What do you do if your international oil and gas operations face conflict?

1 Assess Risks

When conflict threatens your oil and gas operations abroad, the first step is to conduct a thorough risk assessment. This involves analyzing the political climate, understanding the nature of the conflict, and identifying how it could affect your operations. You need to consider the safety of your personnel, the security of your assets, and the potential for operational disruptions. Engage with local experts and use risk assessment tools to quantify the potential impact on your business. This will help you make informed decisions about whether to continue operations, scale back, or temporarily shut down.

2 Engage Locally

Local engagement is key when your operations are caught in a conflict. Establishing strong relationships with local communities, governments, and other stakeholders can provide valuable insights and support. It's important to have a dialogue with these groups to understand their perspectives and address any concerns they may have. This can also lead to collaborative solutions that benefit both your operations and the local community. In some cases, hiring local personnel or partnering with local companies can strengthen your position and foster goodwill.

3 Legal Considerations

Understanding the legal implications of operating in a conflict zone is essential. You must be aware of international laws, such as those related to sanctions or embargoes, as well as the local legal framework. Consult with legal experts to ensure compliance with all applicable laws and to protect your company from potential legal issues. This might involve reviewing contracts, securing appropriate insurance coverage, and preparing for possible disputes or litigation. Being proactive about legal considerations can save you from costly and time-consuming legal battles down the line.

4 Crisis Management

Having a crisis management plan in place is critical for dealing with conflicts effectively. This plan should outline the steps to be taken in response to various scenarios, designate a crisis management team, and establish communication protocols. It's important to be prepared to act quickly and decisively to protect your employees, assets, and operations. Regular training and drills can help ensure that your team is ready to implement the crisis management plan if needed. Remember, a well-executed crisis management strategy can make the difference between a minor setback and a major disaster.

5 Business Continuity

Maintaining business continuity during conflict requires careful planning. You need to have contingency plans that allow you to adapt your operations to changing circumstances. This might mean diversifying your supply chain, finding alternative routes for transportation, or even relocating certain operations. It's important to stay flexible and have backup plans that can be activated when necessary. By ensuring that you can continue operations in some capacity, you can minimize financial losses and maintain a presence in the market.

6 Exit Strategy

Sometimes, despite your best efforts, the risks of operating in a conflict zone may outweigh the benefits. In such cases, having an exit strategy is critical. This should involve a structured plan for withdrawing personnel, securing assets, and suspending operations in a safe and orderly manner. An exit strategy should also consider the potential for returning to the region once the conflict has been resolved. Careful exit planning can help you avoid hasty decisions and ensure that you're able to protect your investments and reputation when withdrawing from a conflict zone.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?