This paper shares the experiences and results that eni Pakistan had by adopting a ‘Community Investment Management System (CIMS)’ in a developing country -Pakistan. CIMS philosophy is to make ‘Community Relations’ and ‘Community Investment’ management an integral part of the overall business fabric. This system was evolved taking into consideration full E&P activities life cycle in context of indigenous culture, traditions, customs and environment of local communities living around.
CIMS utilizes the logic of project life cycle, highlighting the importance of stakeholders and company’s risk assessment in ‘Context Analysis’ and adopts the ‘Logical Framework’ approach to plan, manage, monitor and evaluate the interventions.
eni Pakistan has done so by development of people & promoting the indigenous culture, establishing mutually benefitting relations with all stakeholders, fully respecting the territory and the society of which it is an integral part.
1 TCF (Trillion Cubic Feet) ~ 188.1 MBOE cumulative production from Bhit Gas Field without any major problem from local communities;
Good reputation of eni Pakistan among all indigenous communities through equitable distribution of opportunities & economic benefit (e.g. jobs, medical, education support etc) to all adjoining communities;
Substantial reduction of ‘Risk’ from adjoining communities (From frequent road blockages To negligible No. of road blockages);
Substantial change in indigenous people lives (From No School To 19 Running schools, From No Hospital To 1 Mother/Child Health Center & 4 Community Health Center, From No Potable water To Potable water close to their homes);
Paradigm shift in skill capacities of adjoining communities (From only Labor Jobs To Skilled Jobs i.e. Drivers, Assistant Technicians, Cooks, Plant Operators etc);
Smooth running of E&P activities can be supported by adopting ‘CIMS’ process that can deliver same results anywhere in the world should applied with true spirit and commitment.
Over the years E&P Companies around the world have experienced the fact that if local community (living around the areas where E&P activities are conducted) issues are not addressed timely and effectively it gives rise to vulnerable situations that are very challenging to handle and manage. This delayed or no addressing of local community issues aids in development of a culture of distrust among E&P Company and various local community stakeholders. This distrust aggravates the situation and aids in making it a monster to manage. These vulnerable situations sometimes push viable E&P projects into a deadlock scenario with local communities making them unviable. Even in this situation if the interface with local communities are managed by deploying heavy security on ground, the E&P projects remain vulnerable as local community starts behaving in a hostile way with the E&P Company.
Key to transforming this situation into an opportunity is to engage local community into a participatory role by proactive and timely addressing of their real needs and issues. eni Pakistan Ltd has been successful in making this transformation into reality by proactively handling local communities that are living around their Bhit/Bhadra Development Leased Area. This proactive handling of Local Communities have ensured smooth running / continuity of eni Pakistan E&P activities on-ground. Objective of this paper is to share details of how eni Pakistan utilized this opportunity in achieving this success.