BP warned over potential abuses

BP warned over potential abuses

Terry Macalister, Deutsche Presse Agentur, London

BP has been warned by a panel of experts led by the US
senator, George Mitchell, that it could trigger human rights
abuses if it proceeds with a US$2 billion gas scheme in
Indonesia.

Concern centers on the role of the military which could be
brought in to guard the Tangguh LNG facilities to be built in the
Papua region.

Senator Mitchell's team is also worried that an influx of
5,000 construction workers next year could bring HIV and other
infectious diseases to local villagers.

There is also the potential for BP to damage the local economy
- which is based on shrimp fishing - and be viewed as a de facto
alternative government there. The immediate area is a large,
untouched bay containing possibly the world's largest mangrove
forest.

Despite this, the American politician, who helped broker the
Belfast peace accord, said yesterday the massive financial
benefits of the scheme outweighed the problems. Around $225
million annually could flow from Tangguh to the local government
and villagers are campaigning for advance funds.

"There is enormous potential for good but also a potential for
an adverse effect, and this must be handled carefully," explained
senator Mitchell at a first public briefing since delivering a
report to BP.

BP established the panel last year and is keen to avoid the
kind of difficulties that have intermittently closed ExxonMobil's
operations in Aceh province.

Another adviser, the Reverend Herman Saud, said there was
among many Papuans widespread "distrust and fear" of the army.

"This was caused by experiences in Freeport McMoRan (gold and
copper mining operation) where many Papuans were treated
inhumanely," he said.

Experts have advised BP to establish a local, community based
security force so military involvement can be kept to outlying
areas. The report, commissioned by BP chief executive Lord
Browne, says: "BP must avoid the extremes of becoming too closely
associated with the TNI (the army), that is, being used as a
weapon by political forces against the TNI.

"The panel believes that an early understanding with senior
security, military and police officials is the best way BP can
implement some form of community based security and avoid
surprises or unwelcome demands." The report argues BP should
avoid any requests for direct financial support being made to the
military and suggests the oil company should consider helping to
modernize the local fishing fleet to mitigate any "dislocations".