Track: Project Management

Abstract

This paper aims at learning from the mistakes of a single case in which the mismanagement of the relationships with the local community stakeholder has resulted in extensive social protests against the project and its shut down. Interviews with local authorities and journalists reflected their perception from Repsol’s behaviour during the period starting from oil prospection initiating phase in early millennium till 2015 when the project was completely abandoned by the project organization. The results of the exploratory case study revealed that the shareholder orientation of the project organization has resulted in several mistakes in community management policies and have eventually amplified the opposition against the project. Lack of transparency, reluctance to build trustful relationship with the local community, lack of respect to the local community’s dignity and prioritization of the shareholders’ demands and values over those of the local government and community have resulted in being recognized as illegitimate and invalid.