Thursday, April 3, 2008

Operating in Areas of Conflict. An IPIECA Guide for the Oil and Gas Industry

It is generally understood that companies working in the extractive industries, and particularly in the oil and gas sector, need to be aware of the impacts of their operations on conflict and vice versa. Failure to understand and address local dynamics in regions of known or potential conflict can be costly to companies in terms of impact on employee safety, normal business operations, social licence to operate, reputation and future opportunities.

Oil and gas companies have accumulated considerable experience of working in areas of conflict. However, basic knowledge of, and training in, conflict risk and conflict management is not always readily available to company personnel.

The purpose of a new guide issued by IPIECA, the International Petroleum Industry Environmental Conservation Association, is to provide, in a simple and accessible format, basic guidance on risk assessment and risk management in conflict settings that oil and gas companies might face. These include conflicts between companies and local communities which are directly related to the presence and operations of the companies themselves, as well as wider social and political conflicts in which companies are not directly involved but which are very likely to impact on companies operating in such conflict environments.

The guide is a collaborate effort by many leading oil company representatives, and can be downloaded from: