Oil and Gas
As the events of the Arab Spring have shown, it is vital for oil and gas firms to have a full-spectrum of awareness of emerging political and societal risks across their business value chain.
The world’s largest energy firms use Maplecroft’s extensive range of products, tools and consulting services to identify, monitor and manage extra-financial risks to protect their investments and flourish in the future growth environment.
This portfolio of products and services enables oil and gas companies, as well as financial service companies that invest in them, to identify, monitor and manage the entire range of ‘upstream’ and ‘downstream’ risks at national, regional and site-specific levels – across all countries.
Maplecroft also offers an extensive range of advisory services to help oil and gas companies to develop strategies and management systems to reduce risk exposures. This includes, custom online risk calculators, bespoke risk assessments, human rights due diligence, political risk monitoring and comprehensive supply chain risk management tools.
01Oil and gas major strategic risk quarterly monitoring system
Maplecroft is currently helping a global oil and gas major to reduce and manage risks in a number of its key operating countries, while also helping it develop greater stakeholder support and develop a reputation for ethically sound oil and gas production.
Our work to date includes:
- In depth reports to understand the baseline business environment from a risk and responsibility perspective, covering political risk, legal and regulatory environment, societal and environmental risks.
- Bespoke risk monitoring and the creation of a tailored online ‘dashboard’ to allow the firm to instantly analyse a weighted range of key risk indicators – linked to its own risk register.
- Quarterly monitors and regular briefings, which are triggered whenever selected key indicators show sudden changes – positive or negative – across a range of key operating countries and “watch countries”.
- Ongoing consulting and advisory service to help the company identify and rapidly respond to emerging risks and opportunities in order to anticipate and prevent problems.
- Developing a company-wide strategy to minimise country level risks – including those related to security, governance, the regulatory environment, human rights and the environment.
02Oil and gas major – forecasting and mitigating the risk of resource nationalism in Argentina
Monitoring emerging risks in Argentina for a multinational hydrocarbons producer, including the events leading up to, and following, the nationalisation of YPF by the Argentinian government. Maplecroft’s reporting system enabled the company to identify and plan for threats to its in-country continuity well in advance of a major event.
- Production of a baseline in-depth report on Argentina providing comprehensive analysis and subnational GIS maps of the key risks and issues for the company’s operations and interests.
- The baseline report was updated with a quarterly monitor, which identified the rising risk of resource nationalism, especially in regard to Repsol’s shares in YPF, two weeks before the event.
- Ongoing monitoring of the situation resulted in a briefing that was triggered by the nationalisation of YPF, which offered analysis of the implications for the oil and gas sector, the investment climate as a whole, as well as forecasts of likely scenarios.
03Oil and gas major – stakeholder engagement and analysis
Producing a range of stakeholder reports for an oil and gas company looking at potential opposition and support for hydrocarbons projects in the Arctic, Greenland, the North Sea and the Barents Sea in order to assess the viability of investments.
- In-depth analysis of stakeholder viewpoints and of the potential influence that a wide range of stakeholders – including NGOs, indigenous groups, governments, political parties and regulatory bodies – may have on current or prospective oil and gas projects in environmentally sensitive operating locations.
- The reports couple research with interviews with key stakeholders to address the company’s desire to understand both the community, NGO, political and regulatory context, as it evaluates potential new operations in the Arctic, Greenland, the North Sea and the Barents Sea.
- Reports include recommendations on how companies can best engage with these varied stakeholders in order to win increased support for oil and gas projects.
- The inclusion of sub-national maps of maritime boundaries, offshore blocks, infrastructure, protected areas and maritime pollution further highlight potential issues for investment.