11 Social Licence to Operate in the Energy Transition Era …
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proceed and enjoy a quiet relationship with its neighbours, while at the
higher level of approval, the consent is more enduring and facilitates
more benefits accruing for all stakeholders. The ‘community of relevant
stakeholders’, includes the participation of groups or organizations that
might not be part of a geographic community that are either affected by
the operation or that can affect the operation.
5 In practice: the absence of
legitimacy leads to rejection of a project, while the presence of legitimacy
and credibility leads to acceptance of a project. At a high level of credibility, the presence of trust is the basis for approval. The most significant
level of SLO, co-ownership, can only occur when a high level of trust is
present.
6
In East Africa, like many developing countries, there has been a
shift from purely economic-driven development, and SLO has become a
significant factor for governments, communities and oil and gas companies. There are significant examples of oil and gas operations that have
been setback in East Africa because of inadequate consideration of SLO
issues. For instance, in Kenya, Tullow Oil, a UK-based oil company,
faced SLO issues in 2018 after the official launch of the Early Oil Pilot
Scheme by the Government of Kenya which led to the stalling of oil
trucking operations for almost two months.
7
In Uganda, the five major oil projects in play—Tilenga; Kingfisher;
the East African Crude Oil Pipeline; the Kabaale Industrial Park; and
the Hoima–Kampala Petroleum Products Pipeline—require significant
infrastructure development.
8 This, in turn, demands the considerable
acquisition of land from the communities which surround project sites.
5 “The Social Licence To Operate”. 2019. Socialicense.Com. https://socialicense.com/definition.
html.
Robert G Boutilier and Ian Thomson, ‘The Social License to Operate’ (Socialicense.com,
2018). https://socialicense.com/definition.html, accessed May 27, 2020.
6 Boutilier, Robert G., 2014. “Frequently Asked Questions About the Social Licence to Operate”.
Impact Assessment and Project Appraisal 32 (4): 263–272. https://doi.org/10.1080/14615517.
2014.941141.
7 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 23, 2020.
8 Ogwang T, and Vanclay F, ‘Social Impacts of Land Acquisition for Oil and Gas Development in Uganda’ (Ideas.repec.org, 2019). https://ideas.repec.org/a/gam/jlands/v8y2019i7p109d246589.html, accessed May 21, 2020.
343
proceed and enjoy a quiet relationship with its neighbours, while at the
higher level of approval, the consent is more enduring and facilitates
more benefits accruing for all stakeholders. The ‘community of relevant
stakeholders’, includes the participation of groups or organizations that
might not be part of a geographic community that are either affected by
the operation or that can affect the operation.
5 In practice: the absence of
legitimacy leads to rejection of a project, while the presence of legitimacy
and credibility leads to acceptance of a project. At a high level of credibility, the presence of trust is the basis for approval. The most significant
level of SLO, co-ownership, can only occur when a high level of trust is
present.
6
In East Africa, like many developing countries, there has been a
shift from purely economic-driven development, and SLO has become a
significant factor for governments, communities and oil and gas companies. There are significant examples of oil and gas operations that have
been setback in East Africa because of inadequate consideration of SLO
issues. For instance, in Kenya, Tullow Oil, a UK-based oil company,
faced SLO issues in 2018 after the official launch of the Early Oil Pilot
Scheme by the Government of Kenya which led to the stalling of oil
trucking operations for almost two months.
7
In Uganda, the five major oil projects in play—Tilenga; Kingfisher;
the East African Crude Oil Pipeline; the Kabaale Industrial Park; and
the Hoima–Kampala Petroleum Products Pipeline—require significant
infrastructure development.
8 This, in turn, demands the considerable
acquisition of land from the communities which surround project sites.
5 “The Social Licence To Operate”. 2019. Socialicense.Com. https://socialicense.com/definition.
html.
Robert G Boutilier and Ian Thomson, ‘The Social License to Operate’ (Socialicense.com,
2018). https://socialicense.com/definition.html, accessed May 27, 2020.
6 Boutilier, Robert G., 2014. “Frequently Asked Questions About the Social Licence to Operate”.
Impact Assessment and Project Appraisal 32 (4): 263–272. https://doi.org/10.1080/14615517.
2014.941141.
7 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 23, 2020.
8 Ogwang T, and Vanclay F, ‘Social Impacts of Land Acquisition for Oil and Gas Development in Uganda’ (Ideas.repec.org, 2019). https://ideas.repec.org/a/gam/jlands/v8y2019i7p109d246589.html, accessed May 21, 2020.