Title: Managing political risk in the oil and gas industry in a developing economy: the case of BP in Angola

Authors: Adalberto J.S. Fernandes; Alfredo Jimenez; Johannes Marcelus Kraak; Dimitrios Tsagdis

Addresses: BP Angola, 197 Avenida 4 de Fevereiro, Torres Atlantico, Luanda, Angola ' Kedge Business School, Department of Management, 680, cours de la Libération, Talence, France ' Toulouse Business School, Department of Corporate Social Responsibility and Human Resources, 1 Place Alphonse Jourdain, Toulouse, France ' Kedge Business School, Department of Management, 680, cours de la Libération, Talence, France

Abstract: Drawing on a case research methodology, this paper analyses political risk for oil firms in the Republic of Angola. The dramatic fall in oil prices, coupled with the existing social inequalities, have substantially increased the risk of political instability, macroeconomic instability, regulatory changes and social dissent. These factors are exacerbated by the actions and, in some cases, inaction of the government and other political players. By focusing on a specific case firm, BP, we analyse the organisational processes used by this European firm to manage political risk in Angola and compare it with an existing framework for political risk management. We conducted semi-structured interviews with political risk management professionals within the firm and a review of corporate documents provided by the firm to ensure the qualitative analysis achieves more consistent results. Despite having a political risk management culture embedded in their strategies and plans, our findings show that political risk management is not completely developed yet.

Keywords: political risk; developing economy; Angola; oil and gas sector; organisational processes; country risk.

DOI: 10.1504/EJIM.2019.101988

European Journal of International Management, 2019 Vol.13 No.5, pp.733 - 755

Received: 03 Jan 2017
Accepted: 14 Jun 2017
Published online: 03 Sep 2019 *

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