Tangguh Liquefied Natural Gas Expansion Project (Republic of Indonesia)

Environmental and Social Monitoring Report

Project Number: 49222-001 18 August 2017

January to June 2017 - Operator’s Environmental, Health, Safety and Social Report

Prepared by BP Berau Ltd for the Asian Development Bank

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In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. OPERATOR’S EHS REPORT TANGGUH LNG

Operator’s Si Monthl Report Environmental, Health, Safety and Social Project Tangguh LNG January - June 2017

TANGGUH LNG INTEGRATED AMDAL

TELUK BINTUNI REGENCY PAPUA BARAT PROVINCE

BP Indonesia Perkantoran Hijau Arkadia Tower D, Lantai 5 Jl. TB Simatupang Kav 88 JAKARTA 12520

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE OF CONTENT CHAPTER I INTRODUCTION...... 5 A. COMPANY PROFILE ...... 5 B. ACTIVITY LOCATION ...... 6 C. ACTIVITY DESCRIPTION ...... 6 C.1 Current Operation ...... 6 C.2 Construction Phase of Tangguh Expansion Project (TEP) and New Condensate and Diesel Tank (NCDT) Project ...... 9 C.3 Survey, Seismic and Exploration Drilling ...... 17 D. AUDIT UPDATE ...... 17 E. SURROUNDING ENVIRONMENT ...... 18 CHAPTER II IMPLEMENTATION AND EVALUATION ...... 20 A. CURRENT OPERATIONS ...... 20 A.1 Environmental Aspect ...... 20 A.2 Social Aspect ...... 49 B. CONSTRUCTION OF TANGGUH EXPANSION PROJECT (TEP) and New Condensate and Diesel Tank (NCDT) ...... 84 B.1 Environmental Aspect ...... 84 C. SURVEY, SEISMIC, AND EXPLORATION DRILLING ...... 126 C.1 Environmental Aspect ...... 126 C.2 SOCIAL Aspect ...... 130 D. HEALTH ASPECT ...... 133 D.1 Tangguh Operation...... 133 E. SAFETY ASPECT ...... 136 E.1 Tangguh Operation...... 136 E.2 Tangguh Expansion Project...... 137 CHAPTER III CONCLUSION ...... 139 A. Environmental Aspect ...... 139 B. Social Aspect ...... 139 C. Health Aspect ...... 139 D. Safety Aspect ...... 139

OPERATOR’S EHS REPORT TANGGUH LNG

LIST OF FIGURES

FIGURE 1 TANGGUH LOCATION ...... 6 FIGURE 2 LNG PLANT AND ITS SUPPORTING FACILITIES ...... 7 FIGURE 3 PLATFORMS VR-A AND VR-B ...... 7 FIGURE 4 EARTH BUNDWALL (DREDGED MATERIAL PLACEMENT) AREA ...... 9 FIGURE 5 TANGGUH EXPANSION PROJECT SCOPE ...... 10 FIGURE 6 CONCEPTUAL HDD LAY-OUT ...... 11 FIGURE 7 POTENTIAL LOCATION FOR SOIL RESISTIVITY SURVEY ...... 11 FIGURE 8 TOTAL POB FOR TEP CONSTRUCTION AT TANGGUH SITE ...... 13 FIGURE 9 CONTINUATION OF PRE-CONSTRUCTION SURVEY AND TRANSLOCATION ACTIVITY. (TOP) COLLECTION AND TRANSLOCATION OF SUGAR CANE ORCHID DURING TREE CUTTING ACTIVITY. (BOTTOM) SALVATION AND TRANSLOCATION OF MALEOS EGGS...... 14 FIGURE 10 LABELED AND RECORDED LOGS AT LOG LANDING AREA. (RIGHT) LOG MEASUREMENT AND RECORD ACTIVITY...... 14 FIGURE 11 (LEFT) BIOMASS PLACEMENT AS INITIAL EROSION AND SEDIMENTATION CONTROL. (MIDDLE) SILT FENCE AS EROSION CONTROL. (RIGHT) SEDIMENTATION POND...... 15 FIGURE 12 (LEFT) DREDGING ACTIVITY AT BOF AREA. (MIDDLE) DREDGE MATERIAL DISPOSAL LOCATION. (RIGHT) SAMPLE OF IN-HOUSE SOFTWARE TO MONITOR DREDGING ACTIVITY...... 16 FIGURE 13 ADAT CEREMONY IN TANAH MERAH BARU (APRIL, 2017 ...... 75 FIGURE 14 SERIAL MEETINGS FOR NEW AMDAL AND TEP FAMILIARIZATION IN KOKAS ...... 75 FIGURE 15 NUMBER OF COMMUNITY CONCERNS RECEIVED DURING THROUGH GRIEVANCE CARDS ...... 76 FIGURE 16 MORTALITY CASES AMONG PREGNANT WOMEN IN 14 VILLAGES SURROUNDING OF TANGGUH LNG ...... 77 FIGURE 17 SUPPLY OF AGRICULTURE AND FISHERIES PRODUCTSTREND FROM COMMUNITY STOCKING POINTS TO TANGGUH CATERING IN TONNES ...... 78 FIGURE 18 THE OPENING CEREMONY OF SUBITU IN SORONG ATTENDED BY MAYOR OF SORONG CITY ...... 79 FIGURE 19 TREND OF NUMBER LOCAL STUDENT RECEIVED SCHOLARSHIP PROGRAM FROM TANGGUH ...... 82 FIGURE 20 REVEGETATION ACTIVITY BY NCDT PROJECT TEAM ...... 125

OPERATOR’S EHS REPORT TANGGUH LNG

LIST OF TABLES

TABLE 1 AMBIENT AIR MONITORING RESULTS IN JUNE 2017 ...... 35 TABLE 2 EMISSION MONITORING RESULTS FROM AGI IN MARCH 2017 ...... 35 TABLE 3 EMISSION MONITORING RESULTS FROM BOILERS IN MARCH 2017 ...... 35 TABLE 4 EMISSION MONITORING RESULTS FROM REGENERATION GAS HEATERS IN MARCH 2017 ...... 36 TABLE 5 EMISSION MONITORING RESULTS FROM GAS TURBINE TRAIN 1 IN FEBRUARI 2017 ...... 36 TABLE 6 EMISSION MONITORING RESULTS FROM GAS TURBINE TRAIN 2 IN MARCH 2017 .. 36 TABLE 7 EMISSION MONITORING RESULTS FROM FLARE STACKS IN MARCH 2017 ...... 36 TABLE 8 PRODUCED WATER MONITORING RESULTS ...... 37 TABLE 9 CHEMICALLY CONTAMINATED WATER MONITORING RESULTS ...... 38 TABLE 10 BRINE WATER MONITORING RESULTS ...... 39 TABLE 11 SEWAGE MONITORING RESULTS FROM STP UTILITY ...... 40 TABLE 12 SEWAGE MONITORING RESULTS FROM STP A ...... 41 TABLE 13 SEWAGE MONITORING RESULTS FROM STP C ...... 42 TABLE 14 SEAWATER MONITORING RESULTS THAT EXCEED THE REGULATORY STANDARDS (GOVERNMENT REGULATION NO. 51/2004 MARINE BIOTA) ...... 43 TABLE 15 DRAINAGE WATER MONITORING RESULTS IN THE ORF ...... 44 TABLE 16 DRAINAGE WATER MONITORING RESULTS IN THE UTILITY ...... 44 TABLE 17 DRAINAGE WATER MONITORING RESULTS IN THE MCB ...... 45 TABLE 18 QUARTERLY SURFACE WATER MONITORING RESULTS IN CREEK AT NEW LANDFILL AREA ...... 45 TABLE 19 NON HAZARDOUS WASTE VOLUME ...... 46 TABLE 20 RESULT OF EMISSION MONITORING OF NON HAZARDOUS WASTE INCINERATOR ...... 46 TABLE 21 GROUND WATER MONITORING AT LANDFILL ...... 47 TABLE 22 SEWAGE MONITORING RESULTS FROM STP BABO ...... 48 TABLE 23 INDIGENOUS AND PAPUAN WORKFORCE JUNE 2017 ...... 80 TABLE 24 PAPUAN WORKFORCE AT TANGGUH PROJECT (JULY 2017) ...... 81 TABLE 25 DIESEL TANK HYDROTEST DISCHARGE MONITORING RESULT (APRIL 2017) ...... 125 TABLE 26 INDUSTRIAL HYGIENE PERFORMANCE INDICATOR ACHIEVEMENT FOR FIRST SEMESTER 2017 PERIOD ...... 134 TABLE 27 KEY INDICATORS ON TANGGUH OPERATIONS SAFETY PERFORMANCE ...... 137

OPERATOR’S EHS REPORT TANGGUH LNG

CHAPTER I INTRODUCTION

A. COMPANY PROFILE

Company Name : BP Berau Ltd (Tangguh LNG Project Operator)

Corporate Status : PSC (Production Sharing Contractor)

Companyn Address : Perkantoran Hijau Arkadia Jln. T.B. Simatupang Kav 88, Jakarta Selatan, 12520

Telephone Number : 021 - 7883-8000 (Hunting)

Fax Number : 021 - 7854-9054

Funding Status : PSC-PMA (International Investment Company)

Business Type : Oil and Gas (Tangguh LNG Project)

AMDAL Approval Letter : 1. Minister of Environment Decree No 02.37.07 Year 2014, dated 24 Juli 2014 2. Minister of Environment Decree No SK.535/Menlhk-Setjen/2015, dated 19 November 2015 regarding Amandement of Minister of Environment Decree No 02.37.07 Year 2014

Responsible Person : Arno Appel - V.P. Operation

Permits related to the AMDAL : 1. Minister of Environmental Decree No. 125 of 2013 regarding Wastewater discharge permit into the sea for BP Berau Ltd, Sumuri District; 2. Head of Teluk Bintuni Regency Letter no. 188.4.5/A-40 year 2014) regarding Wastewater discharge to surface water in Babo Site; 3. Temporary hazardous storage permit : a. Head of Teluk Bintuni Regency Letter no. 188.4.5/A-39 year 2014 regarding Temporary Hazarsous Waste Storage Permit forTangguh LNG HWS Facility ; b. Recommendation letter from Regent of Teluk Bintuni No.: 011/18/BUP-TB/IV/2011 regarding Hazardous Waste Storage Permit for Tangguh-BP Berau Ltd LNG Refinery Plant at Babo District; c. Head of Teluk Bintuni Regency Letter no. 188.4.5/A-38 year 2014 regarding Temporary Hazarsous Waste Storage Permit for Babo Site HWS Facility

OPERATOR’S EHS REPORT TANGGUH LNG

Related environmental documents: 1. Minister of Environment Decree no. 45 year 2005 regarding the Environmental Management and Monitoring Plans Report Writing Guideline 2. Oil and Gas Directorate General Decree no. 4683/28.02/DMT/2003 Appendix 1 and 2 3. Oil and Gas Directorate General Decree no. 9498/10.08/DMT/2009 regarding the Environmental Management Report (LPL) replacing the the old KKP format, which requires the Environmental Management and Monitoring Plans implementation report

B. ACTIVITY LOCATION

Tangguh LNG is located on the south shore of Bintuni Bay in Teluk Bintuni Regency, Papua Barat Province, as indicated in Figure 1.

Kilang LNG Tangguh

FIGURE 1 TANGGUH LOCATION

C. ACTIVITY DESCRIPTION

C.1 CURRENT OPERATION

Tangguh LNG is a facility which produces and exports LNG and gas condensate. The current development includes facilities for the production, collection and transmission of natural gas and associated liquids from the Vorwata gas field. The gas is produced from offshore locations and transported via pipelines to the onshore LNG plant to be purified and liquefied into LNG for marine export via LNG tankers.

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 2 LNG PLANT AND ITS SUPPORTING FACILITIES

Tangguh LNG Operations have two offshore platforms in water depths of 50m to 60m located in the Vorwata field, designated VR-A and VR-B. Fifteen production wells have been drilled from these two platforms; however, one had to be abandoned due to technical reason. The gas is transported from the VR-A and VR-B platforms by two separate 61 c’ (24) dia’eter subsea pipe‘i“es ”f 20.5 k’ a“d 19.3 k’ i“ ‘e“gth respectively to the Onshore Receiving Facilities (ORF) at the Tangguh LNG plant, which comprises of two processing trains, where gas is processed into LNG.

VR-B VR-A

FIGURE 3 PLATFORMS VR-A AND VR-B

The marine facilities consist of: (a) 1.6 km long jetty to an LNG loading dock; (b) separate 1.2 km long trestle to a multi-purp”se d”ck (C”’b” D”ck) used t” supp”rt importation of equipment and materials as necessary to operate the LNG plant including cargo and marine personnel transportation; to load condensate tankers, to import material and equipment for any projects or construction activities, and offshore drilling operations; (c) Construction jetty, which was used during the construction phase and is currently retained as a backup for any additional project works.

OPERATOR’S EHS REPORT TANGGUH LNG

To support Tangguh LNG Operations, there are non-production facilities such as accommodations, office, workshop, warehouse, laboratory, helipad and waste management facilities.

Tangguh also operates supporting facilities in Irarutu III Village, Babo District, Teluk Bintuni Regency, Papua Barat Province, which comprise the operation of the Babo Airstrip, Babo Jetty and Camp, in accordance with the approved Environmental Management and Monitoring Efforts. These facilities exist to support the crew change activities as it is a transit point for personnel going to Tangguh LNG.

Environmental management activities and update in Tangguh Operation during this report period is as follow: • Tangguh has implemented Environmental Management System (EMS) in line with ISO 14001:2004 and certified since 2010. EMS certificate has been issued by Certification Body TUV Rheinland on 2017-02-03, and it is valid until 2018-09- 14 in scope Tangguh LNG Operation including all supporting units at Tangguh site and Babo.

• Tangguh has submitted data and document for PROPER Self Assessment on 15 May 2017 as scheduled by MOEF (Ministry of Environment and Forestry).

• Major maintenance (TAR 8) has been conducted successfully in April - May 2017. There was no Environmental Incident during activity.

• Tangguh initiate a used cooking oil recycling program to be converted as biodiesel for vehicle operational. This program will eliminate and/or minimize the shipment of used cooking oil to external treatment facility. Reduction of diesel consumption and increase waste recycle campaign are the benefit of biodiesel program. The Biodiesel Mini Plant is under manufacture in C”“tract”rs w”rksh”p.

• Tangguh has completed the study of WWTP sludge utilization. The final report has bee“ sub’itted by the C”“su‘ta“t. I“ rep”ts c”“c‘usi”“, WWTP s‘udge, both DAF sludge and bio-sludge can be utilized as ameliorant by bio-pile method. Tangguh is studying and planning the implementation of Study Report in execution scale.

• The dredging and placement of dredging material inside bundwall has been completed in Semester 1 - 2017. Total amount of dredged material is 66,741 m3. Revegetation activity is planned and will be executed after the dredged material is stabil and ready to be planted. The activity is covered in Minister of Environment Decree No SK.535/Menlhk-Setjen/2015, the amandement of Minister of Environment Decree No 02.37.07 Year 2014, dated 24 Juli 2014.

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 4 EARTH BUNDWALL (DREDGED MATERIAL PLACEMENT) AREA

C.2 CONSTRUCTION PHASE OF TANGGUH EXPANSION PROJECT (TEP) AND NEW CONDENSATE AND DIESEL TANK (NCDT) PROJECT

In the effort to increase production capacity, BP and its partners plan to expand Tangguh LNG facility in sequence for additional one train capacity including its supp”rti“g faci‘ities, ”r hereafter k“”w“ as Ta“gguh Expa“si”“ Pr”ject (TEP).

The expansion project consists of offshore and onshore development. The offshore scope includes 13 new development wells and 1 DCRI well at 2 new normally unattended installations (NUI), tied in by pipelines to the onshore LNG plant. The onshore scope comprises of one additional natural gas liquefaction train of a similar design and capacity to existing trains, an onshore receiving facility (ORF), a new LNG and condensate loading jetty, additional boil off gas (BOG) recovery facilities, utilities, flares and the infrastructure to support three train operation. Figure 05 below shown the illustration of Tangguh Expansion Project scope, both offshore and onshore

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 5 TANGGUH EXPANSION PROJECT SCOPE

C.2.1 GAS EXPLOITATION ACTIVITY

Offshore Gas Production Facilities (GPF) Engineering, Procurement, Construction, Installation (EPCI) and linepipe contract was signed off on 25 August 2016.

Following the contract award, the detail engineering work for platforms was kicked off in Saipem Jakarta office while the engineering for pipeline is supported by Saipem Fano Italy office. Engineering activity for Transportation and Installation (T&I) is also performed in Saipem Jakarta office.

In this reporting period, the EPCI detail engineering activity continues to progressing as per plan. Procurement activities also progressing well with all the main items for platform fabrication have been purchased and procurement of bulk material is ongoing. Platform fabrication activity has been commenced as planned in April 2017 at Saipe’s Kari’u“ Yard a“d curre“t‘y c”“ti“ue t” pr”gress.

Related to HDD activity, project is currently reviewing additional option to use treated produced water from existing trains as the WBM mixing material. Formal discussion with SKKMIGAS and MOEF have been arranged to further explain the proposal and request guidance on the permitting requirements. Based on the meeting result, Saipem is now preparing laboratory test to compare the mud characteristic using the freshwater (as per initial plan) and using the treated produced water effluent. The

OPERATOR’S EHS REPORT TANGGUH LNG

analysis result will be submitted to MOEF along with other additional data, such as characteristic of treated produced water effluent, detail activity plan, etc. Conceptual HDD Lay-Out is shown in Figure 06 below.

FIGURE 6 CONCEPTUAL HDD LAY-OUT

Internal assessment on method for well conductor installation is currently ongoing. Considering the geotechnical condition the potential methods being considered for the installation are using hammer pile and combined with drill and drive technique using top pile drilling. For drill and drive method, it is predicted that the activity will produce waste in the form of drill cutting (i.e. mix of soil and sea water) and will be discharged overboard during the activity. The assessment of installation methods is still ongoing and a dumping permit application will be processed for the drill and drive activity. Figure 07 below show the typical top-pile drilling rig.

FIGURE 7 POTENTIAL LOCATION FOR SOIL RESISTIVITY SURVEY

Wells tender planning for the TEP Development Wells, Well Workover Activities and New Infill Wells is progressing. All long-lead item contracts and most of the services, including jack-up drilling rig have been awarded. Dumping & Drill Cutting Reinjection (DCRI) permit process is in progress.

OPERATOR’S EHS REPORT TANGGUH LNG

C.2.2 GAS TRANSMISSION ACTIVITY

The Gas Transmission progress update is included in the section C.2.1 above

C.2.3 LNG PLANT

Letter of Award of Onshore LNG Train 3 EPC was issued to CSTS (Chiyoda, Saipem, Tripatra and Suluh Ardhi Engineering) Consortium on 15 July 2016 and the contract was signed on 25 August 2016. In this reporting period, CSTS continue to perform detail engineering design and start commencing the site work activity.

Detail Engineering Design

As of June 2017, CSTS still continues to deliver the detail engineering design for permanent and temporary facilities.

Following the issuance of Ministry of Environmental and Forestry (MoEF) Regulations No.P.68/2016 regarding Domestic Wastewater Quality Standard, No. P.59/2016 regarding Leachate Quality Standard and No.P.70/2016 regarding Emission from Thermal Waste Treatment Activities Quality Standard, engagement and discussion with SKKMIGAS and MoEF were conducted to confirm the applicability of those regulations to TEP activity. Based on the discussion, the applicability of both regulations is confirmed and CSTS will implement the new requirements in their design development.

Environmental Protection and Management (PPLH) Permits

In this reporting period, there are three environmental protection and management permits that being processed to support construction activity, which are:

- Temporary Hazardous Waste Storage Permit: permit application has been submitted to Bintuni Environmental Agency in June 2017 and currently waiting for recommendation letter. - Wastewater Discharge Permit to Creek (for hydrotest): Recommendation Letter for Wastewater Discharge Permit to Creek (No. 66-/41-IV/2017) has been issued by Bintuni Environmental Agency in April 2017. - Non-Hazardous Landfill Utilization Permit: Recommendation Letter for Non- Hazardous Landfill Utilization (No. 660/42-IV/2017) has been issued by Bintuni Environmental Agency in April 2017.

Site Activity

Up to this reporting period, total Personnel On-Board (POB) at site for TEP construction activity continue to increase. As of June 2017 total POB at site is 800 personnel as shown in Figure 02 below. Currently, the construction personnel are still residing in the existing camp until the new construction camp is established. Any solid waste, hazardous waste and wastewater generated at this stage of early activities are also managed and treated in the existing facilities.

OPERATOR’S EHS REPORT TANGGUH LNG

POB 900 800 800 756 700 598 600 500 449 400 334 POB 300 261 200 100 0 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17

FIGURE 8 TOTAL POB FOR TEP CONSTRUCTION AT TANGGUH SITE

A. Pre-Construction Survey and Translocation Activity Continuation

To promote biodiversity conservation inside Tangguh area, some efforts to minimize construction impact, particularly to the protected flora-fauna species, were engaged. The efforts include a pre-construction survey and translocation activity of the protected flora-fauna species within the future tree harvesting area. The survey and translocation activity were conducted in July-August 2016 by IPB flora and fauna experts, which includes identification of the protected flora fauna species in the future tree harvesting area and collection of saplings and/seedlings of protected plant species to be translocated to receptor site in lowland forest or to site nursery.

A continuation program was performed in January 2017, which the scope includes ’a‘e”s eggs sa‘vation and translocation, sugar cane orchid marking and tagging, also monitoring of translocated seedlings and plants.

During the continuation program, there are total 7 maleo eggs found and relocated to the nest location within buffer zone area. All eggs are successfully hatched naturally. For re-mapping of sugar cane orchids at transects area, total 25 individuals were found within 8 transects and the relocation of those individuals is conducted parallel with tree cutting activity.

Pre-construction survey and translocation activity continuation is shown in Figure 09.

B. Tree Cutting

The tree cutting activity was commenced in January 2017 and up to this stage, it has been performed in train 3 area, BOF area including its hauling road and pioneer camp area. Log landing area has been established and log tagging is being performed to the harvested trees for preparation of Tree Harvesting Report to Forestry Department.

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 9 CONTINUATION OF PRE-CONSTRUCTION SURVEY AND TRANSLOCATION ACTIVITY. (TOP) COLLECTION AND TRANSLOCATION OF SUGAR CANE ORCHID DURING TREE CUTTING ACTIVITY. (BOTTOM) SALVATION AND TRANSLOCATION OF MALEO’S EGGS.

Competency trainings i.e. Machetes and Chainsaw adopting the Reduced Impact Logging Techniques have been delivered to tree harvesting and site preparation subcontractor (PT Leighton Indonesia) in November and December 2016.

Latest tree cutting progress as per June 2017, approximately 100 Ha has been cleared and the activity is still continuing to the remaining area. Tree cutting activity is planned to finish in October 2017. Tree cutting activity is shown in Figure 10

FIGURE 10 LABELED AND RECORDED LOGS AT LOG LANDING AREA. (RIGHT) LOG MEASUREMENT AND RECORD ACTIVITY.

OPERATOR’S EHS REPORT TANGGUH LNG

C. Site Preparation and Earthwork

Following the tree cutting activity, site preparation and earthwork activity were performed in the cleared area, which includes train 3 area, BOF area including its hauling road and pioneer camp area.

As part of site preparation and earthwork activity, erosion and sedimentation control measures also being performed at site, this includes maintain natural flow pattern, install temporary culverts and log mattings for crossings, placement of biomass as initial erosion and sedimentation control, install silt fence and provision of sedimentation pond at downstream of effluent run-off. Topsoil generated from earthwork activity is placed along tree clearing boundary. Erosion control measures are shown in Figure 11.

FIGURE 11 (LEFT) BIOMASS PLACEMENT AS INITIAL EROSION AND SEDIMENTATION CONTROL. (MIDDLE) SILT FENCE AS EROSION CONTROL. (RIGHT) SEDIMENTATION POND.

D. Dredging at Bulk Off-Loading (BOF) Area

Dredging Permit for BOF Area has been approved in January 2017 and the activity was commenced in May 2017. Backhoe dredger (mechanical dredger) is used for this activity, which allows the activity to be performed effectively and reduced the impact duration.

To monitor the dredging activity and to accurately locate the designated area to be dredged and its disposal area, Boskalis (the dredging sub-contractor) use an in-house developed software. Dredged material is disposed to the designated location at East Disposal location at a depth of 60 m as per AMDAL. Disposal activity is being recorded and reported regularly. Dredging activity is shown in Figure 12.

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 12 (LEFT) DREDGING ACTIVITY AT BOF AREA. (MIDDLE) DREDGE MATERIAL DISPOSAL LOCATION. (RIGHT) SAMPLE OF IN-HOUSE SOFTWARE TO MONITOR DREDGING ACTIVITY.

E. Other Activity

Geotechnical/topographical survey was performed in January 2017 particularly for construction jetty, pioneer camp, RO unit location and laydown area. Camp refurbishment for 900 POB is finished in May 2017 and pioneer camp construction activity is currently ongoing. Temporary fencing installation in Train 3 area is completed in April 2017 and currently fencing activity is being performed at pioneer camp area. Installation of freshwater pipe and wastewater line is currently ongoing.

C.2.4 NCDT PROJECT

New Condensate and Diesel Tanks (NCDT) project and Matoa camp refurbishment project, which were previously covered under UKL/UPL, have been incorporated into Environmental Permit for Tangguh LNG Project Integrated Activity. The camp refurbishment scope was reduced from the original scope stated in the UKL/UPL, by only conducting repair and maintenance of the existing facility, called Matoa Camp, instead of constructing new building and infrastructure. This includes repair and maintenance of camps and ablution, such as floor works, electrical appliances, safety equipment, and furniture. The camp has been in operation and this camp refurbishment work has been closed out.

In this reporting period, NCDT project has completed the handover of the new diesel storage tank and the tank has been in operation since February 2017. Remaining work for the diesel scope is shore base facility modification including truck loading station and pump replacement. Construction for the new condensate storage tank is on-going and the tank has been fully erected and hydrotested. Remaining work for the condensate tank includes painting internal and external and several works related to piping, electrical, and instrument. The plan to handover the new condensate tank is September 2017. Procurement of long lead and permanent materials are completed and engineering for as-built also continues to progress. The NCDT project also continues to implement the Environmental Management Plan including re-vegetation of the soil disposal areas, monitoring of water sediment, air quality, and noise, hazardous materials management, and also socialization of wildlife handling procedure to the workers to support Tangguh environmental policy.

OPERATOR’S EHS REPORT TANGGUH LNG

C.2.5 MARINE FACILITIES

Marine facilities activity scopes are included in Onshore EPC scopes. Update is explained in point C.2.3.

C.3 SURVEY, SEISMIC AND EXPLORATION DRILLING

Seismic and survey programs are currently in process: • 3D OBN Tangguh Seismic Program contract signed and continue with vessels modification and sea trial. Preparation on progress with target to start survey on 29 July 2017. Vessel permit in place and socialization lo local stake holder on going. Security Clearance and other maritime notification in place. • Exploration & Appraisal Geotechnical survey, was mobilized on 17th Feb 2017 in Sorong, completed the work & demobilized in Sorong on 28th Feb 2017, zero incident and no harm to the environment.

D. AUDIT UPDATE

The Tangguh Lenders Panel and the consultants visited Jakarta and Papua in Juy 2017. This is the first audit visit after train 3 loan agreement signed. The objective of the audit is performing a compliance review of environmental and social performance. The audit report is in progress and will be provided in early September 2017.

The last visit of the External Panel was conducted in February 2016, with the aim of fulfilling social compliance and related recommendations. During their visit, the External Panel found no non compliance issues related to the environmental and social. However, there were some corrective action plans that require to be closed.

The following table is the update of corrective action of the recommendation.

No Recommendation Corrective Action Update

1 No closure plans for old non The old non hazardous waste landfill closure design has been hazardous waste landfills developed refers to applicable regulation. The closure budget of old and hydrostatic test water non hazardous waste landfill has been approved by SKK MIGAS and pond planned to be executed.

2 Groundwater numerical The ground water numerical compliance standard refers to PP compliance standard is 82/2001 Class I. being reported against PP82/2001 Class III rather than Class I

3 As noted in six-monthly Report has been developed and submitted to Lenders. monitoring report, exceedances of TDS, pH, sulfate and phosphate (as per Class I standard) at acid sulfate soil disposal area near new landfill.

OPERATOR’S EHS REPORT TANGGUH LNG

No Recommendation Corrective Action Update

4 Potential overflow from The procedure has been reviewed and socialized to relevant workers. leachate pond at new landfill The broken pump has been repaired. There are two pumps operated to transfers leachate to Treatment Plant. The leachate level is within safe operational limit. The document and other evident have been submitted to Lenders.

5 Air quality numerical A once off NO2 monitoring validation program has been performed standard at 2 ambient air monitoring locations per TEP AMDAL for 3x24-hours at each location.

6 Non-compliant wash station The wash station has been inspected and works properly. The at hazardous waste storage evidence has been submitted to Lenders. facility

7 Community Emergency The final draft of Integrated Community Emergency Response Plan Response Plan currently has been developed and in routing approval. The engagement with comprises several National Disaster Management Agency (BNPB) and National SAR disconnected studies and Agency (BASARNAR) planned to be conducted on October 2017. procedures. Consultation Socialization led by BNPB and BASARNAR planned to be conducted with communities has not on November - December 2017. been undertaken.

E. SURROUNDING ENVIRONMENT

The following are some activities that can be found in the area surrounding Tangguh LNG: 1. Bintuni Bay Natural Reserve. The reserve is located 80 km east of Tangguh LNG. 2. Oil and Gas Exploration. Along with the oil and gas operation and exploration activities of Tangguh LNG, there are also other exploration activities onshore and offshore in the Bintuni Bay area by other Production Sharing Contractors (PSCs). PT Genting Oil Kasuri Pte Ltd. is currently conducting oil and gas exploration activities in the Kasuri Block, Teluk Bintuni Regency. 3. Commercial and Small Scale Logging Referring to the Natural Resources Atlas of the Bintuni Bay Shores (2003), there are 12 forest concessions around Bintuni Bay, such as PT Agoda Rimba Irian; PT Bintuni Utama MWI; and PT Teluk Bintuni Mina Agro Karya. Small scale logging is conducted by the local communities to look for timber for construction of boats, buildings, bridges and other structures. 4. Agriculture. Local communities harvest much sago. Generally, agricultural activities are conducted in a traditional manner. 5. Fishery. Extraction of seawater fish and other products such as prawns and crabs is commonly done in the Bintuni Bay and Berau Bay area. 6. Hunting. A few groups of hunters live in the remote corners of Bintuni Bay and Berau Bay. These communities hunt wild animals such as wild boars, deers and birds.

OPERATOR’S EHS REPORT TANGGUH LNG

7. Population. The population in 62 villages numbers approximately 6,500 people, the majority of which are Indigenous People. There are at least nine indigenous tribes in the Bintuni/Berau Bay coastal areas, spread throughout villages in the sparsely populated coastal and inland districts. These tribes are Sebyar, Simuri, Irarutu, Wamesa, Soub, Kuri, Moskona, Sekar Pikpik, Wertuwar and Petuanan Arguni.

OPERATOR’S EHS REPORT TANGGUH LNG

CHAPTER II IMPLEMENTATION AND EVALUATION

A. CURRENT OPERATIONS A.1 ENVIRONMENTAL ASPECT

A.1.1 IMPLEMENTATION

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage Noise level Operation of a. Noise level Noise level: See Appendix 1 Comply increase the LNG b. Engine/equipmen a. Measured noise level using the Sound Level Meter by PT Plant and its t maintenance Intertek Utama Services in June 2017. supporting records b. Conducted compliance evaluation by comparing analysis facilities results with the Minister of Environment Decree No. 48 Year 1996 and all results comply with the regulatory requirements c. Conduct trend analysis Location: 2 locations on the perimeter fence of Tangguh Period: Once every 6 months for the perimeter fence

Engine/equipment maintenance records: Engine/equipment maintenance system is in place (MAXIMO) to ensure that maintenance is conducted in accordance with the determined schedule Location: Workshop Period: Once every 6 months

Air Quality Air emission a. CO2 emission a. CO2 from Tangguh operations comes from the feed Ambient air quality (SO2, CO, NO2, HC, PM10, PM2.5, TSP, O3 and See Chapter II Comply from whole complies with gas from reservoir which contains between 12-15% Lead) was monitored in June 2017, which included the following Subchapter

operations planned annual CO2. The higher the production level of LNG, the aspects: A.1.2.1 and activity of emission forecast higher the CO2 level that is produced. a. Ambient air samples were collected and analysed for the Appendix 1 LNG Plant b. Emission quality b. CO2 calculation from whole activities of LNG Plant required parameters by PT Intertek Utama Services and its complies with and its supporting facilities is reported annually. b. Conducted compliance evaluation by comparing analysis Detailed supporting standards monitoring c. Energy efficient design is adapted, such as boiler results with the regulatory standards in Government facilities according to MoE results are (HRSG Heat Recovery System Generator) to recover Regulation No. 41 Year 1999 and IFC General EHS Guidelines Regulation No. reported in the waste heat from gas turbine to produce high pressure 2007 (refer to Table in Appendix I). All parameters comply 13 Year 2009 and quarterly steam with the regulatory requirements IFC Guideline for c. Conducted trend evaluation manual LNG ActivityYear d. Dry Low NOx Burner is used for the gas turbine emission Location: 2 locations on the perimeter fence of Tangguh 2007 e. CEMS units are installed at the Acid Gas Incinerator monitoring and Period: Once every 6 months c. Complies with stacks (AGI-1 and AGI-2) and two gas turbine stacks CEMS report in CEMS (PR-1 and PR-2) according to related regulations. line with the requirements in Daily readings are taken and reported to the relevant CO2 emission calculations for 2016 has been done at year end Minister of accordance with governmental bodies. Calibration is conducted on a and considering following aspects: Environment MoE Regulation weekly basis. a. Checked records of the diesel fuel and jet fuel usage Regulation No. No. 13 Year 2009 b. Checked records of the flared gas volume, fuel gas volume 13 Year 2009 and the amount of CO2 from the feed gas incinerated in AGI and flared c. CO2 emission in 2016 is 4871 kilotonnes.

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage Location: LNG Plant and its supporting facilities Period: Annually

Emission quality check which includes Boiler and Regeneration

Gas Heater (RGH) (NOx, Opacity, SO2, Total Particulate andH2S),

Gas Turbine (NOx, Total Particulate, SO2, H2S), Acid Gas

Incinerator (AGI) (SO2 and H2S) was last conducted in March 2017 by PT Intertek Utama Services, covering the following aspects: a. Conducted sample collection and data analysis for the required parameters in accordance with the applicable regulations by PT Intertek Utama Services b. Conducted compliance evaluation by comparing the analysis results with the Minister of Environment Regulation No. 13 Year 2009 (refer to Table in Appendix I). All parameters are within the regulatory standards c. Conducted trend evaluation Location: Boiler, RGH, Gas Turbine and AGI stacks Period: Once every 6 months

CEMS reading and operation, covering Monitoring result, Calibration, Abnormal condition have been conducted, including the following steps: a. Checked the records and calculated the CEMS monitoring result average in accordance with the Minister of Environment Regulation No. 13 Year 2009 b. Calibration is done on a weekly basis, repair and maintenance are done when needed with the necessary adjustments c. Maintained records of abnormal conditions as per the Minister of Environment Regulation No. 13 Year 2009. There was no abnormal condition during this reporting period Location: Emission sources in accordance with the applicable regulation Period: (1) During Operational activities that may produce emission, in accordance with the applicable regulations, (2) During calibration, repair and maintenance and the consequent adjustments and (3) Abnormal conditions Natural Water a. Ensure the There is no No geohydrologic resource volume of water resource reportable al change with provision extracted provision from activity potential from groundwater is groundwater during this disruption to groundwater the optimum extraction yet reporting community extraction yield according period well and land alternative to pumping test subsidence and groundwater

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage extraction permit b. Minimise impact to community groundwater availability in Tanah Merah and Saengga by minimising the potential of sea water intrusion (TDS < 1.000 mg/L); and c. Minimise the potential of land subsidence (< 5 cm) related to long term groundwater extraction Marine biota Offshore Gas Type and abundance Maintained positive impact by: Perform Fishery, marine mammal and mangrove survey. Latest Comply abundance Platform of nekton, and a. Solid waste from the operations of offshore facility Fishery, marine mammal and mangrove survey has been and diversity marine mammal such as offshore gas platform is sent onshore for performed in end 2016 - early 2017. diversity compared further treatment Location: Berau Bay and Bintuni Bay to environmental b. Implemented No Fishing policy Period: Once every 3 years baseline condition during AMDAL Sea water Earth a. TSS a. Earth bundwall and dredging material placement Sea water and plankton monitoring Comply quality and bundwall concentration in procedure is available, valid and has been sociliazed a. Conducted seawater sampling and measure TSS marine biota installation sea water does to related employee. concentration by both Internal and accredited laboratory. abundance and not exceed b. Placement of dredging material is transferred to External sampling has been performed in February 2017 and diversity dredging standard outside designated shoreline protection area. b. Conduct compliance evaluation by comparing TSS material safety exclusion c. Corrective action is performed in the monitoring concentration analysis result with seawater standards placement zone at Marine result shows that TSS distribution is not accordance according to MoE Decree No. 51 Year 2004 (See Table at for shoreline Facility area in with standard and baseline Attachment I) and analysis result will also be compared with protection dredging area or environmental baseline data from AMDAL study 500 meters from c. Plankton sampling has been performed in February 2017 dredging d. Monitor the activity record of dredging contractor to location understand dredging location and volume and ensure according to disposal of dredged material is conducted according to MoE Decree No. approved location in AMDAL 51 Year 2004 by Location : At the nearest Safety Exclusion Zone (for Marine considering Facility) from dredging location or 500 meter distance from environmental dredging location baseline during Period : AMDAL a. Internal monitoring (seawater quality analysis: TSS b. Minimise the parameter) is conducted weekly during dredging activity. In potential one monitoring period, sampling will be conducted before,

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage reduction of during and after dredging Plankton, b. External monitoring, including seawater ( TSS parameter) and benthos and plankton by laboratory is conducted once during dredging nekton activity and once after dredging is conducted abundance and c. Record checking is conducted at vessel/office marine mammal disturbance Benthos monitoring will be performed in March 2017 : compared to a. Collect benthos sample and conduct analysis according to environmental determined parameter using accredited laboratory baseline during AMDAL Location : 1 point at dredging location and 1 control Period : Once during dredging activity and once after dredging has been conducted Marine Sea Minimise the a. Marine mammal protection procedure, LNG and Perform fishery, marine mammal and mangrove survey. Latest Comply mammal Transportati potential of marine condensate loading procedure and emergency Fishery, marine mammal and mangrove survey has been disruption on activity, mammal disruption response procedure are available, valid, and has been performed in end 2016 - early 2017. including compared to socialized to related employees, emergency response Location: Berau Bay and Bintuni Bay LNG and environmental team and vessel crew Period: Once every 3 years condensate baseline during b. Solid waste and wastewater management procedure product AMDAL: for sea transportation activity is available, valid, and Marine mammal awareness training is provided for marine crew transportatio a. Marine biota has been socialized to related employees and the training records are kept. n and diversity (type) c. Emergency response procedure at vessel is available, Location: Onshore or in the vessel logistic and abundance, valid, and has been socialized to vessel crew Period: During sea transportation activities in the operations transportatio specifically d. Emergency response facility in the vessel is available phase n for marine mammal in accordance with developed procedure Tangguh b. Marine mammal e. Implemention of No Fishing policy A system is already in place to ensure that all vessels operated LNG awareness for Tangguh LNG Operations are already maintained Operations training f. Routine maintenance to engine/equipments is peformed according to specified schedule to ensure appropriately in accordance with MARPOL requirements. c. Vessel engine maintenance that the engine/equipments are working efficiently Location: Vessel records g. Prioritizing sailing in deeper area (>12 m) when the Period: Once every 6 months sea condition is calm h. Reduced vessel speed if approaching marine mammal until the marine mammal swims away i. Conducted solid waste and wastewater management in accordance with Government Regulation No. 21 Year 2010, Permenhub No. PM 29 of 2014 Regarding Pollution Prevention in Marine Environment and MARPOL also applicable regulations. j. Managed ballast water in accordance with Government Regulation No. 21 Year 2010, Permenhub No. PM 29 of 2014 Regarding Pollution Prevention in Marine Environment and MARPOL eg. Ballast water exchange shall be done after the vessel leaves port prior to entering the bay. k. Recorded ballast exchange (date, location, volume, a“d vesse‘s “a’e)

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage l. Provided separate containments for bilge water and ballast water m. Provided pre-separation tank for bilge water as per MARPOL Air Quality Flaring a. Total amount of a. Conducted calculation and recording of flaring a. Conducted opacity monitoring using an accredited See Chapter II Comply Emission flaring emission amount laboratory in March 2017. Subchapter < 3% of feed gas b. Conducted reduce flaring program, by: b. Conducted compliance evaluation by comparing the analysis A.1.2.1 and b. Flaring opacity 1) Implemented BOG (Boil Off Gas) recovery from results with the Minister of Environment Regulation No. 13 Appendix 1 complies with LNG storage facility and LNG loading system to Year 2009 (refer to Table in Appendix I). All parameters standard as per Tanker comply with the regulatory requirements MoE Regulation 2) Plant facility was designed to transfer processed c. Calculated the actual flare emission volume and compared it No. 13 Year 2009 gas to flaring system for safe burning and in with the planned volume emergency condition including relief valves, d. Total amount of flaring emission for this reporting period blowdown valves and operation/maintenance vent was 0.91% of feed gas 3) Optimised TAR frequency and the amount of Plant Location: Flare stack Shut Down, both planned (Gas Turbine Period: Once every 6 months inspection) and unplanned Air Quality Operational a. Emission from a. Ensured the installed thermal treatment complies to The emission monitoring at non hazardous waste thermal For the current Comply from Solid Non-hazardous emission standards treatment has been conducted in March 2017. operation, Waste (Non- waste Thermal b. Updated operational procedure for each thermal there are only non-hazardous hazardous) Treatment treatment unit and conduct training and socialisation Incinerator maintenance: Thermal complies with to operators waste Engine/equipment maintenance system is in place (MAXIMO) to Treatment standards in MoE incinerators c. There is no hazardous waste thermal treatment unit ensure that maintenance is conducted in accordance with the Decree No. 13 on site yet determined schedule Year 1995 d. Only burned waste according to specification for non- Location: Workshop/incinerator location (Attachment 1) hazardous waste thermal treatment unit Period: Once every 6 months b. Emission from e. Operated thermal treatment unit according to its Hazardous waste specification (Burner, blower and feed rate) incinerator f. Conducted daily recording for amount and type of complies with burnable waste and thermal treatment operational standards in condition for each incinerator Head of g. Conducted routine maintenance to Environmental engine/equipments according to specified schedule to Impact Agency ensure that the engine/equipments are working Decree No. 03 efficiently Year 1995 h. Defined sampling locations and provide sampling facility according to applicable regulations Sea Water Wastewater a. WWT effluent of: a. Conducted wastewater minimisation effort by: Produced water, Oily contaminated water, Chemically See Appendix 1 Comply Quality and treatment 1) Produced 1) Considering groundwater utilisation (as substitute contaminated water and sewage: marine biota from LNG Water or supplement of desalination unit). Desktop a. Collected treated wastewater samples from the compliance Detailed abundance Plant and its (temperature, Study has been completed and there is no detail point and analysed for the required parameters in monitoring and diversity supporting pH, Oil and schedule that has been planned to conduct accordance with the applicable regulations by PT Intertek results are facilities Grease, Total pumping test. Utama Services on a monthly basis reported in the Phenol, H2S, 2) There is no detail plan to reuse of treated b. Checked the daily wastewater discharge flowrate records quarterly Ammonia, wastewater from Produced Water Treatment c. Calculated the load of each of the treated wastewater implementation COD, (PWT) unit for utility purpose. streams discharged to sea through multiplying the flowrate report of the

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage Methanol) b. Conducted wastewater treatment and maintain WWT by the concentration (analysis results) wastewater 2) Oily operational stability to ensure treated wastewater has d. Conducted compliance evaluation by comparing analysis discharge to Contaminated complied with standards prior to discharge to sea. results with the wastewater regulatory standards: sea permit no. Water (pH, Oil c. Updated wastewater management procedure and 1) Produced water, Oily contaminated water, Chemically 125 year 2013. and Grease, conducted socialisation to related employees contaminated water: Minister of Environment Regulation Produced water Total Organic d. The following treated wastewater are discharged to No. 19 Year 2010, applicable Permit and the IFC EHS and oily Carbon) sea: Guidelines for LNG Activity 2007 (refer to Table in contaminated 3) Chemically water, 1) Produced water from PWT unit Appendix I) Contaminated chemically 2) Oily contaminated water from CPI unit, treated in 2) Sewage: Minister of Environment Decree No. 112 Year Water (pH, contaminated the PWT unit 2003 and the IFC General EHS Guidelines 2007 (refer to COD, TSS and water and 3) Chemically contaminated water from Table in Appendix I) Total Metal) sewage are Neutralisation Pit e. Conducted compliance evaluation by comparing the actual complies with also briefly 4) Sewage from STP flowrate with the maximum allowable flowrate standards as per evaluated in 5) Reject Brine from Desalination Unit and RO Unit f. Conducted compliance evaluation by comparing the MoE Regulation Chapter II e. Currently, wastewater is discharged to sea at -13 m calculated load with the maximum allowable load No. 19 Year 2010, Subchapter LAT at LNG Jetty for LNG Plant 1 and 2 operational g. Conducted trend evaluation for concentration, flowrate and applicable A.1.2 activity until LNG Plant 3 construction is completed load of the effluent permit, IFC EHS f. There was no wastewater from non-routine activities Guidelines for Location: during this period LNG Activity a. Compliance points of each treatment plant 2007 and g. Installed flow meter and sampling facility at each b. Specifically for methanol, collect samples at a 100 m radius Minister of treatment plant effluent pipe from common outfall Environmental h. Conducted daily volume recording for each Period: discharged wastewater Decree No. 125 a. Quality analysis is conducted on a monthly basis i. Discharged treated wastewater according to of 2013 regarding b. Flowrate record is taken on a daily basis Wastewater allowable maximum flowrate

discharge permit j. Produced water is treated using physical, biological Effluent water (Nitrate and Phosphate) was monitored into the sea for and chemical treatment BP Berau Ltd, k. DAF sludge from PWT Unit, and sludge from CPI unit a. Collected effluent water samples from each compliance point Sumuri Distr are sent to a licensed hazardous waste treatment b. Conducted trend analysis by comparing the discharge water b. STP effluent (pH, facility. Refers to Goverment Regulation 101/2014, quality with the seawater quality for Nitrate and Phosphate. BOD, TSS, Oil Biosludge is not clasified as hazardous waste. Location: Each compliance point and Grease) Preparation of Biosludge disposal into controlled Period: Once every 6 months landfill. complies with standards as per l. Study for the reuse of DAF sludge, biosludge and Seawater Quality affected by the treated wastewater discharge MoE Decree No. sludge from the CPI unit as soil ameliorant is in (Clarity, Turbidity, TSS, temperature, pH, DO, Oil and Grease, 112 Year 2003 progress. Total Phenol, H S, Ammonia, Total Ammonia, Nitrate, and General EHS 2 m. Chemically contaminated water is treated by Phosphate, Mercury, Chromium, Arsenic, Cadmium, Copper, Guidelines 2007 wastewater neutralisation system using neutralizer Lead and Nickel) was monitored in February and June 2017: c. Effluent from chemical addition a. Collected seawater samples from upstream and downstream other wastewater n. Oily contaminated water is transferred to the of the common outfall at a 30 m and 100 m radius and treatement produced water treatment plant, through the CPI unit, conduct analysis for the required parameters comply with for treatment b. Conducted compliance evaluation by comparing analysis standards as per o. Sewage is treated using physical, biological and results with the regulatory standards in the Minister of related chemical treatment. Sludge from treatment process is Environment Decree no. 51 Year 2004 (refer to Table in regulations disposed to landfill. Tangguh operates STP Utility, Appendix I), also taking into consideration baseline d. Minimise the STP Zone A and STP zone C to treat the sewage. potential conditions during AMDAL

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage reduction of p. Oily contaminated water from workshop and c. Conducted trend analysis plankton warehouse activities is transferred to Collection Pit Location: Upstream and downstream of the common outfall at a abundance and and pumped to produced water treatment plant 30 m and 100 m radius diversity and through the CPI unit. Period: Once every 3 months nekton q. Engine/equipment maintenance system is in place abundance (MAXIMO) to ensure that maintenance is conducted Plankton was monitored in in February and June 2017: compared to in accordance with the determined schedule a. Collected plankton and benthos samples environmental baseline during b. Calculated the abundance, diversity index and equitability AMDAL index of the plankton and benthos (Abundance, c. Collection, identification and calculation is done by PT diversity index Intertek Utama Services and equitability Location: Upstream and downstream of the common outfall at a index of marine 30 m and 100 m radius for plankton and 100 m radius for plankton and benthos benthos) Period: Once every 6 months for plankton and benthos e. Surface water

quality (pH, DO, TDS, TSS and Sediment quality (Cu, Cr, Cd, Hg, Pb, As, Zn, Sb, Ni, Ag) was other main monitored in Januari 2017: parameters a. Collected sediment samples and analyse for the required related to the parameters using an accredited laboratory characteristic of b. Conducted trend analysis the wastewater) Location: Upstream and downstream of the common outfall at a 100 m radius Period: Once every 6 months Sea water Water a. Treated reject a. Reject brine management procedure is available, a. Collected seawater samples and analyse for salinity using PT See Chapter II Comply quality due to provision brine complies valid, and has been socialized to related employees Intertek Utama Services Subchapter salinity from with standards b. Reject brine is discharged at sea at -13 m LAT at LNG b. Collected wastewater samples and measure pH using PT A.1.2.5 and increase and desalination according to Jetty for LNG Plant 1 and 2 operational activity Intertek Utama Services Appendix 1 reduction of alternative applicable c. Installed flow meter and sampling facility at reject c. Checked records of daily wastewater discharge flowrate Detailed plankton Wastewater brine outlet d. Conducted compliance evaluation by comparing analysis abundance Discharge Permit monitoring d. Discharged reject brine according to allowable results with the regulatory standards in the Wastewater and diversity to Sea Discharge to Sea Permit results and maximum flowrate flowrate are b. Minimise the e. Conducted compliance evaluation by comparing actual e. Conducted daily recording of discharged reject brine reported in the potential flowrate with the maximum allowable flowrate volume quarterly reduction of f. Conducted trend analysis for concentration and flowrate of f. Engine/equipment maintenance system is in place implementation plankton the effluent (MAXIMO) to ensure that maintenance is conducted report of the equitability and Location: diversity in accordance with the determined schedule Wastewater a. Upstream and downstream of the common outfall at a 30 m compared to Discharge to radius and natural locations (out of exclusion zone) for environmental Sea Permit no. salinity as per the requirement in the Wastewater Discharge baseline during 125 year 2013 to Sea Permit AMDAL b. Discharge point of the desalination unit (pH and flowrate) c. F‘”wrate readi“g is c”“ducted ”“ the desa‘i“ati”“ u“its flowmeter

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage Period: a. Quality analysis is done on a monthly basis b. Flowrate record is taken on a daily basis Terrestrial Operation of Flora and fauna Flora and fauna survey was conducted in January-February 2016. Comply flora and fauna the LNG diversity Final report is completed change Plant and its Location: Buffer zone location in Tangguh supporting Period: Once every 5 years during Operations phase facilities Sea water Refueling at a. Minimise the a. Hazardous material management procedure is Comply quality and Marine possibility of available, valid, and has been socialized to related marine biota Facility area offshore fuel spill employees abundance b. Offshore spill b. Fuel and Chemical Management Procedure is and diversity response can be available, valid, and has been socialized to related done effectively employees as per procedure c. Emergency response procedure is available, valid, and hence will not has been trained to emergency response team (ERT) affect water d. Appointed Emergency Response Team for fuel and quality and chemical spill marine biota e. Ensured storage containers are built compatible with the materialand are in good condition f. Ensured every stored material is recorded and completed with MSDS g. Performed efforts to response oil spill in accordance with Oil Spill Contingency Plan and conduct spill response training according to planned schedulefor example oil spill drills Wastewater Wastewater a. Wastewater management procedure is available, valid, Perform fishery, marine mammal and mangrove survey. Latest See Appendix 1 Comply management management and has been socialized to related employee Fishery, marine mammal and mangrove survey has been and Chapter II from vessel complies with b. Conducted sewage treatment in accordance with performed in end 2016 - early 2017. Subchapter operational standards in Government Regulation No. 21 Year 2010 and Location: Berau Bay and Bintuni Bay A.1.2.7 activity Government MARPOL Annex IV prior to discharge to sea Period: Once every 3 years Regulation No. 21 c. Conducted oily contaminated water treatment by Year 2010, MARPOL, using Oil Water Separator in accordance Government Permenhub No. PM Regulation No. 21 Year 2010 and MARPOL Annex I 29 of 2014 prior to discharge to sea Regarding Pollution d. Managed ballast water according to Government Prevention in Marine Regulation No. 21 Year 2010 and MARPOL Environment and applicable e. Recorded ballast water exchange (date, location, regulations v”‘u’e a“d vesse‘s “a’e)

Solid waste a. Solid waste (non- General Management: a. Conducted record checking of amount and type of waste that Comply (non- hazardous) a. Hazardous and non-hazardous solid waste being generated and sent to storage and treatment facility at hazardous) management is management is available, valid, and has been Tangguh site and conducted in socialized to related employees b. Conducted record checking of amount and disposal location

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage Hazardous accordance with b. Conducted solid waste segregation (Non-hazardous of comminuted food waste discharged to sea Waste Government and hazardous solid waste) c. Conducted record checking and hazardous waste manifest management Regulation No. c. Implemented 3R system (Reduce, Reuse, Recycle) transmittal activity in 21 Year 2010, d. Categorized non-hazardous solid waste into organic, d. Monthly inspection of solid waste and hazardous waste offshore MARPOL, recyclable, burnable and inert waste management facility according to applicable procedure actvitiy Permenhub No. Location: Solid waste and hazardous waste treatment facility at PM 29 of 2014 vessel Regarding Non-Hazardous Solid Waste Management: Pollution a. Conducted solid waste management in accordance Period: Record checking is conducted monthly; Inspection is Prevention in with Government Regulation No. 21 Year 2010 and conducted monthly Marine MARPOL Annex V Environmentand b. No garbage disposal to sea, except food waste which related complies with MARPOL Annex V requirements regulations c. No disposal of solid non-hazardous waste to sea b. Hazardous waste d. Organic, recyclable, and inert waste management management is from small vessel and tug boat which operate around conducted in jetty location is sent to Tangguh LNG onshore waste accordance with management facility Government e. Waste from LNG and condensate tankers is not Regulation No. managed onshore. Vessel manager will manage 101 Year 2014, generated waste by following requirements in Permenhub No. Government Regulation No. 21 Year 2010 and PM 29 of 2014 MARPOL Annex V Regarding f. Comminute food waste to size less than 25 mm for Pollution further disposal to sea with distance more than 3 nm Prevention in from nearest land. Marine g. Uncomminuted waste can only be disposed to sea at Environment, distance more than 12 nm from the nearest land MARPOL and related h. Maintain records of treated waste regulations Hazardous Waste Management: a. Conducted hazardous waste management in accordance with Government Regulation No. 101 Year 2014 b. Conducted labelling for hazardous waste container c. Hazardous waste management from small vessel and tug boat which operate around jetty area is sent and stored/treated at Tangguh LNG onshore hazardous waste management facility and subsequently will be sent to licensed hazardous waste treatment facility for further treatment d. Hazardous waste from LNG and condensate tankers is not treated at onshore facility. Vessel manager will manage generated waste by following requirements in MARPOL and related regulations. e. Transfer hazardous waste to licensed waste facility for

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage further treatment f. Use permitted hazardous waste transporter facility Sea water Maintenanc c. TSS There is no No quality and e Dredging concentration in dredging reportable marine biota for Marine sea water does activity yet for activity abundance Facility and not exceed marine facility during this and diversity Disposal of standard outside maintenance reporting Dredged safety exclusion period Material zone at Marine Facility area in dredging area or 500 meters from dredging location according to MoE Decree No. 51 Year 2004 by considering environmental baseline during AMDAL d. TSS concentration in sea water outside 500 m distance from dredging disposal area complies wi MoE Decree No. 51 Year 2004 by considering environmental baseline during AMDAL e. Minimise the potential reduction of plankton abundance and diversity compared to environmental baseline during AMDAL f. Minimise the potential

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage reduction of nekton abundance and marine mammal disturbance compared to environmental baseline during AMDAL Surface water Onshore Solid waste (non- Solid Waste (non-hazardous) and Hazardous Waste a. Checked records of the amount and type of waste that has See Chapter II Comply quality, solid waste hazardous) and Management been produced and delivered to the storage and Subchapter groundwater, (non- hazardous waste General Management : treatment facilities in Tangguh A.1.2.10 and soil hazardous) management a. Hazardous and non-hazardous solid waste b. Checked records of waste that has been treated in Hazardous quality; solid and complies with management procedure is available, valid, and has Tangguh (for example incineration, composting, etc) waste non-hazardous hazardous requirements in been socialized to related employees c. Checked records of the solid waste amount disposed to waste and waste Law No. 18 Year management is b. Conducted solid waste segregation (Non-hazardous the Non-hazardous waste landfill hazardous management 2008 and reported in a and hazardous solid waste) d. Checked records of the recyclable waste sent to the waste activity Government external recycling company quarterly basis c. Implemented 3R system (Reduce, Reuse, Recycle) Regulation No. 101 e. Checked records and delivery of the hazardous waste in the d. Categorized non-hazardous solid waste into organic, Year 2014 (Amount manifest hazardous recyclable, combustible and inert waste of solid non- f. Conducted weekly inspection of the solid waste and waste storage hazardous waste hazardous waste treatment facilities in accordance with permit and hazardous Non-Hazardous Solid Waste Management: the applicable procedure implementation waste that has a. Waste storage facility is constructed with Location: Solid waste and hazardous waste treatment facilities in report. been produced and impermeable floor to prevent soil contamination Tangguh Tangguh LNG managed) b. Food waste is managed by the composting process Period: Throughout the management of solid waste and or disposal to Non-hazardous waste landfill hazardous waste; weekly inspection started using its new landfill c. Recyclable waste is collected and sent to waste facility for the recycling company management of d. Combustible waste is incinerated using non- its inert waste. hazardous waste incinerator Monitoring e. Timber waste is collected, chipped into wood chips program for the for raw material for composting process, utilisation new landfill will in revegetation activity or used as landfill liner be initiated f. Inert waste is disposed to Non-hazardous waste during the next landfill reporting g. Conducted recording of generated waste and its period and will management activity be reported as per the Hazardous Waste Management: requirement. a. Hazardous waste is packed using appropriate container and packaging which will not react with the contained material b. Hazardous waste is stored in permitted Temporary Hazardous Waste Storage Facility c. Hazardous waste is sent to licensed hazardous waste

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage treatment facility using permitted hazardous waste transporter facility d. Maintained hazardous waste manifest and reported it regularly to related agency Groundwater Non- Groundwater quality a. Solid waste management and non-hazardous waste a. Collected groundwater samples from ground water wells See Appendix 1 Comply quality hazardous around Non- landfill operational procedure is available, valid, and around old landfill and around new Landfill in March 2017 waste landfill hazardous waste has been socialized to related employees and analyse for the required parameters by using an operational landfill complies b. Solid waste disposed to non-hazardous waste landfill accredited laboratory with standard are food waste and other non-hazardous waste b. Conducted compliance evaluation by comparing analysis according to according to applicable procedure (e.g.: inert waste) results with the Class I groundwater quality regulatory Government c. Hazardous waste is not disposed to non-hazardous standards in Government Regulation No. 82 Year 2001, also Regulation No. 82 waste landfill taking into consideration baseline conditions during AMDAL Year 2001 Class 1 by d. Designed non-hazardous waste landill so it does not c. Conducted trend evaluation considering contaminate surrounding groundwater: Location: 4 monitoring wells environmental 1) Proposed non-hazardous waste landfill location Period: Once every 6 months baseline condition was compacted before lined with HDPE Liner during AMDAL 2) Non-hazardous waste landfill is lined with HDPE (Attachment 1) Liner, both at Non-hazardous waste landfill Main Pond and Leachate Pond 3) Leachate pond was sized appropriately to prevent leachate overflow 4) Leachate is transferred to Sewage Treatment Plant prior to discharge 5) Installed Monitoring Well in the upstream and downstream of non-hazardous waste landfill based on study result 6) There are currently 5 monitoring wells in total e. Conducted routine inspection of Non-hazardous waste landfill integrity Soil Fuel and a. Minimise the a. Hazardous material management procedure is Facility condition and hazardous material and waste See Appendix 4 Comply contamination Chemical possibility of available, valid, and has been socialized to related management: Storage onshore fuel and employees a. Inspected hazardous material and waste storage facility prior Facility and chemical spill b. Emergency response procedure is available, valid, to operation in accordance with the applicable procedure Refueling b. Onshore spill and has been socialized/trained to emergency b. Conducted weekly inspection of containers, storage system, Facility; response can be response team (ERT) storage warehouse condition, emergency response system, hazardous done effectively c. Appointed Emergency Response Team for fuel and and other facilities waste facility as per procedure chemical spill Location: hence will not d. Ensured fuel and chemical storage container are built a. Fuel and chemical storage warehouse contaminated the compatible with the material and are in good b. Temporary hazardous waste storage land condition c. Refuelling station

e. Ensured fuel and chemical storage and refueling Period: location is safe from flood or is on a higher elevation a. Storage facility inspection is conducted once before it is used f. Minimum requirements of storage facility are as b. Routine inspection is done on a weekly basis follows:

1) Completed with a bunded area that will be able to contain 110% of the volume of the largest Spill clean-up, the soil TPH concentration and management of

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage container, or 25% of the total volume hydrocarbon contaminated materials: 2) The building, including the floor and the bund a. Visual monitoring to ensure that the oil spill response is wall, must be constructed with a impermeable conducted in accordance with the procedure material Location: 3) The floor construction must have a slope of at a. Location of the spill and the contaminated soil least 1% towards sump pit or Oil Water Separator (OWS) b. Temporary hazardous waste storage 4) Completed with a sump pit for facilities with a Period: During clean-up of contaminated soil roofed shelter 5) Completed with an Oil Water Separator (OWS) Hazardous material and waste spill records: unit for facilities without a roofed shelter All spills are recorded, noting the amount and type of the spilled 6) Completed with spill kit hazardous material and waste, spill location and the spill 7) Completed with MSDS information handling efforts g. Conducted routine clean up of oily contaminated Location: Location of the spill and the contaminated soil water trapped in sump pit or OWS for further Period: When a spill occurs treatment

h. Put label and symbol on the container (package) and storage area i. Conducted regular inspection/audit j. Treat contaminated soil by excavated, separated and collected to Temporary Hazardous Waste Storage for further treatment k. Ensure clean up process is performed well and conduct TPH soil test (if necessary) according to MoE Decree No. 128 Year 2003 Natural Marine Minimise impact or a. Use trestle structure at LNG terminal Coastline monitoring was conducted as part of the AMDAL Comply Oceanographic Facility at change of natural b. Corrective action will be conducted if there is any document development in 2013 through satellite image of al changes operations erosion and abrasion which is not as expected in ANDAL coastline condition around the location including phase sedimentation document which caused by Tangguh LNG activity and Location: Coastline location around activity location current pattern according to erosion needs to be mitigated Period: Monitoring is conducted twice in 5 years. Next changes, coast and sedimentation monitoring will be conducted in 2017 line abrasion rate in the area and accretion Babo Seawater a. Waste a. Turbidity & a. Implemented a procedure to disallow waste disposal Conducted seawater monitoring as per requirements in June See Appendix 1 Comply Quality from clarity into the sea 2017 by PT Intertek Utama Services vessels b. Acidity b. Provided oil drum and waste bin Location: Waters around the jetty b. Leakage c. Chemical content Period: Once every 6 months during operations phase and oxygen level d. Oil content e. TSS f. Temperature Sediment Wastes from Elements in the Implemented a procedure to not allow waste disposal Conducted sediment monitoring as per requirements in June See Appendix 1 Comply harbour sediment such as into the sea 2017 by PT Intertek Utama Services activities Oil, Hg, Pb, Cd, Cu, Location: Waters around the jetty including Cr, Zn, Ni and Mn Period: Once every 6 months during operations phase

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage wastes from the boats/other wastes from the harbour which are disposed into the water and settle Aquatic a. Wastes Decline in diversity Implement a procedure to not allow waste disposal into Conducted plankton and benthos monitoring as per See Appendix 1 Comply biology from and population of the sea requirements in June 2017 by PT Intertek Utama Services vessels plankton and Location: Waters around the jetty b. Leakage benthos Period: Once every 6 months during operations phase a. Noise a. Operation a. Noise level is a. Provide toilets, septic tank and sewage tank, and a. Noise and air quality are compared with the regulatory See Appendix 1 Comply b. Air Quality of the measured with temporary waste disposal area standards set by the Minister of Environment c. Water Babo dB(A) and b. Provide storage for fuel, oil and other substances b. Disturbance to flight operation is supervised to ensure Quality Airstrip Kepmen LH. No. which are easily absorbed into the soil and water implementation of SOP 48. bodies d. Protected b. Passenge Location: Irarutu III Village, Babo District MENLH/11/1996 c. Regulate land use in accordance with the noise species r and Period: Monitoring done once every 6 months during the b. Surface water boundaries of a public airstrip cargo Airstrips ”perati”“s phase services quality as per d. Protect plant growth and seedless vegetation in the Government viscinity of Babo Airstrip to reduce noise and cutting c. Facility Regulation no. 82 obstacle vegetation and utility year 2001 Class 2 manage c. Fauna sightings ment with respect to d. Solid and noise from the liquid operation of wastes Babo Airstrip manage ment a. Air Quality Maintenance Government a. Operated generator in accordance with the existing As per Decree of Decree of MoEF No. 13 tahun 1995, emission at See Appendix 1 Comply and Noise of harbour & Regulation no. 41 engine and equipment operation guidelines disel generator with capacity < 570 kWth shall be monitored b. Potential marine year 1999 and KEP- b. Conducted routine maintenance for existing every 3 yearly. The measurement is performed in June 2017. decline of facilities and 48/MENLH/II/1996 equipment Routine diesel generator maintenance is performed as per schedule. air quality operation of c. Conducted routine maintenance for generator in Location: Camp and supporting facilities. the main accordance with the existing engine and equipment camp operation guidelines Period: twice during operational phase d. Personnel working near source of noise wears earplugs a. Water Potential Government Fuel storage There was no Comply Quality leakage from Regulation No.82 a. Constructed a 25- cm wide and 50-cm thick wall spill at Babo b. Fuel leakage the fuel year 2001 (Class 2) around the fuel storage fuel storage or spillage storage and regarding Water b. Completed with bunded area with a volume 110% of

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Remarks Impact Status Manage from fuel fuel spill Quality Management the volume of the biggest container or 25% of the storage or (avtur or and Water Pollution total volume in the storage facility jetty solar) during Control c. Conducted routine inspection of the fuel storage, refuelling, including the condition of the area around the storage and spill of ex lube oil during replacement in main camp and domestic waste a. Soil Quality Potential ex a. Minimize the a. Ex-lube oil is stored in the hazardous waste storage Comply b. Fuel and lube oil possibility of fuel which has a secondary containment and an oil wastewater spillage spillage separator. The storage is inspected regularly and after spillage and b. Effective heavy rainfall, hydrocarbon is filtered and only other handling of uncontaminated water is discharged untreated spillage to soil in domestic accordance with waste the procedure as effluent to not c. Improper contaminate the disposal of soil non-organic waste a. Flora and Operation of Flora and fauna Field observation of birds was conducted in 2011 Comply Fauna Main Camp baseline prior to Location: Around the airstrip b. Fauna project Period: Twice during operational phase displaceme commencement nt

OPERATOR’S EHS REPORT TANGGUH LNG

A.1.2 EVALUATION

A.1.2.1 AIR QUALITY (EMISSION AND AMBIENT)

The result of emission monitoring activity conducted in June 2017 (Semester 1 - 2017) indicates that all parameters are Comply with the AMDAl Standard.

Tables 1-7 show the results of Ambient Air Monitoring; Emission from Boilers, Gas Turbine, Regeneration Gas Heaters; and Acid Gas Incinerator Stack.

TABLE 1 AMBIENT AIR MONITORING RESULTS IN JUNE 2017 Regulation Monitoring Result AMDAL PP Parameter (Unit) A01 Behind A02 Log Standard 41/1999 – – Soccer Field Pond Standard 3 SO2 mg/Nm 900 900 <20 <20 CO mmg/Nm3 30000 30000 <100 <100 3 NO2 mmg/Nm 200 320 <5 <5 3 Ozone (O3) mmg/Nm 235 235 <20 <20 HC mmg/Nm3 160 160 <5 <5 PM 10 mmg/Nm3 50 150 6.8 6.0 PM 2.5 mmg/Nm3 2 65 5.8 5.7 TSP mmg/Nm3 230 230 12.4 10.1 Lead, Pb mmg/Nm3 2 2 0.002 0.004 Noise dBA 45 at night 45 at night 43.1 42.5 (Average) 55 at day 55 at day

TABLE 2 EMISSION MONITORING RESULTS FROM AGI IN MARCH 2017 Monitoring Result TEP Parameter (Unit) Acid Gas Acid Gas Standard Incinerator I Incinerator II 3 Sulphur Dioxide SO2 mg/m 2600 <1 <1 3 Hydrogen Sulphide H2S mg/m 5 <0.1 <0.1

TABLE 3 EMISSION MONITORING RESULTS FROM BOILERS IN MARCH 2017 Monitoring Result TEP Parameter (Unit) Boiler Boiler Boiler Standard Stack A Stack B Stack C 3 Nitrogen Oxides NOx mg/m 240 105.0 106.0 95.4 Opacity % 20 <20 <20 <20 3 Sulphur Dioxide SO2 mg/m 150 <1 <1 <1 Hydrogen H S mg/m3 5 <0.1 <0.1 <0.1 Sulphide 2 Total Particulate mg/m3 50 1.3 2.8 4.32

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE 4 EMISSION MONITORING RESULTS FROM REGENERATION GAS HEATERS IN MARCH 2017 Monitoring Result TEP Parameter (Unit) Regeneration Regeneration Standard Gas Heater I Gas Heater II 3 Nitrogen Oxides NOx mg/m 240 79.8 102.0 Opacity % 20 <20 <20 3 Sulphur Dioxide SO2 mg/m 150 <1 <1 3 Hydrogen Sulphide H2S mg/m 5 <0.1 <0.1 Total Particulate mg/m3 50 8.04 2.07

TABLE 5 EMISSION MONITORING RESULTS FROM GAS TURBINE TRAIN 1 IN FEBRUARI 2017 Monitoring Result TEP Gas Parameter (Unit) Gas Turbine Standard Turbine Train 1 - MR Train 1 - PR 3 Nitrogen Dioxide NOX mg/m 51 29.6 26.1 3 Sulphur Dioxide SO2 mg/m 150 <1 <1 3 Hydrogen Sulphide H2S mg/m 5 0.27 0.81 Total Particulate mg/m3 50 1.92 1.11

TABLE 6 EMISSION MONITORING RESULTS FROM GAS TURBINE TRAIN 2 IN MARCH 2017 Monitoring Result TEP Gas Parameter (Unit) Gas Turbine Standard Turbine Train 2 - MR Train 2 - PR 3 Nitrogen Dioxide NOX mg/m 51 11.40 20.40 3 Sulphur Dioxide SO2 mg/m 150 <1 <1 3 Hydrogen Sulphide H2S mg/m 5 0.14 0.13 Total Particulate mg/m3 50 1.16 1.38

TABLE 7 EMISSION MONITORING RESULTS FROM FLARE STACKS IN MARCH 2017 TEP Flare Stack Parameter (Unit) Standard - ORF Opacity % 40 <20

OPERATOR’S EHS REPORT TANGGUH LNG

A.1.2.2 PRODUCED WATER AND OILY CONTAMINATED WATER

Wastewater analysis is conducted at an accredited external laboratory on a monthly basis and its debit is recorded on a daily basis. Table 8 shows the produced water monitoring results throughout the January - June 2017 reporting period. As shown in Table 8, generally the parameters trend to be stable and Comply. Effluent load for all parameters are Comply with the wastewater discharge to sea permit no 125 year 2013.

TABLE 8 PRODUCED WATER MONITORING RESULTS Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 7.78 8.60 7.46 8.33 8.7 8.81 O & G mg/L 20 <0.5 0.9 <0.5 0.9 <0.5 <0.5

NH3N mg/L 5 3.4 2.1 4.60 1.63 0.08 4.85 Phenol mg/L 1 <0.001 <0.001 <0.001 <0.001 <0.001 0.011 Total Temperatur ºC 40 31.7 31.2 30.90 28.9 30.3 29.80

H2S mg/L 0.5 <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 COD mg/L 200 38.0 35.0 47.00 37 17 25.00 Rad. 30 m Methanol mg/L maxsimum <1 <1 <1 <1 <1 <1 100 mg/L

OPERATOR’S EHS REPORT TANGGUH LNG

A.1.2.3 CHEMICALLY CONTAMINATED WATER

The chemically contaminated wastewater is treated in the neutralization pit to normalize the pH level between 6 and 9 as per Tangguh AMDAL and MoE permit No.125 of 2013. It is then discharged at the -13m LAT discharge outfall. Analysis results from January - June 2017 show that all parameters are Comply with applicable regulations, as indicated in Table 9.

TABLE 9 CHEMICALLY CONTAMINATED WATER MONITORING RESULTS Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 8.14 7.6 7.88 8.14 7.57 6.9 COD mg/L 200 4 3 11 4 5 4 TSS mg/L 100 <1 <1 <1 <1 <1 1 Antimony mg/L <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 Arsenic mg/L <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 Beryllium mg/L <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 Cadmium mg/L <0.0001 0.0003 <0.0001 <0.0001 <0.0001 <0.0001 Chromium mg/L <0.001 0.007 <0.001 <0.001 <0.001 <0.001 Copper mg/L 0.008 0.006 0.009 0.008 0.007 0.013 Lead mg/L <0.001 <0.001 <0.001 <0.001 <0.001 <0.001

Mercury mg/L <0.00005 <0.00005 <0.001 <0.00005 <0.00005 <0.00005 Nickel mg/L <0.001 <0.001 <0.001 <0.001 <0.02 <0.001 Selenium mg/L <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 Silver mg/L <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 Thalium mg/L <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 Vanadium mg/L <0.001 <0.001 <0.001 <0.001 0.001 <0.001 Zinc mg/L 0.0232 0.029 0.027 0.01 0.019 0.015 Total toxic Total mg/L metals < 5 0.0277 0.0076 0.0096 0.02615 0.02715 0.00815 metal mg/L

OPERATOR’S EHS REPORT TANGGUH LNG

A.1.2.4 BRINE WATER

In accordance with Tangguh AMDAL and the wastewater discharge to sea permit no. 125 year 2013, only pH and salinity will be monitored with regards to brine water. In this reporting period, the parameters were all Comply with the permit requirements.

TABLE 10 BRINE WATER MONITORING RESULTS Monitoring and Calculation Result Parameter (Unit) Location Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH Desalinasi 6 - 9 8.55 8.48 8.40 8.39 8.53 8.58 pH RO 6 - 9 6.60 7.68 7.45 8.42 7.8 7.73 exclusion Salinity 0/ 30.2 26.9 26.9 24.3 25 24.7 00 zone

30 m from 0 Salinity /00 discharge 29.1 27.2 26.5 24.5 24.2 24.9 location

30 m from Rad. 30 m discharge maksimum Salinity 5% % location and -3.78 1.10 -1.51 0.82 -3.31 0.80 Increment dari salinitas exclusion exclusion zone zone

OPERATOR’S EHS REPORT TANGGUH LNG

A.1.2.5 SEWAGE

Treated effluent from the Sewage Treatment Plants (STP) is sampled and analyzed at the discharge points prior to being discharged to sea at the -13m LAT common outfall at the LNG jetty. The effluent discharge is monitored and the result is compared with the standards in Tangguh AMDAL and the wastewater discharge to sea permit no. 125/2013. All analysed parameters are Comply with the requirements in this reporting period, as shown in Table 11 - 13.

TABLE 11 SEWAGE MONITORING RESULTS FROM STP UTILITY

Parameter (Unit) Standard Monitoring Result STP Utility Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 7.6 7.31 7.59 7.37 7.5 8.14 BOD mg/L 100 35 25 35 18 25 14 TSS mg/L 100 21 9 17 3 23 17 O & G mg/L 10 4.2 2.6 3 0.7 <0.5 1

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TABLE 12 SEWAGE MONITORING RESULTS FROM STP A Monitoring Result at STP A Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 7.01 7.5 7.52 6.71 8.24 7.35 BOD mg/L 100 60 47 85 38 86 46 TSS mg/L 100 49 33 43 14 51 15 O & G mg/L 10 6.4 4.9 3 1.6 3.9 1

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE 13 SEWAGE MONITORING RESULTS FROM STP C Monitoring Result at STP C Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 6.5 7.5 7.95 7.26 7.81 7.79 BOD mg/L 100 11 18 54 33 28 34 TSS mg/L 100 10 3 50 20 22 33 O & G mg/L 10 2.1 <0.5 3 1.8 1.3 2

A.1.2.6 SEAWATER

Seawater monitoring was conducted twice during the reporting period (February and June 2017) at 4 locations at 30 m and 100 m upstream and downstream discharge locations, as shown in Attachment 1. It was found that some parameters i.e. Turbidity, Nitrate and Total Phosphorus were above the regulatory limit. Exceedances of these parameters have been observed in Tangguh Integrated AMDAL (2002) baseline data as well as in the updated environmental baseline information in the wider Bintuni Bay region conducted in 2012/2013.

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TABLE 14 SEAWATER MONITORING RESULTS THAT EXCEED THE REGULATORY STANDARDS (GOVERNMENT REGULATION NO. 51/2004 MARINE BIOTA) Parameter Unit Concentration Reg. Std. Remarks Turbidity mg/L 14 - 149 <5 Turbidity in almost all nearshore sampling location in wider Bintuni Bay (2012/2013) was observed to be higher than standard (7.7 – 183 NTU) Nitrate mg/L 0.04 - 0.084 0.008 Nitrate in almost all nearshore sampling location in wider Bintuni Bay (2012/2013) was observed to be higher than standard (0.019-0.288 mg/L) while in AMDAL 2002 baseline range from 0.007 – 0.129 mg/L, indicating that this is natural condition for Bintuni Bay Total Phosphorus mg/L 0.013 - 0.109 0.015 Total Phosphorus in almost all nearshore sampling location in wider Bintuni Bay (2012/2013) was observed to be higher than standard (0.005- 0.323 mg/L), indicating that this is natural condition for Bintuni Bay

A.1.2.7 DRAINAGE AND SURFACE WATER

In accordance with the wastewater discharge to sea permit no. 125 year 2013, water quality in the open drainage shall be monitored in three areas: ORF, Utility and MCB. Two parameters were analysed on a monthly basis as per the requirement, TOC and Oil & Grease, and both parameters for all area were found to be Comply and far below the regulatory standards, as seen in Table 15 - 18. Additional parameters, which are pH, DO, TDS and TSS, were monitored in February and June 2017 as per the AMDAL requirement and found to be within the regulatory limits.

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TABLE 15 DRAINAGE WATER MONITORING RESULTS IN THE ORF Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

TOC mg/L 110 1.7 1.7 4.2 4.5 5 5.1

O & G mg/L 15 <0.5 <0.5 <1 <0.5 <0.5 <0.5

TABLE 16 DRAINAGE WATER MONITORING RESULTS IN THE UTILITY Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

TOC mg/L 110 1.4 2.1 3.1 4.4 4.2 4.2

O & G mg/L 15 <0.5 <0.5 <1 <0.5 <0.5 <0.5

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TABLE 17 DRAINAGE WATER MONITORING RESULTS IN THE MCB Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

TOC mg/L 110 1.8 1.9 6.6 3.6 6.2 4.2

O & G mg/L 15 <0.5 <0.5 <1 <0.5 <0.5 <0.5

Quarterly surface water monitoring waste conducted at the creek near new landfill area. The creek is downstream of Drainage water from Utility and MCB area. The result of surface water monitoring in Quarter 1 and 2 of 2017 comply with surface water quality as per Government Regulation 82 of 2001 class2.

TABLE 18 QUARTERLY SURFACE WATER MONITORING RESULTS IN CREEK AT NEW LANDFILL AREA Monitoring Result Reg. Parameter (Unit) Standard Quarter 1 Quarter 2 2017 2017 O & G mg/L 1 <0.5 <0.5 TOC mg/L - 6.2 5.4 pH 6 - 9 7.47 7.57 TSS mg/L 50 5 14 DO mg/L 4 4 4

A.1.2.8 NON-HAZARDOUS WASTE

Non-hazardous waste management is done in accordance with the commitments in the Environmental Management and Monitoring Plans and recorded. Volume of non hazardous waste generated is presented in Table 19. The waste volume is higher than previous period due to Major Maintenance (TAR 8) activity and increment of Tangguh Expansion Project.

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE 19 NON HAZARDOUS WASTE VOLUME

Waste Generated Tonnes Waste Type Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Food 45.0 44.6 51.5 62.6 64.1 58.8 Combustible 46.7 42.0 46.7 45.9 55.7 46.4 Recycle 2.9 2.4 2.5 3.6 3.3 3.3 Inert 6.9 4.1 5.7 15.5 11.3 6.8 Wood 23.6 21.8 16.5 17.0 24.1 2.7

Waste in Tangguh is segretated into 5 categories. Each category is segregated, treated and disposed as follow: a. Organic/food waste : composted and landfilled b. Combustible waste : incinerated in non hazardous incinerator c. Recycle waste : shredded and compacted prior shipped to external. d. Inert waste : Landfilled. e. Wood waste : chipped and used as compost material. f. Hazardous waste : temporary stored prior shipped to licenced external company.

Emission monitoring at Non hazardous waste was conducted in March 2017. All parameter meets the standard. Dioxin dan Furan was not monitored in this period. Refers to regulation, dioxin dan furan monitoring perion are evenry 5 year.

Groundwater quality monitoring was sampled at 4 ground water station around operated Landfill area in March 2017. Most of parameter meets the standard. There were several parameters, such as Total Phosphorus, Manganese, BOD and COD higher than standard. This condition was monitored at upstream station (BH-N6R) and some downstream station.

TABLE 20 RESULT OF EMISSION MONITORING OF NON HAZARDOUS WASTE INCINERATOR

Monitoring Regulation AMDAL Result of Non Parameter (Unit) P 70/2016 Standard Hazardous Standard Incinerator Nitrogen Oxides NOx mg/Nm3 1000 470 152.00 3 Sulfur Dioxide SO2 mg/Nm 800 210 <1 3 Hydrogen Sulphide H2S mg/Nm 35 5 <0.1 Hydrogen Chloride HCl mg/Nm3 N/A 10 <2.5 Hydrogen Fluoride HF mg/Nm3 N/A 2 <0.1 Carbon Monixide CO mg/Nm3 N/A 625 246 Total Particulate TPM mg/Nm3 Matter N/A 120 41.9 Mercury Hg mg/Nm3 N/A 3 <0.002

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE 21 GROUND WATER MONITORING AT LANDFILL

Groundwater Station

Parameter Unit Standard BH - N6R BH - N2 BH - 3 BH - N5 Upstream pH (Field) S.U. 6.0-9.0 6.97 6.38 7.16 7.09 Total Dissolved Solids, TDS mg/L 1000 806 466 562 826 Chloride, Cl- mg/L 600 8.9 11.9 9.6 7.1 Sulphate, SO4 2- mg/L 400 148 224 94 281 Sulphide as H2S mg/L 0.002 <0.001 <0.001 <0.001 <0.001 Nitrate, NO3-N mg/L 10 0.528 0.005 0.263 0.150 Nitrite, NO2-N mg/L 0.06 0.010 0.003 <0.001 0.002 Total Phosphorus as P mg/L 0.2 0.677 0.393 0.019 0.048 Dissolved Metals : Arsenic, As mg/L 0.05 0.0012 <0.0005 0.0010 0.0006 Cadmium, Cd mg/L 0.01 <0.0001 <0.0001 <0.0001 <0.0001 Copper, Cu mg/L 0.02 <0.001 <0.001 <0.001 0.002 Iron, Fe mg/L 0.3 <0.005 0.050 <0.005 <0.005 Lead, Pb mg/L 0.03 <0.001 <0.001 <0.001 <0.001 Manganese, Mn mg/L 0.1 0.005 12.8 <0.001 0.445 Mercury, Hg mg/L 0.001 <0.00005 <0.00005 <0.00005 <0.00005 Zinc, Zn mg/L 0.05 0.008 <0.005 <0.005 0.011 Biochemical Oxygen Demand, BOD5 mg/L 2 26 35 3 5 Chemical Oxygen Demand, COD mg/L 10 71 96 11 16 Faecal Coliforms (Field)** CFU/100ml 100 93 29 27 ND

A.1.2.9 BABO

Treated effluent from the Sewage Treatment Plants (STP) is sampled and analyzed at the discharge points prior to being discharged to surface water. The effluent discharge is monitored and the result is compared with the standards in Tangguh AMDAL and the wastewater discharge to sea permit no. 188.4.5/A-40 Year 2014. All analysed parameters are Comply with the requirements in this reporting period, as shown in Table 21.

During this reporting period, ambient air and noise, surface water, seawater and benthos were analysed in June 2017 and all parameters were Comply with the regulatory standard.

OPERATOR’S EHS REPORT TANGGUH LNG

TABLE 22 SEWAGE MONITORING RESULTS FROM STP BABO

Monitoring Result Parameter (Unit) Standard Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 pH 6 - 9 7.3 7.16 6.98 7.20 6.89 7.57 BOD mg/L 100 49 45 23 56 28 58 TSS mg/L 100 7 21 5 1 7 10 O & G mg/L 10 4.2 5.2 2 5.3 2.2 5.1

OPERATOR’S EHS REPORT TANGGUH LNG

A.2 SOCIAL ASPECT

A.2.1 IMPLEMENTATION

This section below provide udpates on the implementation of RKL and RPL on social aspect as stipulated in the AMDAL document during the operation throughout the period of January to June 2017. This is an integrated AMDAL report which covers the Trains 1 and 2 operations, and the Train 3

Environmental Compliance Impact to Source of Impact Success Indicator Social Management Plan Social Monitoring Plan Remarks Status Manage Demographic Job opportunities and a. The availability of a. Conduct social survey and • Completed. Social census and The social census activity was Comply (Migration, business opportunities Socio-Economic and census in 2016 survey conducted in early 2016. conducted in order to Population during the operation phase population data There were 3,497 households in 8 understanding the current Structure and due to workforce b. Conducting a study of b. (i) Implement governance districts were participated. The next population figure, migration Population recruitment and incoming migration program by providing social census is planned in 2019. pattern and social economic Growth) demobilization activities and its negative impact mentoring for the Local • There were 28 government official parameters trend in the c. Functioning of Government of Teluk Bintuni of Fakfak regency trained on good villages surrounding of the population control and Fakfak Regencies on project. PSKK UGM has

governance implementation and system governance principals issues population management. appointed to commence this d. Indigenous People lead (ii) Delivering a refresher • Involved a local CSO organizations activity. the village training for civil society (Yayasan Sianiri) in Babo and development process organization Dimaga Foundation to partipated in The capacity building for local e. Availability of Civil a workshop on CSO, to update them governments was involving Administration and about CSO regulation and Kemitraan team Information System introduction of oil and gas industries.

Workforce Job opportunities for a. Strategies for a. Tangguh LNG will require its • Tangguh LNG Train 3 contractor has • Until July 2017, 177 Potential Not Indigenous People and workforce recruitment contractors to develop developed strategic plan and Indigenous People hired by Comply local community due to and demobilization in recruitment strategy for document for Papuan workforce, Ta“gguh LNGs Trai“ 3 workforce recruitment and operation phase Indigenous People, Bintuni- including Indigenous People contractors. demobilization b. Graduates from Fakfak, West Papua, Papua, o Workforce Recruitment and Although Tangguh has selected Indigenous and National Demobilization for Local prioritized Indigenous People to continue b. Tangguh LNG will require its Papuan Procedure People to involve in T3 higher education in contractor to enforce o Workforce Management Plan project and fulfill AMDAL leading university in workforce recruitment with o Local Content commitments, there was Papua and National prioritizing local Indigenous o Grievance Procedure and increasing job requesting based on accreditation People, Bintuni, and Fakfak, Settlement Guideline demand from the issued by Directorate West Papua, Papua, and Those documents covered strategic communities. of Higher Education National and plan for local workforce, c. Achieved the target of c. Tangguh LNG will require its including indigenous people, hiring, • Close coordination with workforce percentage contractor to develop Papuan mobilization and demobilization, Local Workforce complies with workforce in order to increase workforce grievance, and upskiling Department of Teluk workforce table their skills their skills through plan for local hiring. Bintuni and Fakfak Regency

OPERATOR’S EHS REPORT TANGGUH LNG

d. At the end of contract, by giving them opportunity to has been conducted. workers accept their participate in trainings Socialization regarding job rights and are d. At the end of employment opportunity has been demobilized to their contract, Tangguh LNG will conducted in targeted previous point of hire require its contractor to villages. demobilize its workers to their previous point of hire Tanguh project team and its contractor have been carried out serial meetings in the villages to familiarize the T3 activities, its impact, as well as to explain the workforce recruitment procedure. However, according to the lenders requirement, Tangguh team should conduct a meaningful process.

Tangguh will continue to engage its contractor to prioritize indigenous people in T3 workforce recruitment, as well as their skill development for the future as stipulated in the AMDAL commitments.

Changes in Local Job opportunities and c. Absorption of local a. Implement stocking point • Continue to maintain community The livelihood and IEDP Comply Business business opportunities products from program in 8 villages participation in Tangguh supply program has a collaboration Growth, during operation phase agriculture and fisheries chain program through 8 stocking with PUPUK and local Changes in due to workforce sector; data of local b. Conduct business mentoring points program in TMB, Saengga, universiities (UNIPA, and livelihood recruitment and products of agriculture for local entrepreneur through Babo, Tofoi, Taroy, Weriagar, UNCEN) to implement the patterns and demobilization and fisheries sectors IEDP program. Arguni and Bintuni. The stocking activities. level of income absorbed from the points provided fresh vegetables, villages in surrounding fruits and fisheries products. Total area od Tangguh LNG supply during this period, both for b. Indigenous People get operation and project was 145 the capital access and tonnes (worth US$ 277,400). business loan • As a part of the stocking points c. The formation of program, the project also provided business administration support technical assistance of local products includes:

OPERATOR’S EHS REPORT TANGGUH LNG

marketing in the market • Facilitated papaya cultivation located in and outside development in Babo involving Bintuni Bay Region one IP. Since June 2017, the d. The availability of papaya products have been intermediate supplied to Tangguh catering good/service which offer through the community services for Tangguh cooperative. LNG • Distributed agriculture equipment e.Percentage of including seed and soil fertilizer contribution of local in Tofoi, TMB, Saengga, and Onar government revenue to support stocking point derived from economic program. activities centered on • Facilitated new rice cultivation Tangguh LNG development in Tuhiba with total development reached a 27 hectare area and is expected to increase rice production. The program involving 27 local farmers.

• 37 Indigenous People business entities received mentoring on business development for various issue including business development, financial and tax reporting, and procurement requirement. • Two indigenous mentees registered as BP vendors for stationaries supplies in Tangguh including TEP for the next three years.

Assimilation, Job opportunities and a. Note taken from regular a. Support community to • There were 21 people from Sumuri The adat ceremony for Comply Acculturation, business opportunities art and cultural activities participate in cultural festival and Sebyar Clans participate in ground breaking event in Changes in during operation phase in art and cultural center Danau Sentani Cultural Festival in TMB attended by the regent Social Values due to workforce of Indigenous People Jayapura. During the festival they of Teluk Bintuni. He and Norms, recruitment and b.Development of performed traditional dances and expressed apreciation of the Changes in demobilization traditional houses in the folk songs. The activity was partication of the soway clan Cultural Heritage selected villages facilitating by Melanisian Study and provided full support to c. Activities of Art and Center, University of Cendrawasih. the T3 project commencemtn cultural promotions with • Facilitated soway clan to perform economic value adat ceremony during T3 ground breaking event in TMB in May 2017.

OPERATOR’S EHS REPORT TANGGUH LNG

• Facilitated the representative of Mbaham-Mata & Irarutu tribe in Festival Danau Sentani on 19-23 June 2017 Community The operation phase of a. Notes from public a. Conduct regular visit to the • The comrel team visited the village Comply Perception and LNG Plant activities consultation with local village and community to regularly to update both operation Social Tension including workforce, community update the operation and project progress. The activities related to the business opportunities due b. Notes from public activities conduted during Ramadhan. We impact of to workforce recruitment consultation with local also invited key stakeholders from Tangguh LNG and demobilization government b. Facilitate Tangguh the villages to visit Tangguh LNG activities, c. Functioning of grievance stakeholders visit to LNG site site and to have update about the namely procedure for local project. workforce, community c. Manage community • Conducting AMDAL and TSDP business d. The establishment and grievance socialization in Kokas, Fakfak opportunities, on functioning of the Regency. More then 50 people fishery activity Stakeholder Forum in attended the socialization from 4 and sea Bintuni Bayand Berau districts. transportation Bay • Continue to manage community accessibility grievance. During January – July disturbances, 2017, there were 25 grievance and submitted by the local communities seawater through grievance procedure. Most intrusion. In of them (18) are requesting for job addition, the opportunity during TEP. growing expectations of community also needs to be managed considering the impact that community expect greater benefits from Tangguh LNG, such as education program, health program, livelihood program, Papuan entrepreneurship program, and

OPERATOR’S EHS REPORT TANGGUH LNG

Papuan development program, revenue-sharing (DBH), adat recognition, gas to power, electricity for community, housing development, expansion area, expansion of the coverage area of social programs and infrastructure improvement on a large scale. Marginalization Social competition a. The main beneficiaries a. Implement livelihood program • Continue to implement livelihood Comply of Indigenous between Indigenous of social program is in the villages program targeting indigenous People and People and new settlers Indigenous People b. Provide business mentoring people on earning activities. During vulnerable group b. Activities of Art and for IP business development this reporting period, several outputs cultural promotion with through IEDP program achieved including: economic value a. Maintain supply chain program c. Indigenous People and from 8 stocking points to vulnerable group have Tangguh. access to livelihood b. Trained 40 indingenous women program in Arguni, Taver, Andamata, Furir and otoweri on fisheries processing product such as nugget and salted fish. c. Provided equipment for salted fish processing to Weriagar and Otoweri fishermen.

• Provided business mentoring for Indigenous people through IEDP program includes: a. Mentoring on business development to 37 mentees for various issue including business management, financial and tax reporting, and

OPERATOR’S EHS REPORT TANGGUH LNG

procurement requirement. b. Two indigenous mentees registered as BP vendors for stationaries supplies in Tangguh including TEP for the next three years. c. The SUBITU Karya Teknik received award as subcontractor from ELNUSA for AC maintenance in Tangguh site. The project will be started in July 2017.

Decline in Job opportunities and a. Tangguh LNG a. Implement basic education • Continued. During this reporting To achieve the education Comply Access to Public business opportunities contribution in program including (i) training period, the education program has objectives, there are several Service during operation phase infrastructure for local government official, delivered some outputs towards the implementing partners including due to workforce development in villages local education foundation quality on basic education: namely Cardno-Provisi, Education recruitment and in area surrounding and teachers on education a. Provided school equipment (chair UNIPA and UNCEN mobilisation which Tangguh LNG issues; (ii) mentoring for and table) for Junior High School emerge honey pot b. Students derived from schools in Weriagar District. The support syndrome; influence new Indigenous People have b. Provide scholarship for will be continued to the next settler and their families to access and service to student from selected period. settle in villages in area obtain good education Indigenous People b. Conducted coaching on school surrounding Tangguh LNG as well as quality of c. Facilitate a flagship school development to targeted 15 operation site education significantly development in TMB schools in Teluk Bintuni and c. Development of flagship Fakfak regencies. schools c. Facilitated the establishment of teachers working group and network in Sebyar District, involving 13 schools and 105 teachers. d. Facilitated the establishment of teachers working group and network in Fakfak regency, involving 1 school and 20 teachers) e. Facilitated development of teacher working group in Babo. f. Continued to maintain additional teachers to support learning in schools and improve student participation in the villages. During the reporting period we have 37 full-time teachers staying

OPERATOR’S EHS REPORT TANGGUH LNG

in the villages for a one year period; they are working under the management of YPK, YPPK, and Muhammadiyah. • Tangguh continue to provide scholarship and educational aids for local students at senior high school and university levels. Recently, a total of 225 local students received full scholarships for various program at senior high schools and university levels. Program also conducts regular visit and mentoring for scholarship recipients. Flagship school program is in progress. During this reporting period, program focuses to develop new strategy and concept that accommodated Teluk Bintuni need.

• Changes in Job opportunities and a. Indigenous People have a. Conduct baseline study on • Health impact assessment Tangguh has one Comply Disease business opportunities access and service to project impact to the public completed in 2016 and the result implementing partner Pattern, during operation phase healthcare appropriate health issues. has been usage for TEP baseline namely Yatima Foundation to Changes in due to workforce with good standard b. Support Local Government information. support the implementation Disease recruitment and b. Hospital in Bintuni program in developing • Continued technical assistance of community health program Prevalence mobilisation which become referral hospital hospital in Bintuni as referral for Babo and Aranday puskesmas activities. • Changes in emerge honey pot and changes into Local hospital in providing emergency services Access to syndrome; influence new Public Service Agency c. Facilitate development of as referral for high risk births Healthcare, settler and their families to c. Controlled the spread Emergency Obstetric Service (PONED). and settle in villages in area and prevalence of in Babo and Aranday • Support for the Bintuni hospital • Changes in surrounding Tangguh LNG communicable diseases d. Conduct malaria control continued particularly in Environment operation site in villages surrounding program technical matters. The hospital al Health Tangguh LNG operation e. Support mother and child has involved in MCU program for site health program TEP employee, especially from d. Maintaining f. Support TB/HIV prevention Bintuni region. environmental health in program • Malaria control program the destination villages g. Support clean water and continued particularly in 14 of the new settlers sanitation program villages. Prevalence survey and surveillance on malaria completed in TMB, Saengga, Onar, Tomu, Taroy, Tofoi, Aroba,

OPERATOR’S EHS REPORT TANGGUH LNG

and Wamosan. More than 1,600 blood smears were collected and no positive malaria identified. • 151 people with TB symptoms referred for early treatment and diagnosis. • Facilitated 1,985 people for HIV testing at VCT referral services. Eighteen people identified HIV positive were referred to Care Support and Treatmet (CST) services. • 1,800 pieces condom distributed tartgeting high risk groups to prevent the spread of HIV due to unsafe sex.

OPERATOR’S EHS REPORT TANGGUH LNG

A.2.2 IMPLEMENTATION

This section below provides udpates on social commitments as stipulated in the Tangguh Social Management as a part of AMDAL document for period January – June 2017. It covers Trains 1 and 2 operations, as well as Train 3 construction project. The achievements captured in this section focus on the progress of the five year deliverable AMDAL commitments as desribed in the Tangguh Sustainable Development Program (TSDP).

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation Programs Public For the next five years, The Tangguh community health program aim to The community health On Track to support Health there were several outcome 1. To improve community health services, support the local government to improve the quality of program remained Tangguh Program indicators set out under Tangguh LNG has committed to support health in this region. The program actively encourages focused on activities in LNG public health program, the local government to: relevant key stakeholders to increase awareness on Teluk Bintuni Regency. Operations including: • Improve services at the Bintuni General public health issues as well as to access basic health The local government 1. The quality and access Hospital to enable referral to the hospital. services. Main activities include providing continued has fully supported of of community health • Develop primary health care units in the technical assistance for health providers to improve the Tangguh initiative on services North and South shores of Bintuni Bay, as and strengthen their capacity in treatment this program. Since (clinics/Puskesmas and well as in Kokas District. management; promoting healthy behaviour in the 2015, integration hospital) • Improve the capacity (quality, quantity community; increasing participation in prevention planning between 2. Incident rate for main and distribution) of medical personnel, programs, as well as supporting access to basic health Tangguh and the local diseases (malaria, HIV especially Indigenous People. services. government has been and TB) in communities • Improve health facilities management in started including cost around Tangguh LNG the Community Health Centres Some activities conducted between January until June sharing for program and increase in (Puskesmas), hospitals and the local 2017 were: execution as a part of community members Health Office. i’p‘e’e“tati”“ w”rk applying a healthy • To improve community health services quality and with pri“cip‘e. lifestyle. 2. To reduce the incident rates of malaria, access: 3. Ratio of community HIV/AIDS, TB and increase community - Continued technical assistance to five with access to clean awareness of a healthy life style, Puskesmas including Babo, Aranday, Tofoi, water and sanitation Tangguh LNG will support the local Bintuni and Manimeri in providing emergency facilities government to: services as referral for high risk births (PONED). (toilets/bathrooms and • Encourage behaviour change in The activity includes conducting regular visit by household waste environmental health, normal delivery the expert for quality assurance and training for disposal) management, nutrition improvement emergency drill. status and reproduction (HIV/AIDS and - Continued technical assistance on malaria and STIs) in the area surrounding Tangguh TB treatment management for health providers LNG operation site. at Puskesmas and Bintuni hospital. • Prevent the spread of main diseases - Trained one laboratory technician in Bintuni to (malaria, HIV and TB) in the area support the quality service of Bintuni hospital. surrounding Tangguh LNG Operation site.

3. To increase community access to clean water and sanitation facilities, Tangguh LNG will support the local government to:

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation • Provide clean water and environmental sanitation for the people living around the Tangguh LNG operation site. Picture: Technical assistance for PONED program

• To reduce the incident rates of malaria, HIV & TB, and to increase community awareness of a healthy life style: - Conducted prevalence survey and surveillance on malaria in TMB, Saengga, Onar, Tomu, Taroy, Tofoi, Aroba, and Wamosan. More than 1,600 blood smears were collected and no positive malaria identified. - Conducted investigation and malaria screening in TMB to 631 people; after eight malaria cases reported in the village. - Conducted malaria survey involving 49 migrant workers in Babo. - Facilitated investigation malaria transmission in Manimeri District. - Distributed insecticidal nets to logging workers in Botay to anticipate malaria transmission from border area. - Repackaged and distributed malaria medicine to community health centres. - Conducted refresher training on malaria program and surveillance for two new malaria facilitators in Bintuni Township. - Provided technical assistance to improve the quality of malaria surveillance reporting to health clinic in Bintuni, Lidwina, and Manimeri.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation

Picture: Malaria posters

• Conducted refresher training on malaria program for entire staff of Bintuni hospital including management, doctor, nurse, and pharmaciest and laboratory technician.

• Continued to support mother and child health (MCH) program involving 27 Posyandu in the villages surrounding Tangguh. During this reporting period, there were several outputs include: - Providing technical assistance for health providers to improve MCH service. - Facilitating the establishment of referral system on mother and child emergency cases with private sectors. - Weighing and scaling of children under 5 years old. On average, more than 870 children below the age of five participated every month or 79% of the total children targeted. - Monitoring of children nutrition status; and providing additional meals 13 children with malnutrition in average per month; - Providing immunization access for children; - Referred one emergency pregnancy case to Bintuni hospital;

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation - Continued awareness program to pregnant women on health lifestyle and access to health services ahead of delivery;

Picture: Reporting system on children nutritional status during mother and child health program in Posyandu

• Continued diarrhoea surveillance in the villages. As many 116 diarrohea cases recorded and no mortality case reported. During this period there is increasing diarrhoea cases reported due to dry season. • Provided continued technical assistance on the implementation of screening for TB and HIV for community and pregnant women. • Implemented pilot program for TB screening in Taroy in collaboration with Bintuni Health Regency Office • Continued to facilitate TB prevention programs in several villages, particularly in TB endemic areas. Activities include (i)) TB education session to the community involving more than 440 people on average every month; (ii) referred 151 people with TB symptoms for early treatment and diagnosis, and (iii) monitored and supported treatment for 18 people with TB positive. • Facilitated regular meeting of HIV working group involving Babo, Bintuni and Manimeri Puskesmas. This is to update and share the HIV situation in each district.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation • Conducted regular awareness on HIV and AIDS prevention and treatment, involving more than 2,900 people including from communities and high risk group. The program also distributed 1,800 pieces of condoms to 126 people in high risk behavior.

Picture: Health awareness session on TB to community

• Facilitated 1,985 people for HIV testing at VCT referral services. Eighteen people identified HIV positive were referred to Care Support and Treatmet (CST) services. • Distributed condoms to high risk groups to prevent the spread of HIV due to unsafe sex.

• To increase community access to clean water and sanitation, during the reporting period Tangguh LNG supported the local government to: - Conduct regular awareness sessions on personal hygiene and clear water. On average more than 1,400 people participated in the event every month including students, parents, and community and health cadres.

Local According to the AMDAL, 1. Supporting development of agriculture Ta“gguhs ‘”ca‘ ec”“”’ic deve‘”p’e“t pr”gra’ ai’ T” Ta“gguhs ‘”ca‘ On track Economic there were several and fisheries and market network to create multiplier benefits for Teluk Bintuni and economic development Developme commitments indicators development for local products, Tangguh Fakfak Regencies, as well as support sustainable activity is one of the nt under local economic LNG will support the local government development in the region. The program builds programs in the development program. to: opportunities for economic activities among livelihood restoration Below are the main • Develop a broader marketing network indigenous people for increasing their income and program. This program

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation indicators set out for the for the local products produced by the welfare. The program combines the previous Tangguh was design to ensure the short term: Indigenous People. Livelihood program targeted at the primary sector, with income of indigenous 1. Supporting facilities/ • Optimise the absorption of local the Business Incubation program that focus to enhance households and the infrastructure for products in agriculture, fisheries, indigenous entrepreneur capacity. community surrounding agricultural, fisheries foods, and others. the LNG plant is not and other production The Tangguh Indigenous Enterprise Development adversely affected. There activities of selected 2. To increase the capacity and numbers of Program (TIEDP) targets Indigeous People (IP) to are two kinds of activities Indigenous People from available financial institutions that can be improve entrepreneurship and become involved in the in the IEDP which are areas surrounding accessed by Indigenous People, Tangguh business supply chain, not only at Tangguh but also defined by business type Tangguh LNG Operation LNG will support the local government in the wider industries. and scope, namely the site and market network developing community-based economic Primary sector and the development for local institutions that are already available for To achieve the economic program commitments there Secondary sector. products. the Indigenous People. were several activites completed during this reporting 2. Increase capacity and period, The Primary sector is numbers of available 3. To improve capacity strengthening for 1. To strengthen agriculture and fisheries programs in focused on agricultural financial institutions Indigenous People in managing micro the community programs in the south that can be accessed by enterprises, Tangguh LNG will support • Facilitated papaya cultivation development in shore region, while the Indigenous People the local government to: Babo involving one IP. Since June 2017, the fisheries program is 3. Capacity strengthening • Develop of micro enterprises run by papaya products have been supplied to Tangguh implemented in north program for Indigenous the Indigenous People and increase catering through the community cooperative. shore region. The main People in managing their participation. • Facilitated soy bean plantation in Beimas district objective of the primary micro enterprises • Provide capacity building for women involving 22 indigenous people farmers. sector programs is to Indigenous People in developing their • Distributed agriculture equipment including seed fulfil community needs The outcome indicators household enterprises or other and soil fertilizer in Tofoi, TMB, Saengga, and on food and nutrition. below are set out for the enterprises. Onar to support stocking point program. When these needs are long term (achieved within 4. Tangguh LNG will help a number of • Distributed agriculture equipment including seed met, they can sell the 30 years): selected Indigenous People in building and fertilizers to community in Weriagar, remaining agricultural 4. Diversity of enterprises capacity to earn income or activity- Mogotira, Taroy, Tomu, Ekam, Otoweri and and fisheries products to run and managed by generating revenues, especially skills Tomage to support agriculture subsistence Tangguh or local market Indigenous People in related to natural resource-based program. for additional income. Bintuni and Fakfak activities, in which the Indigenous People • Facilitated new rice cultivation development in Since 2008, communities 5. Number of indigenous have the traditional knowledge. Tuhiba with total development reached a 27 in the villages enterprises compared 5. Tangguh LNG supports integrated efforts hectare area and is expected to increase rice surrounding Tangguh with non-indigenous to develop the manufacturing, services production. The program involving 27 local have supplied their enterprises and supporting business that are farmers. agriculture and fisheries 6. Number of indigenous integrated and synergized with Tangguh • Facilitated an assessment of nutmeg cultivation products through seven enterprises and LNGs ”perati”“ i“ the long term. in Fakfak regency. stocking points. In transactions generating 6. Tangguh LNG provides support to addition, to a profit in Bintuni and entrepreneurs from the Indigenous • Trained 40 indingenous women in Arguni, Taver, accommodate Saengga Fakfak People and Papua to participate in local Andamata, Furir and otoweri on fisheries community request to 7. Number of business economic activities, including efforts to processing product such as nugget and salted have directly access in persons, particularly create and train businesses as well as supply chain program to indigenous and new fish.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation entrepreneurs, in develop entrepreneurship. • Provided equipment for salted fish processing to Tangguh catering, we Bintuni and Fakfak 7. Tangguh LNG supports local government Weriagar and Otoweri fishermen. facilitate a new stocking winning tenders to supply goods and efforts to make and implement policies as point establishment in services to Tangguh local economic drivers that are 2. To increase the capacity of local institutions: Saengga. Recent LNG synergized with long term business • Provided continue technical assistance to the monitoring showed that 8. Trends in volume of development needs, which are partial to community stocking points in order to maintain total supply of sales, income and turnover the interests of Indigenous People. Tangguh supply chain including: agriculture and fisheries 9. Information on - Completed national registration for 6 local products from employment cooperatives. communities to Tangguh opportunities shared with indigenous people - Developed a new contract between Indocater catering during the last and numbers employed a“d the Tar”y C””perative f”r ”“e years five years was 2.130 10. Number of new worth of shrimp products. The cooperative tones or equivalent with entrepreneurs has no activity since June 2016 due to more than US$3.6 increasing the scale of their business management restructurization. million). 11. Indigenous community - Facilitated annual meetings of the perceptions of the cooperative member including Mayeri in The Secondary sector is Company as positively the Business Incubation affecting their self- TMB, Rajabeferal in Babo, and Imuri in Tofoy. reliance program, which replaced 12. Number of new youth 3. To provide entrepreneurship opportunities for the Birds Head Busi“ess entrepreneurs Indigenous People: Empowerment Program

• Installed and commisioned of one unit cold (BHBEP) established with

storage for Mayeri cooperative in TMB. the previous AMDAL. It

• Continued technical assistance for minimarket targets Indigenous

development in TMB as a part of the Mayeri People in Bintuni to run a

Cooperative business expansion, including business and participate

management training in the local supply chain

• Total supply of local agriculture and fisheries business, including at

products from the eight stocking points during the Tangguh project.

January until June 2017 is 145 tons (worth

US$277,400). Compared the same period last

year, there is increasing number of local product

supplied to Tangguh due to early work TEP

activities.

• Facilitated internship program of six Papuan

students who join business schools in Surabaya, East Java, and Bandung, West Java.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation

Picture: Internship for youth entrepreneurship program

• In collaboration with BNI, the economic team deve‘”ped h”use creative pr”gra’ (ru’ah kreatif) involving Fakfak outlet. The program aims to develop business central in Kokas region and to empower the local in micro-enterprise program.

4. Supported indigenous people to develop manufacturing, services and supporting business that are integrated and synergized with Tangguh LNGs ”perati”“. • Continued technical assistance for the three indigenous businesses (Subitu Karya Busana – garment business, Subitu Karya Teknik - AC maintenance business and Subitu Inti Konsultan - business development service) including (i) training on business marketing; (ii) recruited one additional staff to support administrative aspect in SUBITU, and (iii) skill enhancement in design and sewing. In February 2017, the Subitu garment business and Subitu AC maintenance launched it branch in Sorong to expand their market. • Recently, Subitu Karya Teknik – AC maintenance business, signed business contract with PT ELNUSA as Tangguh sub contractor for AC maintenance. The project will be started in July 2017. • In collaboration with ILO, the team trained 6 Papuan Youth on home appliance air conditioner installation and repairing in Bintuni.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation

Picture: AC repairing trainings

• Provided technical mentoring to 37 Papuan businesses in Babo, Bintuni, Tofoi and Simuri (4 of them were lead by women) including on tax and financial reporting, standard operational procedure development, business management development, and requirements of procurement in government sector as well as the oil and gas business. We recorded one company participated in the tender process by Tangguh. • Facilitated on the job training for IEDP Scholarship Waiver in SUBITU businesses • Recruited final year students from Top Tier University for internship program.

Education Program indicators set out 1. Tangguh LNG will support local The Tangguh education program aims to support the Since February 2016, On track and under the education and government efforts in the development of local government to improve basic education quality Tangguh has appointed Training training programs: flagship schools at elementary, junior and increase community access to education. In Cardno-provisi as Program high and senior high school level in five collaboration with Teluk Bintuni Education Office and implementing partner to 1. Flagship school districts across the North and South its implementing partner, Tangguh education team provide technical developed according to shores of Bintuni Bay as well as the Kokas delivered some outputs including: assistance for the Teluk the concept agreed with District. Bintuni and Fakfk local government 2. Tangguh LNG will support the Local 1. Flagship school development Education Offices. The 2. Availability of adequate Government efforts to improve the • Developed new strategy and concept of flagship company will also facilities and existing education infrastructure at school program involving the expert team. support targeted schools infrastructure in schools elementary, junior high and senior high • Conducted a series of meeting with the Bintuni to meet national having a high school levels in the areas surrounding Education Office for flagship school program education standard proportion of Tangguh LNG Operation site. preparation. requirements. Indigenous People 3. To improve student participation levels in students. education, Tangguh LNG will: 2. Improvement of school facilities and infrastructure 3. Student participation • Support local government efforts in • Provided school equipment (chair and table) for levels in education capacity building of the Education Junior High School in Weriagar District. The activities per school Offices to achieve education quality support will be continued to the next period. level standards. 3. Improvement of student participation in education 4. Capacity building • Provide scholarships for outstanding • Conducted coaching on school development to programs for the Teluk students selected from the Indigenous targeted 15 schools in Teluk Bintuni and Fakfak Bintuni Education Office People in senior high schools across regencies. officials in delivering its the areas surrounding Tangguh LNG • Facilitated the establishment of teachers

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation functions and Operation site. working group and network in Sebyar District, responsibilities • Provide financial aid through a involving 13 schools and 105 teachers. (tupoksi); scholarship program for outstanding • Facilitated the establishment of teachers students from selected Indigenous working group and network in Fakfak regency, Outcome indicators below People in the area surrounding involving 1 school and 20 teachers) are set out for the long Tangguh LNG Operation site; Bintuni term commitment Bay, Fakfak and other regions in (achieved within 5 years): Papua to continue their education at 5. Type of skills attained by the university level.

Indigenous • Provide support for several

People/women universities in Papua and West Papu,

6. Education levels such as UNIPA, UNCEN, and USTJ, to

achieved by Indigenous ensure continuity of education for

People/women Indigenous People students. Picture: Training for kindergarten teachers 7. Acceptance rates for • Provide informal education facilities,

indigenous/female SLTA namely vocational trainings, • Facilitated development of teacher working graduates by higher certification and English courses, for group in Babo. institutions/universities Indigenous People to improve their 8. Level of job skills by cooperating with the local • Continued to maintain additional teachers to understanding and government and other stakeholders. support learning in schools and improve student capacity in local participation in the villages. During the education institutions, reporting period we have 37 full-time teachers related to meeting staying in the villages for a one year period; they minimum service are working under the management of YPK, standards YPPK, and Muhammadiyah. 9. Ratio/number of schools • Provided scholarships and educational aids for meeting education local students at senior high school and minimum service university levels. Recently, a total of 225 local standards students received full scholarships for various program at senior high schools and university levels. • Conducted regular visit and mentoring for scholarship recipients. • Facilitated the Bintuni Education Office in developing scholarship program procedure and recruitment involving local education foundations.

4. Capacity building for Education Office officials, local education foundation, and schools: • Facilitated focus group discussion with Fakfak Education Office for school extraculicullar and

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation literacy strategy development, • Trained 166 teachers and school supervisors on various education issues including coaching process, school management, pedagogy, monitoring and evaluation, and instrument assessment in Bintuni and Fakfak Regencies. • Provided technical assistane to 35 teachers for national examination preparation in Sebyar Rejosari and Fior

Picture: Technical assistance for national examination preparation

• Continued technical assistance including school literacy program, and financial reporting for local education foundations including YPK, Muhammadiyah, and YPPK.

Governance To measure the success of 1. To support the increasing of government The Governance Program aims to support Teluk The Governance On track the governance program, personnel performance in planning, Bintuni administration develop a competent, Program is carried out to the following outcome budgeting and administration, Tangguh transparent and accountable government. The program encourage the local indicators were set out: LNG will: includes capacity strengthening for the local government and key • Method and type of • Support the Local Government efforts government, Integrated Community Based Security stakeholders to take a support for increasing in increasing the professional capacity (ICBS), and Civil Society Organization strengthening lead on local government personnel of the officials at the village and district (CSOs). The governance program has an important role development in the performance in planning, levels in areas surrounding Tangguh to ensure the sustainability of Tangguh LNG in the future, as well as to budgeting and LNG Operation site at Teluk Bintuni future. create sustainable administration; and Fakfak Regencies. development in Bintuni • Support in-migration • Support local government in providing For this period, some outputs delivered included: and Fakfak regions. The management; good quality public services to the governance program • Participation levels of people especially on health, education 1. T” supp”rt the g”ver“’e“t ”fficia‘s perf”r’a“ce engages several key

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation Civil Society and public economy at the village, in planning, budgeting and administration: stakeholders including Organizations (CSO), district and regencial levels. • Supported the local government to provided local government indigenous organisations • Comply with the prevailing laws land certificate to 26 resettlement households in apparatus at regency, and local media in regarding anti-bribery and anti- Onar Baru district and village level, planning, implementing corruption, as well as uphold and police and military, and evaluating promote ethical business practices. 2. To support in-migration management: media, NGOs and programs; • Encourage the formation of • Completed social census and survey in 62 communities. • Community initiatives for cooperation forum among villages surrounding Tangguh LNG involving village development; stakeholders in the development and PSKK UGM. The census result will help districts • Level of community expansion of Bintuni Bay and Fakfak and village officials in understanding the current participation in regions. population figures as well as in-migration and Integrated Community social economic trends in the community. The Based Security (ICBS) 2. To support in-migration management, result of social census also has been shared to activities and no human Tangguh LNG will: the local government for their consideration in rights abuses in the • Support local government efforts in planning development process. The next social cases handled around managing incoming migration and its census is planned in 2019 and 2020. Bintuni Bay; impacts including providing continued • Financial aid for housing support to the Civil Administration and 3. To increase participation level of CSO: and other activities from Information System Program (SIAK). • Facilitated clan cultural sites belong to three Tangguh LNG in • Conduct an open forum to periodically clans from resettlement project, Simuna, Weriagar and Tomu discussion the impact of immigration Wayuri, and Siwana. Districts. to the Indigenous People. • Provided mentoring for Sianiri Foundation in Babo on CSO regulation and introduction of the For the long term phase 3. To support CSO strengthening, Tangguh oil and gas industry. (within 5 years LNG will support: • Facilitated and supported the adat community implementation) the • Civil society strengthening in the from Teluk Bintuni to participate in the Danau pr”gra’s achieve’e“t wi‘‘ villages, districts and regencies in the Sentani Cultural Festival in Jayapura. Several be measured by several areas surrounding Tangguh LNG people from Irarutu and Mbaham tribes indicator as below: Operation site. involved. • Government personnel • Support efforts to preserve and understanding of ethics, strengthen the cultural identity and 4. To increase community initiatives for village transparency and values of the Indigenous People in the development: accountability. areas surrounding Tangguh LNG • Facilitated mangrove re-vegetation in Taroy. • Good governance levels Operation site • Completed the renovation of several village with integrity and jettys in Fior, Furir, Darembang, Andamata, capacity relevant to 4. Tangguh LNG appreciates that Taroi, and Wimbro. sector. Indigenous People are affected by • Facilitated religious infrastructures renovation Tangguh LNG activities and will provide direct benefit to Indigenous People in accordance with public consultation processes.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation 5. To implement ICBS, Tangguh LNG will: • Cooperate with related security officers, community and other stakeholders in maintaining the stability of public order and security across the region to support Tangguh LNG sustainable operation activities. • Support the effort to raise public understanding and awareness on prevailing laws and human rights principles in Bintuni Bay and Fakfak Picture: Irarutu tribe participation in Danau Sentani regions. Cultural Festival in Jayapura

6. Tangguh LNG will provide direct benefit to 5. As stipulated in the AMDAL, the CAPs Indigenous People in accordance with public commitment will be implemented only for 10 consultation process. years (2005-2015) and Tangguh will not extend the program. In the new AMDAL CAPs program will be embedded in the local

6. ICBS As part of the ICBS program, the team performed several activities including: • Conducted law socialization on vital objects protection in Kokas with 89 people attended. • Conducted in-house training for Voluntary Principle on Human Right for 100 Local Armies in Papua Barat.

Picture: VPHR in-house Training in Manokwari

7. North shore housing funding assistance The north shore housing program continued to progress. During this reporting period, there were several outputs achieved including: • Together with the local administration (Pemda),

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation Tangguh conducted NSH Socialization at Weriagar District on 18 March. The socialization was led by Teluk Bintuni Vice Regent and attended by related government officials, the Head of the Weriagar District, a member of the Teluk Bintuni House of Representatives who comes from Sebyar, and communities from six villages in Weriagar District. The issuance of a decree by the Teluk Bintuni Regent on the establishment of a North Shore Housing (NSH) Steering Committee and NSH Program Management. • On 17 July 2017 Teluk Bintuni Regent issued a letter for BP to postpone the North Shore Housing (NSH) restoration program following demands from the Sebyar community who requested an adat meeting (gelar tikar adat). BP has responded with a letter dated 27 July, requesting the Regent to honor the cooperation agreement. External 1. Level of community and 1. To build good perception about The external relations team manage the relationship On track Relations stakeholders Tangguh in the community, Tangguh with the key stakeholders at all levels through an understanding about Program Tangguh social programs LNG will: ongoing communication and engagement. This is to 2. Reliable supply of • Support the development for support the stability of Tangguh LNG and maximize electricity for Teluk Indigenous People living in areas benefits of its presence in the bay. The team also Bintuni Regency surrounding Tangguh LNG Operation manages the grievance mechanism process from the site, involving the planning from the communities associated with Tangguh operation and community and local government with project, and continued to preserve local values and focus on sustainable activities. cultures. • Actively build harmonious mutual relationships with all stakeholders with Improved community and stakeholders perception on the principles of equality, partnership, Tangguh by: trust, respect and appreciation. • Conducting AMDAL socialization to community at the community hall in Kokas District where 2. To provide reliable supply of electricity more than 50 community representatives from for the Teluk Bintuni Regency, Tangguh Kokas, Arguni, Tomage and Mbahamdadara LNG will provide power to the State Districts participated. Electricity Company (PLN) taken from the oversupply of LNG plant at 4 Megawatts and will be increased to a maximum of 8 Megawatts in accordance with the ability of Tangguh LNG.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation

Picture: AMDAL socialization event in Kokas District

• Facilitated cemetary visit from villagers from resettled villages inside the Tangguh fence during fasting moth in June 2017. There were 203 people participated. • Conducted Safari Ramadhan in 8 villages, including Kamundan, Tomu, Andamata, Sisir, Otoweri, Tanah Merah Baru, Sidomakmur, and Babo. • Conducted regular visits to districts and villages surrounding Tangguh to update them on the project and to maintain positive relationship with key stakeholders. • Facilitated key stakeholders visit to Tangguh LNG site to update and oversee project activities. They include (i) Lenders and Lenders consultant visit to several villages, including TMB, Onar, Taroi, and Babo. • Participated in community services with district official in Kokas, Sekar, Sisir, Babo and Taroy villages. • Continued support for resettlement villages, including maintaining generator for electricity in Onar Baru and providing in-kind material for community jetty and shelter post renovation in TMB. • Tangguh assisted the Soway clan in Tanah Merah Baru (TMB) to conduct an adat prayer ceremony as a part ofthe Train 3 project startup. activity was fully supported by the local government

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation • Managed community grievances and concerns. During January – July 2017, there were 16 concerns submitted by local communities (most of them from Indigenous People).

Electricity program: In fulfilling AMDAL commitment to provide electricity in Bintuni, Tangguh Sustainability Program has delivered several activities including: • Continued ’ai“te“a“ce ”f Ta“gguhs ge“erat”r to support Babo electricity. • BP met with the officials from the Director General of Oil and Gas, Papua Barat Vice Governor, and Papua Barat House Speaker on 25 July to continue the discussion on the establishment of a region-owned enterprise (BUMD). A separate meeting was also conducted on 28 July with the Papua Barat Governor, Vice Governor, Regional Secretary (Sekda), and the Head of the Papua Barat Fi“a“ce Office t” pr”vide update ”“ UGMs progress in the BUMD establishment, as well as obtain support from the regional government to implement the LNG-based Bright Papua Program (Program Papua Terang). Papuan 1. Number of indigenous 1. Tangguh LNG will make a long-term Papuan Development Program is an effort from On track Worker and other Papuans strategic plan for its Papuan Workforce Tangguh to train skilled workers ready for TEP, as well participating in the Relations development programs, Development, serving as a guideline for as to pursue our AMDAL commitment for 85% Papuan and and Apprentice and Tangguh itself as well as its contractors, workers at Tangguh operation by 2029. Developme Challenger programs. the government and other stakeholders, There are several outputs were achieved during 2. Technical education nt in order to achieve the target of 85% January – June 2017 including: institutions (Polinef and SMK Bintuni) meeting Papua workforce by 2029. • Supported Indigenous People and Papuan the education service 2. Tangguh LNG will work together with participation in apprentice and challenger standards; and BLK related stakeholders in the development programs. Sorong meeting accreditation standards. of a work training centre (BLK) to • Facilitated 12 local students to participate in 3. Career development and develop basic technical skills, and the welding training at SMK 1 Bintuni. Certificatioin training programs for development of a polytechnic school. given to the participants after training ended at Ta“gguh LNGs 3. To develop Indigenous People and the end of March 2017. workforce from the Indigenous People and Papuan workforce, Tangguh LNG and its • Facilitated 10 college students and 7 teachers other Papua regions to major contractor will: from local university in Papua and Papua Barat ’eet Ta“gguh LNGs • Require contractors to fulfil the to attend IPA convetion in Jakarta.

OPERATOR’S EHS REPORT TANGGUH LNG

Type of Form of Activities and Achievements from the Program Key Indicators TSDP TSM Commitments Remarks Status Activity Activity Implementation short, medium and long commitment on capacity building for term needs workforce from Indigenous People and

other Papua regions. Each contractor will develop and implement educational programs and workforce development in accordance with the nature and terms of the contract (construction, operation, onshore vs. offshore) so that they can

supply workforce from Indigenous • C”“ducted BP G”es t” Ca’pus eve“t t” 8 ‘”ca‘ People and other Papua regions with universities in Papua and Papua Barat, including competencies required by Tangguh LNG. UNCEN, USTJ, OG University, UNIPA, UMS, • Work with the agencies/institutions to Nanabilly, St. Paul & Victory, and POLINEF. This provide skills training, particularly to is part of efforts to educate student on oil and selected Indigenous People living in gas industry. areas surrounding Tangguh LNG

Operation site in order to improve their To develop basic technical skills, and the development competitiveness. of a polytechnic school • Communicate and coordinate with the • Continued to provide technical assistance to local government workforce, including vocational school in Bintuni and Fakfak those in Teluk Bintuni Regency, Fakfak Polytechnic as certified skill training centers. Regency, Sorong, Manokwari, and Papua

Barat Province.

• Create, implement and manage To develop Indigenous People and Papuan workforce, complaints/grievances for its workforce Tangguh LNG and its major contractor during the construction and operation • Supported the career development for IP and phases. Papuan workforce • Continue to monitor technical training for Papuan workforce in various fields. The training is organized by BP and contractors. • Conducted HSE refresher training for all new TEP employees in Sorong. • Provided coaching and mentoring for Papuan students participating in apprentice and scholarship programs.

OPERATOR’S EHS REPORT TANGGUH LNG

A.2.3 EVALUATION

This is the second six-monthly report on social aspect provided by the operators, following the Final Investment Decision (FID) for Tangguh Expansion Project on 1st Ju‘y 2016. The Ta“gguhs “ew AMDAL app‘y t” rep‘ace the ”‘d ”“e. The “ew AMDAL is an integrated document for Train 1 and 2 operations, as well as Train 3 project. Compared the previous one, the new AMDAL has several changes including focusing its benefit to the indigenous people and changing the economic growth centres from Sorong, Bintuni and Fakfak to Bintuni, Babo, and Kokas. This is to reduce the risk of marginalisation, and create a more equitable and sustainable impact from Tangguh LNGs prese“ce. Acc”rdi“g t” the AMDAL, f”ur c‘a“s from Indigenous people community were identified as main beneficiaries of the program; they are Simuri, Sebyar, Irarutu and Patuanan.

According to the new AMDAL document, Tangguh Social Program comprises of six main program sectors including: local economic development, education, community health, Papuan workforce and development, external relations & communications, and governance (including ICBS and Tangguh Sustainability Project). An Indigenous Enterprise Development Program and an improved Papuan Development program are added to achieve 85% Papuan workforce in 2029. These programs were designed to support local efforts in enhancing the quality of life of local communities through participative and accountable local development practices, and to contribute to Tangguh LNG operational sustainability.

The first five years operationalization (2015-2019) of the AMDAL is stipulated in the Tangguh Sustainable Development Program (TSDP) book. It has been consulted and communicated with the local government for their support. During this reporting period, the social condition of the community surrounding Tangguh LNG was relatively stable and there was no significant social disruption impacting operation. As the TEP has been started, we also need to monitor and manage all issues related the project.

During this reporting period, the social team assisted the Soway clan in Tanah Merah Baru (TMB) to conduct an adat prayer ceremony in the Sacred House as a part of the Train 3 project startup. This ceremony is also an AMDAL requirement to recognize the adat and indigenous people costumary rights. This activity was fully supported by the local government.

OPERATOR’S EHS REPORT TANGGUH LNG

FIGURE 13 ADAT CEREMONY IN TANAH MERAH BARU (APRIL, 2017

In addition, the Tangguh team also continues to familiarize the TEP activities to the communities particularly in 62 villages surrounding the project. In May 2017 serial meeting to provide project information was conducted in Kokas and Arguni, Fakfak Regency where more than 50 community representatives from Kokas, Arguni, Tomage and Mbahamdadara Districts participated. During the meeting, the Tangguh team explained the project activities, its impact, as well as benefits for the local people. This is part ”f Ta“gguhs c”’’itment to Lenders and transparency to stakeholders. The activity ran well without safety issues and was fully supported by the local government

FIGURE 14 SERIAL MEETINGS FOR NEW AMDAL AND TEP FAMILIARIZATION IN KOKAS

The commencement of TEP activites created high expectation from people inside and outside of the Bintuni Bay. Tangguh and its contractor has conducted engagement and socialization several time both on recruitment process and expected numbers of workforce recruited is a‘”“g the pr”jects stages. H”wever, due t” ‘i’ited ”ther j”b opportunities, many continue to put pressure on the Project. During January until June 2017, there were 25 concerns received from communities through grievance procedure and 18 of them (72%) related job opportunities request.

OPERATOR’S EHS REPORT TANGGUH LNG

24 18 6 9 2014 2015 2016 2017 Concerns requesting jobs related Total Concerns

FIGURE 15 NUMBER OF COMMUNITY CONCERNS RECEIVED DURING THROUGH GRIEVANCE CARDS

More over, the Tangguh social program continue to be implemented as planned and remaining as became an adhesive for the Tangguh project and communities. However, the implementation of the program has been strongly influenced by the external situation including the absence of new cabinet of local government in Bintuni after election completed in Bintuni Regency. The uncertainty of cabinet structure in Teluk Bintuni from mid year 2016 until May 2017, made it difficult of the project to deliver planned targets.

The TSDP is made up of diverse programmes designed to achieve AMDAL commitments, mitigate Tangguh impacts and promote development in a particular area – such as education, health, local economic development and governance. It also serves as a recognition programme for the community surrounding the project, and as a strategy to manage social risks that could affect the sustainability of Tangguh LNG. Program continues to emphasize the implementation of work with principle by encouraging the local government to lead the program. The TSDP implementation involved range of implementing pa rtners, including services providers, NGOs, and universities. During the reporting period we had 21 implementing partners appointed through commercial contract and agreement. This report describes the highlights of the programs outputs and outcomes period January until June 2017, as summarized below:

The Tangguh community health program continued its collaboration with the Regency Health Office to manage public health issues in Teluk Bintuni including malaria, diarrhea, mother and child health, TB, and HIV/AIDS. Program maintained a positive impact to the community health status, as well as reducing morbidity and mortality cases among vulnerable people especially children and women.

OPERATOR’S EHS REPORT TANGGUH LNG

8 8 7 7 6 6 5 4 3 3 2 1 5 1 0

2009 2010 2011 2012 2013 2014 2015 2016

Bintuni DAV14 villages surrounding Tangguh

FIGURE 16 MORTALITY CASES AMONG PREGNANT WOMEN IN 14 VILLAGES SURROUNDING OF TANGGUH LNG (SOURCE: TANGGUH COMMUNITY HEALTH PROGRAM, JUNE 2017)

The success of Teluk Bintuni to control malaria prevalence continued and was recognized by the world experts. In June 2017, several malaria experts from various international institution including World Health Organization, UNICEF, Global Fund, and National authorities for malaria program) visited Teluk Bintuni Regency to take lesson learnt on Malaria Control Program in this region. The visited will be used for input on national guideline development on malaria program. The malaria control program in the village has also positively contributed to Ta“gguhs ”perati”“. Betwee“ Ja“uary u“ti‘ Ju“e 2017, “” ’a‘aria tra“s’issi”“ reported inside Tangguh.

The main challenges in the community health program remain issues of limited the human resources of Government Health and Medical personnel both on capability, capacity and working ethic, cultural and community perception on health belief, and also the lack of health information management and system.

The Local Economic Development Program combines the previous Tangguh Live‘ih””d pr”gra’ a“d the Birds Head Busi“ess E’p”wer’e“t activities with a “ew i“itiative supp”rti“g i“dige“”us e“terprise deve‘”p’e“t (IEDP). Its ref‘ected the “ew AMDAL commitment. The livelihood activities have targeted indigenous people i’pacted at the h”useh”‘d a“d c”’’u“ity ‘eve‘ by Ta“gguh LNGs activities, t” ensure their incomes are not adversely affected. Meanwhile, the IEDP focuses enhancing Indigenous business capacity, both private and government sectors.

During this reporting period, the local economic development team continued to maintain community participation on stocking point program as a part of earning program besides working in Tangguh project. In the first-half 2017, the total supply of fish, vegetables, fruits and shrimp from the eight stocking points were 145 tons (worth more than US$277,400). Compared the same period last year, there was increasing of the local product supply to Tangguh catering to support early works of TEP activities. It will involve significant of local products demand when the peak of construction happened in 2018.

OPERATOR’S EHS REPORT TANGGUH LNG

Since 2008, the supply of local agricultural and fishery products to Tangguh catering totalled 2,276 tons, which is equivalent to more than US$ 3.9 million. The figure below describes supply trend of fisheries and agriculture products from the community to Tangguh LNG catering from 2008 until June 2017.

361 345 313 303 282 275

135 145 116

2008 2009 2010 2011 2012 2013 2014 2015 2016 Jun-17

FIGURE 17 SUPPLY OF AGRICULTURE AND FISHERIES PRODUCTSTREND FROM COMMUNITY STOCKING POINTS TO TANGGUH CATERING IN TONNES (SOURCE: TANGGUH LED PROGRAM, JUNE 2017)

The primary sectors of livelihood program have remaining challenges including (i) high community expectation to participate in the stocking point program particularly during the upcoming of TEP activities, and (ii) limited pick up frequency from the villages due to tides. Tangguh through its contractors committed to optimize the local products product absorption during TEP as stipulated in the AMDAL commitment.

Whereas the Livelihood programme has been working with micro-level enterprises for several years, and will continue to do so, the new IEDP is intended to create larger entities. They will be able to access Tangguh LNG contracts as well as employ indigenous people. The LED team has been engaging with the Procurement and Supply Chain Management (PSCM) unit in Tangguh to help identify contract parts that can be earmarked for local or sub-national tenders. Tangguh also conducted a sharing session on Tangguh LNG business process for 92 local vendors (mostly indigenous people) across Bintuni and Fakfak region in late 2016, which included the oil and gas industry procurement regulation, BP Code of Conduct, as well as financial reporting system at Tangguh.

Subitu Inti Konsultan (SIK), the Business Unit for Business Consultancy Service, continued to provide technical assistance for the local businesess on various issues including management, tax and financial reporting, health and safety, procurement process, and business development. Between January until July 2017 there were 37 mentees received business mentoring processes. Some of them have been participated in procurement in Tangguh. The mentoring now is resulting positive impact. In February 2017, two indigenous mentees registered as BP vendors for stationaries supplies in Tangguh for the next three years. They were selected through a tender process and fulfiled BP PSCM and SKKMIGAS PTK-007 requirements.

In addition, the three Subitu businesses are doing well as professional institutions. They have received work orders from community and the local government, as well as from Tangguh operation.

OPERATOR’S EHS REPORT TANGGUH LNG

As a part of the Subitu business development, we facilitated changes to their business structure and management, including ownership to represent the seven clans. A comprehensive assessment of Subitu business development was completed, involving several experts from UGM, followed by mentoring activity that will start in 2017. To optimize the market, Subitu initiated to expand their business in Sorong in March 2017.

FIGURE 18 THE OPENING CEREMONY OF SUBITU IN SORONG ATTENDED BY MAYOR OF SORONG CITY The existing challenges of the secondary sectors program is competitiveness drive within BP particularly reductions in budgets for programme activities. It is also difficult to get significant changes among indigenous businessmen with short period of mentoring and coaching process.

More over, as part of our commitment to support the development of local talents and meet 85% Papuan workforce supporting Tangguh operations by 2029, we continue to provide various trainings and assistance for Papuan workforce already working at Tangguh LNG. According to our monitoring data, there were 157 Papuan permanent employee who recieved training to upskilling their capacities. On the input side, we continue the second batch of three-year apprentice program which targeted Papuan youth that will serve as feeder pool for the future employment at Tangguh Operations.

In collaboration with PT. Petro Tekno, the participants received matriculation program in English math and science skills, production technician course, and reliability and maintenance course. Currently, there were 76 students who involved in the apprentice program LNG both batch 1 and 2, where as 30 of them are indigenous peopoel. The selection for the next 50 apprentices is in progress for batch three will start in February 2018.

OPERATOR’S EHS REPORT TANGGUH LNG

Papuan workforce at Tangguh in January 2017 reached 53.4% of total employees (where 18% of them are indigenous). Below is the current achievement of Indigenous People and Papuan people workforce in Tangguh Operation.

TABLE 23 INDIGENOUS AND PAPUAN WORKFORCE JUNE 2017

% National/ Total Papuan % Papuan Skilled level Papuan Expatriate employee by population level Unskilled 18 2 20 90% 2% Low skilled 193 14 207 93% 25% Semi skilled 280 62 342 82% 36% Skilled 236 453 689 34% 30% Managerial/supervisor 60 157 217 28% 8% Total 787 688 1,475 53.4% 53.4%

Note: starting 2017 the definition of Papuan is Indigenous and Papuan workforce with more than 75 days site)

To increase the quality of workforce candidates, as well as the number of qualified or job-ready candidates, in the feeder pool for Tangguh, several key initiatives were committed in the AMDAL for the Papuan Development programme. These include developing existing workers and working with local government to strengthen the quality of technical education in Papua Barat. Interventions to increase the percentage Papuan, the focus is on skilled personnel, including: 1. Build percentage of Papuans into the Contract requirements 2. Partially insource Maintenance through Apprentice Programme and release contractors

OPERATOR’S EHS REPORT TANGGUH LNG

3. Structured Papuans development plan

From 2006 until 2016, 16 Papuans were recruited through the Challenger program. Currently 60 Papuans are filling supervisory and team leader roles at Tangguh Operation. This contributed to 28% of total skilled, supervisory and managerial level Papuans at Tangguh LNG.

As stipulated in the AMDAL, Tangguh committed to provide more opportunities to the indigenous people and Papuan to involve in TEP activities. Recently, there were 432 Papuan employe recruited to support early-work activities of TEP detail achievement shows in table below:

TABLE 24 PAPUAN WORKFORCE AT TANGGUH PROJECT (JULY 2017)

Community demand on job opportunities for Train 3 project was increased in all villages and it is voiced during meeting between Tangguh team with the communities and the stakeholders every where. There is also social media contribution to spread unproper information related to the recruitment for the TEP. This situation sometimes make community frustration and angry. Tangguh and its contractors should managed this issue properly and ensure there is a communication channel to update and validate the project progress as well as the recruitment information to the community.

To contributing as a feeder of Papuan workforce, the education program continued to support the Teluk Bintuni Government to improve the quality of basic education towards the AMDAL commitment. In collaboration with the expert partners, we focused our program to improve the capacity of teachers and school supervisors in Bintuni and Fakfak Regencies on various issues including school management, pedagogy, monitoring and evaluation, and instrument assessment. We also provided technical assistane to 35 teachers for 2017 national examination preparation in Sebyar Rejosari and Fior. Program also supported the Fakfak Regency office to develop extracullicular program on literacy for student.

The program also continues to engage the local government to support flagship school development in TMB as an effort to accelerate the quality of education in this area as well as to response industry demand on skilled workers in the future. During this period, the activities continue to develop strategy and concept involving education experts and accommodated the gap assessment result.

Continued support scholarship program for the best local students bringing opportunity for them to access an advance education. Currently, 225 students from year 2016 and 2017 inputs were received scholarship from Tangguh at all level

OPERATOR’S EHS REPORT TANGGUH LNG

including senior high school and universities. A new mechanism for scholarship program is being prepared to simplify and integrate the funding mechanism with the local government resources.

186

137 129 132 114 113 102

67 69

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FIGURE 19 TREND OF NUMBER LOCAL STUDENT RECEIVED SCHOLARSHIP PROGRAM FROM TANGGUH SOURCE: EDUCATION PROGRAM, JUNE 2017

The main challenges facing the programme over the six months is the uncertainty appointment of new cabinet structure after the new regent inaugurated which meant we could not optimize the local government participation to support the programme implementation. In addition, as the investment for education and flagship school program are expensive, with the current low oil price environment, it is difficult for Tangguh to solely carry the budget.

The Community Relation maintained a positive relationship with key stakeholders and the communities in the villages surrounding the project with focus on project T3 commencement, north shore housing implementation and seismic survey. As a part of the AMDAL commitment, the team supported adat ceremony from soway clan in TBM for project ground breaking event.

Community grievance monitoring continued as communication channel from the villagers to address their concerns. During this reporting period, twenty five concerns received through grievance card from the communities. All complaints have been respond without outstanding issues. We continue to engage the community to use grievance mechanism to express their interest related Tangguh instead detain the company asset. Law and grievance awareness continued in Kamundan and Otoweri, involving 65 villagers.

Recent challenges of the community relation program are (i) the expand of village coverage due to new AMDAL commitment, and (ii) the increase of social intention in the villages with some interest reasons including individual, ideology and political issues.

Meanwhile, Tangguh Sustainability Project (TSP) activities are progressing to provide electricity and housing for communities living in north shore area. Following the signing of cooperation agreement the project continue to conduct socialization event in Weriagar villages. However, the programme facing challenges as the the Teluk

OPERATOR’S EHS REPORT TANGGUH LNG

Bintuni Regent decided to postpone the NSH construction through a letter dated July 17 following demands from the Sebyar community who requested an adat meeting (gelar tikar adat). BP has responded with a letter dated 27 July, requesting the Regent to honor the cooperation agreement.

Tangguh continue to implement the main aim of this project is to support prosperity in Papua Barat by replacing dependency on high-cost diesel-fuelled power plants with low-cost power supply from Tangguh. It will support wider community and economic development by improving electricity availability from scheduled brown-out (6 hours/day) to 24/7. The 4 MW Electricity supply and transmission to PLN was completed in January 2013. Currently, PLN is evaluating the feasibility for continuation of additional 4MW electricity program for Bintuni.

PLN has mentioned that it is too expensive to build the power grid from Tangguh to Babo, therefore Babo still depends on a diesel power plant and a generator borrowed from Tangguh (350KVAs). Since there is an incremental demand on electricity from the local, as well as to maintain a positive relationship with the Babo in the future, Tangguh plan to provide additional generator in Babo (500KVA) in 2017. Installation, start up and maintenance program will be supported by Tangguh. The technical approval for this program is waiting from SKKMIGAS.

Meanwhile, the Gas to Power program continue to progress. During the reporting period, the program is still focused on accelerating the establishment of a regional- government-owned company (BUMD) to manage the supply chain, and on the LNG distribution mechanism

OPERATOR’S EHS REPORT TANGGUH LNG

B. CONSTRUCTION OF TANGGUH EXPANSION PROJECT (TEP) AND NEW CONDENSATE AND DIESEL TANK (NCDT) B.1 ENVIRONMENTAL ASPECT

B.1.1 IMPLEMENTATION

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Gas Exploitation (Offshore Platform Transportation and Installation) Activity Marine biota • Sea Minimise the potential Sea transportation Activity a. Conduct visual observation and routinely Physical activity of Comply abundance and Transport reduction of nekton a. Update marine mammal protection procedure record marine mammal sighting Transportation and diversity ation abundance and marine and conduct socialisation to related employees b. Conduct fishery surveys (Nekton sample Installation activity for Activity mammal diversity and vessel crew c”‘‘ecti”“ a“d fisher’e“s catch data offshore platform will be • Offshore compared to b. Update solid waste and wastewater collection and marine mammal (visual, if commenced in Q2-2018 and Gas environmental baseline management procedure for sea transportation possible using a hydrophone) currently the project is still Platform during AMDAL activity and conduct socialisation to related c. Check vessel engine maintenance records in detail engineering design Installatio employees to ensure that maintenance is conducted and fabrication phase. n Activity c. Update emergency response procedure at according to the determined schedule At this stage, the vessel and conduct training to vessel crew environmental d. Provide emergency response facility in the management and vessel in accordance with developed procedure monitoring plan for sea e. Implement No Fishing policy transportation activity has f. Conduct routine maintenance to been incorporated into engine/equipments according to specified Project Environmental schedule to ensure that the engine/equipments Management and are working efficiently Monitoring Plan for g. Prioritizing sailing in deeper area (>12 m) when Offshore GPF and EPCI the sea condition is calm Activity (TEP-9001-PLA-HS- h. Reduce vessel speed if approaching marine BP5-0010). mammal until the marine mammal swims away i. Conduct solid waste and wastewater management in accordance with Government Regulation No. 21 Year 2010 and MARPOL also applicable regulations. Solid waste and wastewater management will be discussed more details in EMP regarding seawater quality j. Manage ballast water in accordance with Government Regulation No. 21 Year 2010 and MARPOL. Ballast exchange is anticipated will not happen often since most of the vessels will arrive at Tangguh LNG in loaded condition k. Record ballast exchange (date, location, volume, and vesse‘s “a’e)

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Offshore Gas Platform Installation a. Conduct visual observation and routinely Physical activity of Comply a. Update marine mammal protection procedure record marine mammal sighting Transportation and and conduct socialisation to related employees b. Conduct fishery surveys (Nekton sample Installation activity for and vessel crew c”‘‘ecti”“ a“d fisher’e“s catch data offshore platform will be b. Update solid waste and wastewater collection and marine mammal (visual, if commenced in Q2-2018 and management procedure for sea transportation possible using a hydrophone) currently the project is still activity and conduct socialisation to related c. Check vessel engine maintenance records in detail engineering design employees to ensure that maintenance is conducted and fabrication phase. c. Conduct routine maintenance to according to the determined scheduleis At this stage, the engine/equipments according to specified conducted according to the determined environmental schedule to ensure that the engine/equipments schedule management and are working efficiently monitoring plan for d. Conduct solid waste and wastewater offshore platform management in accordance with Government installation activity has Regulation No. 21 Year 2010 and MARPOL also been incorporated into applicable regulations. Solid waste and Project Environmental wastewater management will be discussed Management and more details in EMP regarding seawater quality Monitoring Plan for Offshore GPF and EPCI Activity (TEP-9001-PLA-HS- BP5-0010).

Air Quality Power Diesel Generator a. Update diesel generator operational procedure a. Collect air emission samples at sampling Power generation activity Comply Generation emission complies with and conduct socialisation to diesel generator points of the stack and conduct analysis will start during from Diesel standards from MoE operator for the concentration of the required Transportation and Generator Regulations No. 13 Year b. Operate generator in accordance with its parameters done by an accredited Installation activity of 2009 and General EHS specification, both operational load and time laboratory offshore platform at Guideline 2007 c. Conduct routine maintenance to b. Conduct compliance evaluation by Tangguh site, which engine/equipments according to specified comparing analysis results with the planned to be commenced schedule to ensure that the machine/equipments Minister of Environment Regulation No. in Q2-2018. At this stage, are working efficiently 13 Year 2009 and the General EHS the environmental Guidelines 2007 (refer to Table in management and Appendix I) monitoring plan for power c. Conduct trend analysis generation using diesel d. Check the generator maintenance records generator activity has been to ensure that its maintenance is incorporated into Project conducted in accordance with the Environmental determined schedule Management and Monitoring Plan for Offshore GPF and EPCI Activity (TEP-9001-PLA-HS-

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage BP5-0010).

Water quality and Wastewater a. Wastewater Wastewater Management Sewage Wastewater will be Comply marine biota management management a. Update wastewater management procedure and a. Collect samples of the treated effluent(at generated during abundance and from according to conduct socialisation to related employees the discharge pipe) and conduct analysis Transportation and diversity offshore Government b. Conduct sewage treatment in accordance with for the concentration of the required Installation activity of activity Regulation No. 21 Government Regulation No. 21 Year 2010 and parameters done by an accredited offshore platform at Year 2010 and MARPOL Annex IV prior to discharge to sea laboratory Tangguh site, which MARPOL c. Conduct oily contaminated water treatment by b. Conduct visual observation for floating planned to be commenced b. Minimise the potential using Oil Water Separator in accordance material and foam at the discharge pipe in Q2-2018. At this stage, conditional change of Government Regulation No. 21 Year 2010 and c. Conduct compliance evaluation by wastewater management plankton and benthos MARPOL Annex I prior to discharge to sea comparing analysis results and visual and monitoring plan for diversity and d. Conduct ballast water treatment in accordance observation with the standards set in the offshore activity has been equitability also with Government Regulation No. 2010 and Wastewater Discharge to Sea Permit incorporated into Project marine mammal MARPOL d. Record the sewage flowrate. If possible, Environmental disruption compared measurement is done with a flowmeter Management and to environmental e. Conduct trend analysis Monitoring Plan for baseline during Offshore GPF and EPCI AMDAL Oily contaminated wastewater from OWS Activity (TEP-9001-PLA-HS- Visual observation: BP5-0010) and Project Waste Management Plan a. Conduct visual observation for oil film on for Offshore GPF and EPCI the seawater at the discharge pipe from Activity (TEP-9001-PLA-HS- the Oil Water Separator unit BP5-0012). Laboratory analysis a. Collect samples of the treated effluent (at the discharge pipe) and conduct analysis for the concentration of the required parameters done by an accredited laboratory b. Conduct compliance evaluation by comparing analysis results with the standards set in the Wastewater Discharge to Sea permit and MARPOL c. Record the wastewater flowrate. If possible, measurement is done with a flowmeter d. Conduct trend evaluation

Seawater quality a. Collect seawater samples and conduct analysis for the concentration of the

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage required parameters done by an accredited laboratory b. Conduct compliance evaluation by comparing analysis results with the Minister of Environment Regulation No. 51 Year 2004 (refer to Table in Appendix I), also taking into consideration baseline condition during AMDAL c. Conduct trend evaluation

Ballast water Check the ballast water exchange records to compare with the MARPOL requirements (at ‘east the date, ‘”cati”“, v”‘u’e a“d vesse‘s name) Marine biota a. Collect plankton samples b. Calculate abundance, diversity index and uniformity index of the plankton c. Collection, identification and calculation will be conducted by an accredited laboratory d. Conduct trend evaluation by comparing analysis results with baseline condition during AMDAL

Solid waste a. Solid waste (non- Solid Waste (non-hazardous) and Hazardous Waste Waste will be generated Comply (non- hazardous) Management a. Check records of the amount and type of during Transportation and hazardous) management is General Management : waste that has been produced and Installation activity of and conducted in a. Update hazardous and non-hazardous solid delivered to the storage and treatment offshore platform at Hazardous accordance with waste management procedure and conduct facilities in Tangguh Tangguh site, which Waste Government socialisation to related employees b. Check records of the amount and planned to be commenced management Regulation No. 21 b. Conduct solid waste segregation (Non- disposal location of food waste that has in Q2-2018. At this stage, activity in Year 2010, MARPOL hazardous and hazardous waste) been comminuted and disposed to the waste management and offshore and related c. Implement 3R system (Reduce, Reuse, Recycle) sea monitoring plan for actvitiy regulations d. Categorize non-hazardous solid waste into c. Check the records and delivery of the offshore activity has been b. Hazardous waste organic, recyclable, burnable and inert waste hazardous waste manifest incorporated into Project management is Environmental d. Conduct weekly inspection of the solid conducted in waste and hazardous waste treatment Management and Non-Hazardous Solid Waste Management : accordance with facilities in accordance with the Monitoring Plan for a. Conduct solid waste management in accordance Government applicable procedure Offshore GPF and EPCI with Government Regulation No. 21 Year 2010,

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Regulation No. 85 MARPOL Annex V and applicable regulations Activity (TEP-9001-PLA-HS- Year 1999, MARPOL b. Do not dispose garbage to sea, except food BP5-0010) and Project and related waste which shall be Comply with MARPOL Waste Management Plan regulations Annex V requirements for Offshore GPF and EPCI c. Minimise the potential c. Comminute food waste to size less than 25 mm Activity (TEP-9001-PLA-HS- conditional change of for further disposal to sea with distance more BP5-0012). plankton and benthos than 3 nm from nearest land diversity and d. Dispose uncomminuted waste at distance more equitability also than 12 nm from the nearest land marine mammal e. Transport non-hazardous solid waste except disruption compared food waste to onshore facility at Tangguh LNG to environmental or other locations for further treatment baseline during f. Record generated and disposed waste (daily) AMDAL

Hazardous Waste Management: a. Conduct hazardous waste management in accordance with Government Regulation No. 85 Year 1999 and applicable regulations b. Transfer hazardous waste to licensed waste facility for further treatment c. Conduct labelling for hazardous waste container d. Use permitted hazardous waste transporter facility e. Generated and transported hazardous waste shall be recorded (amount, type, date, source)

Sea Water quality Fuel and a. Minimise the a. Update hazardous material management a. Inspect hazardous material and waste The fuel and chemical Comply Chemical possibility of offshore procedure and conduct socialisation/training to storage facility prior to operation in storage will be used during Storage and fuel and chemical spill related employees accordance with the applicable Transportation and Refueling at b. Offshore spill b. Update fuel and chemical management procedure Installation activity of Offshore response can be done procedure and conduct training/socialisation to b. Conduct weekly inspection of containers, offshore platform at and/or effectively as per related employees storage system, storage warehouse Tangguh site, which Marine procedure hence will c. Update emergency response procedure and condition, emergency response system, planned to be commenced Facility not disturb water conduct training to emergency response team and other facilities in accordance with in Q2-2018. At this stage, quality and marine (ERT) the applicable procedure offshore fuel and chemical biota d. Appoint Emergency Response Team for fuel storage management and and chemical spill Spill clean-up monitoring plan for e. Ensure fuel and chemical storage container are a. Visual observation of oil film on the water offshore activity have been built compatible with the material and are in to ensure that the oil spill response is incorporated into Project good condition conducted in accordance with the Environmental Ensure every stored material is recorded and f. procedure Management and

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage accompanied with MSDS b. If required, conduct seawater quality Monitoring Plan for g. Minimum requirements for storage facility are analysis for the Oil and Grease parameter Offshore GPF and EPCI as follows: in accordance with the applicable Activity (TEP-9001-PLA-HS- 1) Completed with bunded area that will be procedure (emergency response BP5-0010). able to contain 110% of the volume of the procedure) to ensure that the spill clean- largest container or 25% of the total volume up activity is conducted as per the in the storage facility procedure 2) Building construction, including the floor and c. Record any spill that at least notes the bunded area must be constructed with a amount and type of the spilled hazardous impermeable material material and waste, spill location and the 3) Treat oily contaminated water trapped in the spill handling efforts bunded area 4) Completed with spill kit h. Put label and symbol on the container (package) and storage area i. Conduct regular inspection to fuel and chemical storage and refueling facility j. Perform efforts to response oil spill in accordance with Oil Spill Contingency Plan and conduct spill response training according to planned schedule

Soil Onshore a. Minimise the a. Update hazardous material management a. Inspect hazardous material and waste The fuel and chemical Comply contamination Fuel and possibility of onshore procedure and conduct socialisation/training to storage facility prior to operation in storage will be used during Chemical fuel and chemical spill related employees accordance with the applicable procedure construction activity of the

Storage b. Onshore spill b. Update emergency response procedure and b. Conduct weekly inspection of containers, onshore facilities at Facility and response can be done conduct training to emergency response team storage system, storage warehouse Tangguh site, which Refueling effectively as per (ERT) condition, emergency response system, planned to be commenced Facility procedure hence will c. Appoint Emergency Response Team for fuel and other facilities in accordance with the in Q2-2018. At this stage, not contaminated the and chemical spill applicable procedure onshore fuel and chemical land d. Ensure fuel and chemical storage container are storage management and built compatible with the material and are in Spill clean-up monitoring plan for good condition a. Visual observation to ensure that the oil offshore activity have been e. Ensure fuel and chemical storage and refueling spill response is conducted in accordance incorporated into Project location is safe from flood or is on a higher with the procedure Environmental elevation b. If required, conduct soil TPH analysis (as Management and f. Minimum requirements of storage facility are as per the Minister of Environment Decree Monitoring Plan for follows : No. 128 Year 2003) on location after the Offshore GPF and EPCI 1) Completed with a bunded area that will be soil has been cleaned up to ensure that Activity (TEP-9001-PLA-HS- able to contain 110% of the volume of the the contaminated soil excavation has BP5-0010). largest container, or 25% of the total volume been done as per the procedure 2) The building, including the floor and the c. Record any spill that at least notes the

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage bund wall, must be constructed with a amount and type of the spilled hazardous impermeable material material and waste, spill location and the 3) The floor construction must have a slope of spill handling efforts at least 1% towards sump pit or Oil Water Separator (OWS) 4) Completed with a sump pit for facilities with a roofed shelter 5) Completed with an Oil Water Separator (OWS) unit for facilities without a roofed shelter; 6) Completed with spill kit 7) Completed with MSDS information g. Conduct routine clean up of oily contaminated water trapped in sump pit or OWS for further treatment h. Put label and symbol on the container (package) and storage area i. Conduct regular inspection/audit j. Treat contaminated soil by excavated, separated and collected to Temporary Hazardous Waste Storage for further treatment k. Ensure clean up process is performed well and conduct Gas Transmission (Pipeline Installation) Activity Noise Level Nearshore Noise level complies to a. Conduct routine maintenance of a. Measure noise level using the Sound The HDD installation for Comply Pipeline standards in MoE Decree engine/equipment according to specified Level Meter, conducted internally or an nearshore pipeline will be Installation No. 48 Year 1996 and schedule to ensure that the engine/equipments accredited laboratory commenced in Q2-2018. At with HDD General EHS Guidelines are working efficiently b. Conduct compliance evaluation by this stage, management alternative 2007 in Tangguh b. Conduct land clearing only in designated area comparing analysis results with the and monitoring plan for Perimeter Fence location c. Maintain forest area which is not included as Minister of Environment Decree No. 48 noise level generated from cleared area to be noise barrier (buffer zone) Year 1996 (refer to Table in Appendix I) HDD installation activity c. Conduct trend evaluation have been incorporated d. Check engine/equipment maintenance into Project Environmental records to ensure that maintenance is Management and conducted in accordance with the Monitoring Plan for determined schedule Offshore GPF and EPCI Activity (TEP-9001-PLA-HS- BP5-0010). Sea water quality Seabed a. TSS concentration in a. Update trenching, pipeline installation and rock a. Collect seawater samples with the Pipeline installation, Comply and marine biota Trenching, seawater outside 500 dumping procedure and conduct training and following requirements: including pre-trenching and abundance and Pipeline m distance from socialisation to related employees 1) If depth is less than 10 m, collect rock dumping will be

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage diversity Installation activity location b. Perform trenching in designated area sample 2 m below sea level commenced in Q2-2018. At and Rock complies with MoE 2) If depth is between 10 – 20 m, collect this stage, management Dumping Decree No. 51 Year samples 2 m below sea level and 2 m and monitoring 2004 by considering above the seabed requirement for those environmental 3) If depth is deeper than 20 m, collect activities have been baseline during samples 2 m below sea level, mid- incorporated into Project AMDAL depth depending on the actual depth Environmental b. Minimise the and 2 m above the seabed Management and conditional change of b. Analyse for TSS using an accredited Monitoring Plan for benthos diversity and laboratory Offshore GPF and EPCI equitability outside c. Conduct compliance evaluation by Activity (TEP-9001-PLA-HS- 500 m distance from comparing analysis results with the BP5-0010). activity location seawater quality regulatory standards as compared to per the Minister of Environment environmental Regulation No. 51 Year 2004 (refer to baseline during Table in Appendix I), also taking into AMDAL consideration baseline condition during c. Minimise the potential AMDAL reduction of nekton d. Monitor record of pre-trench material abundance and dumping to track the dumping location marine mammal and volume and ensure that the pre- diversity disturbance trench material disposal is done at the compared to agreed location in accordance with the environmental AMDAL baseline during AMDAL Hydrotest a. Hydrotest wastewater Gas transmission end of pipe direct discharge to a. Collect seawater samples with the Hydrotest and pipeline Comply water management in sea at Offshore Platform alternative: following requirements: preservation activity will be discharge for accordance with a. Update Hydrotest activity procedure to ensure 1) If depth is less than 10 m, collect commenced in Q4-2018. the Wastewater Discharge that the dosage of chemicals used are in sample 2 m below sea level Discharge location for alternatives to Sea Permit accordance with the requirements (planned) and 2) If depth is between 10 – 20 m, collect hydrotest water is currently of : b. Minimise the potential conduct procedure socialisation and training to samples 2 m below sea level and 2 m being finalized in detail a. Gas reduction of nekton related employees above the seabed engineering design phase. transmiss abundance and b. Use chemicals as approved by DITJEN MIGAS 3) If depth is deeper than 20 m, collect Decision on final location ion end marine mammal c. Select environmentally friendly chemicals for samples 2 m below sea level, mid- will be available in Q4-2017. disruption compared depth depending on the actual depth of pipe dewatering process At this stage, management to environmental and 2 m above the seabed direct d. Construct discharge end pipe which is likely to and monitoring activity for baseline during Analyse for DO using an accredited discharge be located at Offshore Platform in 3 m depth b. hydrotest and preservation AMDAL laboratory to sea at below sea level activity have been Conduct compliance evaluation by Offshore Ensure discharged wastewater complies with c. incorporated into Project comparing analysis results with the Platform maximum flowrate limit as stated in Wastewater Environmental

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage b. Onshore Discharge to Sea Permit seawater quality regulatory standards as Management and storage per the Minister of Environment Monitoring Plan for and Regulation No. 51 Year 2004 (refer to Offshore GPF and EPCI discharge Table in Appendix I), also taking into Activity (TEP-9001-PLA-HS- to sea consideration baseline condition during BP5-0010). AMDAL d. Record concentration of the chemicals used Onshore Storage and Discharge to Sea alternative: a. Collect seawater samples with the Hydrotest and pipeline Comply a. Update Hydrotest activity procedure to ensure following requirements: preservation activity will be that the dosage of chemicals used are in 1) If depth is less than 10 m, collect commenced in Q4-2018. accordance with the requirements (plan) and sample 2 m below sea level Discharge location for conduct procedure socialisation and training to 2) If depth is between 10 – 20 m, collect hydrotest water is currently related employees samples 2 m below sea level and 2 m being finalized in detail b. Use chemicals as approved by DITJEN MIGAS above the seabed engineering design phase. c. Select environmentally friendly chemicals for 3) If depth is deeper than 20 m, collect Decision on final location dewatering process samples 2 m below sea level, mid- will be available in Q4-2017. depth depending on the actual depth d. Construct impermeable temporary onshore At this stage, management and 2 m above the seabed storage facility to collect hydrotest water and monitoring activity for Analyse for DO using an accredited e. Conduct hydrotest water discharge at -6 m LAT b. hydrotest and preservation laboratory in LNG Jetty location activity have been Conduct compliance evaluation by f. Ensure discharged wastewater complies with c. incorporated into Project comparing analysis results with the maximum flowrate limit as stated in Wastewater Environmental seawater quality regulatory standards as Discharge to Sea Permit Management and per the Minister of Environment Monitoring Plan for Regulation No. 51 Year 2004 (refer to Offshore GPF and EPCI Table in Appendix I), also taking into Activity (TEP-9001-PLA-HS- consideration baseline condition during BP5-0010). AMDAL d. Record concentration of the chemicals used

Sea Water Nearshore TSS concentration in sea a. Update wastewater management procedure and a. Collect seawater samples with the The HDD installation for Comply Quality Pipeline water complies with conduct socialisation to related employees following requirements: nearshore pipeline will be Installation standard in MoE Decree b. Conduct land clearing only at designated area 1) If depth is less than 10 m, collect commenced in Q2-2018. At with HDD No. 51 Year 2004 by c. Manage drainage pattern and sediment control sample 2 m below sea level this stage, management alternative considering sytem including sediment trap and 2) If depth is between 10 – 20 m, collect and monitoring plan for environmental baseline sedimentation pond along cleared area during samples 2 m below sea level and 2 m HDD installation activity condition during AMDAL HDD activity above the seabed have been incorporated d. Use Water Based Mud and conduct mud test 3) If depth is deeper than 20 m, collect into Project Environmental prior usage to confirm it is non hazardous samples 2 m below sea level, mid- Management and material depth depending on the actual depth Monitoring Plan for

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage e. Reuse mud by using Shaker Unit to separate and 2 m above the seabed Offshore GPF and EPCI mud and cutting b. Analyse for TSS using an accredited Activity (TEP-9001-PLA-HS- f. Used mud and cutting from HDD will be laboratory BP5-0010). collected in a pond that will be constructed near c. Conduct compliance evaluation by the HDD location. Once finished, the pond will comparing analysis results with the be closed and revegetated. Another alternative seawater quality regulatory standards as is to dispose the used mud into non-hazardous per the Minister of Environment landfill at Tangguh site. Regulation No. 51 Year 2004 (refer to Table in Appendix I), also taking into g. Conduct revegetation in affected area after the consideration baseline condition during activity is completed. AMDAL h. If required, pre-trench material will be disposed d. Monitor record of pre-trench material in disposal location and the disposal will be dumping to track the dumping location recorded e.g. volume, actual coordinate of and volume and ensure that the pre- disposal location and disposal time trench material disposal is done at the agreed location in accordance with the AMDAL

Nearshore TSS concentration in sea a. Minimise land clearing area by only conduct a. Collect seawater samples with the As per shore approach Comply Pipeline water complies with land clearing in the designated area (including following requirements: study result that was Installation standard in MoE Decree mangrove) 1) If depth is less than 10 m, collect conducted during pre- with No. 51 Year 2004 by b. Design Trenching and Shore-Pull activity by sample 2 m below sea level FEED, HDD method is Trenching considering considering erosion mitigation factor 2) If depth is between 10 – 20 m, collect selected for shore approach and Shore- environmental baseline c. Manage drainage pattern and sediment control samples 2 m below sea level and 2 m pipeline. Pull condition during AMDAL (including sediment trap and pond) above the seabed alternative d. Conduct revegation in affected area after the 3) If depth is deeper than 20 m, collect activity is completed samples 2 m below sea level, mid- If required, pre-trench material will be disposed in depth depending on the actual depth disposal location and the disposal will be recorded and 2 m above the seabed e.g. volume, actual coordinate of disposal location b. Analyse for TSS using an accredited and disposal time laboratory c. Conduct compliance evaluation by comparing analysis results with the seawater quality regulatory standards as per the Minister of Environment Regulation No. 51 Year 2004 (refer to Table in Appendix I), also taking into consideration baseline condition during AMDAL d. Monitor record of pre-trench material dumping to track the dumping location and volume and ensure that the pre-

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage trench material disposal is done at the agreed location in accordance with the AMDAL

Soil erosion and Onshore Minimise soil erosion and a. Minimise land clearing area by only conduct a. Conduct visual observation for turbidity The onshore pipeline Comply surface water Trenching TSS concentration in the land clearing in the designated area (including b. Collect surface water samples and installation will be quality surface water complies mangrove) analyse the required parameters commenced in Q3-2018. with standard in b. Design Onshore Trenching activity by internally or by an accredited laboratory The onshore pipeline will Government Regulation considering erosion mitigation factor c. Conduct compliance evaluation by be installed above ground. No. 82 Year 2001 Class 2 c. Manage drainage pattern and sediment control comparing analysis results with the At this stage, management by considering including sediment trap and sedimentation pond regulatory standards of Class 2 in the and monitoring plan for environmental baseline along cleared area in trenching activity Government Regulation No. 82 Year onshore pipeline during AMDAL d. Conduct revegation in affected area after the 2001, also taking into consideration installation, including activity is completed baseline condition during AMDAL trenching activity have d. Conduct trend evaluation been incorporated into e. Visual observation on the availability and Project Environmental effectiveness of the erosion control Management and facilities for example drainage pattern, Monitoring Plan for slope modification, jute net, or planting Offshore GPF and EPCI vines, soft material handling Activity (TEP-9001-PLA-HS- f. Visual observation at locations prone to BP5-0010). erosion, for example slopes, stockpiles, etc g. Visual observation during revegetation

Sea Water a. Waste Wastewater management a. Update wastewater management procedure and Sewage a. Generated wastewater Comply Quality water from complies with conduct socialisation to related employees a. Collect samples of the treated effluent(at during the pre- vessel requirements in b. Conduct sewage treatment in accordance with the discharge pipe) and conduct analysis engineering b. Waste Government Regulation Government Regulation No. 21 Year 2010 and for the concentration of the required geotechnical survey water No. 21 Year 2010, MARPOL Annex IV prior to discharge to sea parameters done by an accredited (10-22 December 2016) was segregated by its manageme MARPOL and applicable c. Conduct oily contaminated water treatment by laboratory nt in regulation using Oil Water Separator in accordance characteristics, i.e. offshore Government Regulation No. 21 Year 2010 and b. Conduct visual observation for floating black water and grey constructio MARPOL Annex I prior to discharge to sea material and foam at the discharge pipe water. The volume of wastewater generated n d. Complies with requirements in Government c. Conduct compliance evaluation by was relatively small as Regulation No. 21 Year 2010 and MARPOL for comparing analysis results and visual the survey was ballast water. Ballast water exchange is observation with the standards set in the conducted only in 2 anticipated tobe rarely conducted since most of Wastewater Discharge to Sea Permit weeks. There was no the vessel will arrive in Tangguh LNG in loaded d. Record the sewage flowrate. If possible, overboard discharge of condition measurement is done with a flowmeter e. Conduct trend analysis wastewater during the e. Record ballast water exchange (date, location, survey.

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage v”‘u’e a“d vesse‘s “a’e) b. Wastewater will be Oily contaminated wastewater from OWS generated during Visual observation: offshore pipeline installation activity, a. Conduct visual observation for oil film on the seawater at the discharge pipe from which will be the Oil Water Separator unit commenced in Q3- Laboratory analysis 2018. At this stage, wastewater a. Collect samples of the treated effluent (at management and the discharge pipe) and conduct analysis monitoring plan for for the concentration of the required pipeline installation parameters done by an accredited activity have been laboratory incorporated into b. Conduct compliance evaluation by Project Environmental comparing analysis results with the Management and standards set in the Wastewater Monitoring Plan for Discharge to Sea permit and MARPOL Offshore GPF and EPCI c. Record the wastewater flowrate. If Activity (TEP-9001-PLA- possible, measurement is done with a HS-BP5-0010). flowmeter d. Conduct trend evaluation

Seawater quality a. Collect seawater samples and conduct analysis for the concentration of the required parameters done by an accredited laboratory b. Conduct compliance evaluation by comparing analysis results with the Minister of Environment Regulation No. 51 Year 2004 (refer to Table in Appendix I), also taking into consideration baseline condition during AMDAL c. Conduct trend evaluation

Ballast water Check the ballast water exchange records to compare with the MARPOL requirements (at ‘east the date, ‘”cati”“, v”‘u’e a“d vesse‘s name)

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Marine biota a. Collect plankton samples b. Calculate abundance, diversity index and uniformity index of the plankton

c. Collection, identification and calculation will be conducted by an accredited laboratory d. Conduct trend evaluation by comparing analysis results with baseline condition during AMDAL a. Solid a. Solid waste (non- General management a. Check records of the amount and type of a. Generated waste during Comply waste hazardous) a. Update hazardous and non-hazardous solid waste that has been produced and the pre-engineering from management is waste management procedure and conduct delivered to the storage and treatment geotechnical survey (10- vessel conducted in socialisation to related employees facilities in Tangguh 22 December 2016) was accordance with b. Check records of the amount and segregated by its b. Solid b. Conduct solid waste segregation (non- Government characteristics e.g. food waste hazardous waste and hazardous waste) disposal location of food waste that has (non- Regulation No. 21 been comminuted and disposed to the waste, recyclable waste, c. Implement 3R system (Reduce, Reuse, Recycle) hazardous Year 2010, MARPOL sea etc. The amount of d. Categorise non-hazardous solid waste into ) and and applicable c. Check records and delivery of the waste generated was organic waste, recyclable waste, burnable waste hazardous regulations hazardous waste manifest relatively small as the and inert waste waste b. Hazardous waste d. Conduct weekly inspection of the solid survey was conducted managem management is waste and hazardous waste treatment only in 2 weeks. There ent activity conducted in Non-hazardous solid waste management : facilities in accordance with the was no overboard during accordance with a. Conduct solid waste management in accordance applicable procedure discharge of solid waste offshore Government with Government Regulation No. 21 Year 2010, except for food waste, constructi Regulation No. 85 MARPOL Annex V and applicable regulations which was macerated on Year 1999, MARPOL b. Do not dispose garbage to sea, except treated and disposed at 3nm and applicable food waste in accordance with MARPOL Annex from the nearest land regulations V requirements according to MARPOL. The other type of waste c. Comminute food waste to size less than 25 mm for further disposal to sea with distance more were stored in the than 3 nm from nearest land vessel and sent to recycling or disposal d. Dispose uncomminuted waste at distance more facility offsite. than 12 nm from the nearest land b. Waste will be generated Record generated and disposed waste (daily) e. during offshore pipeline installation activity, Hazardous Waste Management: which will be a. Conduct hazardous waste management in commenced in Q3-2018. accordance with Government Regulation No. 85 At this stage, waste

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Year 1999 and applicable regulations management and b. Transfer hazardous waste to licensed waste monitoring plan for facility for further treatment pipeline installation c. Conduct labelling for hazardous waste container activity have been incorporated into d. Use permitted hazardous waste transporter Project Environmental facility Management and

Monitoring Plan for Offshore GPF and EPCI Activity (TEP-9001-PLA- HS-BP5-0010).

Offshore a. Minimise the a. Update hazardous material management a. Inspect hazardous material and waste The offshore fuel and Comply Fuel and possibility of offshore procedure and conduct socialisation/training to storage facility prior to operation in chemical storage will be Chemical fuel and chemical spill related employees accordance with the applicable used during pipeline Storage b. Offshore spill b. Update Fuel and Chemical Management procedure installation activity Facility and response can be done Procedure and conduct training/socialisation to b. Conduct routine inspection of containers, Tangguh site, which Refueling effectively as per related employees storage system, storage warehouse planned to be commenced Facility procedure hence will c. Update emergency response procedure and condition, emergency response system, in Q3-2018. At this stage, not affect water conduct training to emergency response team and other facilities in accordance with offshore fuel and chemical quality and marine (ERT) the applicable procedure storage management and monitoring plan for biota d. Appoint Emergency Response Team for fuel and offshore activity have been chemical spill Spill clean-up: incorporated into Project e. Ensure storage containers are built compatible a. Visual observation of oil film on the water Environmental with the materialand are in good condition to ensure that the oil spill response is Management and conducted in accordance with the f. Ensure every stored material is recorded and Monitoring Plan for procedure completed with MSDS Offshore GPF and EPCI b. If required, conduct seawater quality g. Minimum requirements for storage facility are Activity (TEP-9001-PLA-HS- analysis for the Oil and Grease parameter as follows: BP5-0010). in accordance with the applicable 1) Completed with bunded area that will be procedure (emergency response able to contain 110% of the volume of the procedure) to ensure that the spill clean- largest container or 25% of the total volume up activity is conducted as per the in the storage facility procedure 2) Building construction, including the floor and c. Record any spill that at least notes the bunded area must be constructed with a amount and type of the spilled hazardous impermeable material material and waste, spill location and the 3) Treat oily contaminated water trapped in the spill handling efforts bunded area 4) Completed with spill kit h. Put label and symbol on the container (package) and storage area

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage i. Conduct regular inspection to fuel and chemical storage and refueling facility j. Perform efforts to response oil spill in accordance with Oil Spill Contingency Plan and conduct spill response training according to planned schedule

Soil Onshore a. Minimise the a. Update hazardous material management a. Inspect hazardous material and waste The onshore fuel and Comply Contamination Fuel and possibility of onshore procedure and conduct socialisation/training to storage facility prior to operation in chemical storage will be Chemical fuel and chemical spill related employees accordance with the applicable used during HDD and Storage b. Onshore spill b. Update emergency response procedure and procedure onshore pipeline Facility and response can be done conduct training to emergency response team b. Conduct weekly inspection of containers, installation activity Refueling effectively as per (ERT) storage system, storage warehouse Tangguh site, which Facility procedure hence will c. Appoint Emergency Response Team for fuel and condition, emergency response system, planned to be commenced not contaminated the chemical spill and other facilities in accordance with in Q2-2018. At this stage, the applicable procedure onshore fuel and chemical land d. Ensure fuel and chemical storage container are storage management and built compatible with the materialand are in monitoring plan for good condition Spill clean-up: onshore activity have been e. Ensure fuel and chemical storage and refueling a. Visual observation to ensure that the oil incorporated into Project location is safe from flood or is on a higher spill response is conducted in accordance Environmental elevation with the procedure Management and b. If required, conduct soil TPH analysis (as f. Minimum requirements of storage facility are as Monitoring Plan for per the Minister of Environment Decree follow: Offshore GPF and EPCI No. 128 Year 2003) on location after the 1) Completed with a bunded area that will be Activity (TEP-9001-PLA-HS- soil has been cleaned up to ensure that able to contain 110% of the volume of the BP5-0010). the contaminated soil excavation has largest container, or 25% of the total volume been done as per the procedure 2) The building, including the floor and the

bund wall, must be constructed with a

impermeable material Record any spill, noting the amount and 3) The floor construction must have a slope of c. type of the spilled hazardous material at least 1% towards sump pit or Oil Water and waste, spill location and the spill Separator (OWS) handling efforts 4) Completed with a sump pit for facilities with a roofed shelter 5) Completed with an Oil Water Separator (OWS) unit for facilities without a roofed shelter 6) Completed with spill kit 7) Completed with MSDS information g. Conduct routine clean up of oily contaminated water trapped in sump pit or OWS for further

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage treatment h. Put label and symbol on the container (package) and storage area i. Conduct regular inspection/audit j. Treat contaminated soil by excavated, separated and collected to Temporary Hazardous Waste Storage for further treatment k. Ensure clean up process is performed well and conduct TPH soil test (if necessary) according to MoE Decree No. 128 Year 2003

Terrestrial Flora Land a. Conduct land clearing a. Update land clearing and tree cutting procedure a. Compare the actual to planned land Land clearing was Comply and Fauna clearing as planned to and conduct socialisation to related employees clearing area commenced in January minimize disruption to b. Minimise land clearing by only conducting land b. Check the tree cutting inventory data 2017. terrestrial flora and clearing in designated area c. Maintain records of visual observation of a. Tree harvesting fauna sightings during activity fauna c. Implement no fire policy for land clearing procedures has been b. Minimum disruption activity d. Compare the actual to planned developed and the revegetation area to terrestrial flora and d. Implement reduced impact logging technique to requirements were e. Maintain records of cover crop data (type fauna reduce impact from tree cutting: communicated and amount) and trees used for during toolbox talk 1) Develop Skid Trail and Log Landing plan, revegetation and training. avoid buffer zone and area with slope more f. Routinely monitor the success rate of the b. Areas to be cleared than 50% Revegetation Program through the are being marked at 2) Construct Skid Trail and Log Landing as following parameters: density, diversity, site according to the planned survival rate and canopy cover Tree Harvesting 3) Cut the vines Layout to ensure the 4) Timber cutting in accordance with Skid Trail area is cleared 5) Timber waste cutting according to plan. c. No fire policy is Maintain buffer zone e. included in HSE f. Conduct revegetation in the cleared area which induction and will not be used for permanent facility or communicated in construction access. Using local Papua plants. toolbox talk. d. Chainsaw and g. Implement no flora fauna disturbance and not machete training entering or carrying out flora fauna from or to adopting the Tangguh LNG Reduced Impact h. Implement no hunting and fishing policy at Logging Technique Tangguh LNG area have also been conducted to i. Install signage of wild animal presence and relevant personnel crossing, especially protected and endangered in November- animals December 2016 and j. Install fence and signage to avoid wild life currently being

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage disturbance to employees and project implemented at site installation for tree cutting activity. e. Flora fauna protection training and campaign are conducted at Tangguh site. Signage and fence are also installed at project area to avoid disturbance to employee and construction activity. LNG Plant Construction Activity Noise Level a. Earthwor Noise level complies to a. Use inspected and certified equipments a. Internal monthly and external 6-monthly a. All equipment hold Comply k activity standards in MoE Decree according to applicable regulation noise monitoring using Sound Level EMA Certificate, which including No. 48 Year 1996 and b. Conduct routine maintenance to Meter, particularly during peak activity means the equipment Land General EHS Guidelines engine/equipments according to specified b. Conduct compliance evaluation by is properly inspected Clearing 2007 in Tangguh schedule to ensure that the engine/equipments comparing analysis results with the prior to mobilization. and Site Perimeter Fence location are working efficiently regulatory standards in the MoE Decree b. Maintenance for Preparati c. Only conduct land clearing in designated area No. 48 Year 1996 (refer to Table in equipment is being on such d. Maintain buffer zone as noise barrier Appendix I of RKL-RPL) scheduled and as cut c. Prepare noise monitoring trend performed regularly. and fill evaluation c. Noise monitoring has b. Construc d. Check engine/equipment maintenance been performed. tion of records to ensure that maintenance is LNG conducted in accordance with the Plant determined schedule and its supporti ng facilities

Natural Earthwork Minimum natural a. Develop Earthwork plan map which provides a. Conduct visual monitoring when change a. Earthwork plan, Comply hydrological activity hydrological change information about: of drainage patterns occurred and including cut/fill, change including including 1) Land clearing plan compare the actual drainage pattern with topography and surface run off Land 2) Cut and fill plan including amount of the planned drainage pattern temporary drainage has increase, Clearing and excavated and stockpiled soil b. Compare the actual drainage pattern with been developed. drainage pattern Site 3) Initial and final topography from site the hydrology map in the plan Ephemeral natural flow changes, creek Preparation preparation patterns are morphology such as cut 4) Natural drainage pattern and drainage maintained.

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage changes, and and fill management plan during Earthwork b. Erosion control are in creek flowrate including erosion control place which includes increase b. Conduct land clearing and site preparation only temporary culverts and at designated area log mattings for c. Maintain riparian area with the minimum of 100 crossings, biomass meters for large river and minimum 50 meters placement to reduce for small river in accordance with Government run-off flow, Regulation No. 38 Year 2011 sedimentation pond is d. Minimise natural flow pattern change of provided at Ephemeral downstream of effluent e. If Earthwork at creek is inevitable then culverts, runoff. However, bridges and artificial drainage or other method improvement needs to will be installed be made at site to f. Ensure culverts, bridges, drainage or other ensure the erosion facility can accommodate peak flow of control measures are creek/river efficient to reduce TSS. g. Design drainage pattern at affected area to c. Visual monitoring is transfer surface run off to natural flow being performed h. Construct sedimentation pond in the particularly for erosion downstream affected area before receiving and sediment control water body to minimise impact system at site, i. Build facilities to reduce run off flow rate hence including the minimizing river morphological change temporary drainage j. Conduct revegetation (grass/cover crop) at and sedimentation cleared area which will not be used yet for pond. construction activity in the period of minimum 3 d. Surface water months. Using local Papua plants monitoring has been performed.

Soil erosion and Earthwork Minimise soil erosion and a. Develop land clearing and site preparation a. Conduct visual monitoring (weekly or after a. Erosion and Comply sea water quality activity TSS concentration in activity plan by considering erosion mitigation heavy rain) and inspection of the erosion sedimentation control impact due to including surface water complies factor controls plan is included in TSS Land with standards in b. Earthwork activity will start after main facility of b. Conduct visual monitoring and inspection overall Earthwork Plan. concentraction Clearing and Government Regulation erosion and sedimentation control is available at locations which are prone to erosion b. Erosion and sediment increase Site No. 82 Year 2001 Class 2 c. Manage drainage pattern and sediment control weekly or after heavy rain control measures are Preparation by considering by: c. Settling pond effluent visual weekly being implemented at such as cut environmental baseline 1) Create temporary or permanent drainage monitoring or after rain and internal pH site, which includes: and fill during AMDAL and construct dike and water channel analysis 1) Construction of 2) Ensure water channel and/or creek is not temporary drainage blocked 2) Diversion of water 3) Provide Retaining Wall with wall slope more channel when

101

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage than 2:1 disturbed 4) Install jute net or plant cover crop to 3) Provision of silt maintain wall stability especially in the area fences as erosion with wall slope ratio more than 3:1 or control and wall/slope height more than 3 meters sediment trap 5) Install Sediment Trap in various drainage 4) Provision of locations sedimentation pond 6) Provision of Sedimentation Pond at c. Regular inspection of downstream of drainage before entering erosion and receiving water body sedimentation control 7) Conduct routine clean up for trapped measures are sediment in Sediment Trap and Sediment performed at site. pond d. Surface water 8) Sediment pond volume shall be able to monitoring has been control TSS during peak rain condition (hour) performed. 9) If sediment pond volume is ineffective then other control efforts need to be done 10) Conduct revegetation (grass/cover crop) at cleared area which will not be used yet for construction activity in the period of minimum 3 months. Using local Papua plants d. Conduct routine inspection to erosion and sedimentation control facility to ensure those facilities in maximum function, especially after rain

Natural Water a. Ensure the volume of a. Groundwater production well will be designed a. Maintain daily records of groundwater At this stage, groundwater N/A geohydrological resource extracted groundwater to extract groundwater from aquifer at a depth use from the production wells option will not be change with provision is the optimum yield of 300 – 400 m hence it will not disturb shallow b. Collect groundwater samples and implemented for TEP potential from according to pumping groundwater which is typically used for conduct groundwater quality analysis for construction activity. The disruption to groundwater test and groundwater groundwater source for community in Tanah salinity and TDS, weekly basis for freshwater will be sourced community well extraction extraction permit Merah Baru and Saengga villages. production wells and 3 monthly basis for from desalination and and land alternative b. Minimise impact to b. Groundwater extraction for Tangguh LNG will monitoring wells imported freshwater. subsidence community be limited to deeper groundwater aquifer (>150 c. Maintain records of the groundwater groundwater m). Groundwater aquifer at a depth over 150 levels of the production wells, monitoring availability in Tanah meters will be protected with steel casing wells and community wells. Monitor Merah and Saengga installation weekly for production well, monthly for by minimising the c. Groundwater pumping/extraction volume is monitoring well and 3 monthly for potential of sea water determined by groundwater pumping test result community wells intrusion (TDS < 1.000 witnessed by related government institutions d. Maintain records of the landscape change mg/L); and (Ministry of Environment) and based on at the land subsidence monitoring c. Minimise the potential groundwater utilisation permit according to station. Monitor in 3 monthly basis.

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage of land subsidence (< related regulations 5 cm) related to long d. Measure groundwater level from community term groundwater well in Tanah Merah and Saengga villages as extraction environmental baseline information e. Install groundwater monitoring well at a depth of 150 m which is located between Tangguh LNG groundwater production well and community groundwater well to monitor the potential reduction of groundwater level from groundwater utilisation activity f. Install groundwater monitoring well at a depth of 150 – 400 m to monitor the potential of sea water migration g. Install land subsidence monitoring station around groundwater production wells locations h. Update numerical model based on new data from production test well with depth of 400 m and nearby monitoring well with depth of 150 m (Pumping test for 10 days) to verify pumping flow rate, other aquifer parameters, potential effect of fault and aquifer salinity to a depth of 400 m i. Proposed production wells location, monitoring wells, and well design will be determined based on modelling result j. By the end of construction phase, numerical modelling in AMDAL will be re-calibrated using monitoring and groundwater extraction/pumping data during construction phase k. Use Water Based Mud (WBM) which is non toxic for groundwater well and monitoring well drilling activities. Drilling mud will be tested for

TCLP and LD50 prior to use l. Used mud and cutting from groundwater well drilling activity will be disposed to non- hazardous waste landfill at Tangguh LNG or will be collected in a pond that will be constructed near the drilling location. Once groundwater well drilling is finished, the pond will be closed and revegetated.

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage m. Mitigation efforts will be conducted to avoid sea water intrusion such as extraction/pumping reduction of groundwater production well around shore area, or construct additional groundwater production well further south near to Tangguh LNG perimeter fence

Terrestrial Flora a. Land a. Conduct land clearing a. Update land clearing and tree cutting procedure a. Compare the actual land clearing area Land clearing was Comply and Fauna Clearing as planned to and conduct socialisation to related employee with the planned area (review in 3 commenced in January b. Construct minimize disruption to b. Minimise land clearing by conducting land monthly basis) 2017. ion of terrestrial flora and clearing only in designated area b. Maintain records of the fauna sightings a. Tree harvesting LNG fauna c. Implement no fire policy for land clearing during land clearing and construction of procedures has been Plant and b. Minimum disruption activity the LNG Plant and its supporting facilities developed and the its to terrestrial flora and d. Implement reduced impact logging technique to c. Conduct flora and fauna survey in the requirements were supportin fauna reduce impact from tree cutting: buffer zone, 1 time during construction communicated during g 1) Develop Skid Trail and Log Landing plan, phase toolbox talk and training. facilities avoid buffer zone and area with slope more d. Compare actual re-vegetation area with b. Areas to be cleared are than 50% the plan being marked at site 2) Construct Skid Trail and Log Landing as e. Maintain records of cover crop (type and according to the Tree planned amount) and the planted trees Harvesting Layout to 3) Cut the vines f. Conduct routine monitoring of the ensure the area is cleared 4) Timber cutting in accordance with Skid Trail success rate of the re-vegetation program according to plan. 5) Chip timber waste through a number of parameters: density, c. No fire policy is included e. Maintain buffer zone diversity, survival rate and canopy cover in HSE induction and f. Conduct revegetation in the cleared area which g. Monitoring of specific invasive species communicated in toolbox will not be used for permanent facility or presence within site area talk. construction access. Using local Papua plants d. Chainsaw and machete g. Implement no flora fauna disturbance and not training adopting the entering or carrying out flora fauna from or to Reduced Impact Logging Tangguh LNG Technique have also h. Implement no hunting and fishing policy at been conducted to Tangguh LNG site relevant personnel in i. Install signage of wild animal presence and November-December crossing, especially protected and endangered 2016 and currently being animals implemented at site for j. Install fence and signage to avoid wild life tree cutting activity. disturbance to employee and project installation e. Flora fauna protection k. Confirm that no savannah forest will be removed training and campaign by the projects are conducted at l. Minimize the loss of mangrove forest Tangguh site. Signage m. Collect plant materials for priority plant species and fence are also during pre-construction surveys installed at project area

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage n. During the initial tree clearance, a representative to avoid disturbance to sample of orchid specimens will be collected employee and from felled trees. These will be moved to a construction activity. suitable plant nursery on site or, where possible, directly replanted into adjacent un-affected forest area o. Tree harvesting area clearly designated and mapped and no clearance outside the tree harvesting areas p. Enforcement of no unauthorized access into the buffer zone q. Enforcement of pest control management r. Raised awareness in the local community of the risk of dogs and cats as a threat to local wildlife s. Weed control progamme properly undertaken, in accordance with SSO for Weed Control t. Employment of forestry specialist u. Qualified ecologist on-site during pre- construction work and during tree clearance v. Qualified environmental team on-site and with clear accountability and responsibilities w. Socialization of the ecological importance of the site and ecological toolbox talks x. No habitats within 10m of major permanent- river removed. y. Vegetation clearance kept to a minimum z. Only marked trees will be removed aa. Biodiversity conservation awareness is undertaken as part of the EPA bb. Completion of pre-construction monitoring survey cc. Implementation of post-construction surveys and ongoing monitoring dd. Produce Invasive Species Management Plan and ensure that the plan covers all mitigation as outlined in the CHA/BAP

Marine mammal Sea Minimise the potential of a. Update marine mammal protection procedure a. Conduct fishery (nekton sample a. Marine Mammal Comply disruption Transportati marine mammal and conduct socialisation to related employees collection and fishermen catch data Protection training has on for disruption compared to and vessel crew collection) and marine mammal (visual, if been delivered to Workforce, environmental baseline b. Update solid waste and wastewater possible using a hydrophone) survey. relevant employee. Equipment during AMDAL management procedure for sea transportation Survey is to be conducted 1 time during b. Waste and wastewater

105

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage and Material activity and conduct socialisation to related construction phase. management plan has employees b. Verify marine mammal awareness been developed and the c. Update emergency response procedure at training records delivered to vessel crew training has been vessel and conduct training to vessel crew against the records in the training matrix delivered to relevant d. Provide emergency response facility in the c. Conduct records check of vessel engine employee as well. vessel in accordance with developed procedure maintenance to ensure that maintenance c. Spill Prevention e. Implement No Fishing policy is conducted in accordance with the Training and Drill are f. Conduct routine maintenance to determined schedule performed regularly to engine/equipments according to specified d. Check ballast water exchange records vessel crew. SOPEP is schedule to ensure that the engine/equipments against MARPOL requirements (at least provided in every vessel are working efficiently the date, ‘”cati”“, v”‘u’e a“d vesse‘s as Tier 1 response g. Prioritizing sailing in deeper area (>12 m) when name), review in 6-monthly basis equipment. the sea condition is calm d. Waste/wastewater h. Reduce vessel speed if approaching marine disposal and ballast mammal until the marine mammal swims away water exchange are i. Conduct solid waste and wastewater being recorded. management in accordance with Government Regulation No. 21 Year 2010 and MARPOL also applicable regulations. Solid waste and wastewater management will be discussed more details in EMP regarding seawater quality j. Manage ballast water in accordance with Government Regulation No. 21 Year 2010 and MARPOL. Ballast exchange is anticipated will not happen often since most of the vessels will arrive at Tangguh LNG in loaded condition. k. Record ballast exchange (date, location, volume, a“d vesse‘s “a’e) Air Quality a. Land Ambient air quality a. Land clearing, site preparation and construction a. Collect ambient air samples and analyse Land clearing was Comply Preparati complies with standards material excavation only conducted at planned the required parameters internally or by commenced in January on according to Government area an accredited laboratory in 6-monthly 2017. b. Construct Regulation No. 41 Year b. Conduct routine watering. Watering shall be basis a. Areas to be cleared are ion of 1999 and General EHS adjusted with seasonal condition and rainfall. If b. Conduct compliance evaluation against being marked at site LNG Guidelines 2007 possible, watering can be done by using treated analysis results in Government Regulation according to the Tree Plant and (Attachment 1) domestic sewage which already complies with No. 41 Year 1999 and the General EHS Harvesting Layout to its standard Guidelines 2007 (refer to Table in ensure the area is cleared supportin c. Set maximum speed for land transportation in Appendix I RKL-RPL) according to plan. g site preparation and construction area at of 30 c. Conduct ambient air monitoring result b. Routine road watering is facilities km/hour trend analysis performed using treated d. Conduct routine maintenance to sewage from existing engine/equipments according to specified STP.

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage schedule to ensure that the engine/equipments c. Maximum speed limit are working efficiently requirement is also being e. Conduct operational management for implemented at site. incinerator and generator in order to comply with emission standards f. Conduct revegetation (grass/cover crop) at cleared area which will not be used yet for construction activity in the period of minimum 3 months. Using local Papua plants

Incinerator a. Emission from Non- a. Ensure the installed incinerator comply with a. Conduct air emission monitoring at the At this stage, the Comply Operational hazardous waste emission standards sampling points on the stacks (1 yearly for combustible waste from Solid incinerator complies b. Update operational procedure for each non-hazardous waste incinerator and 3- generated from project Waste (Non- with standards in MoE incinerator and conduct training and monthly for hazardous waste incinerator) activity is incinerated using hazardous) Decree No. 13 Year socialisation to operators b. Conduct compliance evaluation by existing incinerator. and 1995 (Attachment 1) c. Only burn waste according to specification for comparing analysis results with the Management and Hazardous b. Emission from non-hazardous waste incinerator and according applicable regulations: monitoring plan for Waste Hazardous waste to permit for hazardous waste incinerator 1) Non-hazardous waste incinerator temporary incinerator has Management incinerator complies d. Operate incinerator according to its specification emission as per the Minister of been included in Project activity with standards in (Burner, blower and feed rate) Environment Decree No. 13 Year 1995 Environmental Head of e. Hazardous waste incinerator complies with (refer to Table in Appendix I RKL-RPL) Management Plan for LNG Environmental Impact design according to Head of Environmental 2) Hazardous waste incinerator emission as EPC Activity (TEP-930-PLA- Agency Decree No. 03 Impact Agency Decree No. 03 Year 1995 and per the Head of Environmental Impact EN-BP4-0059). Year 1995 (Attachment completed with permit from related agency Agency Decree No. 03 Year 1995 (refer to 1) f. Conduct daily record for amount and type of Table in Appendix I RKL-RPL) burnable waste and incinerator operational c. Conduct air emission trend analysis condition for each incinerator d. Check incinerator maintenance records to g. Conduct routine maintenance to ensure that maintenance is conducted in engine/equipments according to specified accordance with the determined schedule. schedule to ensure that the engine/equipments Review in 6-monthlyl basis are working efficiently h. Define sampling locations and provide sampling facility according to applicable regulations

Power Emission from Diesel a. Update diesel generator operational procedure a. Conduct air emission monitoring at Temporary diesel Comply Generation Generator complies with and socialise it to operators sampling points of the stack and conduct generators with capacity < from Diesel standards according to b. Operate generator according to its specifications analysis for the concentration of the 570 KWth are currently Generator MoE Regulation No. 13 both operational load and time required parameters by an accredited used at site for lighting Year 2009 and General c. Conduct routine maintenance to laboratory purposes and equipped EHS Guideline 2007 engine/equipments according to specified b. Conduct compliance evaluation by with operational procedure schedule to ensure that the engine/equipments comparing analysis results with the and spill prevention are working efficiently Minister of Environment Regulation No. 13 equipment (drip pan). d. Define sampling locations and provide sampling Year 2009 and the General EHS Guidelines

107

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage facility according to applicable regulations 2007 (refer to Table in Appendix I RKL-RPL) c. Conduct trend analysis Management and d. Check the generator maintenance records monitoring plan for diesel generator has been Time and Frequency: included in Project a. Capacity< 570 KWth : 1 time every 3 years Environmental b. Capacity 570 KWth < x < 3MWth : 1 time Management Plan for LNG every year EPC Activity (TEP-930-PLA- Generator maintenance records check: 1 EN-BP4-0059). time every 6 months

Sea water quality Water a. Treated reject brine a. Update reject brine management procedure and a. Collect seawater samples and conduct At this stage, freshwater for Comply due to salinity provision complies with conduct training and socialisation to related analysis for salinity by an accredited project construction activity increase and from standards according employee laboratory is being supplied from reduction of desalination to applicable b. Install wastewater discharge pipeline at sea b. Collect wastewater samples and measure existing operation facility. plankton alternative Wastewater Discharge according to study result (-6 m LAT) the pH level done by an accredited Management and abundance and Permit to Sea c. Install flow meter and sampling facility at reject laboratory monitoring of desalination diversity b. Minimise the potential brine outlet c. Check the records of the daily wastewater wastewater, has been reduction of plankton d. Discharge reject brine according to allowable discharge flow rate included in Project abundance and maximum flowrate d. Conduct compliance evaluation by Environmental diversity compared to e. Conduct daily recording of discharged reject comparing analysis results with the Management Plan for LNG environmental brine volume standards set in the Wastewater Discharge EPC Activity (TEP-930-PLA- baseline during f. Conduct routine maintenance to to Sea Permit, also taking into EN-BP4-0059). AMDAL engine/equipments according to specified consideration baseline conditions during schedule to ensure that the engine/equipments AMDAL are working efficiently e. Conduct compliance evaluation by comparing the actual flow rate with the maximum allowable flow rate f. Conduct trend evaluation for the wastewater concentration and flow rate discharged to sea

Time and Frequency: a. Monthly water quality analysis. Upstream and downstream from the common outfall at a 100 m radius (Salinity) and pH at the effluent point of desalination unit b. Daily flow rate record

Surface water Solid waste Solid waste (non- Solid Waste (non-hazardous) and Hazardous Waste a. Check records of the amount and type of a. Management for Comply quality, (non- hazardous) and Management waste that has been produced and hazardous and non- groundwater, hazardous) hazardous waste General Management: delivered to the storage and treatment hazardous solid waste

108

OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage and soil quality and management complies a. Update hazardous and non-hazardous solid facilities has been included in hazardous with requirements in Law waste management and conduct socialisation to b. Check records of waste that has been Project Waste waste No. 18 Year 2008 and related employees treated in Tangguh (for example Management Plan for management Government Regulation b. Conduct solid waste segregation (Non- incineration, composting, etc) LNG EPC Activity (TEP- activity No. 85 Year 1999 hazardous and hazardous solid waste) c. Check records of the solid waste amount 930-PLA-EN-BP4-0004). during c. Implement 3R system (Reduce, Reuse, Recycle) disposed to the non-hazardous waste However, at this stage, construction d. Categorize non-hazardous solid waste into landfill contractor follows organic, recyclable, burnable and inert waste d. Check records of the recyclable waste sent existing procedure as to the external recycling company they are utilizing e. Check records and delivery of the existing facilities. hazardous waste manifest b. For current activity at f. Conduct inspection in weekly basis site, waste segregation, 3R effort and waste categorization follows the existing procedure.

Non-Hazardous Solid Waste Management: Non-hazardous solid waste Comply. a. Waste storage facility will be completed with management and impermeable floor to prevent soil contamination hazardous waste b. Food waste will be managed by extracted using management is currently macerator and/or composting process and/or using existing facility. disposal to Non-hazardous waste landfill c. Recyclable waste will be collected and sent to waste recycling company d. Burnable waste will be incinerated using non- hazardous waste incinerator e. Timber waste will be collected, chipped into wood chips for raw material for composting process, utilisation in revegetation activity or used as landfill cover f. Inert waste will be disposed to non-hazardous waste landfill g. Conduct recording of generated and treated waste

Hazardous Waste Management : a. Hazardous waste will be packed using packaging which will not react with the contained material b. Hazardous waste will be stored in permitted Temporary Hazardous Waste Storage Facility

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage c. Burnable hazardous waste will be incinerated using permitted hazardous waste incinerator d. Hazardous waste will be sent to licensed hazardous waste treatment facility e. Using permitted hazardous waste transporter facility f. Keep hazardous waste manifest and report regularly to related agency

Groundwater Non- Groundwater quality a. Update solid waste management and non- a. Collect groundwater samples from a. Management for Comply quality hazardous around Non-hazardous hazardous waste landfill operational procedure monitoring wells (1 upstream and 3 hazardous and non- waste landfill waste landfill complies and conduct socialisation/training to related downstream) and analyze for the hazardous solid waste operational with standard according employees required parameters by using an has been included in to Government b. Solid waste that being disposed to non- accredited laboratory every 6 months Project Waste Regulation No, 82 Year hazardous waste landfill are food waste and b. Conduct compliance evaluation by Management Plan for 2001 Class 1 by other non-hazardous waste according to comparing analysis results with the LNG EPC Activity (TEP- considering applicable procedure (e.g.: inert waste) Class I groundwater quality regulatory 930-PLA-EN-BP4-0004). environmental baseline c. Hazardous waste shall not be disposed to non- standards in Government Regulation No. b. Requirement for solid condition during AMDAL hazardous waste landfill 82 Year 2001, also taking into waste to be disposed to (Attachment 1) d. Design non-hazardous waste landill so it does consideration the baseline conditions in non-hazardous waste not contaminate surrounding groundwater: AMDAL landfill also included in 1) Proposed non-hazardous waste landfill c. Conduct groundwater monitoring trend the Project Waste location will be compacted before lined with analysis Management Plan for HDPE Liner Measure groundwater level using the LNG EPC Activity (TEP- 2) Non-hazardous waste landfill will be lined water level monitoring equipment 930-PLA-EN-BP4-0004). with HDPE Liner, both at Non-hazardous waste landfill Main Pond and Leachate Pond 3) Non-hazardous waste landfill capacity shall calculate leachate management to prevent leachate overflow 4) Leachate will be transferred to Sewage Treatment Plant prior to discharge 5) Install Monitoring Well in the upstream and downstream of non-hazardous waste landfill based on study result 6) Number of Monitoring Well shall represent groundwater upstream and downstream area around non-hazardous waste landfill, minimum 1 monitoring well in the upstream and 3 monitoring well in the downstream 7) Conduct routine inspection of Non- hazardous waste landfill integrity

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage

Water Quality Wastewater a. Effluent from WWT a. Update wastewater management during Sewage Treatment Plant: Wastewater management Comply Management and STP comply with construction procedure and conduct a. Collect treated sewage samples at the and monitoring standards in MoE socialisation/training to related employees compliance points and analyse the requirement for Decree No. 112 Year b. Conduct effort to minimise wastewater required parameters monthly as per the construction has been 2003 and General EHS c. Install wastewater discharge pipe at sea at applicable regulations, by an accredited included in Project Guidelines 2007 location according to study result (-6 m LAT) laboratory Environmental b. Effluent from WWT d. Several potential wastewater and its b. Check records of the daily wastewater Management Plan for LNG and other wastewater management system from LNG Plant discharge flow rate EPC Activity (TEP-930-PLA- comply with standards construction activities are: c. Calculate the load for each treated EN-BP4-0059). However, at according to related 1) Sewage will be treated using physical, wastewater discharged to sea this stage, contractor regulations biological and chemical treatment (either d. Conduct compliance evaluation by follows existing procedure c. Surface water quality using activated sludge or other method) comparing analysis results with the as they are utilizing existing complies with prior to discharge to sea. Sludge from regulatory standards in the Wastewater facilities. standards according treatment process will be disposed to Discharge to Sea Permit, Minister of to Government Landfill and/or as raw material for Environment Decree No. 112 Year 2003 Regulation No. 82 composting and/or soil enricher material and the General EHS Guidelines 2007 Year 2001 Class 2 and/or similar utilisation according to study (refer to Table in Appendix I of RKL-RPL) and/or environmental result which is now being conducted and/or e. Conduct compliance evaluation by baseline during treat the biological sludge in the incinerator. comparing the actual flow rate with the AMDAL (parameter 2) If possible, treated sewage which already maximum allowable flow rate pH, TDS, TSS and complies to standards will be used to water f. Conduct compliance evaluation by main parameters the road or other utilisation comparing the calculated load with the which are related with 3) Wastewater from Batching Plant will be maximum allowable load wastewater neutralized first prior to discharge to surface g. Conduct trend analysis for concentration, characteristics) water flow rate and load of the discharged d. Sea water quality 4) Other wastewater (including wastewater wastewater from commissioning activity) which is not complies with potentially contaminated with oil or other standards according Sea Water Quality to MoE Decree No. 51 chemicals will be analysed for key a. Collect seawater samples upstream and Yaer 2004 and/or parameters prior to discharge to surface downstream from the common outfall at a environmental water. If there is any incompliance from the 100 m radius and conduct analysis for the baseline during key parameters then treatment will be required parameters every 3 months AMDAL (parameter conducted prior to discharge b. Compare the analysis results with the pH, Salinity, BOD, 5) Other wastewater (including wastewater regulatory standards in the Minister of TSS, Oil and Grease) from commissioning activity) which is Environment Decree No. 51 Year 2004 potentially contaminated with oil or other (refer to Table in Appendix I of RKL-RPL), chemicals will be analysed for key also taking into consideration baseline parameters (e.g.: pH, TSS, COD, and Oil and conditions during AMDAL Grease) and other relevant parameters to c. Conduct trend analysis determine the treatment method prior to discharge to sea

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage 6) Oily contaminated water from workshop and Surface Water: warehouse activities will be transferred to a. Collect surface water samples and monthly Collection Pond and Oil Water Separator internal analysis for pH, TDS and TSS (OWS) Unit. Oily contaminated water b. Collect surface water samples and conduct trapped in Oil Water Separator Unit will be analysis every 3 months for the required taken out regularly and sent to Temporary parameters by an accredited laboratory Hazardous Waste Storage Facility for further c. Conduct compliance evaluation by treatement. Treated wastewater will be comparing analysis results with the Class 2 discharge to surface water (creek). surface water regulatory standards in e. Conduct wastewater treatment and ensure Government Regulation No. 82 Year 2001, treated wastewater complies with standards also taking into consideration baseline prior to discharge to receiving water body conditions during AMDAL f. No wastewater dilution and mixing from d. Conduct trend evaluation different sources

Contour changes Site Contour changes is as a. Develop Site Preparation activity plan which Site Preparation Overall Comply Preparation planned covers: Key Plan (TEP-900-DWG- 1) Initial contour before activity CV-BP4-0018) has been 2) Activity plan including final contour developed, which show the 3) Present information about drainage pattern, initial and final elevation topography, etc. after earthwork. b. Conduct Site Preparation activity as planned

Soil Fuel and a. Minimise the a. Update hazardous material management a. Inspect hazardous material and waste a. Hazardous and Toxic Comply contamination Chemical possibility of onshore procedure and conduct socialisation/training to storage facility prior to operation in Material Management Storage fuel and chemical spill related employees accordance with the applicable Procedure (930-PRC- Facility and b. Onshore spill b. Update emergency response procedure and procedure HS-0006) has been Refueling response can be done conduct training to emergency response team b. Conduct weekly inspection of containers, developed. However, at Facility effectively as per (ERT) storage system, storage warehouse this stage, contractor follows existing procedure hence will c. Appoint Emergency Response Team for fuel and condition, emergency response system, procedure as they are not contaminated the chemical spill and other facilities in accordance with the applicable procedure utilizing existing land d. Ensure fuel and chemical storage containers are Visual monitoring to ensure that the oil facilities. built compatible with the materialand are in c. spill response is conducted in b. Emergency response good condition accordance with the procedure procedure for early e. Ensure fuel and chemical storage and refueling d. If required, conduct soil TPH analysis at construction phase has location is safe from flood or is on a higher the affected area(as per the Minister of been incorporated in elevation Environment Decree No. 128 Year 2003) HSE Plan (TEP-930- f. Minimum requirements of storage facility are as after remediation to ensure that the PLA-HS-BP4-0003). follows: clean-up has been done as per the 1) Completed with a bunded area that will be procedure

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage able to contain 110% of the volume of the e. Record any spill, noting the amount and largest container, or 25% of the total volume type of the spilled hazardous material 2) The building, including the floor and the and waste, spill location and the spill bund wall, must be constructed with a handling efforts impermeable material 3) The floor construction must have a slope of at least 1% towards sump pit or Oil Water Separator (OWS) 4) Completed with a sump pit for facilities with a roofed shelter 5) Completed with an Oil Water Separator (OWS) unit for facilities without a roofed shelter; 6) Completed with spill kit 7) Completed with MSDS information g. Conduct routine clean up of oily contaminated water trapped in sump pit or OWS for further treatment h. Put label and symbol on the container (package) and storage area i. Conduct regular inspection/audit j. Treat contaminated soil by excavated, separated and collected to Temporary Hazardous Waste Storage for further treatment k. Ensure clean up process is performed well and conduct TPH soil test (if necessary) according to MoE Decree No. 128 Year 2003

Top Soil Managed the affected top a. Update Top Soil Management procedure and a. Conduct monthly logbook checks from a. Topsoil management Comply stripping soil to maintain its conduct socialisation/training to related the excavation and storage of topsoil requirements are during amount and quality employees b. Conduct weekly inspection of topsoil included in earthwork Earthwork b. Top soil shall consist of organic soil which is management specification. free from subsoil mixture, stump, root, rock, Awareness of topsoil weeds and etc. management is also c. The depth of top soil excavation is 20 mm, communicated during unless specifically defined toolbox talk. d. Segregate and store Top Soil at specific b. Topsoil is free from locations provided for revegetation subsoil mixtures, e. Provide drainage system around stock pile area stumps and large size f. Use light excavator/stripper when conducting rocks. However, weeds Top Soil stripping and roots are

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage g. Provide erosion control facility and conduct seed sometimes mixed in dispersal (cover crop) to protect Top Soil the topsoil and cannot be avoided. c. Topsoil stripping is being recorded weekly.

Acid Sulfate Soil Earthwork a. Minimise the a. Where ground-disturbing work is proposed, the a. Record of Soil Assessment by the EPC Management of acid Comply (ASS) activity contamination of ASS EPC Contractor is required to assess the soil in Contractor; sulfate soil and run-off has including to vegetation, advance of any construction activities for ASS b. Record of Soil Management including been specified in Project Land groundwater and potential and map the area at risk; ASS Management by EPC Contractor; Specification for Clearing and surface water b. Where ASS is excavated, the ASS needs to be c. Weekly pH monitoring at effluent of Landscaping and Site b. Surface water quality covered (or re-buried) to exclude oxygen at the settlement/treatment pond to be Revegetation (TEP-900- Preparation complies with designated area proposed by the EPC Contractor conducted by the EPC Contractor; SPE-CV-BP4-0013). such as cut Government and approved by BP (as the appointed operator d. Surface water monitoring, including pH Monitoring result of and fill Regulation No. 82 Year on behalf of Tangguh); at upstream and downstream (50-100 m surface water quality (from 2001 Class 2 and/or c. Where Acid Runoff Drainage (ARD) occurs, it is to from effluent) to be conducted on a creek) does not indicate environmental baseline be collected into neutralization pond and monthly basis by the EPC Contractor and any impact of ARD. during AMDAL neutralized (e.g. with hydrated lime or crushed to be checked quarterly by External However, acid soil limestone) to ensure its pH meet the requirement Laboratory appointed by the EPC assessment and before releasing it to the environment; and Contractor; implementation of d. Exposed ASS is to be treated and neutralized e. Surface water monitoring at upstream ASS/ARD management with materials such as hydrated lime or crushed and downstream (50-100 m from have been scheduled by limestone before final disposal to prevent ARD. effluent) to be conducted every 6 months CSTS to ensure no non- as per RPL requirement by External compliance. Laboratory appointed by the EPC Contractor; and f. Surface water monitoring at upstream and downstream (50-100 m from effluent) to be conducted every 3 months as per RPL requirement by EPC Contractor Internal Laboratory. Construction of Marine Facilities Benthos Dredging for Minimise the potential a. Update dredging procedure according to a. Plankton and benthos sampling, 1 x Dredging activity for BOF Comply abundance Marine reduction of benthos scenario in ANDAL and conduct during dredging activity and 1 x after was commenced in May Facility abundance and diversity training/socialisation to related employees dredging completed at 500 m distance 2017. Construction compared to b. Conduct dredging only in designated area from dredging, disposal and control a. Dredging procedure environmental baseline c. Use appropriate dredger to minimiseduration of locations. has been developed during AMDAL impact b. Calculate plankton and benthos and implemented at d. Conduct corrective action if monitoring result abundance, diversity index, and site. Dredging shows that TSS distribution is not in accordance equitability index procedure socialization with simulation in ANDAL study c. Sampling, identification and calculation

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage will use accredited laboratory was also delivered to d. Compare calculation result with data relevant personnel. from environmental baseline taken b. In-house software during AMDAL study (monitoring result application is being will be compared with monitoring from used by dredging sub- AMDAL implementation of LNG 1 and 2 contractor to monitor (if available) dredging activity and e. Collect sediment samples and conduct accurately locate the analysis according to determined designated area to be parameter using accredited laboratory 1 dredged and disposal x during dredging and 1 x after dredging area. f. Compare sediment analysis result with c. Backhoe dredger ANZECC Guideline (see Table in (mechanical dredger) is Attachment I of RKL-RPL) and being used to minimize environmental baseline during AMDAL duration of impact. g. Conduct trend analysis d. Sea water, sediment, plankton and benthos abundance monitoring have been performed.

Marine mammal Sea Minimise the potential of a. Update marine mammal protection procedure a. Conduct fisheries (nekton sampling and a. Marine Mammal Comply disruption Transportati marine mammal and conduct socialisation to related employees data collection of fishermen catch) and Protection training has on for disruption compared to and vessel crew marine mammal survey (visual, if possible been delivered to Workforce, environmental baseline b. Update solid waste and wastewater using hydrophone), 1 x during peak of relevant employee. Equipments during AMDAL management procedure for sea transportation construction and 1 x after construction b. Waste and wastewater and Material activity and conduct socialisation to related b. Record checking of delivered marine management plan has employee mammal training to vessel crew and been developed and c. Update emergency response procedure at compare it with training matrix the training has been vessel and conduct training to vessel crew c. Check ballast water exchange records delivered to relevant d. Provide emergency response facility in the against MARPOL requirements (at least the employee as well. vessel in accordance with developed procedure date, ‘”cati”“, v”‘u’e a“d vesse‘s “a’e), c. Spill Prevention e. Implement No Fishing policy review in 6-monthly basis Training and Drill are f. Conduct routine maintenance to performed regularly to engine/equipments according to specified vessel crew. SOPEP is schedule to ensure that the engine/equipments provided in every are working efficiently vessel as Tier 1 g. Prioritizing sailing in deeper area (>12 m) when response equipment. the sea condition is calm d. Waste/wastewater h. Reduce vessel speed if approaching marine disposal and ballast mammal until the marine mammal swims away water exchange are i. Conduct solid waste and wastewater being recorded. management in accordance with Government

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Regulation No. 21 Year 2010 and MARPOL also applicable regulations. Solid waste and wastewater management will be discussed more details in EMP about seawater quality j. Government Regulation No. 21 Year 2010 and MARPOL. Ballast exchange is anticipated will not happen often since most of the vessels will arrive at Tangguh LNG in loaded condition k. Record ballast exchange (date, location, volume, and vesse‘s “a’e)

Noise Level Construction Noise level complies with a. Conduct routine maintenance of a. Measure noise level using sound level Construction at BOF area Comply of BOF standards in MoE Decree engine/equipment according to specified meter which conducted both by internal has been commenced in facility, LNG No. 48 Year 1996 and schedule to ensure that the engine/equipments (monthly) or accredited laboratory (6 May 2017. The first Jetty 2 and General EHS Guidelines are working efficiently monthly especially at the peak activities) activities to be performed Combo Dock 2007 in Tangguh b. If possible, the use of muffler or noise reduction b. Conduct compliance evaluation by are dredging and site extension Perimeter Fence location method will be considered comparing analysis results with the preparation. c. If necessary, noise barrier at impact source and Minister of Environment Decree No. 48 a. Maintenance for receptor area (sensitive public facility) will be Year 1996 (refer to Table in Appendix I of equipment is being built RKL-RPL) scheduled and c. Conduct trend analysis d. Activity which is potentially can cause high noise performed regularly. d. Check engine/equipment maintenance level will only be conducted up to 14 hours per b. At this stage, the use of records to ensure that maintenance is day muffler or noise conducted in accordance with the reduction method and determined schedule noise barrier are deemed not yet required as the activities perform at the area does not generate high noise level. c. Noise monitoring has been performed.

Marine biota Construction a. Minimise the potential a. Update marine mammal protection procedure a. Conduct fishery (nekton sample collection Construction at BOF area Comply abundance and of BOF reduction of benthos and conduct socialisation to related employees and fishermen catch data collection) and has been commenced in diversity facility, LNG diversity and and vessel crew marine mammal (visual, if possible using May 2017. The first Jetty 2 and equitability compared b. Update solid waste and wastewater management a hydrophone) survey. Survey is to be activities to be performed Combo Dock to environmental procedure for sea transportation activity and conducted 1 time during construction are dredging and site extension baseline during conduct socialisation to related employees phase. preparation. b. Verify marine mammal awareness AMDAL c. Conduct routine maintenance to training records delivered to vessel crew b. Minimise the potential engine/equipments according to specified a. Marine mammal

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage reduction of nekton schedule to ensure that the engine/equipments against the records in the training matrix protection and abundance and marine are working efficiently c. Conduct records check of vessel engine waste/wastewater mammal disruption d. If possible, maintain noise level from activity maintenance to ensure that maintenance management training compared to gradually is conducted in accordance with the have been delivered to environmental baseline e. Do not dispose solid waste to sea during Marine determined schedule relevant personnel. during AMDAL Facility construction d. Check ballast water exchange records b. Maintenance for against MARPOL requirements (at least equipment is being f. Conduct solid waste and wastewater scheduled and management according to Government the date, ‘”cati”“, v”‘u’e a“d vesse‘s name), review in 6-monthly basis performed regularly. Regulation No. 21 Year 2010 and MARPOL also Waste and wastewater applicable regulations c. disposal are being recorded.

Sea water quality Dredging a. TSS concentration in a. Update dredging procedure according to a. Collect seawater samples and measure Dredging activity for BOF Comply and marine biota and Disposal sea water does not preferred method and conduct TSS concentration both by Internal was commenced in May abundance and of Dredged exceed standard training/socialisation to related employees (weekly) and accredited laboratory 2017. diversity Material for outside safety b. Conduct dredging only in designated area (during and after dredging) at 500 m a. Dredging procedure Marine exclusion zone at c. Conduct corrective action if monitoring result distance from dredging location, 500 m has been developed Facility Marine Facility area in shows that TSS distribution is not in accordance from the disposal location (upstream and implemented at construction dredging area or 500 with simulation in ANDAL study and downstream) and control location site. Dredging

meters from dredging d. Dispose dredged material only at designated b. Conduct compliance evaluation by procedure socialization location according to location in AMDAL and dredging permit comparing analysis results (TSS were also delivered to MoE Decree No. 51 e. Record dredged material disposal (volume, actual concentration) with seawater standards relevant personnel. Year 2004 by disposal coordinate and disposal time) according to MoE Decree No. 51 Year b. In-house software considering 2004 (See Table in Attachment I of RKL- application is being environmental baseline RPL) with environmental baseline data used by dredging sub- during AMDAL during AMDAL study contractor to monitor b. TSS concentration in c. Monitor dredging location and volume dredging activity and sea water outside 500 and ensure disposal of dredged material accurately locate the m distance from is conducted according to approved designated area to be dredging disposal area location in AMDAL dredged and disposal complies with MoE area. Decree No. 51 Year c. Dredged material 2004 by considering disposal are being environmental baseline recorded. during AMDAL d. Sea water, sediment, c. Minimise the potential plankton and benthos reduction of plankton abundance monitoring abundance and have been performed. diversity compared to environmental baseline

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage during AMDAL d. Minimise the potential reduction of nekton abundance and marine mammal disruption compared to environmental baseline during AMDAL

Sea water quality Solid waste a. Solid waste (non- General Management : a. Conduct record checking of amount and For activity at Tangguh site, Comply and marine biota (non- hazardous) a. Update hazardous and non-hazardous solid type of generated waste and sent to waste management is abundance and hazardous) management is waste management and conduct socialisation to storage and treatment facility at being supported from diversity and conducted in related employee Tangguh site existing operation facilities. Hazardous accordance with b. Conduct solid waste segregation (Non-hazardous b. Conduct record checking of amount and For waste management Waste Government and hazardous solid waste) disposal location of comminuted food from vessel, the disposal management Regulation No. 21 Year waste discharged to sea c. Implement 3R system (Reduce, Reuse, Recycle) follows the requirement as activity in 2010, MARPOL and c. Conduct record checking and hazardous specified in Waste d. Categorize non-hazardous solid waste into Marine related regulations waste manifest transmittal Management Plan and organic, recyclable, burnable and inert waste Facility b. Hazardous waste d. Weekly inspection of solid waste and complies with relevant

construction management is hazardous waste management facility regulation/requirement. conducted in Non-Hazardous Solid Waste Management: according to applicable procedure Waste disposal from vessel accordance with a. Conduct solid waste management in accordance are being recorded. Government with Government Regulation No. 21 Year 2010, Regulation No. 85 Year MARPOL Annex V and applicable regulations 1999, MARPOL and b. Do not dispose garbage to sea, except food related regulations waste which complies with MARPOL Annex V requirements c. Organic, recyclable, and inert waste management from small vessel and tug boat which operate around jetty location will be sent to Tangguh LNG onshore waste management facility d. Organic, recyclable, and inert waste management from small vessel and tug boat which operate around jetty location will be sent to Tangguh LNG onshore waste management facility e. Waste from other type of vessel (large vessel) will not be managed onshore. Vessel owner will manage generated waste by following requirements in MARPOL Annex 5, such as

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage 1) Comminute food waste to size less than 25 mm for further disposal to sea with distance more than 3 nm from nearest land. Uncomminuted waste can only be disposed to sea at distance more than12 nm from the nearest land 2) Transport non-hazardous solid waste except food waste to waste management facility for further treatment 3) Record generated, disposed and treated waste

Hazardous Waste Management: a. Conduct inspection to hazardous For activity at Tangguh site, Comply a. Conduct hazardous waste management in material and waste storage facility prior waste management is accordance with Government Regulation No. 85 to use according to applicable procedure being supported from Year 1999 and applicable regulations b. Conduct weekly inspection to container, existing operation facilities. storage system, storage warehouse b. Conduct labelling for hazardous waste container condition, available emergency response c. Record generated and treated waste according to system and other facilities according to applicable regulations applicable procedure d. Hazardous waste management from small vessel c. Visual monitoring of oil film at sea to and tug boat which operate around jetty area will ensure oil spill response has been be sent and stored/treated at Tangguh LNG conducted following procedure. onshore hazardous waste management facility d. If necessary, seawater quality analysis and subsequently will be sent to licensed for Oil & Grease parameter will be hazardous waste treatment facility for further conducted according to applicable treatment procedure (emergency response e. Hazardous waste from other vessels (large procedure) to ensure that spill clean-up vessel) will not be treated at onshore facility. process has been conducted following Vessel owner will manage generated waste by procedure following to requirements in MARPOL and e. Record spill event noting (at the related regulations. Transport hazardous waste minimum) the type and amount of to licensed waste management facility for further hazardous material and waste spill, spill treatment location, and the response conducted f. Use permitted hazardous waste transporter facility

Offshore a. Minimise the a. Update hazardous material management a. Conduct weekly inspection to hazardous a. Hazardous and Toxic Comply Fuel and possibility of offshore procedure and conduct socialisation/training to material and waste storage facility prior Material Management Chemical fuel and chemical spill related employees to use according to applicable procedure Procedure (930-PRC- Storage b. Offshore spill response b. Update Fuel and Chemical Management b. Conduct weekly inspection to container, HS-0006) has been

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OPERATOR’S EHS REPORT TANGGUH LNG

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Facility and can be done effectively Procedure and conduct training/socialisation to storage system, storage warehouse developed. However, at Refueling as per procedure hence related employees condition, available emergency response this stage, contractor Facility will not affect water c. Update emergency response procedure and system and other facilities according to follows existing quality and marine conduct training to emergency response team applicable procedure procedure as they are biota (ERT) c. Visual monitoring of oil film at sea to utilizing existing d. Appoint Emergency Response Team for fuel and ensure oil spill response has been facilities. chemical spill conducted following procedure b. Emergency response procedure for early e. Ensure storage containers are built compatible d. If necessary, seawater quality analysis construction phase has with the materialand are in good condition for Oil & Grease parameter will be been incorporated in f. Ensure every stored material is recorded and conducted according to applicable HSE Plan (TEP-930- completed with MSDS procedure (emergency response procedure) to ensure that spill clean-up PLA-HS-BP4-0003). g. Minimum requirements for storage facility are as process has been conducted following follow: procedure 1) Completed with bunded area that will be e. Conduct recording of spill event which able to contain 110% of the volume of the informs (at the minimum) about type largest container or 25% of the total volume and amount of hazardous material and in the storage facility waste spill, spill location, and the 2) Building construction, including the floor and response conducted bunded area must be constructed with a impermeable material 3) Treat oily contaminated water trapped in the bunded area h. Completed with spill kitPut label and symbol on the container (package) and storage area i. Conduct regular inspection to fuel and chemical storage and refueling facility j. Perform efforts to response oil spill in accoradance with Oil Spill Contingency Plan and conduct spill response training according to planned schedule

Wastewater Wastewater management a. Update wastewater management procedure and a. Conduct record checking of wastewater Wastewater management Comply management complies with standards conduct socialisation to related employees management against MARPOL and monitoring from vessel in Government b. Conduct sewage treatment in accordance with requirements requirement has been operational Regulation No. 21 Year Government Regulation No. 21 Year 2010 and b. Check ballast water exchange records included in Project activity 2010, MARPOL and MARPOL Annex IV prior to discharge to sea against MARPOL requirements (at least Environmental applicable regulations c. Conduct oily contaminated water treatment by the date, ‘”cati”“, v”‘u’e a“d vesse‘s Management Plan for LNG using Oil Water Separator in accordance name), review in 6-monthly basis EPC Activity (TEP-930-PLA- Government Regulation No. 21 Year 2010 and EN-BP4-0059). However, MARPOL Annex I prior to discharge to sea for the initial mobilization,

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage d. Complies with requirements in Government contractor will follow Regulation No. 21 Year 2010 and MARPOL for existing procedure as they ballast water. Ballast water exchange is are utilizing existing anticipated to rarely conducted since most of the facilities. vessel will arrive in Tangguh LNG in loaded condition e. Record ballast water exchange (date, location, v”‘u’e a“d vesse‘s “a’e) UKL-UPL New Condensate and Diesel Tank (2013) Air Quality (dust, a. Material a. Ambient air quality a. Reduce dust around construction area by a. Sampling of air ambient, dust, noise level Comply noise and gas Equipment complies with standard conducting road watering during dry days and were conducted using required method emission) Mobilizati according to ‘i’it vehic‘es speed. twice every year. This semester air on/Land Government b. Construction activity is conducted during ambient sampling has been carried out on Transporta Regulation No. 41 Year daytime to manage noise level. June 2017 and gas emission has been tion (Light 1999 regarding Air c. Monitoring and measuring emission gas carried out on November 2016 in project & Heavy Pollution Control generator periodically. along with environmental monitoring Vechicle) b. Noise level complies d. Maintenance all equipment periodically. covered in Tangguh LNG Integrated b. Earth with standards AMDAL. All parameters are Comply with Work according to MoE the quality standards. (Excavatio Decree No. 48 Year n 1996 regarding Noise Trenching Level Standard at Sloping) Tangguh Perimeter c. Crane, Fence location Rigging c. Gas emission genset and Lifting complies with standard Activities according to Minister of d. Constructi State Environmental on Regulation No. 5 of Workshop 2006 on The Threshold & of Motor Vehicle Laydown Exhaust Emissions Old Erosion and a. Earth a. Minimise the soil a. Manage run off water to avoid standing water a. Visual monitoring of erosion and Comply sedimentation Work(Exc erosion and TSS around construction locations sedimentation rate is conducted regularly during rain avation, concentration at surface b. Several sedimentation ponds were built prior to and after heavy rain based on Trenching water complies with be discharged to the permanent drainage. Environmental Weekly Inspection. Sloping) Governent Regulation c. Clean up of sediment along drainage and b. The monitoring result is recorded and No. 82 Year 2001 Class sediment pond/trap at project areas are reported internally. Any findings are 2 by considering conducted regularly to keep the system working communicated to relevant parties for environmental baseline properly and prevent sedimentation rectification.

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage b. Act No. 32 Year 2009 d. Revegetation has been conducted using acacia, regarding eucalyptus, and LCC. Currently the procurement Environmental process for purchasing Legume Cover Crop for Protection and re-vegetation is still ongoing. Management; c. Government Regulation No. 45 Year 2004 regarding Forest Protection

Oil Spill a. Heavy a. Minimise the a. Bund wall from HDPE liner, drip pan and drip a. Monitoring of secondary containment is Comply Management equipment possibility of oil spill tray have been installed at various locations in conducted regularly and no spill incidents and diesel c. Management of NCDT project such as at hazardous material occurred in this reporting period. engine spillage to land can be temporary storage and refueling and lubricant b. Periodically monitor emergency spill kit usage. conducted effectively filling areas checklist tool. b. Civil work according to procedure b. Construction of secondary containment in for usage to avoid land accordance with the capacity of new condensate hazardous contamination and diesel tank. material d. President Regulation c. Provided Spill Kit as an aid during an emergency sika No. 5 Year 2006 oil spill oil,paint, regarding National etc. Energy Policy e. Government Regulation No.74 Year 2001 regarding Management of Dangerous and Toxic Substances f. Government Regulation No.101 Year 2014 regarding Management of Hazardous Waste and Toxic. Management of a. Hydrotest a. Waste water a. The pressure test activities using clean water a. Monitoring and record water from Hydrotest activities have Comply potential surface activity in management from without any material chemical. This activity will hydrotest in LNG Lab before discharger to been conducted water piping hydrotest activity is in produce waste water potential contains iron and drainage. contamination and tank accordance with Waste lead toturbidity, but thelevelsis likely to be small work water Discharge (below valuequality standards). Permit. b. Surface water sampling is conducted monthly

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage b. Environment by Third Party. Minister's Decision of c. Hydrotest activity for condensate tank has been No.125 Year 2013 conducted on 08 April 2017 and the result shows regarding Permits compliance with Wastewater Discharge Permit Wastewater Disposal to Sea No. 125 Year 2013 hence the wastewater Sea from diesel tank hydrotest activity can be c. MOE Decree No. discharged to nearest open ditch from the Diesel 02.37.07 / 2014 Tank. regarding Environmental Permit of Tangguh LNG Integrated Project Activity; d. Government Regulation No. 82 Year 2001 regarding Management of Water Quality and Water Pollution Control

Non-hazardous a. Man a. Solid waste (non- a. Non-hazardous solid waste management follow a. Monitoring for non-hazardous solid waste a. Socialization of Comply waste, domestic Power hazardous) and existing non-hazardous solid waste and hazardous waste referred to Tangguh hazardous and non- waste and Mobilizati hazardous waste management procedure, e.g.: organic LNG operations hazardous and non- hazardous waste hazardous waste on management composter/landfill for organic waste, incinerator hazardous waste management handling have been (General according to for combustiable waste, or disposal to inert procedures. Monitoring for hazardous conducted onsite and Activities requirements in Law landfill for inert waste, scrub wood to wood and non-hazardous waste management is offsite for new During No. 18 Year 2008 stockpile for wood chipper and scrub metal to conducted weekly. employee. Waste bins Project). regarding Solid Waste junk shore base. Hazardous and non-hazardous b. Sewage from Matoa camp is transferred have been placed in b. Material Management; waste management is conducted following to existing STP at Zone C Step 3 Tangguh various locations of Equipmen b. Government applicable procedure in Tangguh LNG LNG and water quality monitoring is NCDT project. Symbol t Regulation No. 101 b. All non-hazardous wastes are sent to Tangguh conducted along with environmental and label also provided Mobilizati Year 2014 regarding LNG operations facility for further treatment and monitoring covered in Tangguh LNG for hazardous waste on/Land Hazardous Waste disposal. Integrated AMDAL. storage and Transport Management; c. Hazardous wastes are sent to Tangguh LNG c. All records for hazardous waste and non- containment. ation c. KepKaBapedal No.1 Temporary Hazardous Waste Storage then be hazardous waste transfer and disposal b. Panting activity have (Light & Year 1995 regarding sent to licensed hazardous waste treatment and are recorded and reported in monthly been conducted. Heavy Procedures and disposal facility offsite. basis. All wastes are transported to Vechicle) Technical d. Sewage from Matoa Camp is transferred to Tangguh LNG operations facility at site c. Temporar Requirements for existing Sewage Treatment Plant (STP) Zone C for further handling and treatment. y Site Hazardous Waste Step 3 operated by Tangguh LNG operations. d. Monitoring each panting activity and Office Storage; e. Portable toilets are installed at working areas, hazardous empty cans for dispose to

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage activities d. KepKaBapedal No. 2 the sewage are temporarily contained in holding HWS BP. d. Tank and Year 1995 regarding tanks and vacuumed out regularly by vacuum pipeline Hazardous Waste truck then transferred to STP zone C for further constructi Document; treatment. on (HDPE e. MOE Regulation No.14 f. Tank painting activity already started. liner, GCL, Year 2013 regarding Piping, Hazardous Waste Baricading Symbol and Label; , Fencing, f. MOE Regulation no. 18 Welding/C Year 2009 regarding utting, Permitting Procedure Brazing, for Hazardous Waste Grinders, Management Electrical Instalation /Permanen t Lighting, and Painting)

Workforce a. Man Number of workforce a. Up to July 2016, the construction activity of New a. Workforce monitoring is conducted by Comply management Power Condensate and Diesel Tank has employed 782 Work Force Management (WFM) during Mobilizati workers including 212 Papuan workers in which construction phase to record involvement on 79 workers are from surrounding villages of and numbers of local workforce from the (General Tangguh project and 130 workers are from villages surrounding of Tangguh project. Activities others area in Papua. Monitoring result shows in general the During b. Workers which involved in this work have number of recruited workforce is in Project). various kinds of skill level, whereas for work acc”rda“ce with pr”jects “eeds. b. Constructi which does not require special skill (low skill or Tangguh continue to prioritize the on activity unskill) will involve workers from indigenous involvement of local workforce pepole particularly indigenous people during the project as stipulated in the AMDAL commitment.

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B.1.2 IMPLEMENTATION

B.1.2.1 Hydrotest Activity

Hydrotest activity for condensate tank has been conducted on 08 April 2017. The water source for this hydrotest activity was using 60% WWTP c”’bi“ed with 40% Desa‘ water (b”th are raw water s”urce). The hydr”test water was discharged usi“g 6 f‘exib‘e h”se with the avarage velocity flow rate/shift of 37.62 (m3/h) and total volume of 20.317,96 m3. The hydrotest water was tested prior to be discharged back to WWTP. The result shows that all parameters are comply with Wastewater Discharge Permit to Sea No. 125 Year 2013. Results were analyzed by a third party by PT. INTERTEK, as seen in Table 22.

TABLE 25 DIESEL TANK HYDROTEST DISCHARGE MONITORING RESULT (APRIL 2017)

Specification Monitoring Parameters Unit (MoE Decree Result No.125/2013) pH - 6.0 – 9.0 7.23 TSS mg/L Max 50 <1 Oil & Grease mg/L Max 20 <1 Iron (fe) mg/L Max 5 0.192

(*): Maximum limit based on Wastewater Discharge Permit to Sea No. 125 Year 2013

B.1.2.2 Revegetation

Based on the Environmental Aspects Impacts the NCDT Project analyzed the impacts of soil pollution from soil erosion / sedimentation aspect that would lead to sedimentation, an environmental management program with the goal of revegetation of the disposal area should be established. On April 07, 2017 held together with all employees on the slopes of condensate. Legume Cover Crop (LCC) types of peas selected for planting because they are able to survive in soil acid conditions. There are 3000 LCC planted by the NCDT project team. Currently the planting process is still ongoing.

FIGURE 20 REVEGETATION ACTIVITY BY NCDT PROJECT TEAM TO COMMEMORATE WORLD ENVIRONMENT DAY 2017 .

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C. SURVEY, SEISMIC, AND EXPLORATION DRILLING C.1 ENVIRONMENTAL ASPECT

C.1.1 IMPLEMENTATION

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage

Sea water Sea water a. Solid waste (non- Air Quality Management Comply quality, Air quality, Air hazardous) a. Operate generator in accordance with a. Check the generator maintenance records to ensure a. up to date generator quality, Soil quality, Soil management is its specification, both operational load that its maintenance is conducted in accordance with maintenance records is contamination contaminatio conducted according to and time the determined schedule available and marine n and marine Government Regulation b. Conduct routine maintenance to biota biota No. 21 Year 2010, engine/equipments according to abundance and abundance MARPOL and related specified schedule to ensure that the diversity and diversity regulations machine/equipments are working

Hazardous waste b. efficiently management is a. waste segregation was conducted during E&A conducted according to Solid Waste (non-hazardous) and geotechnical campaign Government Regulation Hazardous Waste Management No. 85 Year 1999, a. Check records of the amount and type of waste that b. waste record and General Management: MARPOL and related has been produced and delivered to the storage and transmittal are available a. Update hazardous and non-hazardous regulations treatment facilities in Tangguh c. food waste was solid waste management and conduct b. Check records of the amount and disposal location c. Wastewater comminuted and disposed socialisation to related employees management is of food waste that has been comminuted and according to MARPOL b. Conduct solid waste segregation (Non- conducted according to disposed to the sea Annex V hazardous and hazardous solid waste) c. Check the records and delivery of the hazardous Government Regulation c. Implement 3R system (Reduce, Reuse, No. 21 Year 2010, waste manifest and Recycle) MARPOL and related d. Conduct weekly inspection of the solid waste and d. Categorize non-hazardous solid waste regulations hazardous waste treatment facilities in accordance into organic, recyclable, burnable and d. Minimise the possibility with the applicable procedure inert waste of fuel and chemical spill e. Spill response can be Non-Hazardous Solid Waste Management : done effectively as per a. Conduct solid waste management in procedure accordance with Government Regulation No. 21 Year 2010 and

MARPOL Annex V

b. Do not dispose garbage to sea, except

food waste which complies with

MARPOL Annex V requirements

c. Comminute food waste to size less than 25 mm for further disposal to sea with

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage distance more than 3 nm from nearest land d. Dispose uncomminuted waste at distance more than 12 nm from the

nearest land

Record generated and disposed waste e. (daily)

Hazardous Waste Management:

a. Conduct hazardous waste management in accordance with Government

Regulation No. 85 Year 1999 and

applicable regulations

b. Transfer hazardous waste to licensed

waste facility for further treatment Conduct labelling for hazardous waste c. container

d. Use permitted hazardous waste transporter facility e. Generated and transported hazardous waste shall be recorded (amount, type, date, source)

Wastewater Management from vessel

Update wastewater management a. procedure and conduct socialisation to

related employees Check the ballast water exchange records to compare b. Conduct sewage treatment in with the MARPOL requirements (at least the date, accordance with Government ‘”cati”“, v”‘u’e a“d vesse‘s “a’e) Regulation No. 21 Year 2010 and

MARPOL Annex IV prior to discharge to

sea

c. Conduct oily contaminated water treatment by using Oil Water Separator in accordance Government Regulation No. 21 Year 2010 and MARPOL Annex I

prior to discharge to sea Conduct ballast water treatment in d. accordance with Government

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage Regulation No. 2010 and MARPOL

Sea Transportation Activity a. Update marine mammal protection procedure and conduct socialisation to related employees and vessel crew Update solid waste and wastewater b. management procedure for drilling

activity and conduct socialisation to

related employees Update emergency response procedure c. at vessel and conduct training to vessel

crew

d. Provide emergency response facility in

the vessel in accordance with developed procedure

e. Implement No Fishing policy

f. Conduct routine maintenance to engine/equipments according to specified schedule to ensure that the engine/equipments are working a. marine mammals efficiently sightings were recorded g. Prioritizing sailing in deeper area (>12 during E&A Geotechnical m) when the sea condition is calm campaign. a. Conduct visual observation and routinely record Reduce vessel speed if approaching h. marine mammal sighting b. sewage maintenance marine mammal until the marine record is available b. Check vessel engine maintenance records to ensure mammal swims away that maintenance is conducted according to the i. Conduct solid waste and wastewater determined schedule management in accordance with

Government Regulation No. 21 Year

2010 and MARPOL also applicable regulations

j. Manage ballast water in accordance with Government Regulation No. 21 Year 2010 and MARPOL

Marine Mammal Management/Protection

a. Update marine mammal protection procedure and conduct socialisation to

related employee

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage b. Update solid waste and wastewater a. Emergency Response management procedure for drilling Procedure, spill kit, activity and conduct socialisation to bunkering procedure are related employees available during E&A c. Conduct solid waste and wastewater geotechnical campaign a. Inspect hazardous material and waste storage facility management in accordance with prior to operation in accordance with the applicable b. no spill occurred during Government Regulation No. 21 Year procedure E&A geotechnical 2010, MARPOL and applicable campaign b. Conduct weekly inspection of containers, storage regulations system, storage warehouse condition, emergency d. Implement JNCC Guideline when response system, and other facilities in accordance conducting Seismic Survey, with with the applicable procedure procedures as follow: Visual observation of oil film on the water to ensure 1) Conduct observation of marine c. that the oil spill response is conducted in accordance mammal spotting within 500 m with the procedure distance for 30 minutes prior to VSP activity d. If required, conduct seawater quality analysis for the 2) If marine mammal spotted within Oil and Grease parameter in accordance with the 500 m distance, then the activity is applicable procedure (emergency response suspended to allow for marine procedure) to ensure that the spill clean-up activity is mammal to swim away conducted as per the procedure 3) I’p‘e’e“t S”ft Start pr”cedure e. Record any spill that at least notes the amount and type of the spilled hazardous material and waste,

spill location and the spill handling efforts Fuel and Chemical Storage and Refueling

at Offshore and/or Marine Facility

a. Update hazardous material management procedure and conduct socialisation/training to related employees b. Update fuel and chemical management procedure and conduct training/socialisation to related employees c. Update emergency response procedure and conduct training to emergency response team (ERT) d. Appoint Emergency Response Team for fuel and chemical spill e. Ensure fuel and chemical storage container are built compatible with the materialand are in good condition f. Ensure every stored material is

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Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage recorded and completed with MSDS g. Put label and symbol on the container (package) and storage area h. Conduct regular inspection to fuel and chemical storage and refueling facility i. Perform efforts to response oil spill in accordance with Oil Spill Contingency Plan and conduct spill response training according to planned schedule

C.2 SOCIAL ASPECT

C.2.1 IMPLEMENTATION

Environmental Source of Compliance Impact to Success Indicator Environmental Management Plan Environmental Monitoring Plan Notes Impact Status Manage

Workforce and Exploratio a. Data of local and a. Tangguh LNG will require its There were 5 workers from Comply business n activity, Papua workforce contractors to employ limited number a. Define business opportunities for the community indigenous people opportunities either absorbed in seismic of workers at unskilled/low skilled level recruited to support the Seismic activity working as Community Relation team seismic survey. We also activities b. Data of local products with prioritizing Indigenous People in have plan to absorp the and/or from Indigenous Bintuni Bay and Fakfak. local products to support Well People b. Optimizing local products absorption the project. An agreement Drilling from agriculture and fishery sectors. with four local Exploratio cooperatives to supply n fresh local products including fisheries and agricultures has been developed. The program will be started in July until December 2017.

Fishery Exploration a. Notes taken from a. Conducting public consultation for local a. Method : Direct observation The community relation Comply activityand sea activity, public consultation community regarding platform b. Analysis: correlational and descriptive statistics team conducted transportation either with local community construction and sea transporatation socialization and disturbances Seismic b. Sea signs installation b. Implementation of a livelihood program awareness on the project activities surrounding the through livelihood diversification and to the affected community and/or Well activity area income recovery to affected local during their visit to the

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Drilling c. Sea transportation line fishermen villages. Socialization in Exploration listed on national c. Installing sea signs surrounding the specific for seismic project shipping channel activity area were conducted in d. Announcement letter d. Coordinating with Syahbandar of Bintuni and Manokwari, of activity from Bintuni, Babo and Kokas involving key stakeholders. Syahbandar Bintuni, Project also conduct door Babo, as well as Kokas to door socialization targeting the affected people particularly fishermen group.

Picture: Meeting in Taroy to familiarize the seismic project

The seismic team also conducted regular meeting with Bintuni and Babo syahbandar to update them the project activities and obtaining inputs on sea transportation coordination and management during the seismic project.

Community Exploration a. Notes taken from a. Conducting public consultation for local There were no negative Comply Perception and activity, public consultation community regarding exploration either a. Manage community grievance related project perceptions from Social Tension either with local community seismic and/or well gas drilling community according to Seismic b. Functioning of b. Running a grievance procedure for local the project. According to activities grievance procedure community the grievance data, during and/or Well for local community this reporting period there Drilling and data of grievance is no complaint from the Exploration by local community community related to the seismic project, exploration and drilling projects.

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The social team will continue to provide a channel for the community to submit their concern and response it in a timely manner as stipulated in the AMDAL commitment.

C.2.2 EVALUATION

Social activities are implemented in an integrated way both for operation and Tangguh expansion project. The evaluation of social program including construction project is captured in section A.2.2.

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D. HEALTH ASPECT D.1 TANGGUH OPERATION

The 1st semester of 2017 ( Jan – Ju“ ) was started with estab‘ish’e“t ”f 2017 Ta“gguhs Hea‘th pr”gra’ p‘a“ by each Ta“gguhs health program leader, continued with 2017 Annual Health Plan, 2016 Performance review meeting and 5th Performance review of Health service contract. The performance of the 1st semester period was reviewed by 2017 mid-year Health meeting on July 2017. The ’eeti“g sh”ws that ’”st ”f Ta“gguhs Hea‘th perf”r’a“ce i“dicat”r ’et the expected target.

Several initiatives, changes and improvement were occurred during 1st semester of 2017, which include: • Establishment of Travel health program. In line with BP Global Health focus for 2017, a Tangguh travel health program was being established during 1st semester of 2017. • Significant support to TAR 8. Continuing its valuable during for TAR 7 , Health team maintain and improve their support for TAR 8, especially in implementing screening fatigue risk through field worker check, fatigue assessment, overstay medical assessment etc. • Full filling Papuan development plan commitment. Promoted one ambulance nurse become a nurse, hiring one Papuan ambulance nurse and set up specific education program for Papuan nurses. • Consistency in implementing Self verification program. The program was consistently implemented by all site Health program leaders. • Sufficient health support for Tangguh Expansion Project (TEP). Si“ce TEPs site hea‘th ”rga“izati”“ was bei“g deve‘”pi“g, ’edica‘ service supp”rt was pr”vided by GOOs site hea‘th res”urces. O“e ”f i’p”rta“t challenge for the next period (2nd semester of 2017) is to continue the support for TEP which include medical service back up, coordination in establishing TEP Health service and alignment of Health program between GOO & GPO (TEP).

The Health function is basically consisting of Industrial Hygiene, Occupational health and Medical service program. The main objective of Health program under Occupational health & Industrial hygiene areas is to prevent any Occupational related (directly or indirectly) illness occurred as a consequence of the work. In case the illness occurred then medical service is responsible to manage the case. To support the objective, any potential or suspected related illnesses is recorded and investigated. This approach is aimed to prevent any possibility of occurrence of definitive Occupational illness. The bellow table shows profile of Occupational illness and suspected occupational illness from January to June of 2017.

The above table shows that during 1st semester of 2017, no occupational illness occurred. However, during that period 11 suspected occupational health illnesses identified. The result indicates that potential or possibility of definitive Occupational illness is still existed

D.1.1 INDUSTRIAL HYGINE (IH)

Tangguh IH program is basically focusing in identifying workplace health hazard (including physical, chemical, biological, and ergonomic), develop risk assessment and deliver mitigation to solve the gap. Tangguh industrial hygiene works closely with Occupational health team and Medical team as well as with Safety team.

PERFORMANCE

Tangguh IH performance indicator consist of Department hazard identification, industrial hygiene survey through SEG (similar expose group), IH risk based awareness and IH near miss.

Tangguh industrial hygiene performance achievement is shown in the bellow table

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TABLE 26 INDUSTRIAL HYGIENE PERFORMANCE INDICATOR ACHIEVEMENT FOR FIRST SEMESTER 2017 PERIOD

Leading Indicators Measurement Target Achievement

Num % Num % Departmental Number of Updated Departmental Health Hazards 40 100 34 85 Health Hazard Identification by Number of Area Departmental IH Identification Risk Profile

IH Surveys by SEG Number of IH Survey Performed by SEG divided by 4 100 2 50 Number of Planned IH Survey by SEG

IH Risk Based Number of IH Risk Based Awareness provided to At 52 100 38 73 Awareness Risk Population

Near Miss Number of IH over exposure investigation to At Risk 0 100 3 ? Population

Based on 2017 Tangguh LNG Site Risk Register, the industrial hygiene general risks include food safety, benzene, asbestos containing materials, heat stress and excessive noise. And the specific risks are mercury and welding fume during TAR Project.

Annual water lab analysis for Legionella was done based on Health Ministry Decree No. 1538 2003. The analysis was conducted in 2017. The results showed there were no detectable legionella bacteria.

Personal benzene monitoring based on SEG (Similar Exposure Group) involved 10 personnel work for production and TAR team. For heavy metal fume similar exposure group, we took 6 samples and all result low then threshold limits value.

1st semester 2017 IH involve in several project such as, NCDT, New ORF Slug Catcher, TEP, Dormitory Modification, Hotel and Catering assessment, Pigging Project Preparation, etc

Heat stress assessment program covered almost all positions within production and non-production facilities that have been identified in qualitative approach having moderate and significant exposures. This monitoring result will be used for updating SEG document. Workers classified as significant and moderate groups will be included in health surveillance group.

More structured Health Hazards Identification (HHI) is conducted by IH Technician regularly. Detail process and checklist is explained in work instruction. Health Hazards Identification is a tool that can be used for multiple purposes such as hazard identification and risk assessment; industrial hygiene related issues investigation; closure of findings or recommended actions verification; and policy or procedure compliance review in the workplace; etc.

Part of IH awareness and capability program, quarterly bulletin has been released with relevant topics for TLNG workers and IH campaign provided during Health Fair event. The site IH team also provided 38 IH awareness sessions and attended by more than 100 people, in total.

Key success factors include IH monitoring strategies are developed consistently, improvement in maintaining program continuity (e.g. monthly reports, hand over notes), engagement/team work with relevant disciplines in managing risk, involvement in the design review, agreed action items from assessments are properly tracked through Tr@ction, and persistency to closely monitor un-resolved IH related issues.

ACTVITY / INITIATIVE HIGHLIGHTS:

Annual IH plan has been carrying according to the existing plan and reached 100 % of target from January 2017. IH tracking list consisted 148 actions and all of the actions has been completed done. IH statistics which consisted 10 indicators (include IH Related Inspection / Walkthrough Survey, IH Audit, IH Assessment & Review, Procedure or WI Created/revised, IH Awareness, IH monitoring, Food safety inspection, Food safety meeting, Equipment Sent for calibration, and Self verification (e-form) ) have been delivered as per required target.

Food safety programs include bi-weekly kitchen inspection and food safety committee meeting carried out by Food Safety Committee team, which consists of Logistics, Indocater, IH and OH team. Annually food safety reviews were led by Industrial Hygiene TL and INCA QHSE Manager together with food safety committee. The results of these reviews were presented to the site management for their continuous support and commitment in ensuring the agreed actions are properly closed by both BP and Indocater as the catering provider.

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D.1.2 OCCUPATIONAL HEALTH

Existing established Tangguh occupational health program group consist of Primary care (PC), Fit for task (FFT), Health surveillance (HS), Medical emergency response & preparedness (MERP), Communicable diseases control (CDC), Health promotion (HP) & Wellness.

PERFORMANCE

Through the Health performance indicator, achievement of health program is shown in the bellow table

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During 1st semester of 2017, we found several Health performance indicators missed internal target, including malaria screening coverage, shifting ownership of health talk to contractor, Peer leader educator program and number of High risk. All of finding has been reviewed and follow action has been made during 2017 Mid-year review meeting on July 2017.

ACTVITY / INITIATIVE HIGHLIGHTS:

As part of TAR 8 project, site health continues their commitment to support TAR 8 by applying more consistent health program compare to TAR 7. Several health programs have been deployed to the work areas, including Fit for task check at field, Fatigue screening and survey at field, Drug and alcohol random screening, a dedicated Paramedic for night shift activities, morning tool box etc. We expect all specific health programs to support TAR 8 contributed to the success of overall TAR 8.

Fit for task and rehabilitation (which was managed by Jakarta OH team and supported by OH site team) and Health surveillance maintained their consistency by achieving 100 % target of their performance indicator. These programs (together with Wellness program and applying consistent urgent referral policy) have been recognized so far as one of major contributor in preventing and controlling of serious illness incident at site.

Primary care program has faced a challenge during this semester. The clinic visit number has increased double (compare the 2016) as a consequence of increasing of Tangguh manpower due to TEP project activities. It is included increasing number of outpatient, observation and referral cases. However, the clinic visit prevalence average is still maintained around 0.5% (< 1%). This result (which is relatively similar with 2016 period) is low and in certain point it may be interpreted as a success of maintaining our health promotion and prevention program.

MERP program as the most important site health program continues to establish its readiness level. As a consequence of the success of health promotion and prevention program, number of serious illness case at site was significantly low, which affected medical team exposure to the real medical case management. Therefore, the medical exercises and drills were used to maintain medical team skill and knowledge. During the 1st semester of 2017, 3 medical evacuations were successfully managed by site medical team. First aider program as one of important part of MERP program has gradually increased its coverage compliance and achieve > 80 % target. The performance result indicates that most of new Contractor accepts their obligation to provided certified First aide for their work areas.

We‘‘“ess c”“su‘tati”“ pr”gra’ which i“itia‘‘y c”vered GOOs BP a“d C”“tract”r e’p‘”yee, u“der c””rdi“ati”“ with TEP Heath team, has been expanded their coverage to GPO (TEP) worker during 1st semester 2017. It is expected that the program continue its success in managing cardiovascular high risk population at GOO workforce to the TEP workforce.

E. SAFETY ASPECT

E.1 TANGGUH OPERATION

Starting the first half of 2017 with High Potential incident of Fire Hydrant bonnet valve ejected during regular drill, Investigation team has captured the learnings and followed up immediately by checking the entire fire hydrant bonnet valve in Tangguh LNG site. Along with that, several nearmiss cases with serious potential were occurred within the first week of 2017. Following to that, Site Safety Stand Down was held by Site Management to re-emphasize the site expectation of safety and commitment from last stand down in Q4 2016 Mag“ifice“t Seve“ t” a‘‘ Ta“gguh w”rkers. Sta“d D”w“ was he‘d i“ Ta“gguh LNG site at 10 Ja“ 2017 a“d Bab” site at 12 Jan 2017. More than 500 workers which include BP and contractor representatives were involved to the stand down. At the end of sessi”“, site ’a“age’e“t ”btai“ed c”’’it’e“ts fr”’ a‘‘ participa“ts regardi“g What ca“ we d” better f”r safety?.

Setting up 2017 priorities by following How We Operate, Operating Discipline and Upstream Leadership also improving on seven elements of quality (Leadership, Self-Verification, Job Execution, Procedure, Investigation, Competency, and Plant, facility & equipment), Year of Quality Workshop was held in February 2017. The workshop was held in two days in a row at 13 – 14 February 2017. There are around 60 employee representatives from Site and Jakarta that divided into 7 focus group discussion involved to this workshop identified the problems from seven elements of quality and formulated the proposed action. From the seven elements of quality, 3 elements are directly related with safety which is Self-Verification, Procedure and Investigation. The outcome of this workshop is a planning to improve those seven elements of quality within 2017.

Emphasizing the message from GOO Safety Leadership Principle, Staying safe through CARE campaign was started in March 2017. The target of the campaign is covered all workers in Tangguh LNG Site including BP employees and contractors. There is a video showed as part of campaign package, to initiate the awareness of participant regarding individual responsibilities to always CARE about the safety of their workplace as well as their colleague. Besides that, this campaign is also to re-emphasize the message on

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showing CARE for safety by performing actions and STOP the job when it is unsafe. Until the first half of 2017, 73% of all workers in Tangguh and Babo had joined the session and will continue to complete the remaining person.

The first half of 2017 also remarked as IRIS deployment as new action tracking system replacing Tr@ction. IRIS was firstly launched in 1st January of 2017, replacing tr@ction for recording incident. However, IRIS has two functions besides recording incident and actions from it, IRIS also has function to record safety observation. This function to record safety observation, further will replace the function of local observation program (CARE Card) and SOC function in Tr@ction. Full implementation to IRIS specifically for safety observation function is planned to be in Q3 of 2017. Preparation for fully transforming from CARE Card to IRIS including socialization to BP employee and contractors and setting up the collecting and learning system is now being progressed. The first wave of socialization has been done in the first half of 2017 with 464 participants involved to the session, while the remaining session will be delivered in July – August 2017.

As support of TAR 8 execution in April 2017, following program had been delivered to ensure the safe and in time completion, • HSE Plan socialization and lesson learned sharing from TAR 7 to all TAR 8 personnel • Risk assessment and deviation review for activities & condition that related with TAR 8 • Blue roof readiness review with L&I and R&M team including Blue roof evacuation plan socialization to all TAR 8 workers • Compressed Gas Cylinder compliance verification for TAR 8 • Behavi”r c”“diti”“i“g f”r the gree“ he‘’et w”rkers at Jakarta a“d Site pri”r TAR 8 c”’’e“ce’e“t • 24 hours HSE team coverage, performed verification on CoW implementation at Site and on site coaching for the new CoW role holder (Performing Authority, Fire Watcher, Hole Watcher and etc).

New electronic Control of Work (e-C”W) has bee“ dep‘”yed which was started t” be G” Live fr”’ N”“ Pr”ducti”“ Faci‘ities (NPF) including Harbour and Marine, Logistic and Infrastructure, Maintenance Workshop and Babo Area on early of June 2017 to replace the manual based Permit to Work System into the electronic ones. This allows people who hold the Control of Work Roles easier in managing the d”cu’e“tati”“, appr”va‘ pr”cess a‘s” SIMOPs activities withi“ each c”“tr”‘ ”f w”rk area. The G” Live f”r Pr”ducti”“ Facilities (PF) is planned in the middle of August 2017.

Table 27 Key Indicators on Tangguh Operations Safety Performance Tangguh LNG 2017 Total (Operation and L&I) Jan Feb Mar Apr May Jun Fatality 0 0 0 0 0 0 0 [Number of incidents] High Potential Incidents 1 0 0 0 0 0 1 [Number of incidents] DAFWF [Frequency per 200,000 0 0 0 0 0 0 0 hours] (# of events) Recordable Injury Frequency 0 0.46(1) 0 0 0 0 0.06 (1) [Frequency per 200,000 hours] (# of events) 556,87 791,92 518,70 427,68 3,186,20 Man-Hour 451,988 439,024 2 8 8 0 0

E.2 TANGGUH EXPANSION PROJECT

For the reporting period from January 2017 to June 2017, activities in Tangguh Expansion Project focusing on starting early works activities, after initial mobilization of equipment and manpower to Tangguh LNG Site completed last year. Tangguh Expansion Project (TEP) committed to execute the work safely and this is achieved by having readiness review / Go-No-Go for each high risk activities prior to the work started. Readiness Review / Go-No Go process are prepared by EPC Contractor Project Management Team and assured by Tangguh Expansion Project Management Team. Once EPC Contractor completed all Readiness Review / Go-No Go and satisfied TEP PMT, VP Projects formally signed off a Readiness Review and EPC Contractor started to mobilize personnel and the equipment to Tangguh LNG Site.

The first Site Go-No-Go at Tangguh LNG Site was Go-No-Go for initial tree cutting, land clearing, camp construction, and road construction on February 2017. At the site, TEP Site Management verified personnel training and competency; fitness of tools and equipment, including heavy equipment; and the site procedures or method statement implementation. Last item to be verified was the emergency response readiness by conducting emergency drill. The drill involved Tangguh Site Emergency Response Team with the scenario that an injured person evacuated from the jungle to the clinic. First tree cutting trial was conducted and afterward, land preparation activities gradually progressed.

The second Site Go-No-Go was dredging activities in Bulk Offloading Facility (BOF) Jetty on May 2017. In similar, TEP Site Management verified the contractor dredger vessel and barge vessel after arrival at Tangguh site anchorage area. Then, dredger vessel conducted table-top exercise and also medical evacuation drill from the dredger vessel to the Tangguh site clinic. First trial of dredging activities was conducted, and after TEP site team satisfied, the dredging activities started.

After Tangguh Expansion Project started, Tangguh Site has been divided into Brownfield area where managed by Operations and Greenfield area where managed by EPC Contractor. When defining the Greenfield Area, surveys was undertaken to determine the coordinates and demarcate areas for construction, along with security access and muster points. If practicable, theseareas are further defined by fences or temporary barriers.Oncethe demarcationcompleted, a formal documented request wasmade by TEP Site Management to GOO Site Management to formally handover these areas to EPC Contractor. The Project Camp Areas, Access Road Areas, Laydown Areas, and BOF Jetty Areas, has been handed over to EPC Contractor. Last, Train-3 Construction Area has been

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handed over to EPC Contractor, after the area was segregated by fence / gate and emergency evacuation drill to the muster point was conducted.

For monitoring the work in Greenfield Area, EPC Contractor implemented Control of Work process. The Control of Work process is app‘ied t” BPs w”r‘d-wide activities. The Control of Work process addresses the key processes in the safe execution of work. The EPC contractor adopted and implemented this system during project execute phase at Tangguh Site. EPC Contractor has developed Contractor Control of Work Procedure which is implemented in area where Contractor is responsible to manage (Greenfield Area). The EPC contractor and its subcontractors have trained personnel who involved in the Control of Work process, which are the Site Leader, Area Leader, and Permit Holder. All contractor activities in Greenfield areas are covered by a permit to work, which applied by Permit Holder and issued by Area Leader.

At the end of June 2017, EPC contractor had mobilised around 1000 personnel onsite for tree cutting, land clearing, camp construction, road construction, dredging, and all related logistics activities.

0/0.00

2/0.18

9/0.83

991/91.77

Picture 1. TEP Safety Triangle (cumulative start from EPC started 25th Aug 2016 until 30 Jun 2017)

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CHAPTER III CONCLUSION

A. ENVIRONMENTAL ASPECT

• Tangguh LNG has submitted PROPER assessment period July 2016 - June 2017. • Tangguh has implemented EMS refers to ISO 14001:2004 since 2010 and certified by Certivication Body TUV Rheinland. • Environmental monitoring results at Compliance Point conducted by accredited External Laboratory comply with Waste Water Discharge Permit (Decree of MoE 125 / 2013). • Environmental monitoring results at Emission Stacks conducted by accredited External Laboratory comply with regulatory standard. • Hazardous waste is stored and recorded in permitted Hazardous Waste Storage at Tangguh Site and transported to PPLi as final licensed hazardous waste company. Hazardous waste transported is licensed and equipped with Manifest. • Total amount of flaring for this reporting period was 0.91% of feed gas, • All requirement in AMDAL have been implemented in Tangguh, and • No complaints from the local communities during the reporting period related to the environment

In general, the environmental management and monitoring activities of Tangguh LNG has been implemented in line with the Environmental Management and Monitoring Plan.

B. SOCIAL ASPECT

The Tangguh Sustainable Development Program is a part of Tangguh operations impact management which refers and complies with AMDAL commitments. The program continues to take part as a social adhesive between the community and the project, to support a safe and stable operations of Tangguh LNG.

During this reporting period, there were no significant disruption affecting operations. However, the commencement of train 3 project created increase tension in the community in all villages particularly related job opportunities and participation in supply chain.

More over, The uncertainty the cabinet structure of the elected regent of Teluk Bintuni for almost one year made difficulty for the tangguh social team to execute the program as planned.

The TSDP program has delivered significant outputs particularly in several programs such as the local economic development; education; and community relation program. It has made positives changes particularly to the indigenous people and their trust to the project. With consideration to the local sustainability development and respects to the communities, Tangguh LNG will continue to keep its commitments to implement the social program until end of the project life.

C. HEALTH ASPECT

• No occupational illness during 2nd period of 2016. • Tangguh IH program focusing in in identifying workplace health hazard (including physical, chemical, biological, and ergonomic), develop risk assessment and deliver mitigation to solve the gap • Tangguh occupational health program group consists of Primary care (PC), Fit for task (FFT), Health surveillance (HS), Medical emergency response & preparedness (MERP), Communicable diseases control (CDC) , Health promotion (HP) & Wellness. The activity and performance as follow:

D. SAFETY ASPECT

Several programs and intervention within the first half of 2017 as follows, • Site Safety Stand Down in January 2017, following the HIPO incident occurred in early of 2017 • Year of Quality workshop was held in February 2017 with focus on improvement to seven elements of quality (Leadership, Self-Verification, Job Execution, Procedure, Investigation, Competency, and Plant, facility & equipment) • Safety Leadership Principle was strengthen through Staying Safe Through CARE campaign that was started in March 2017 • IRIS was launched in the 1st January 2017 replacing tr@ction, preparation for transforming safety observation from CARE Card to IRIS is being progressed with full implementation in Q3 2017 • Safety programs and initiatives were delivered to support the safe execution of TAR 8. • E-CoW Go Live for Non Production Facilities (NPF) including Harbour and Marine, Logistic and Infrastructure, Maintenance Workshop and Babo Area.

Tangguh Expansion Project focusing on starting early works activities. There were several activity have been performed ensuring these activities executed safely: • Go-No-Go for initial tree cutting, land clearing, camp construction, and road construction on February 2017. • Go-No-Go for dredging activities in Bulk Offloading Facility (BOF) Jetty on May 2017. • Tangguh Site has been divided into Brownfield area where managed by Operations and Greenfield area where managed by EPC Contractor. • EPC Contractor has developed Contractor Control of Work Procedure which is implemented in area where Contractor is responsible to manage (Greenfield Area).

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