James Rose – Indonesian and international groups have called for a halt to BP's Tangguh liquefied natural gas project in Indonesia in a letter to BP chief executive Lord Browne, citing sustainability concerns.
The letter highlights concerns over progress on key human rights commitments, transparency, and issues surrounding the West Papua secessionist rebellion movement.
Among the 40 signatories are UK-based Tapoc (the Indonesian Human Rights Campaign), the publishers of New Internationalist and The Ecologist, local non-governmental organisations including Walhi, academics, politicians and former BP senior vice-president John O'Reilly.
The letter says: "We believe that the company should not proceed to full project sanction until significant movement is forthcoming to address these issues."
The project holds about 14.4 trillion cubic feet of certified natural gas reserves. Probable and possible reserves stand at about 25Tcf. According to BP, the project has the potential to be one of the world's major liquefied natural gas producers.
Tangguh has been presented by BP in the past as a benchmark for projects based in developing economies.
The company has conducted an extensive consultation with local villagers and has established the Tangguh Independent Advisory Panel to help develop policy and action on social and environmental sustainability.
John Rumbiak, the international co-ordinator for the West Papua Institute for Human Rights Study and Advocacy (known as Elsham) told Ethical Corporation the letter would be followed by further action that was already getting underway.
He said his group was working to identify major investors to pressure them on their role in Tangguh, as well as targeting members of parliament, especially in the UK, where BP is based. Some MPs, he says, have already expressed their sympathy with his group's position.
Rumbiak said: "A shareholder activist campaign is a possibility over the next twelve months."
According to Indonesian mining watchdog Jatam, BP Indonesia holds a 37% stake in the operating entity.
Other major investors in the project include Indonesia's state-owned oil company Pertamina, China's state-owned enterprise CNOOC, Japan's Mitsubishi, and Britain's BG Group.
Executives from US gold company Newmont have recently been arrested on charges emerging from a similar NGO campaign alleging human rights and environmental breaches.
Rumbiak agrees that the Newmont case represents a "positive precedent", adding: "If Newmont can be a successful case, why not BP?"
It has been noted, by Ethical Corporation and others, that some see Indonesian NGOs as becoming more powerful corporate campaigners as Indonesian democracy takes hold.
BP's Tangguh spokesperson in Indonesia, Jacob Kastanja, told Ethical Corporation he could not comment as the contents of the letter were still being studied.
He added: "We are working closely with NGOs in Indonesia and feel we have a good working relationship and general relationship with them."
A meeting between Amnesty International and BP is scheduled today in London to discuss issues related to the allegations made in the NGO letter.