Stakeholder Engagement Programs: Balancing International Best Practices and In-Country Leadership

Abstract

Successful development of international exploration and production (E&P) projects is increasingly dependent on managing social and stakeholder concerns. Critical to this success is a balance between the need for international best practices and local leadership of stakeholder engagement (SE) programs. As international practitioners, we see the following critical trends emerging:There has been significant progress in developing SE best practices/methods in recent years;Few host country social experts have been exposed to these developing practices/methods; andDespite this, experts from within host countries are typically in the best position to execute these programs because they:○Understand the social customs, language, and culture○Are known and more trusted by regulators and residents The authors argue that to better manage this balance, international oil and gas companies and their consultants need to commit to two-way capacity building that simultaneously:Conveys best practices from international oil companies, financial institutions and ESHIA practitioners to capable local consultants; andCommunicates to international parties and practitioners the value of stakeholder engagement being led by qualified local experts. Through a series of case studies, this paper demonstrates how the challenge of effectively managing international SE programs can impact development projects and how the recommended approach can help meet this challenge. The paper provides conclusions and recommendations for how to improve capacity building activities and optimize opportunities for local involvement in stakeholder consultation. Introduction Environmental impact assessment has progressed significantly since its inception in the 1970's to the increased application of integrated environmental, social and health impact assessment (ESHIA) in recent years. Despite this progress, E&P projects continue to face unpredictable social concerns that need to be effectively managed in order to ensure successful project development. As each project has unique socio-economic and cultural factors, effective SE is needed to help proponents identify stakeholder concerns. Through a series of case studies, this paper will demonstrate various challenges that practitioners face, and how the use of SE best practices can mitigate these concerns. The authors argue that to further minimize these obstacles, international industry and its ESHIA and SE practitioners, including outside consultants, need to commit to two-way capacity building where industry:conveys internationally recognized best practices to local experts who are best positioned to lead SE programs, andappreciates and learns from local experts and accept the value of local leadership for SE.