Managing social risks in exploration and production (E&P) operations is complicated business. Cultures and communities are not homogenous and perceptions can change without warning. Further, external factors such as food, energy and water availability; politics; and/or world events can lead to significant consequences for company assets. While there are intrinsic risks that will always accompany E&P, companies can take a number of steps to manage social risks. Too often, however, companies use reactive, permit driven approaches to E&P that do not support understanding or partnering with local communities. This paper will succinctly summarize the top social risk management lessons learned from E&P projects worldwide and recommend actions to better understand communities, build trust as the basis of a long-term license to operate and help companies identify / prepare for potential social risks. These steps include: 1. Integrating social studies earlier in E&P lifecycle 2. Moving from permit driven consultation to proactive engagement with stakeholders 3. Training and knowledge development for internal social performance staff, including integrating local specialists and taking advantage of traditional knowledge 4. Understanding and integrating human rights into company management systems 5. Implementing fit-for-purpose grievance mechanisms 6. Utilizing social investment spending as a social risk reduction measure Implementing the strategies described in this paper will help companies improve social performance today, prepare for future social and reputational risks and support long-term asset success.
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