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.
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.