1. Working with
indigenous people
As the most easily accessible oil and gas resources decline,
energy companies are exploring for and developing resources in
ever-more remote regions to meet the world’s energy demands.
These regions are often home to indigenous people.
The Arctic has many such communities who are traditionally,
economically and spiritually linked to the land, the sea and the
wildlife it supports. The activities of new industries can disrupt
this delicate balance if not managed responsibly. For Shell,
the potential of this new energy frontier can only be realised
if sustainable development is taken seriously. Existing projects
have taught us that the process must begin by listening to these
communities and moving ahead carefully. Our operations in
places like Sakhalin Island in Russia’s far east are a case in point.
The native peoples of the Arctic number about 400,000. They
maintain their traditional subsistence culture, relying on the
Arctic ecosystem for shelter, nutrition and their cultural identity. 

2. 2 Working with indigenous people
Alaskan native outside his house in Shisharef, Alaska.

3. 3
Sustainable development
Shell’s commitment to sustainable development requires
balancing short- and long-term interests and integrating
social and environmental aspects into our decision
making. In practice, this starts with listening to our
neighbours to understand their concerns. We then aim to
keep our impact to a minimum while sharing benefits that
will help them preserve their way of life. In Alaska and
Canada’s Northwest Territory, for example, we have held
many meetings with Arctic communities where we discuss
the impact of oil and gas development. These people help
us to understand and address community needs, risks and
opportunities. And we offer insights from our experience
and expertise based on the work we do elsewhere,
including in other Arctic and sub-Arctic regions.
We aim to reduce emissions and safeguard the health
and safety of our employees and neighbours. We share
benefits by developing and hiring local people, using
local suppliers and contractors and supporting social and
educational projects for the indigenous communities.
In our projects, we assess environmental and social risks
before technical designs and commercial conditions are
finalised. Shell may have the experience and technical
ability to address these risks but we recognise that we must
continually earn the right to operate in these regions.
“Many coastal Native communities depend on
fishing and hunting of sea mammals not only
for survival but also to keep alive a cultural
centrepiece that has thrived for centuries. With
that experience comes a deep understanding
of the Arctic environment. This ‘traditional
knowledge’, is of high value and is not always
recognised by incoming developers. For Shell’s
part, we continue to be humbled by what we
don’t know and we are constantly looking for
ways to incorporate traditional knowledge into
our operations. Not just for the advancement
of our project, but out of respect for those who
will live off the ocean long after we are gone.”
Robert Blaauw Arctic Theme Lead, Shell
The snowmobile can be a practical means of transport in Arctic Canada.

4. 4 Working with indigenous people
The role of traditional
knowledge
Preserving the indigenous way of life has a direct impact
on physical survival in the region. Successful subsistence
activities often rely on the knowledge and understanding
embedded in the customs and even the language of a
society. Traditional knowledge can contribute critical
scientific data and provide an early warning system for
potential environmental problems.
Our goal is to ensure that our studies and operations
include a solid foundation in the traditional knowledge of
species, ice and ice movement, weather, migratory patterns
and habitat, land use, and subsistence activities. Including
this valuable resource in development plans is vital to
Shell’s strategy of combining our skills and experience with
those from the region.
In Alaska, for example, Shell hires local Inupiat subsistence
advisors in North Slope communities to record traditional
knowledge and subsistence concerns. The advisors talk
to others in the community to ensure that our projects are
designed to avoid conflicts and reduce potential impacts.
One outcome of this is that we changed the colour
of our vessels from orange to blue to avoid disturbing
sealife. Our marine mammal monitoring and mitigation
programme also employs Inupiat observers on board our
drilling support vessels because of their understanding of
the way ice moves and ability to detect marine life.
Successful operations demand that the concerns of local
communities are listened to and addressed. We work with
them to study the impact of our operations so we can build
measures into our plans to resolve potential problems. And
we want to build relationships that will allow community
members to share their views and concerns with us as we
move forward.
Our experience with
subsistence cultures
Shell works with subsistence cultures in many parts of the
world, some of them remote. In places like Alaska, Brazil,
Brunei, Canada, Malaysia, Norway and Russia, we
strive to reduce our impact on traditional activities such
as subsistence whaling, hunting, fishing, agriculture and
herding. In fact, we sometimes even work to promote
these activities. In Brazil, for example, Shell sponsors
programmes to turn local subsistence fishing into a thriving
business that will sustain the local communities for future
generations.
Subsistence hunting is important to Arctic communities.
Arctic Council
The Arctic Council, formed in 1996 to succeed the Arctic
Environmental Protection Strategy, is an intergovernmental
forum that addresses common concerns and challenges
faced by Arctic governments and indigenous peoples.
The development of oil and gas resources is expected
to become increasingly important to the work of the
Arctic Council. A unique feature of the Arctic Council is
the permanent membership of Indigenous Peoples
organisations. The council has given observer status
to some non-Arctic states, inter-governmental and
inter-parliamentary organisations and global and
regional nongovernmental organisations.

5. 5
Shell Brazil also supports the Atlantic Rainforest
Sustainable Development Initiative, which works to protect
a sensitive environment by helping local industries develop
responsibly.
Another example is in Alaska, where Shell plans offshore
development in the Beaufort and Chukchi seas. These are
one of the Arctic’s most productive ocean systems, where
shallow waters provide rich feeding grounds for many
different Arctic marine mammals. They provide essential
food to the people living on Alaska’s North Slope,
Northwest Arctic and Bering Strait regions. Since we
re-entered the region in 2005, we have engaged North
Slope and Northwest Arctic communities regularly and
met with some Bering Straits communities on all aspects
of our plans. We continue to build relationships and work
closely with these communities to better understand what
their concerns are and how we can share benefits from
our operations.
In Alaska, Shell has committed start-up funds for the
communities of the North Slope Borough in the Arctic
to help create the Village Voice initiative. The project
has brought together the villages of the North Slope,
industry, government agencies and Alaskan
nongovernmental organisations to develop solutions to
living with development and change in their communities.
Although Shell provided the initial funds, the community
representatives act as advisors for this project.
Inuit hunters watch their huskies crossing new tidal ice in north-west Greenland.
Inuk huntsman hurls his harpoon off north-west Greenland.

6. 6 Working with indigenous people
Sakhalin Indigenous
Minorities Development Plan
In Russia, the Sakhalin Energy Investment Company Ltd, in
which Shell is a partner, has taken steps to help preserve
and advance the island’s native lifestyles. Sakhalin Energy’s
Sakhalin Indigenous Minorities Development Plan (SIMPD)
supports subsistence activities to preserve the island’s
traditional lifestyles. Some of the programme’s funding
goes to health, education and cultural projects as well.
Of the 526,000 people on the 948 km-long island, only
3,500 are indigenous, most of whom live in rural areas.
They are the Nivkh, Nanaitsy, Evenki and Uilta. Their
traditional livelihoods – such as fishing, hunting, reindeer
herding and gathering – depend on abundant natural
resources. The purpose of the SIMPD was threefold: to
identify potential impacts of the Sakhalin II project; to
mitigate against any negative effects that may occur; and
to improve the lives and livelihoods of the indigenous
minorities through culturally-suitable programmes
including training in project management and business
development.
Key parts of the plan include maintaining traditional
lifestyles based on activities such as reindeer herding
and fishing; and investing in health, education, culture
and training, supported by a grant fund governed by
indigenous people themselves.
The plan is run by a working group consisting of
indigenous peoples’ representatives, members of the
Sakhalin Indigenous Minorities Council, indigenous
peoples’ representatives to the Sakhalin local parliament,
consultants to indigenous peoples, international consultants
to Sakhalin Energy and Sakhalin Energy specialists in
social investment. The plan allows for decisions to be
made jointly by all affected and relevant stakeholders.
In a recent milestone, the group helped publish the first
book in Uilta, an almost-extinct language.
Employing
indigenous people
Recruiting and retaining indigenous people for projects
that affect them helps to foster healthy community relations
and maintain diversity in the workforce. Shell Canada,
for example, developed a strategy to increase the
number of indigenous people employed in the company.
This included a local and national campaign to attract
and develop indigenous talent based on advice from a
working group made up mostly of aboriginal employees.
Shell Canada also supports Actua, a non-profit
organisation working to provide young people with fun,
hands-on learning experiences in technical disciplines.
In 2000, Shell became a founding partner of Actua’s
National Aboriginal Outreach programme, which to date
has delivered week-long summer science camps for about
31,000 aboriginal school-age children. The children
spend the day with Actua instructors exploring science
through culturally-relevant hands-on learning.
IN SHORT
Shell recognises the need to identify and address the
concerns of local people in an early stage of projects.
This begins with gaining the trust and using the knowledge
of those with long histories in the regions. Responsible
stewardship can sometimes include not only protecting
the land and the sea, but also preserving the stores of
traditional knowledge that hold the key to safeguarding
those environments. We believe that the oil and gas
industry must continue to learn from, listen to and work
with communities to address their concerns.
Sakhalin Island fisherman landing his catch of salmon at the quay in Nogliki.
Sea mammal observer on board a drilling support vessel.

7. 7
Inupiat whaling crew paddling an umiak, made from wood and skin, at Point Hope, Alaska.

8. This publication is one of a series of briefing notes on challenges related to oil and gas development in the
Arctic. The series includes Shell in the Arctic, Arctic Biodiversity, Working with Indigenous People, Technology
in the Arctic, Preventing and Responding to Oil Spills, Climate Change and Developing Arctic Oil and Gas.
Disclaimer
Royal Dutch Shell plc and the companies in which it directly or indirectly owns investments are separate
and distinct entities. The collective expression ‘Shell’ and ‘Shell Group’ may be used for convenience where
reference is made in general to those companies. Likewise, the words ‘we’, ‘us’, ‘our’ and ‘ourselves’ may
be used to refer to the companies of the Shell Group in general. These expressions may also be used where
no useful purpose is served by identifying any particular company or companies.
Published by Royal Dutch Shell plc, for Shell Exploration and Production International B.V.,
The Netherlands. All rights reserved.
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