and printer to the Sukhbaatar Aimag Police Department to assist in the Police department’s efforts in keeping Sukhbaatar Aimag safe and crime rates low. ……………………………………………………………………………………………………………………………………………………… Contributions to the Governor’s secretariat office in Baruunbayan-Ulaan Soum of Uvurkhangai Aimag

2011-baruunbayan-ulaan-soum-uvurkhangai-aimag-presenting-the-new-furniture-to-soum-governor-d-zagarzusem-and-environmental-inspector-b-davaadavga-300x225The furniture in the Governor’s secretariat office in Baruunbayan-Ulaan Soum were old and worn out.  In 2011, Petro Matad contributed newly bought meeting table, sofa, projector, work desks and chairs to improve the working environment of the Baruunbayan-Ulaan Soum’s administration officers. ……………………………………………………………………………………………………………………………………………………… Contributions to Bogd Soum Police Department of Bayankhongor Aimag

2011-bogd-soum-bayankhongor-aimag-setting-up-new-laptop-printer-and-projector-300x225The Bogd Soum Police Department is the best performing Police Department in the Bayankhongor Aimag.  The department moved into a new building in 2009 however lacked resources in advocating crime prevention tactics to residents.  With proper resources, the Police Department aims to relay relevant laws and regulations to residents and organizations, and advise residents of crime prevention tactics to reduce the crime rate in the area.  To assist in the Police Department’s efforts, Petro Matad donated a laptop, printer, projector, information board, tables and chairs to facilitate in the establishment of an Anti-Crime Centre in 2011. ……………………………………………………………………………………………………………………………………………………… Contributions to Khurkhree Baga in Chandmani Soum of Gobi-Altai Aimag

In 2014, Petro Matad funded the building of Central Building for Khurkhree Baga of Chandmani Soum upon the requests of the local residents put forward at their local residents meeting. The Central Building will serve as the baga’s administration office, including consultation rooms to be used by the baga’s 2 doctors as well as a meeting hall for local residents meeting.

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Contributions to the Cultural Palace of Khairkhandulaan Soum of Uvurkhangai Aimag

2011-khairkhandulaan-soum-uvurkhangai-aimag-various-events-take-place-at-the-soums-cultural-palace-300x225A new Cultural Palace in Khairkhandulaan Soum was built. Conferences, concerts and various other events are held at the Cultural Palace for the Soum residents. They had contracted to purchase 250 new seatings for the audience however had only sufficient funds to purchase 175 seats. Petro Matad funded the purchased of the remaining 75 seats in 2011.   .

……………………………………………………………………………………………………………………………………………………… Contributions towards the instalment of G-Mobile telecommunications antenna

contributions-of-g-mobile-network-station-building-to-chandmani-soums-in-govi-altai-aimag90 percent of the local residents in Chandmani Soum of Govi-Altai Aimag supported the building of G-mobile telecommunications antenna in the Soum. Petro Matad formed a tripartite agreement with G-mobile and Chandmani Soum and provided part of the expenses in constructing the antenna on a mountain nearby the Soum centre. The antenna construction was completed in June 2016. The G-Mobile antenna will provide G-Mobile telecommunications coverage to 85 percent of the local residents in Chandmani Soum. ……………………………………………………………………………………………………………………………………………………… Contributions towards building of hay storage warehouse in Bayantsagaan Soum of Bayankhongor Aimag

contributions-of-grass-storage-building-to-bayantsagaan-soums-in-bayankhongor-aimagIn 2016, Petro Matad funded parts of the costs to build a hay storage warehouse in Bayantsagaan Soum. The warehouse can store up to 400 tonne of hay and feed which can be used to supply herders with necessary stock for stock animals in extreme winter and spring conditions.

 

 

Environment

Waste dumpsite clean-up in Baruunbayan-Ulaan Soum of Uvurkhangai Aimag 

baruunbayan-ulaan-soum-dumpsite_6In 2010, Petro Matad assisted in the clean-up of a waste dumpsite in Baruunbayan-Ulaan Soum in Uvurkhangai Aimag by funding some of the clean-up expenses.  The dumpsite was not a designated dumping ground and had been adversely affecting the environment, hygiene and health of the Baruunbayan-Ulaan Soum’s citizens. ……………………………………………………………………………………………………………………………………………………… Waste dumpsite clean-up in Baatsagaan Soum of Bayankhongor Aimag 

waste-dumpsite-clean-up-in-baatsagaan-soum-of-bayankhongor-aimagThe waste dumpsite covering 20 hectares of area had accumulated waste since 1958 and was beginning to pose a threat to the environment.  As the Soum centre expanded, the nearby dumpsite was unhygienic and detrimental to the health of the residents and urgently required a clean-up and relocation to an area further away from the Soum centre.  Petro Matad funded labourers who cleared and relocated the waste dumpsite in 2011. ……………………………………………………………………………………………………………………………………………………… Assistance in fencing the Sea Buckthorn Plantation in Buutsagaan Soum of Bayankhongor Aimag

2011-buutsagaan-soum-bayankhongor-aimag-petro-matad-assisted-in-fencing-the-sea-buckthorn-plantation-300x225The residents of the Buutsagaan Soum donated MNT21,000 each from the allowance they get from the Mongolian Government to plant sea buckthorn trees over 60 hectares of land.  The plantation has positive ecological, environmental and social impacts on the Soum residents.  Petro Matad assisted the Soum in fencing the plantation to protect the plantation from damages by animals and human in 2011. ……………………………………………………………………………………………………………………………………………………… Purchase and planting of 500 Aspen trees

planting-of-500-aspen-treesIn May 2016, Petro Matad handed over 500 Aspen trees bought from Bayankhongor Aimag’s tree nursery to Baatsagaan Soum. The local residents were grateful for the donated trees, and volunteered in the tree plantation process. The plantation of 500 Aspen trees will help to reverse desertification and promote greenery in the area.

 

 

 

Poverty

Provision of gers to 5 underprivileged families in Bayantsagaan Soum of Bayankhongor Aimag

In 2011, Petro2011-bayantsagaan-soum-bayarkhongor-aimag-soum-governor-b-enkhtur-and-citizen-representative-u-gamaa-together-with-300x225 Matad provided gers to 5 underprivileged families who were homeless and in poverty.  The 5 families and their relatives were present to receive the gers during the handover ceremony.

……………………………………………………………………………………………………………………………………………………… Provision of gers to 8 underprivileged families in Baruunbayan-Ulaan Soum of Uvurkhangai Aimag 

provision-of-gers-to-8-underprivileged-families-in-baruunbayan-ulaan-soum-in-uvurkhangai-aimagIn 2015, Petro Matad provided gers to 8 underprivileged families who were homeless and in poverty. The 8 families were referred by the Community Reference Group formed in Baruunbayan-Ulaan Soum.

 

 

 

 

 

Scholarships

Petro Matad Group provides its own scholarships domestically for undergraduates who are studying Geology and Petroleum Engineering at the National University of Mongolia and the Mongolian Science and Technology University. To date, we have awarded a total of $120,000 to 240 students domestically.   We also provide scholarships for bachelors and higher degree programmes overseas to the officials of Petroleum Authority of Mongolia to support them in increasing their level of education and capacity. There were 2 officials who underwent master’s programme in the University of Alberta in Canada and 5 students, nominated by PAM, were sent to study at the Beijing University of Petroleum in China under this programme. In 2013 and 2016, Petro Matad sponsored 5 and 7 PAM officials respectively to participate in short term training. We are very proud, to be able to contribute to the sustainable educational development of people who are contributing to the development of the Mongolian Petroleum Sector.

 

Internships

We are also committed to providing employment and career development opportunities to citizens of local communities where we operate.  Besides offering part time positions at our camp and operations on Blocks IV, V and XX, we have offered positions in our Ulaanbaatar Office to university students studying in various fields. The internship positions are offered to students who are originally from the Aimags where Petro Matad operates. To date, we have offered internship positions to 27 students in our Accounting, Admin, Community Relations, Drilling and Environmental departments and onsite on Block XX.  The interns successfully completed their internships and some students have subsequently been offered full time employment with our Group companies.