Russia: SLO Strategy Design
Minerva staff advised an international oil company on strategy design to enable an oilfield development to proceed in a politically-aware and conflict-sensitive manner.
An international oil company had initiated a multi-billion dollar oilfield development in Russia, but lacked an in-depth understanding of the surrounding political, security and conflict context. A Minerva advisor led an in-house team to conduct an in-depth assessment of the political, security and conflict risks associated with the project and to design a strategy for delivering an SLO.
The Minerva advisor deployed the team on an extensive programme of engagement with internal and external stakeholders at and around the multiple proposed development sites. He then led the team through a structured two-week exercise to develop political, security and conflict scenarios, assess the potential risk of each to corporate strategic and operational goals and evaluate the likely cost-benefits to the corporation and to affected stakeholders of existing and various alternative courses of action. Risks identified included those arising from the illicit activities of joint-venture partners, the influence of former-KGB officers, conflict between local politico-business strongmen, indigenous peoples’ rights and the impact on and from wildlife.
The report presented to corporate senior management enabled them to understand the political, security and conflict environment the company had entered and guided them in redesigning the oilfield development plan to incorporate risk management measures that took account of corporate impact on local society and vice-versa. The development has since proceeded in a more politically-aware and conflict-sensitive manner.