Transcript Bureau of Minerals and Petroleum

“European Arctic Oil & Gas:
Experiences and Development”
Local community perspectives: Added value to communities
”Bureau of Minerals and Petroleum” - Greenland
Jørgen T. Hammeken-Holm, Head of Licence Department
Agenda
 Bureau of Minerals and Petroleum
 Status of Oil Strategy and Activities
 Social Impact Assessment
 Impact Benefit Agreement
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Bureau of Minerals and Petroleum
 The Bureau of Minerals and
Petroleum (BMP) in Nuuk,
Greenland is the place of
entry for all aspects of
administration of minerals
and hydrocarbons: “the onestop shop principle”
 Our regulatory framework is
the Minerals Resources Act
passed by the Greenland
Parliament in 2009
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All matters concerning exploration
and exploitation of minerals, oil and
gas including:
 Licensing policy and fiscal matters
 Applications for exploration and
exploitation licences
 HSE matters, including
environmental issues
 Approval of blasting
 Exploration drilling
 Development & initiation of
production
 Termination of production, etc.
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Status of Oil Strategy and activities
The Licensing Policy
•
•
•
Licensing rounds
approximately every 2. year:
2002, 2004, 2006, 2007
(2008) and 2010 have resulted
in a boom in oil exploration in
the last couple of years
More than 200.000 km2
offshore West Greenland are
now covered by exploration
and exploitation licences
20 exploration and exploitation
licences in Greenland Waters
2010
Greenland
Licensing
Round 2012
2006
and
2007
2002
and
2004
2007
and
2008
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Explorations activities
Seism isk dataindsam ling i Grønland for perioden 2001-2010
Seismic
acquisition in Greenland from 2001-2010
50000
45000
40000
35000
25000
Østgrønland
20000
Vestgrønland
15000
10000
5000
2010
2009
2008
2007
2006
2005
2004
2003
2002
0
2001
Km
30000
År
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Exploration Drillings
in Greenland




Before 2000: 7
Cairn 2010: 3
Carin 2011: 5
Total:
15
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Exploration activities
in 2012
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Social Impact Assessment
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Socio-economic issues
 The development of oil and mineral related industries will increase
Greenland’s economy and employment opportunities, but this
development is also expected to have an enormous social and
cultural impact on the Greenland society.
 An understanding of the interaction between a new industries and
the local communities/Greenlandic society is essential in order to
increase the positive effects and reduce the negative effects of the
new industry activities.
 A way of managing the social effects from extracting industry
projects is to conduct a Social Impact Assessment
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Social Impact Assessment (SIA) and
Impact Benefit Agreement (IBA)
 The licensee shall submit a social impact assessment
(SIA) as part of the application for approval of activities
that may have an significant impact (MRA 77)
 On the basis of the prepared SIA report the licensee
must enter into an Impact Benefit Agreement (IBA)
 IBA defines the cooperation between the licensee,
national authorities and local authorities in relation to
maximizing development opportunities and mitigating
impacts from the activitiy.
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Social Impact Assesment (SIA) and
Impact Benefit Agreement (IBA)
Social Impact Assessment (SIA)




Engagement of all relevant stakeholders through
consultations and public hearings;
To provide a detailed description and analysis of the
social pre-project baseline situation as basis for
development planning, mitigation and future monitoring;
To provide an assessment based on collected baseline
data to identify both negative and positive social impacts
at both local and national level;
To develop a benefit and impact plan for implementation
of an Impact and Benefit Agreement;
Impact Benefit Agreement (IBA)
This is a three parts agreement between the government of
Greenland, affected municipality (ies) and the licensee
addressing:
 Goals for use of Greenland labour;
 Goals for use of Greenland enterprises;
 Knowledge transfer (e.g. Work placement);
 Awareness of socio-cultural values;
 Other relevant topics.
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Example of results from two IBA’s between Government
of Greenland, Cairn Energy and involved municipalities
Units
2011
2010
Economic Benefit
Capricorn estimated spending in Greenland through
2011 drilling project
DKK million
244
153
Capricorn’s contractors’ estimated spending in
Greenland through 2011 drilling project
DKK million
67
18.8
Income tax to Government of Greenland from foreign workers
(2011 is a preliminary estimate)
DKK million
85
53
Estimated Carry of Greenlandic partner (Nunaoil)
Employment
DKK million
430
276
People
55
50
Positions
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4
Expected number of positions in which Greenlandic
workers are involved in project through Capricorn
and its contractors
Training positions for Greenlanders offered by the
project
Education
Annual contribution through license agreement to
BMP for training
DKK million
1.575
1.575
Annual contribution through license agreement to
Nunaoil for training
DKK million
1.5
1.5
Capricorn’s contribution to an Education Fund for
Greenlandic workforce competence development
Social / Cultural
DKK million
2.6
1.3
Capricorn’s contribution to a Community Development
Fund
DKK million
0.38
0
Annual Total Benefit
Environment
Capricorn’s contribution to environmental research
through license agreement
DKK Million
832
505
DKK million
23.5 (since
2008)
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Thank you
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Copyright: Nalunaq Gold Mine A/S