Latin America struggles to attract investment and finance projects
LARTC Advisory Board Meeting
Here are the last key takeaways from the LARTC Advisory Board Meeting that took place in Buenos Aires, in February.
Read the first key takeaway on the region’s dependence on imports here.
Read the second key takeaway on Latin America’s petrochemical industry here.
Read the third key takeaway on regional and overseas expertise here.
Read the fourth key takeaway on Energy Efficiency here.
Key Takeaway 5: The region struggles to attract investment and finance projects
In a low oil price context, project approval is even more challenging and sourcing the capital necessary for these projects is even more so. The advisory board members stated financing is certainly a big concern when it comes to the development of the regional refining and petrochemical sectors. There is a lot of potential for this industry, but if significant investments can’t be secured, its development is severely compromised.
Importance of engaging with local communities to change local perceptions
With local perceptions of oil companies generally on the negative side, the need for companies to engage with local communities and encourage an open dialogue between parties is increasingly important. Transparency is essential to maintaining a healthy relationship and any actions a company can take to encourage this will have positive knock-on effects. Involving the local community in the decision-making process and keeping them informed of the status and objectives of projects will facilitate a friendlier and welcoming operating environment. An example of open communication can be seen through the use of social media. Shell and Statoil are among the companies enabling open communication with the general public through social media platforms, an essential tool in today’s digital age. Interaction with local communities could also be used to promote the development of local content, with support programmes for local universities and training institutes.