Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy

This is a complicated case story which is between Shell E&P Ireland Limited (SEPIL)’s Corrib Gas Project and opponents of the construction of the gas pipeline and gas processing facilities in County Mayo, Ireland. Before I start to explain my decision and support my arguments, I should determine the situation, stakeholders and resolution alternatives. Ireland is a small country and it has limited types of a natural sources.

They were desperately seeking for an energy source. And finally in 1998 EEI confirmed that commercially viable quantities of natural gas have been found in the ocean. County Mayo is located 300 km from Dublin. It has a dazzling nature that belied its difficult economic circumstances. Başlıca sektörleri Turizm. During the years of English dominance in Ireland, Mayo was the center of resistance and rebellion. Mayo’s native had a reputation for being stubborn and indomitable.

There is a lots of stakeholders to clarify, as Royal Dutch Shell (shareholders, employers, etc.), Opponents (Shell to sea, Poball Chill Comain, etc.), Proponents, Governmental situation, Irelands economical situation, consultants, mediators, planning board inspectors, bureaucrats, politicians, etc... First, we have to focus on Shell’s principles of Corporate and Social responsibility commitment. Shell’s core values are honesty, integrity and respect for people.

Sustainable development requires environmental and social considerations into business decision-makers. Moreover they have mentioned five pillars in their commitment. They have responsibility to their shareholders, their customers, their employees, to those whom they do business and to society.

My suggestion is trying to achieve optimize solutions for each stakeholders. In my opinion, best option for Shell is complementing the Corrib Gas Project as they planned. They have two other options according to the oppositors. One is, relocating the gas processing plant to Glink as consultant Richard Kuprevich suggested. But it is unsuitable because they had already invested a reported €2 billion and they had an almost completed facility and a gas field. Corrib Gas Project is already over budgeted and behind schedule.

Companies’ reputation is already embarrassed. On the other hand Shell to Sea continued to press Shell to redesign the project to process the raw gas at offshore facility. Their main objections are about onshore pipeline, pressure limits and negative effects on natural environments.

As Shell rejected that request, Corrib Project was designed as best practice, North Atlantic Ocean’s weather conditions is not suitable for a construction of an offshore facility and it is not safety. These factors made offshore processing less feasible than onshore. I am going to elaborate my suggestion in accordance with Shell’s Values and Responsibilities commitments. Since they acquired the EEI at 2002, Royal Dutch Shell logged a lot with constructions even onshore or offshore.

They came through some crisis about protestors and permissions. Since now, they have been invested €2 billion but unfortunately, implementation is still behind scheduled and their reputation is embarrassed. In accordance with Shell’s commitment of responsibilities to shareholders they have to protect shareholders’ investments. They promised to behave as responsible corporate members of society and to give proper regards to health, safety, security and the environment. In June 2003, Kevin Moore who is an inspector of An Bord of Pleanala issued a report and he reported this project as contrary to goal of regional development.

Corrib Gas Project is significant project for entire Ireland. It is the largest construction site in Ireland and nearly 700 people are employed in Corrib Gas processing terminal. By now, approximately sixty percentages of employees are from Mayo. Inspector reported that there was an unacceptable risk to people due to its close proximity to residential area. Shell have listened to all concerns and taken them on board. Hence, they have changed/modified their original implementation plan according to two reports, which are written by Adventica and mediator Peter Cassells.

In accordance with the findings of these reports Shell agreed to modify the pipeline route, limit the pressure in onshore pipeline as some opponents required. Moreover, Shell created Corrib Natural Gas Erris Development Fund, with a budget of up to €5 million. On the other side, government is a stakeholder too.

They have cleared every regulatory inconvenience because of their current economically situation and natural source demands, which is almost unfilled. As Shell promised in commitment, this project benefits them all. It will bring energy to Ireland, jobs to the local area. Most importantly, it will be the sample project to the other investors. It is truly sophisticated situation and there are a lot of stakeholders. Shell has to think all participants and it has responsibilities to protect for all stakeholders benefits.

They have regrets about Corrib project perception. Hence, they are trying to get over all mistrust and lack of confidence issues. They tend to act consistently to their values and responsibilities commitment but unfortunately it is too late for satisfaction for each stakeholder at the same time. As I mentioned at the beginning of my assignment, maybe this is not the best solution but it is optimum.