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MANDAU PROJECT –
LNG PLANT WEST
KALIMANTAN
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 David Hillson (Hillson):I start with the idea that risk is

“uncertainty that matters”. All risks are uncertain, but not all
uncertainties are risks. Most uncertainties don’t matter, and the
only ones that we need to consider are the ones that could
affect our ability to achieve our objectives. Risks include events
that might or might not happen in the future (for example, a key
supplier might go out of business), but it also includes non-
events, such as variability in tasks that we already plan to do
(for example, a trial may take longer or shorter than planned), or
ambiguity in key aspects of our projects (for example, we may
not fully understand part of the client’s requirement). Variability
and ambiguity are uncertainties that matter, but they are not
uncertain future events.
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z Political

Environment

Social Economy

Labor

Area Development
 Severity Occurrence Risk
Resiko Scoring

The activities of building oil and gas refineries for the impact of heavy equipment pollution, land 3 1 3
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clearing, and sea destruction cause political instability with the government and society, according
to Law Number 32 of 2009 concerning environmental protection and control where the Law functions
as a legal instrument, in particular business activities carried out by LNG companies that will pose
positive or negative risks. Through AMDAL is an effective way of controlling and preventing, the
government can conduct inspections every 1 or 2 years regarding environmental pollution and the
company's program will carry out a go green image of the company.

The impact of the existence of 3 militant villages adjacent to the project site. Mining activities make it 2 1 2
impossible to live side by side with the community which results in evictions and compensation to
the surrounding community, Asking for mediation between the local government and the local
community for the process of evictions and compensation to the local community,: By inspection,
building boundaries for the project area with the community and conduct a survey so that the price
of compensation is appropriate.

The demand in each mining area is to place local personnel in the project. While the company has a 2 2 4
different mindset, where the personnel required with certain skills are not available in the area and
recruiting workers from other areas, which results in a gap between the desires of the community
and local government and the company: conducting training for local workers periodically and
directed according to the budget , by providing periodic certification for each employee and paying
attention to training for them on a regular basis.

Project locations with minimal logistics infrastructure, with the lack of logistics infrastructure will 2 1 2
also hinder the performance of a project, therefore building logistics infrastructure facilities in the
Singkawang area will also help launch the project, carry out procurement, support joint facility
development with the local government, monitor, maintain and maintain logistical infrastructure.
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Environment

 Identify risk : Oil and gas activities have properties that damage the
environment and cause various pollution.

 Assess Risk : medium-high

 Control Risk : According to Law Number 32 of 2009 concerning

environmental protection and control in which the Law functions as a
legal instrument, especially business activities carried out by LNG
companies that will pose positive or negative risks. AMDAL is an
effective way of controlling and preventing.

 Review control : The government can conduct inspections every 1 or 2

years regarding environmental pollution in companies.
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Social-Economy

 Identify Risk : The impact of the existence of 3 militant villages

adjacent to the project site. Mining activities make it impossible to
live side by side with the community which results in evictions and
compensation to the surrounding community.

 Assess Risk : low-Medium

 Control Risk : Requesting mediation between the local government

and the local community for the eviction process and compensation
to the local community.

 Review Control : By inspection, establish boundaries for the project

area with the community.
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Labor

 Identify Risk : The demand in each mining area is to place local

personnel in the project. Meanwhile, companies have a different idea,
where the personnel required with certain skills are not available in
that area and they recruit workers from other areas which results in a
gap between the desires of the community and local government and
the company.

 Assess Risk : low-medium

 Control Risk : conduct training for local workers.

 Review control : by providing periodic certification for each employee

and paying attention to training for them on a regular basis.
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Area Development

 Identify Risk : Project locations that lack logistical infrastructure.

 Assess Risk : low-medium

 Control Risk : The lack of logistics infrastructure will also hinder

the performance of a project, therefore building logistics
infrastructure facilities in the Singkawang area will also help to
accelerate the project.

 Review Risk : Monitor and maintain the logistics infrastructure.