As oil and mining firms move into politically complex regions, disruptive and often violent disagreements between central states and regional groups are increasingly common obstacles. Separatist sentiment and tensions over revenue sharing can spark local opposition or lead to political deadlock, delaying or preventing project development. Companies can mitigate the risks through strong relationships locally as well as nationally, and by pushing for broad-based consultation and fair revenue distribution.
This note highlights just a few patterns to watch out for and additional strategies that may be helpful. It draws from our experience advising clients (using the LicenseSecure Navigate service and our database of 100+ projects). The list below is broad-brush, in contrast to the detailed strategies we develop for clients, and is intended simply to provide some food for thought.