BP Panel Warns of Risk to Human Rights in Indonesia

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

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

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

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

Despite this, the American politician, who helped broker the Belfast peace accord, said yesterday the massive financial benefits of the scheme outweighed the problems. Around $225m (£140m) annually could flow from Tangguh to the local government and villagers are campaigning for advance funds.

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

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

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

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

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

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