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Global Legal Action Network & San Leon Energy
Lead NCPIreland
Supporting NCP(s)
DescriptionSpecific instance alleging a non-observance of the OECD MNE Guidelines.
Theme(s)General policies, Human rights
Date24 Oct 2018
Host country(ies)None
SourceNGO
Industry sectorElectricity, gas, steam and air conditioning supply
StatusConcluded
Summary

Read the initial statement published 18 January 2021: English

Read the final statement published 18 July 2022: English


On 24 October 2018, Global Legal Action Network submitted a specific instance to the Irish NCP alleging that San Leon Energy, an independent oil and gas exploration company with headquarters in Ireland, did not observe the General Policies (Chapter II) and Human Rights (Chapter IV) provisions of the Guidelines. The submission concerns oil and gas exploration undertaken in Western Sahara. The submitter claims that the company failed to respect human rights obligations pertaining to the self-determination of indigenous peoples and their sovereignty over natural resources. The submitter further alleges that the company failed to conduct meaningful stakeholder engagement before carrying out the exploration.

On 18 January 2021, the Irish NCP published the initial statement deciding to partially accept the case, limiting the scope to issues relating directly to the Company regarding decisions taken at headquarter level in Ireland. The NCP hosted two days of mediation between the parties, using the services of an external mediator and according to terms of reference drafted by the NCP with the agreement of both parties.

On 18 July 2022, the NCP published a final statement, concluding the specific instance without agreement between the parties. Noting that the company had withdrawn from Western Sahara, the NCP issued the following recommendations:

  • Any enterprise considering investment in a Non-Self-Governing Territory have regard to the rights of Non-Self-Governing Territories under Chapter XI of the United Nations Charter. Enterprises beware that operations in such Territories are highly likely to raise human rights or stakeholder engagement concerns.
  • Companies have regard for due diligence expectations, including the Guidelines and the OECD Due Diligence Guidance for Responsible Business Conduct; companies note that in some cases mitigation of human rights risks will be impossible and the guidance will require disengagement from business relationships.
  • Companies be aware of sector-specific due diligence guidance such as the OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector.

Noting that the Company has fully disengaged from the Non-Self-Governing Territory, and that the operations which were the subject of the specific instance have halted, the Ireland NCP does not propose to carry out follow-up in this case.


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