The Oil & Gas Industry and the Environment
Module 6: Engaging Stakeholders
Stakeholder Concerns & Rights > Corporate Accountability & Transparency
 
Stakeholder concerns and rights
 
 
1 Which of the following events had the greatest impact on public perception of the oil and gas industry? Exxon Valdez, Brent Spar, Cameroon Pipeline, Gulf War, oil production in Nigeria. More Info
 
   
2 The Global Compact includes two principles on human rights and four on labour rights. How many of these principles are relevant to oil and gas operations in developing countries? More Info
 
   
3 What impact have environmental non-governmental organisations (NGOs) had on the industry? More Info
 
   
4 How serious in your mind is the problem of minority groups that might be displaced or otherwise affected by oil and gas operations? More Info
 
 
   
Principle 10 of the Rio Declaration (1992) states:

"Environmental issues are best handled with the participation of all concerned citizens, at the relevant level.  At the national level, each individual shall have appropriate access to information concerning the environment that is held by public authorities, including information on hazardous materials and activities in their communities, and the opportunity to participate in decision-making processes.  States shall facilitate and encourage public awareness and participation by making information widely available.  Effective access to judicial and administrative proceedings, including redress and remedy, shall be provided".


 

 

 

 

Events
Which of the following events had the greatest impact on public perception of the oil and gas industry? Exxon Valdez, Brent Spar, Cameroon Pipeline, Gulf War, oil production in Nigeria.
 
Cameroon Pipeline

On June 6, 2000 the Board of Directors of International Bank for Reconstruction and Development (IBRD), International Development Association (IDA) (the World Bank's lending arm for the poorest countries), and International Finance Corporation (IFC) approved lending for the Chad-Cameroon Petroleum Development and Pipeline Project and two related Capacity-Building projects.

The project is to develop the oil fields at Doba in southern Chad (at a cost of US$1.5 billion) and construct a 1,070 km pipeline to offshore oil-loading facilities on Cameroon's Atlantic coast (US$2.2 billion).

The sponsors are:

  • ExxonMobil of the U.S.
  • Petronas of Malaysia
  • ChevronTexaco of the U.S.

The project could result in nearly US$2 billion in revenues for Chad (averaging US$80 million per year) and US$500 million for Cameroon (averaging US$20 million per year) over the 25-year production period.

However, regardless of the likely economic benefits, this project has been highly controversial, as concerns have been raised about the potential environmental and social impacts.
 

 

 

 

 

 

 

 

 

 


-- World Bank --


World Bank Chad-Cameroon Petroleum Development and Pipeline Project Web Site

Headlines
■ World Bank sticks by Chad-Cameroon pipeline  More >>
News Releases


 

Industry Response

A portion of the proposed Chad-Cameroon Pipeline, about 100 kilometres, traverses an area of coastal Cameroon where certain Bagyeli/Bakola reside in the vicinity of the narrow pipeline easement and a one hundred-year-old road in a corridor of the Atlantic Littoral Forest.  The Bagyeli/Bakola are indigenous people as per the World Bank criteria. 

The project has established an environmental foundation to manage, among other programmes, an indigenous people's plan, which recognises the unique circumstances and needs of those Bagyeli/Bakola affected by the project.

From: The Oil and Gas Industry: From Rio to Johannesburg and beyond. (OGP/IPIECA, 2002)

 


Brent Spar

On 16 February, 1995, Greenpeace learned that the UK government had granted permission for Shell Oil to dump Brent Spar an offshore installation in the north-east Atlantic.  As a result  Greenpeace mounted a protest which caused Royal Dutch Shell to reverse the decision.  After the Brent Spar affair in June 1995, a moratorium on all disposals at sea of offshore structures was instated by the nations of the Oslo Paris Commission (OSPAR), which regulates marine pollution (although not signed-up to by the UK and Norway). As of July 1998 OSPAR Decision 98/3 came into force which no longer permits any disposal at sea of offshore structures.

■ Greenpeace's Story - Archive 1 & Archive 2
■ Royal Dutch Shell - Brent Spar Frequently Asked Questions
The scientific Group on Decommissioning of Offshore
   Structures - First Report, 1996.  A Report for The Natural
   Environment Research Council for The Department of Trade
   and Industry.

 

 

 

 


-- Brent Spar --
Greenpeace Archives

 

 

 


Global Compact

The Global Compact includes two principles on human rights and four on labour rights. How many of these principles are relevant to oil and gas operations in developing countries?
 
The Global Compact

The Global Compact is a voluntary corporate citizenship initiative with two objectives:

  • Making the Global Compact and its principles part of business strategy and operations
  • Facilitating cooperation among key stakeholders and promoting partnerships in support of U.N. goals

The Global Compact includes nine principles in the areas of human rights, labour and the environment.


What are the nine principles?

For more information about the Global Compact visit their Web site @ www.unglobalcompact.org/Portal

 
Industry Response

No matter where we operate, the oil and gas industry aims to apply these universal values by:

  • following ethical business practices;
    combating corruption and enforcing ethical trading policies,
  • treating all people equitably through non-discriminatory employment practice and provision of a living wage;
  • respecting indigenous people and local communities and involving them in decisions that may effect them; and
  • working to ensure a fair sharing of economic benefits.

From: The Oil and Gas Industry: From Rio to Johannesburg and beyond. (OGP/IPIECA, 2002)

 

 

 



NGOs
What impact have environmental non-governmental organisations (NGOs) had on the industry?
 
Non-Governmental Organisations

Chapter 27 recognizes NGOs as partners in the implementation of Agenda 21.

"Non-governmental organizations play a vital role in the shaping and implementation of participatory democracy. Their credibility lies in the responsible and constructive role they play in society. Formal and informal organizations, as well as grass-roots movements, should be recognized as partners in the implementation of Agenda 21".

Full text >>

Non-governmental organizations (NGOs) have played a major role in pushing for sustainable development at the international level. Campaigning groups have been key drivers of inter-governmental negotiations, ranging from the regulation of hazardous wastes to a global ban on land mines and the elimination of slavery.

But NGOs are not only focusing their energies on governments and inter-governmental processes. With the retreat of the state from a number of public functions and regulatory activities, NGOs have begun to fix their sights on powerful corporations - many of which can rival entire nations in terms of their resources and influence.

Visit Business and Sustainable Development: A global guide for more information on Working with NGOs.

Links to NGOs
WWF- Conservation
   Organisation

Worldwatch Institute
Sierra Club
■ Global Network of
   Environmental Economists
   (gNEE)
Greenpeace



 

 

 

 


Minority Groups

How serious in your mind is the problem of minority groups that might be displaced or otherwise affected by oil and gas operations?
Potential Benefits of Engaging Stakeholders

Stakeholder engagement and community outreach makes good business sense, it can:

  • help maintain good relations or improve those that may have deteriorated;
  • reduce the change of later opposition, delays or costly modifications;
  • open up opportunities for potential partnerships;
  • enhance a projects credibility and acceptability; and
  • gives early access to additional specialist expertise, competence and support, which in turn facilitate bringing sustainable benefits to  the community.
 
''Petroleum activities and processes have unleashed a litany of devastating human and environmental degradation on the Niger Delta region. These woes include oil spillage, gas flaring with attendant acid rain, ground water pollution and pollution of farmlands and fishing waters,'' says Daniel Akaphiare from the Niger Delta region. More >>

In Nigeria there have been persistent attacks against oil companies by youths protesting the environmental degradation of indigenous homelands. The attacks have resulted in disruptions of oil production and exports. More >>

Industry Response

In remote areas, the rights of indigenous peoples play an important part in our operations.  Our commercial success must be sustained in ways that demonstrate respect for indigenous peoples who, after all, where there first.  In the broadest sense, this respect means acknowledging the right of these people to exist and maintain separate identify if they so choose.  Where mutually beneficial partnerships are an option, our industry can play a major role in building capacity in communities and helping to strengthen the ability for good governance.

From: The Oil and Gas Industry: From Rio to Johannesburg and beyond. (OGP/IPIECA, 2002)