Part of our commitment to the local environment and communities in which we operate is to ensure that we operate in accordance with all relevant laws and regulations and that we address any concerns that the local the communities may have. We continually meet and speak with communities and local governments to understand the issues they face and to address these 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 is committed to evaluating the social impact of its operations, minimizing harm and negative effects thereby ensuring long-term sustainability. Petro Matad has developed a Social Performance Plan (SPP) based on socio-economic and social impact assessments. This plan sets out stakeholder identification mechanisms, consultation processes, community grievance management mechanisms and social investment strategies.
Petro Matad’s SPP supports the business’s needs through managing social risks and building broad based stakeholder support for its projects to enable on-time and within budget project delivery. Ensuring local community and government support for Petro Matad’s activities is crucial to the company’s success.
The strategic SPP objectives are to:
- Manage on the ground social concerns, potential 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 stakeholder engagement strategy within the SPP is to build relationships, strengthen trust and gain broad-based support for operational activity. In addition, broadening Petro Matad’s understanding of the communities’ key concerns and history is critical for the company to effectively manage social risk.
Petro Matad conducts community and stakeholder engagement ahead of operations with the objectives of:
- Introducing the project, its background and status, current and planned activities to community members in the areas where exploration and forward production activities are being conducted;
- Gaining the support of herders and other stakeholders for the exploration and forward production 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 work programme and other issues; and
- Managing stakeholders’ expectations related to the project and its benefits.
Stakeholder Engagement Progress
Prior to the drilling of Velociraptor-1 exploration well on Block V in 2023, the company held several meetings with the local authorities and residents of the Baruunbayan-Ulaan and Guchin-Us soums where the project was to be implemented to provide detailed background information on the work programme. Official letters were sent from central government to the province and soum authorities and local police stations in support the operations and to encourage all parties to work together to ensure safety and security during the operation.
Prior to and during the drilling operation, the company’s relations officers were based on location and regularly visited herder families in the vicinity of the drilling site providing information and updates on the project and addressing any concerns and/or misconceptions that were raised.
Additionally a number of work positions such as mudlogging assistants, cleaners and watchmen were filled by local residents to create job opportunities for the local community. Where possible, provisions for the camp canteen were sourced from local businesses.
As a result of these initiatives the drilling operation in Block V was successfully completed without any issues or grievances from the local community.
Social Investment Activities
Petro Matad has developed and adopted a Social Development Policy to contribute to the social developments of communities located near and impacted by our exploration activities in Blocks IV, V and XX.
Through meaningful engagement with communities and stakeholders, we identify opportunities and aim to make contributions that are beneficial to as many people as possible and crucially, accessible to the community. Our social development policies are focused on the quality and comfort of local community life through supporting long and short-term developments in local regions and provinces.
As of August 2023, approximately MNT2.18 billion (more than nine hunder thousand USD) have been provided in form of donations, assistances and community relations expenses for all 3 blocks.
Petro Matad has implemented projects and programmes to improve the infrastructure for the local community, improve access to health services, improve outreach of education, facilitate protection and preservation of cultural heritage, and provide support for small and medium sized businesses.
See our Environmental, Social and Corporate Governance Initiatives page for a full list of social outreach and environmental activities.