Environmental and Social Management System (ESMS)

Papua New Guinea is home to some of the world’s richest biodiversity, making responsible environmental stewardship a central priority for the Papua LNG Project. Given the scale and complexity of this integrated development, spanning upstream extraction, processing, transportation and LNG production, and its close interaction with ecosystems, local communities and a wide range of stakeholders, a robust Environmental and Social Management System (ESMS) is essential.

The ESMS translates standards and impact assessments into concrete actions on the ground, ensuring that potential environmental and social impacts are effectively anticipated, managed and monitored throughout the Project lifecycle.

The Environmental and Social Management System

Managing environmental and social performance at the scale of Papua LNG requires structure, discipline and continuous oversight. The ESMS ensures that environmental, social (local communities), health, safety and security risks and impacts are systematically identified, assessed and managed in the Project Area of Influence (PAOI) on an ongoing basis, while striving for continual improvement.

The ESMS applies to all phases of the project and describes the objectives, structure, components, organization, functionality and inter-relationships of the main elements of the system. Given the Project’s structure, it is implemented across both upstream and downstream components.

It is a dynamic and continuous process, and subject to periodical review. Through a comprehensive set of management plans and procedures, the ESMS:

• Defines mitigation measures and operational requirements
• Structures implementation across construction and operations
• Supports monitoring, reporting and continuous improvement
• Ensures alignment with national regulations, international standards and lender requirements

Roles and responsibilities

TotalEnergies EP PNG Limited (TEP PNG) is the project Operator for the Papua LNG Project, responsible for the integrated management of the project. It will be responsible for the construction and operation of the onshore Gulf Province facilities and offshore Gulf of Papua pipelines, collectively referred to as the Upstream components. It is responsible for the implementation of the ESMS with respect to the Upstream component including Construction Environmental & Social Management Manual and plans (CESMPs) and management oversight of relevant Upstream Continuous Improvement Plans (CIPs).

ExxonMobil PNG Antelope Limited (EMPNGA) is the Delegated Construction Operator, responsible for the construction of the LNG production and export facilities located in the existing PNG LNG plant site leases. Niugini LNG Operating Company Limited (NLOC), an ExxonMobil affiliate, will operate the integrated LNG Plant. EMPNGA is responsible for the implementation of the ESMS with respect to the Downstream component, including CESMPs and management oversight of relevant Downstream CIPs.

Each Operator will manage all relevant decision-making, stewardship, monitoring and planning within their respective scopes of responsibility.

The ESMS as well as the Environmental and Social Manuals for each phase of development detail how the Upstream and Downstream Operators align and coordinate the management of their respective scopes of work. The Operators are required to coordinate and cooperate with each other in accordance with the Joint Venture Agreement (JVA) and Papua LNG Shareholders Agreement (SHA), including with respect to external reporting and interaction.