This paper is a review of a social risks management (SRM) process developed by an international oil and gas services provider to identify social risks that have the potential to affect communities on and around the oilfield. The paper uses case studies to identify social risks management factors key to the successful implementation of operations. The SRM process is intended to enhance the service provider’s ability to anticipate and manage the impacts arising from its operations. The proprietary process has three integrated phases—planning; implementation; and monitoring and evaluation— and is governed by its own risk management guideline. Since 2010, the process has been used to complete field assessments and planning exercises for operations in the Africa, Asia Pacific, Latin America and Middle East regions. In those regions the SRM process has enhanced the service provider’s ability to identify and analyze social hazards and to understand how related prevention and mitigation measures can help in managing its operational presence. An important factor in the successful execution of operations with unusually hazardous risk profiles, or operations in areas with significant social footprints, is proactive assessment. Close observation of the community has enabled the oilfield services provider to identify social hazards that might affect communities, and to develop social management plans and portfolios of measures to prevent or mitigate those hazards. Typically, prevention and mitigation measures can range from codes of conduct to community outreach programs designed to improve community acceptance of company activities and to maintain long-term support for operations. For example, in one country the social risks plan included procurement of local produce and water, employment of local labor, infrastructure and furniture donations to local schools and, in collaboration with the oilfield operator, deployment of medical camps run by a respected national non-governmental organization (NGO). More than 500 patients were screened during eye clinics—225 of them received medication, 300 were given eyeglasses, and 30 patients underwent surgery to correct vision. This paper describes the key features of the SRM process along with a range of measures adopted by the service provider to address social risks. Developed and implemented by the service provider, as opposed to an oilfield operator, the SRM process is providing the E&P sector with new perspectives and lessons learned for managing social risks in oil and gas projects. The lessons learned can be used to evolve the SRM process and for future projects in sensitive areas.
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