Social Impact Assessments (SIAs) can be developed at any stage in a project to propose measures to mitigate potential adverse social impacts and enhance positive social impacts. This paper describes guidance developed on how to make the best use of SIAs in oil and gas projects. Social Impacts of Oil and Gas Projects Potential social impacts of an oil and gas project can be both positive and negative. Adverse impacts such as resource use and the movement of people are often well publicized. However these are often balanced by positive impacts such as the promotion of employment, socio-economic development and improvements in infrastructure. Some typical impacts are described in the table below. SIA is a tool utilized in the oil gas industry to manage social impacts, enhancing positive impacts and avoiding or mitigating adverse ones. SIA provides coompanies an effective risk management tool and communities the opportunity to give input on a project. What is Social Impact Assessment? The Oil and Gas Industry has been aware of these and other impacts for many years and has been developing methods for managing social impacts. In 1997, the International Association of Oil and Gas Producers (OGP) published a report entitled " Principles for Impact Assessment: The Environmental and Social Dimension"1. This report set out principles for the environmental and social dimension of impact assessment for oil and gas exploration and production projects. It was intended for oil and gas companies and their contractors, and highlights the importance of social and environmental assessment in all aspects of project planning and implementation. The document was subsequently endorsed by the International Petroleum Industry Environmental Conservation Association (IPIECA). The document was viewed as a stepping-stone to a more comprehensive guidance document for industry practitioners. In 2002, OGP and IPIECA took the next step and developed ‘Lists of Questions’2 that may need to be asked and answered in considering the social dimension of oil and gas projects. These questions give an extensive insight into the range and diversity of the potential social impacts that an oil and gas project may need to manage. However, these lists of questions were not intended as check lists or as detailed guidance for conducting social impact assessment.

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Integrated environmental and social assessment is increasingly becoming part of national regulatory approval processes, to estimate and manage the impacts of oilfield developments upon the natural and human environment.Even at pre-project stages, the Environmental and Social Impact Assessment (ESIA) can form part of the company decision-making process for country entry. The ESIA should not be viewed however simply as a regulatory ‘tick-in-the-box’ but form part of a larger Environmental and Social Management Process.Effective integration of the ESIA findings, into the engineering design process can deliver benefits in impact mitigation and environmental management across all stages of the development. The international community is demanding increasingly rigorous environmental and social performance of planned developments by international operators and reputation can be strongly influenced by the consistency and quality of the assessment process and the extent to which ESIA commitments are delivered. It is recognised by the International Association of Oil & Gas Producers (OGP) that sharing of experience through ‘lessons-learned’ would provide a means to achieve consistency in delivery of high quality environmental and social impact management processes. The OGP ESIA in Projects Taskforce has been formed to develop industry guidance, which is applicable to development projects in any geographical area, thus facilitating the attainment of a consistently high standard by all operators, which is aligned with international expectations.The aim is to add both technical value and to facilitate interactions with stakeholders and third parties. Given the diversity of project specifics, company internal processes, local environmental sensitivities etc. The approach must offer a high degree of flexibility in its application.A ‘Toolbox’ based on agreed ‘good practice’ is being assembled that maps key environmental and social management activities with E&P project activities, defining deliverables and checklists at each stage. This is seen to offer greater potential than a more rigid process.