IMD-1-0317 © 2011
Yaziji, Michael; Ionescu-Somers, Aileen; Strebel, Heidi
Growing political pressure combined with industry-wide changes compelled WestLB to change its approach to project financing. The OCP pipeline was completed and started transporting oil from the Ecuadorian Amazon to the Pacific coast. Protestors had called oil spills since the pipeline route passes through geologically unstable terrain subject to earthquakes, landslides and volcanic actions.
Westlb C A Change In Direction Case Study Solution
In 2009 a mudslide caused a rupture in the pipeline and oil spill in the Santa Rosa river. NGOs working on OCP officials and the field disagreed over the amount of oil spilled, the efficiency of the cleaning procedure as well as the long-term damages to the environment and communities dwelling in the area. Connections between NGOs and WestLB improved with the open forums for dialogue. Yet there are still strong differences of opinion on the one hand and NGOs and sustainability campaigners on the other hand on the pipeline project between OCP and WestLB. Learning objectives: Integrating social and environmental, as well as economic, dilemmas into strategic decision-making and building trust and communication with various stakeholder groups.
Subjects: Project financing; NGO campaign; Sustainability, Oil & gas industry
Settings: Global ; Financial services ; Turnover: €3,186 million ; Employees: 4,712 ; 2001-2011
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