Developing Countries: No Environmental Regulations Equals Project Stranglehold

Abstract

Abstract In many developing or newly opened countries, the lack of environmental regulations is more confusing and detrimental to project planning, timing and finance than in those countries with seemingly stifling regulations. A government without knowledgeable, experienced environmental and mineral resource staff presents real challenges to a project. The regulatory uncertainties faced by the petroleum industry as it pursues exploration and development around the globe are sometimes monumental. The interrelationship of international companies, their stockholders, standards organizations, financial institutions, host country governments, and non-government special-interest groups must be determined for each project. Each of these entities can have significant effects on projects. It is, however, in many cases, a country's lack of environmental policy and established, written regulations that is the primary inhibiting element of projects and the planning element with the longest lead time.