SIMP Overview

Location of the Ichthys Field showing the proposed gas export pipeline route

What’s in a SIMP?The Ichthys Project Principal Social Impact Management Plan (SIMP) contains consultation and research undertaken by the Project since 2008.

The document is divided into seven sections that consolidate analysis of socio-economic and socio-cultural impacts and opportunities, and outline strategies for mitigating and maximising them respectively.

The Ichthys ProjectIn 2000, a giant gas and condensate fi eld was discovered by INPEX in the Browse Basin, about 220 km off Western Australia’s Kimberley coast and 820 km west of Darwin. The fi eld was named Ichthys, which is an ancient Greek word for fi sh.

In 2008, Darwin was selected as the preferred site for development of the Project’s onshore liquefi ed natural gas (LNG) processing plant.

Project development involves construction of offshore, nearshore and onshore facilities and infrastructure.

This document is part of a series that talks about the Ichthys Project’s Principal Social Impact Management Plan (SIMP).

The Project developed the SIMP as a way of assessing and managing social impacts and opportunities for Northern Territory communities from its activities and primarily during peak construction.

This four-page overview provides a general introduction to the SIMP and the Project. All documents, including fact sheets and the SIMP are available online in the Environment section of the Project website.

November 2013

Ichthys Project

Principal SIMP sections and descriptions

Section 1 Summary

Section 2 Background, purpose and structure of the SIMP

Section 3 Overview of the Ichthys Project

Section 4 Description of the pre-existing socio-economic environment

Section 5 Community engagement activities

Section 6 Potential social and economic impacts and opportunities and commitments tables

Section 7 Framework for proposed monitoring, reporting and review program for SIMP documents

www.ichthysproject.com

For people in Darwin, the most important activities are expected to be: dredging work in and around the harbour, construction of the onshore LNG plant at Blaydin Point and the building of Manigurr-ma Village at Howard Springs to house up to 3,500 fl y-in, fl y-out (FIFO) workers.

Subject to a rigorous Northern Territory (NT) and Commonwealth Government process of ongoing assessment and approvals, the Project is eventually expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG each year, along with an estimated 100,000 barrels of condensate per day at peak.

The Project is a Joint Venture between INPEX group companies (the Operator), major partner TOTAL and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. In January 2012, the Joint Venture made a fi nal investment decision (FID) to proceed with the Project and committed to a capital expenditure investment of about US$34 billion.

Currently in construction, production is scheduled to start by late 2016. The Project is expected to have an operational life of at least 40 years.

SIMP processDevelopment of the Project’s SIMP has been in progress for some time. In fact, many strategies have already been implemented and several key commitments have been delivered.

Prior to the start of construction activities, there was a rigorous three-year assessment process for Project approval involving comprehensive environmental and socio-economic analysis, and extensive stakeholder engagement.

A social impact assessment for Manigurr-ma Village at Howard Springs was undertaken in 2008-2009 and research on the Project’s pre-construction social environment is discussed in the SIMP, including the onshore development area at Blaydin Point and adjacent land and marine environments on Middle Arm Peninsula and Darwin Harbour.

Findings from the social impact assessment were used in the Project’s Environmental Impact Statement (EIS). The EIS provided an outline of the Project, explanation of the environmental and social impact assessment process and details of the natural and socio-economic environments, potential risks, opportunities and concerns.

The EIS was released with signifi cant community consultation in July 2010. Additional feedback was then collected and incorporated before the fi nal EIS was approved.

Development of a SIMP was made a condition of subsequent Project approvals in order to address various social impact issues raised during the assessments described above. Management of social impacts is also an important internal requirement for INPEX and all Ichthys Joint Venture participants.

The purpose of the SIMP is to:

• Identify opportunities to enhance the positive and mitigate the negative social and economic impacts of the Project on communities

• Detail strategies to deal with potential Project impacts

• Identify appropriate stakeholder responsibilities

• Identify appropriate monitoring, reporting and review mechanisms

• Identify potential cumulative impacts on the community from multiple simultaneous projects

• Outline processes to engage with relevant stakeholders and communities as the Project proceeds and the SIMP is implemented.

SIMP phasesA proposal for a phased approach to SIMP development was agreed to by the Project and the Northern Territory Government (NTG) and started with a Preliminary SIMP for early construction activity.

The Principal SIMP builds on the Preliminary SIMP and primarily addresses the Project’s peak construction activities, but also includes analysis of foreseeable impacts during the operating phase.

An Operations SIMP looking at impacts associated with operational activities and additional mitigation measures will be completed prior to production.

Though few of the commitments and strategies in the Principal SIMP may be new to the community – and many are already in place – the Principal SIMP will not be fi nalised by the Project and the NTG until public consultation has taken place.

Responsibility for preparing, implementing and monitoring the Principal SIMP and its strategies is owned by the Project, with oversight from the NT Department of the Chief Minister.

SIMP phases are shown in the fi gure below.

Preliminary SIMP

Early construction

Principal SIMP

Focusing on peak construction activities closer to the occupation of Manigurr-ma Village at Howard Springs

Operations SIMP

Focusing on operations and delivered prior to production in late 2016

Future opportunities

As required

Ichthys Project onshore facilities plan

www.ichthysproject.com

Identifi ed positive impacts and challengesWith the support of the NTG, the Project is expected to deliver major new and improved infrastructure and expanded employment, training and economic benefi ts across the community during fi ve years of construction.

Such a large development, with a forecast peak construction workforce of more than 4,000 people, presents major opportunities for the NT, as well as understandable community concerns about possible impacts.

Identifi ed positive impactsA consolidated impact assessment has identifi ed the Project’s most signifi cant positive impacts, including:

• Increased employment and training opportunities

• Expanded business opportunities from direct Project expenditure and as a result of general economic growth

• Further business opportunities from indirect Project and workforce expenditure, such as construction worker spending as a boost to local businesses

• Signifi cant upgrades to community infrastructure, particularly roads and waste water.

Impact challenges Various mitigation strategies are outlined in the SIMP to address potential negative impacts of the Project. Many measures have already been developed and successfully implemented, and will continue to be closely monitored. Areas targeted include:

• Housing availability and affordability

• Road and marine traffi c safety

• Wage competition and labour shortages for local businesses

• Tourism accommodation availability, effects on tour operators and longer-term tourism sector stability

• Potential additional demand on health services

• Cumulative impacts of simultaneous construction projects.

Topic areas covered in the SIMP• Housing availability and affordability

• Social integration

• Road traffi c

• Employment, education and training

• Business opportunity

• Regions

• Health and wellbeing

• Emergency services

• Recreation

• Marine traffi c

• Public safety

• Defence

• Commercial fi shing

• Tourism

• Utilities

• Cultural heritage

• Visual amenity

• Noise

• Cumulative impacts.

CommitmentsPerhaps most importantly, a SIMP consolidates measurable commitments and action plans to best manage and mitigate potential socio-economic and cultural opportunities, risks and impact concerns.

Commitments tables for key topic areas are included in the SIMP. These tables are designed to provide greater clarity to community members and potential partner organisations on Project commitments, agreed tasks and engagement activities.

Project contractors and subcontractors are also bound by commitments in the SIMP. Involving the Project’s key business partners in the process allows for mitigations and management strategies to be embedded in and across all construction activities and stages.

The Project’s key contractors are:

• JKC Australia LNG Pty Ltd (JKC): responsible for onshore engineering, procurement (subcontracting) and construction work

• Van Oord Australia Pty Ltd (Van Oord): primary dredging contractor

• Saipem: construction contractor for the gas export pipeline.

Each commitments table in the SIMP details:

• A summary of potential impacts

• Key stakeholders and potential partner organisations

• Specifi c actions required by the Project (including contractors), NT or Commonwealth Governments, or peak community groups

• Performance indicators to monitor outcomes

• Review mechanisms that show how monitoring data will be collected for reporting to the NTG.

Key commitments, some of which have already been fulfi lled, include:

• Construction of a temporary construction worker accommodation village (Manigurr-ma Village)

• Donations of AUD$3 million each to both Charles Darwin University’s North Australian Centre for Oil and Gas and the Larrakia Trade Training Centre to help support skills training capacity in the NT

• Development of road transport management plans

• Execution of an Industry Participation Plan with obligations that fl ow-on to subcontractors

• Cultural heritage management plans to protect sacred and cultural heritage sites

• Environmental monitoring programs and a program of specifi c environmental offsets.

Contact usThe Ichthys Project is operated by INPEX in Joint Venture with major partner TOTAL and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas.

simp@inpex.com.au www.ichthysproject.com

We hope you found this information about the Ichthys Project useful.

If you would like to talk to us about the SIMP in person, why not come to one of our advertised information sessions in Palmerston, Darwin or Howard Springs during November.

If you would like to read more, please take a look at the other documents in this series. Six facts sheets and the SIMP are all available in the Environment section of the Ichthys Project website.

And if you would like to send us some feedback before 20 December 2013, the easiest way to do so is by emailing simp@inpex.com.au.

The Project will collect all community feedback, pass it on to the NTG, respond to detailed submissions and then publish a SIMP summary response document on its website.

Community engagementINPEX is committed to the responsible and sustainable social, economic and environmental development of the communities in which it operates. Ongoing community engagement is important to the SIMP process and the Project’s success.

Regular communication and Project updates are circulated using advertising, bulletins, newsletters, fact sheets, the Project website, email, formal and informal meetings, information sessions, posters and displays.

Development of the Principal SIMP has drawn heavily on information gathered during extensive regular and ongoing community consultation, including:

• Preparation of the Project’s EIS, including the public comment period

• Preparation of health, social and traffi c impact assessments

• Regular community information sessions providing updates on Project activities

• Supplier and contractor briefi ngs with Aboriginal and Torres Strait Islander (ATSI) and non-ATSI businesses

• Ongoing engagement with the Larrakia Development Corporation and Larrakia Nation Aboriginal Corporation.

Your feedbackThe SIMP is open for public feedback before 20 December 2013. Feedback can be emailed to simp@inpex.com.au

If you need assistance with a submission or are an impacted group requesting a briefi ng, please get in touch, the Project will do its best to assist.

All feedback will also be provided to the NTG and may be made public.

INPEX will collate all submissions after 20 December 2013 and following approval by the NTG release a SIMP summary response document on its Project website.

More information

Development of the SIMP has drawn on information gathered from ongoing community engagement

If you would like to talk to us about the SIMP, why not come to one of our advertised information sessions in November