In all indigenous communities in which we operate, we seek opportunities for our presence to inspire socioeconomic development. Therefore, we partner with representatives chosen by the community to help identify programs that best fit local needs. We seek opportunities for members of the community to develop skills and become part of the project’s work force or supply chain. We also strive to help address social needs that can facilitate the community’s own development. It is important to ConocoPhillips that any efforts we work on together be owned by the community, and to help build capacity for the community members to take charge of their own future. With these goals in mind, we team with our business partners to evaluate ahead of time the challenges of implementing socioeconomic development programs and how we can improve the likelihood of their success. In these discussions, we seek to respect the community’s interest as to the balance they wish to achieve between maintaining their traditions and culture and participating in a cash-based economy.

During our interactions, we learn lessons that help us improve our methodologies and communications. For instance, in Peru, each community affected by our operations in Block 104 generally received compensation based on the respective total impact to the community as determined by the regulatory environmental impact assessment process. In the past, such financial resources have not been as successful as desired in encouraging sustainable development in these communities, as a majority of communities tend to distribute the compensation funds among its individual families.  However, a unique experience transpired in the native community of Nuevo Canaan, the only community to invest in an optimal manner. The community chose to collectively purchase an outboard engine to help with transportation during medical emergencies, a photovoltaic-powered satellite television to help them learn about the world outside their society, and a satellite telephone system that is expected to generate other business opportunities. Learning from this experience, in the future when we propose new forms of compensation based on community customs, we will use Nuevo Canaan as an example of how broader positive returns can be accomplished for the good of the entire society.

Turning to Indonesia, we have succeeded in developing economic opportunities for individuals in South Sumatera, Jambi and Riau Islands provinces. These include rubber plantation programs for local farmers and development programs in the fisheries industry. The development of small businesses has had a long-term positive impact on the local community. We also have participated in community programs that provide basic necessities for citizens such as electricity, clean water and sanitation.

We also are working to advance construction of a natural gas pipeline from the Mackenzie Delta in Canada’s Northwest Territories to established gas markets in North America. The proposed pipeline is undergoing regulatory review.  

In Alaska, the 14-mile Nuiqsut Natural Gas Pipeline began operating in fall 2008, in preparation for providing Nuiqsut residents with clean-burning natural gas to heat their homes. ConocoPhillips and its co-venturer in the Alpine field supply the pipeline with up to one million cubic feet of natural gas per day from the Alpine field as part of its land-use agreement with Kuukpik, the Nuiqsut Native Village corporation. ConocoPhillips provides the gas to the community at no charge. The move to natural gas from heating oil will dramatically lower heating costs for the approximately 125 home owners in Nuiqsut while reducing the community’s ongoing GHG emissions. The North Slope Borough financed the $10 million pipeline project.