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Towards good practice in the oil and gas contracting chain

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Direct Investment & Sustainable Development
Introduction

IIED has been collaborating with the World Wide Fund for Nature (WWF)-UK, WWF-Russia, SustainAbility, Engineers Against Poverty, and Kazakhstani analyst Saule Ospanova to investigate the relationships between multinational oil and gas companies and their local contractors.

Our project, which is funded by WWF-UK, focuses on the environmental and social performance of local contractors and the ways in which multinational oil and gas companies ensure that sustainable development principles are adhered to along the supply chain.

IIED’s analysis has focused on two countries of the Former Soviet Union- Russia and Kazakhstan. Our conversations with national and local stakeholders and our research have aimed to identify the opportunities, challenges and trade-offs involved in building relations between multinational companies and local contractors, and the implications for sustainable local development.

SustainAbility has been considering the experience of multinational oil and gas companies and their major multinational contractors through conversations with European headquarters and regional offices.
In December 2007, WWF-UK, IIED, and SustainAbility organised a multistakeholder workshop at Chatham House to discuss initial research findings and map possible ways forward for the initaitive over the longer term, with a view to developing initial recommendations on ways to:

  • create incentives for contractors to meet environmental and social performance standards, avoiding conflicts with budgets and deadlines
  • enhance the effectiveness of communication and collaboration between international companies and local contractors and suppliers
  • build the capacity of local contractors and suppliers for good environmental and social performance and enhanced local benefits, and
  • build the capacity of local NGO, government and research partners to monitor and analyse the situation.

Project resources

Towards good practice in the oil and gas contracting chain: Discussion paper
Read more and view pdf (84k)

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