Independent Specialists and Experts

In January 1986, Conoco signed an agreement with the Ecuadorian government to explore for petroleum in the Amazon basin. Within three years, the company made a 200 million barrel discovery.

Opposition to Conoco’s project arose almost immediately. Most of the new field lay within the Yasuní National Park, an area of world-famous biological diversity that had been largely protected from outside settlement or disturbance. This area also included traditional territories used by Huaorani Indians, a federation of isolated and nomadic bands that had avoided contact with outsiders for centuries.

Beginning in 1989, several major NGOs warned Conoco against developing an oil field in this highly sensitive area. Over the next two years, they mounted an international campaign to embarrass Conoco and portray it as an environmental outlaw. Finally, in 1991, the company evaluated its Amazonian venture against other opportunities worldwide and decided to leave Ecuador.

In retrospect, Conoco managers who participated in these events now say that they should have engaged NGOs and other stakeholders from the beginning. But when? And how can energy companies like Conoco begin a useful discussion with potential stakeholders about difficult – and often highly emotional – projects in sensitive environments?

One way to bridge the gap between foreign companies and local communities, environmental groups and other NGOs involves enlisting support from independent third-party scientists and technical experts. Such experts often bring much-needed credibility to difficult discussions where stakeholders are unable to understand complex technical questions or unwilling to accept explanations from company or government representatives. With their direct knowledge of key organizations and issues, they can often facilitate more productive contact between these stakeholders and foreign firms.

Here are a few recent examples of the Terra Group’s third party approach:

Involving the Organization of American States in facilitating a dialogue with militant indigenous groups that oppose oil exploration on or near native reservations.

Asking a leading American university to convene regular discussions among major energy companies and key international environmental groups about hydrocarbon development in tropical rainforests.

Identifying an internationally renowned urban planner to assist a company in planning a new town for neighboring communities.

Identifying an international independent expert to advise on the formation of a conservation trust fund.

Assisting several clients in forming scientific advisory groups with leading academic experts and environmental leaders in countries where they operate. Such groups informally review proposed exploration and development plans and suggest improvements.

The Terra Group helps our clients identify the right independent expert as part of their overall stakeholder relations programs. Depending on each client’s preferences, we then oversee and manage third-party relationships to ensure effective involvement and successful outcomes.

We have recently developed third-party programs for:

Amoco (Ecuador)

Anadarko Petroleum Corporation (Brazil, Peru)

ARCO (Ecuador)

Chevron (Angola, Mexico, Nigeria))

EnCana Corporation (Ecuador)

Occidental Oil and Gas Corporation (South America)