Publications

An increase in population usually follows the operation of oil and gas projects, mostly in remote and rural areas. Project-induced in-migration (often referred to as “influx”) is the migrating of people into the project area seeking employment opportunities or other economic opportunities with the project. The pouring of human and economic resources into a region caused by influx may become a main driver of economic development and wealth creation, heightened standards of living, and opportunities for wage-earning employment. Meanwhile, the negative impact may cause an increase in crime, over-stretching of public facilities, schools, and clinics, and a threat to food security, inadequate water supply and waste management, increasing health issues. The potential negative outcomes could also result in an increase in project operational costs and risk, and may potentially affect the project’s “social license to operate” resulting from: (i) the creation of new migrant stakeholder groups, (ii) unmet promises of local participation, benefit, and development, (iii) deterioration in the social context in which the project is operating, and (iv) reputational risk. This paper will discuss how companies and projects can understand fully what influx is and its characteristics, and of how companies can integrate government law and regulation, as well as regional economic development, to minimize the risk caused by influx. This paper will refer to the Equator Principles, World Bank guidelines, and IFC Performance Standards in assessing and developing management plans to address influx that will help companies avoid and/or mitigate negative impacts created by project-induced in-migration, and even turn it around to create opportunities for the project. Whether entitled “influx management”, “migrant management” or “migration management”, a blueprint for responding to the risks to local communities posed by influx is a critical aspect of the overall strategy for social and environmental management and allows contribution to a regional sustainable development framework.