Interactions between oil and gas companies and indigenous people have increased
over the last decade. Increasingly, oil and gas exploration and exploitation are taking
place on customary land that belongs to Indigenous peoples who have different
characteristics from those of the wider community. The interaction between oil and gas
companies and Indigenous people is structured around three key issues: engagement,
impact and opportunities. Engagement and impact cover the activities in the
participatory environmental and social monitoring. Meanwhile, the opportunities focus
on creating more incentives for oil and gas exploration for Indigenous people. One of
the policies to provide incentives is through local procurement mechanisms. It provides
an affirmative policy for Indigenous people to be part of the supply chain. Despite
positive intentions (e.g. economic), local procurement may have unintended
consequences on the cultural and social structure of Indigenous people.