Oil and Gas and NGOs: New Rules of Engagement?

Abstract

Abstract How ‘engaged’ are oil companies and non-governmental organizations (NGOs)? Are the relationships between these actors exclusively and energetically adversarial, or have new forms of interaction emerged? This paper focuses on Corporate – NGO engagement during major oil and gas (O&G) projects and suggests some developing models for mutually valuable relationships. The paper also offers recommendations for project managers based on ‘field experience’ working with NGOs and companies on some of the world's largest oil and gas projects. Expectations have continued to rise over recent years regarding how major O&G projects analyze, manage and communicate about their social and environmental performance. NGOs are among the most interested and active stakeholders, particularly with regards to projects located in developing regions, and those undertaken in countries with poor governance, financial transparency and human rights records. Around the world, NGOs increasingly expect meaningful and prolonged company engagement. No longer is it typical that a government-issued permit marks the sole purpose of, and mutually satisfactory end to project-driven stakeholder engagement. NGO and O&G company relationships are commonly portrayed as a tug-of-war, a battle of opposing sides. But while some ‘watch-dog’ NGOs are quite adamantly and categorically opposed to oil companies and associated projects, this strident position is far from universal. Increasingly one can find recognition among civil society actors that O&G projects are often uniquely positioned to make significant positive contributions to local development. Many NGO representatives would agree with the assessment of a researcher who noted that oil and gas "footprints can be seen in developing countries in the transfer of foreign direct investment (FDI), skills, and technology; as major employers of labour; and accounting for a large proportion of state revenue. Their contribution to development in many countries via programmes in education, health, commerce, agriculture, transport, construction, etc., cannot be ignored."