16
2 The Study Context
and heighten locals’ expectations. The growing demand for products and services
creates a new influx of income and inflates local prices. As a result, members of the
host community might strive to adjust to this newly fabricated reality. O&G activities can lead to new forms of domestic and foreign cheap labour, including human
rights violations and prostitution. The number of sexually transmitted diseases and
unwanted pregnancies often rises in these circumstances (Ackah-Baidoo, 2012).
The onshore Liquefied Natural Gas plant of Sakhalin II at Sakhalin Island in
Russia is an example of how O&G onshore projects might impact local communities,
or cultures, by introducing large inflows of newcomers into an area (Norlen, 2005).
The LNG Sakhalin II pipeline construction introduced 1500 workers into the region
and created extensive socio-economic impacts on Korsakov, the neighbouring city
(Norlen, 2005). The impacts included an unexpectedly heavy consumption of utilities
and services that overloaded the local social services. The large inflow of outsiders
also drastically increased the numbers of transmissible diseases such as AIDS and
tuberculosis among the Sakhalin population (Norlen, 2005).
The local population’s expectations of large-scale employment and income within
the province were unrealised because Shell failed to hire the local population
of Sakhalin and to compensate the communities for the social impacts generated
(Norlen, 2005). The discontentment among the host society increased in 2004 when
“another 1500 workers arrived, raising the total to 3000. As a result, the local population that originally welcomed Sakhalin II now look[ed] at it with increasing antipathy
and aggression” (Norlen, 2005, p. 119).
Another impact generated by O&G companies in host countries relates to infringements of the human rights of local people. The Sudan oil pipeline is a 1600-kilometre
oil pipeline that passed the Nuer and Dinka people’s territory (Jammeh, 2001).
The impact generated by the construction of this pipeline was far-reaching and
created several cases of human rights violations (Jammeh, 2001). For instance, the
Chinese corporation China National Petroleum Corporation (CNPC) is alleged to
have submitted 10,000 Chinese workers to inhumane working regimes to complete
the pipeline construction within 18 months. Goodland (2006) asserts that the Sudan
pipeline construction was associated with “genocide, Chinese prison labour, and
atrocities by the army and of child soldiers” (p. 10).
Another example of human rights infringement by the use of adult labour and
child labour was the construction and maintenance of the Yadana Gas Pipeline
base in Myanmar. The Multinationals responsible for carrying out the pipeline
construction were the French O&G Company Total S.A. and the American Union Oil
Company of California (Unocal). These companies were partners with the Burmese
military regime, which was tasked with creating a militarised corridor alongside
the pipeline route, to protect the pipeline and create a ‘peaceful’ neighbouring
area (Redford, 2006). However, the Burmese military was accused of torture, rape,
summary executions, forced relocations and brutal subjugations. The local inhabitants, including children, were forced to build the military villages and infrastructure
without payment. The Burmese military, on the other hand, claimed that villagers
had volunteered themselves to perform the abovementioned work (Redford, 2006).
2 The Study Context
and heighten locals’ expectations. The growing demand for products and services
creates a new influx of income and inflates local prices. As a result, members of the
host community might strive to adjust to this newly fabricated reality. O&G activities can lead to new forms of domestic and foreign cheap labour, including human
rights violations and prostitution. The number of sexually transmitted diseases and
unwanted pregnancies often rises in these circumstances (Ackah-Baidoo, 2012).
The onshore Liquefied Natural Gas plant of Sakhalin II at Sakhalin Island in
Russia is an example of how O&G onshore projects might impact local communities,
or cultures, by introducing large inflows of newcomers into an area (Norlen, 2005).
The LNG Sakhalin II pipeline construction introduced 1500 workers into the region
and created extensive socio-economic impacts on Korsakov, the neighbouring city
(Norlen, 2005). The impacts included an unexpectedly heavy consumption of utilities
and services that overloaded the local social services. The large inflow of outsiders
also drastically increased the numbers of transmissible diseases such as AIDS and
tuberculosis among the Sakhalin population (Norlen, 2005).
The local population’s expectations of large-scale employment and income within
the province were unrealised because Shell failed to hire the local population
of Sakhalin and to compensate the communities for the social impacts generated
(Norlen, 2005). The discontentment among the host society increased in 2004 when
“another 1500 workers arrived, raising the total to 3000. As a result, the local population that originally welcomed Sakhalin II now look[ed] at it with increasing antipathy
and aggression” (Norlen, 2005, p. 119).
Another impact generated by O&G companies in host countries relates to infringements of the human rights of local people. The Sudan oil pipeline is a 1600-kilometre
oil pipeline that passed the Nuer and Dinka people’s territory (Jammeh, 2001).
The impact generated by the construction of this pipeline was far-reaching and
created several cases of human rights violations (Jammeh, 2001). For instance, the
Chinese corporation China National Petroleum Corporation (CNPC) is alleged to
have submitted 10,000 Chinese workers to inhumane working regimes to complete
the pipeline construction within 18 months. Goodland (2006) asserts that the Sudan
pipeline construction was associated with “genocide, Chinese prison labour, and
atrocities by the army and of child soldiers” (p. 10).
Another example of human rights infringement by the use of adult labour and
child labour was the construction and maintenance of the Yadana Gas Pipeline
base in Myanmar. The Multinationals responsible for carrying out the pipeline
construction were the French O&G Company Total S.A. and the American Union Oil
Company of California (Unocal). These companies were partners with the Burmese
military regime, which was tasked with creating a militarised corridor alongside
the pipeline route, to protect the pipeline and create a ‘peaceful’ neighbouring
area (Redford, 2006). However, the Burmese military was accused of torture, rape,
summary executions, forced relocations and brutal subjugations. The local inhabitants, including children, were forced to build the military villages and infrastructure
without payment. The Burmese military, on the other hand, claimed that villagers
had volunteered themselves to perform the abovementioned work (Redford, 2006).