Drill and More Plc. is a multinational company operating in the oil and gas industry. The company is listed on two stock exchanges in the USA and UK. For the past 20 years, Drill and More has operated successful oil exploration fields in the Americas and Middle East. In 2015, the company spilled material volumes of oil in the Gulf of Mexico, affecting aquatic lives and several fishing communities around the enclave. This environmental disaster was widely reported by both local and international media organisations. In addition to the negative reportage, the Environmental Protection Agency slapped a penalty of $100 million for the accident due to the company’s failure to comply with local regulations and, the engagement of the services of unlicensed personnel.
In the company’s 2017 Annual Report, it was made known to shareholders that over half a billion dollars was spent to clean the waters and compensate members of the communities that livelihoods were affected by the oil spill.
Drill and More is in the process of acquiring a license from the Government of a small West African country to drill oil in 2019. A well-known Non-Governmental Organisation has launched a campaign to prevent Drill and More from receiving the license for the new field, making reference to several of the company’s irresponsible environmental practices in other countries.
Management is considering the option of diversifying their operations into a construction business. The company may be in the position to win massive road construction projects due to their network with top government officials in this West African country.
Write a brief report to the management of Drill and More, suggesting how to deal with their prospective stakeholders in West Africa. The report should outline financial and non-financial factors that the company should consider before taking a decision on the oil drill or diversifying into the construction business.
Referencing Styles: Harvard