Building Consensus for Sustainable Use and Management of Oil Resources

Abstract

Abstract The lands and natural resources in areas inhabited by many indigenous and tribal peoples, especially in Asia and the Amazon countries, are increasingly being prospected and/or exploited by public and private oil and gas companies. Evidence shows that, if not properly handled, this will have severe repercussions on many of those peoples. Livelihood systems can be wiped out, community safety nets dismantled, economic and social infrastructure affected, and kinship ties undermined. The major challenge is to reconcile the rights and legitimate aspirations of indigenous and tribal peoples with the equally legitimate development needs of the country and the business interests of oil companies. Consultations and negotiations conducted in good faith and through appropriate procedures can help accommodate conflicting interests. This requires an enabling environment, and adequately prepared social parties. In most cases, however, the institutional capacity to devise, implement and enforce effective environment and social safeguards is terribly weak. Mechanisms for consultation with affected indigenous peoples, prior to and during project execution, tend to be non-existent or inadequate. The principles, requirements, and responsibilities with regard to compensation and rehabilitation schemes, or concerning disputes settlement procedures over compensation or oil operation-related injuries are either lacking or vague. As a result, and because of national and international pressure, several oil companies have adopted measures to minimize social conflicts and adverse social impact. Despite the use of specialized assistance, social issues tend to be beyond the expertise and experience of oil project developers. If and when consultations are conducted, the devised social interventions are generally short-lived and welfare-oriented. Indigenous peoples very often are unaware of their rights, and of relevant provisions under environmental law and/or oil development legislation and regulations. They are equally unequipped to engage in meaningful dialogue and negotiation with oil companies and relevant government agencies. The paper will explore the extent of the problem, outline some of the consequences, discuss a few cases and offer some suggestions