PUBR 139: Eco-Atlantic Public Relations Report - Guyana Drilling

This report, prepared for Eco-Atlantic, an oil and gas exploration company, addresses the public relations and ethical challenges associated with drilling in the Stabroek block offshore Guyana. The report details the company's application for permits amidst opposing campaigns and includes an analysis of ethical issues and conflicts, such as breaking laws, recommended agents, and local content requirements. It examines internal and external influential factors like government agreements, political tensions, and environmental impacts. The report emphasizes key values such as advocacy, honesty, expertise, loyalty, and fairness, as outlined by the PRSA code of ethics. It identifies affected parties, including the local government, workforce, and community, and discusses ethical principles like honesty, loyalty, integrity, and fairness. The rationale for decisions focuses on navigating the opposition, understanding decision-making entities, and adhering to ethical standards. The report also acknowledges the importance of due diligence, corporate policies, and local content necessities. This report provides a comprehensive overview of the challenges and strategies Eco-Atlantic must consider to successfully navigate its operations in Guyana.

Management

Management 1
Contents
Case Summary.......................................................................................................................................2
Ethical issues and/or conflicts...............................................................................................................2
Internal/external influential factors........................................................................................................3
Key Values............................................................................................................................................4
Affected Parties.....................................................................................................................................4
Ethical Principles...................................................................................................................................5
Rationale for Decision...........................................................................................................................6
References.............................................................................................................................................7

Management 2
Case Summary
Eco-Atlantic is an oil and gas exploration company concentrated on the acquisition
and advancement of exclusive upstream petroleum prospects around the globe. The objective
of the company is to recognize technically merited prospective new and advancing projects.
Eco-Atlantic has been drilling deep-water wells in the fields with significant oil and gas
reserves. The company is applying for the authorizations to drill in the northwest portion of
Stabroek block offshore Guyana. The company has assistance among some government
leaders but there is a quite evident and sympathetic campaign which is prohibiting Eco-
Atlantic to drill deep-water wells in this area.
To see the complexity of the remote area, Eco-Atlantic in Stabroek block is required
to consider some important aspects before drilling deep-water wells in Guyana.
Ethical issues and/or conflicts
The exploration in the Stabroek block has advanced the offshore industry. It is a
recent major discovery in Atlantic, off Guyana’s coast, ensures oil revenue boom to all the oil
and gas exploration companies. It gives local government a tight schedule to prepare for the
opportunities and it has become a problem for the major petroleum producers. It has become
increasingly complex to drill in the deepwater environment which leads to additional risks.
Eco-Atlantic is required to undertake some ethical considerations in order to overcome
ethical issues:
Breaking laws: Eco-Atlantic should first comprehend the recognition of eventual decision-
making entity. For example, the petroleum ministry regulates the bidding procedure for block
concessions and the local NOC can be the actual contracting. Add on, all the NOCs are not
created equally. Some can be completely state-owned and progressing the number of NOCs
blend public and private investment (Bryan, 2016). Eco-Atlantic is required to comprehend
the entire landscape who is in charge and who are the ultimate decision-makers. This way
employees of the company can position itself better by following the rules and disprove
corrupt solicitations from the lower-level functions which can generally interfere with the
initial contracting issues.
Recommended agents: The requests made by the government officials of Guyana which
necessitates the company to hire a specific consultant to support the bidding and contacting

Management 3
procedure should be instantly alleged. Generally, such formalities require more attempts to
funnel and launder corrupt payments. It is subjected to due-diligence and stands by the
principal’s compliance.
Local content requirements: The requirement of local content can be ranging from using local
menial labor to middle management functions. If Eco-Atlantic having any query concerning
the precise level of the local content, it should discuss with the local council in order to have
a better comprehension of such requirements. The local content necessities still present
ethical and compliance taps for incautious. These are the highly recommended people but
should be properly checked for their capability (Schrempf-Stirling & Wettstein, 2017). The
contract should be made with the local content by following the ethics code of conduct.
Internal/external influential factors
Eco-Atlantic is required to go for the government’s agreement as it will necessitate
Guyana to compensate for any losses made by interruptions of the operations by the
government. The petroleum exploration companies like Eco-Atlantic contribute to the
significant portion of Guyana’s annual revenues, therefore Eco-Atlantic should make sure
that the political work in its favor. Moreover, some activists in Guyana have made specific
reference to the Production Sharing Agreement (PSA) governing Stabroek Block. This
agreement has provisions that have drawn the ire of various international experts on
petroleum concerning matters, civil society, and common public.
Eco-Atlantic is also required to follow Guyana’s petroleum law. Twelve
inconsistencies are deliberated between the contract and the law. It creates a challenge for the
company. Other than this, there are also some external influential factors like there is a
challenge in the court comprising Gaskin. It was mentioned that the government was not
appropriate while offering 2 out of 3 operators on Stabroek block the authorization to operate
without attaining environment certifications from the environmental protection agency.
Whereas Eco-Atlantic has not attained permits from the agency (Boe, et al. 2019). On the
other hand, the political tension between the nation’s two leading parties is on the verge.
There is a major coalition among People’s progressive party and people’s national congress.
Other than this Eco-Atlantic is also affected by the potential environmental impacts which
drill for oil brings. The pipeline explosion due to the practices of petroleum exploration
companies lead to the leakage of toxic chemicals into the environment and harms to the
community.

Management 4
Key Values
PRSA code of ethics can be used by Eco-Atlantic as an ethical practice of public
relations. PRSA code of ethics identifies and acknowledges the ethical issues. It is an
effective guide for conducting ethical responsibilities. Eco-Atlantic can chase excellence with
the powerful morals for performance, professionalism and ethical behavior. PRSA eradicates
to focus on the enforcement of the code. The ethical practice is the most significant obligation
of PRSA. It views the code of ethics as a model for professionals and organizations. PRSA
comprises key values to be practiced in Eco-Atlantic are:
Advocacy: PRSA undertakes public interest by serving as a liable advocate. It is moreover a
voice in the marketplace of facts, ideas and lookouts to assist well-versed public debate.
Honesty: PRSA code of ethics is obeyed to the highest standards of precision and certainty in
developing the interest of Eco-Atlantic. It has a great role in communicating with people
(Bekaert, et al. 2016).
Expertise: PRSA code of ethics enable specialised knowledge and experience. The profession
is advanced by constant professional advancement, research, and education. It constructs
mutual comprehension, credibility and associations among the institutions and audiences.
Loyalty: PRSA will enable loyalty in Eco-Atlantic by being faithful and honouring duty to
serve the public interest.
Fairness: PRSA code of ethics also comprises values in the form of fairness. Eco-Atlantic
should respect opinions of employees, customers and competitors in order to assist right of
free expression.
Affected Parties
Local government: The local government can be affected by the decision of the company to
drill in Stabroek block offshore Guyana. Although the company is having assistance from
some government leaders and public groups. But there are also some campaigns which are
against allowing Eco-Atlantic to conduct operations in this area. It is the obligation of PR to

Management 5
define operations of the company to be taking place in the area along with the consequences.
The government can be influenced by the company’s idea of conducting operations which
can further lead to the approval of the agreement between company and region
(Akhtaruzzaman, Berg & Hajzler, 2017).
Workforce: The workforce is also affected by Eco-Atlantic’s decision to lead activities in
Stabroek block offshore Guyana. The company need to relocate its workforce. Along with
this, company is also required to hire workers from the local region as well. It is the
obligation of public relations officer to arrange meet up with them. The workforce should be
guided the operations to be taking place in the new region.
Community: The community is greatly influenced by the Eco-Atlantic decisions to set up
operations in Stabroek block offshore Guyana. The community is affected by the emissions
of the company. The public relations officer is liable to explain activities to be occurring
along with the consequences they can be entertained with (Singh & Light, 2019).
Ethical Principles
Eco-Atlantic is required to practice ethical principles in Guyana.
Honesty: By being honest, Eco-Atlantic can behave responsibly to people. Eco-Atlantic
believes in advancing the potential of its people. The company will raise a workplace which
admires personal dignity and rights. The company is even non-discriminatory and offers fair
rewards. Eco-Atlantic will be enabling a healthy, safe and secure working environment.
Loyalty: Eco-Atlantic can demonstrate loyalty by safeguarding the ability to make
independent professional judgements. The company can behave responsibly towards the
environment: Eco-Atlantic will undertake a precautionary approach to the effect on the
environment. The company is even suggested to prevent and lessen the impact on the
environment. The core principle of being fair works of the company in this aspect (Alleyne,
Layne & Soroush, 2018).
Integrity: The personal integrity should be practised by Eco-Atlantic by doing what is
appropriate. The company need to behave responsibly to the society: The company should
pursue to make an optimistic social impact in every aspect of the business. Eco-Atlantic
should respect the rights and recognize the aspirations and concerns of the societies where it
works.

Management 6
Fairness: Eco-Atlantic is need to be fair in all the dealings. The company do not need to
exercise power randomly and do not need to overreach nor take undue advantage in other
nation. Eco-Atlantic need to offer equal treatment to the individuals with the acceptance of
diversity.
Rationale for Decision
Eco-Atlantic can be hampered by the campaign which is against permitting to drill
deep water wells in Stabroek block offshore as Eco-Atlantic has planned to apply for permits
in the same area. Eco-Atlantic need to be ethical while conducting operations in this area.
The company should understand who is in the charge. Eco-Atlantic can go for local NOC as a
joint venture partner. As such partners can assist company in conducting operations in the
host nation. The recommended agents by Guyana should be appropriately assessed before
coming in the bidding and contacting procedure. The agents should be subjected to the
substantial due diligence and should be abide by the principal’s obedience and ethical
standards. The corporate policies should be in place to enable local employees officers to
save face. Eco-Atlantic has also decided to hire a specific agent in Stabroek to not confuse
with legitimate local content necessities. Because it has been observed by the company that, it
has become common in oil rich economies to necessitate local private content to be part of
any latent bid. The local content can range from local menial labor to mid-level management
functions. The consults can have greater role in better comprehending such requirements.

Management 7
References
Akhtaruzzaman, M., Berg, N., & Hajzler, C. (2017). Expropriation risk and FDI in
developing countries: Does return of capital dominate return on capital?. European
Journal of Political Economy, 49, 84-107.
Alleyne, K., Layne, L., & Soroush, M. (2018, June). Liza Field Development-The Guyanese
Perspective. In SPE Trinidad and Tobago Section Energy Resources Conference.
Society of Petroleum Engineers.
Bekaert, G., Harvey, C. R., Lundblad, C. T., & Siegel, S. (2016). Political risk and
international valuation. Journal of Corporate Finance, 37, 1-23.
Boe, K. S., Jordal, T., Mikula, Š., & Molnár, P. (2019). Do political risks harm development
of oil fields?. Journal of Economic Behavior & Organization, 157, 338-358.
Bryan, A. T. (2016). Untapped: the energy potential of the Guianas. In Post-Colonial
Trajectories in the Caribbean (pp. 160-174). Routledge.
Schrempf-Stirling, J., & Wettstein, F. (2017). Beyond guilty verdicts: Human rights litigation
and its impact on corporations’ human rights policies. Journal of Business
Ethics, 145(3), 545-562.
Singh, A. M., & Light, M. (2019). Constraints on the growth of private policing: A
comparative international analysis. Theoretical criminology, 23(3), 295-314.