A joint venture between Shell, China National Offshore Oil Corporation and Guangdong provincial government is investing $4 billion in a major petrochemicals complex in Daya Bay, Guangdong Province, Southern China. By late 2005, the plant will be producing more than two million tonnes of plastics and chemical intermediates each year for China’s growing economy. The challenge is to develop the project while protecting the environment and creating real benefits for local communities.
To meet this challenge the company is working closely with the local government for a common approach on social and environmental issues such as the resettlement of about 2,500 households, livelihood restoration following resettlement, business development opportunities and management of the environmental and social impacts in the construction and operation phases. Internationally accepted standards have been adopted, with the government taking the lead in resettlement and social consultation.
The first stage of the resettlement programme has been completed with compensation, new housing and schools provided by the government. A livelihood restoration plan is being developed. An environmental and social impact assessment has been carried out, findings publicly shared and interested groups invited to comment.