Industrial pipes and structure against blue sky

Ensuring integrity compliance for development finance in the oil & gas sector

Ensuring integrity compliance for development finance in the oil & gas sector

Anti Bribery & Corruption, Integrity compliance | read time: 2 min

Industrial pipes and structure against blue sky

Managing corporate governance and corruption risks is critical to the success of development finance investments. Since 2017, GoodCorporation has worked for a leading multilateral development bank (MDB) to test and strengthen the integrity compliance procedures across a number of its investment projects. 

One such project involved an internationally syndicated loan to a leading international provider of drilling and auxiliary services for the oil and gas sector. The company had recently listed on an international stock exchange. This, together with the terms of the loan, meant the company needed to meet certain requirements under international bribery law and had to ensure it could demonstrate that a robust anti-corruption and integrity compliance programme in place was firmly embedded 

GoodCorporation was engaged to conduct an independent review of the company’s compliance programme, with particular focus on anti-bribery and corruption (ABC) controls. The aim was to assess compliance effectiveness, provide benchmarking against recognised standards, and identify areas for improvement. 

Scope of work 

The assignment had three principal objectives: 

  • analyse existing ABC policies, procedures and training 
  • develop a detailed policy implementation plan (PIP), and 
  • develop ABC training materials  

 

Our approach: 

The project was conducted using GoodCorporation’s Integrity Compliance Framework, developed for multilateral development banks and international finance institutions. The framework focuses on corruption and misconduct risks commonly associated with projects funded in higher-risk jurisdictions and sectors. 

During a five-day on-site visit to the company’s head office, GoodCorporation carried out a comprehensive gap analysis of policies, procedures and controls. The team interviewed more than 40 stakeholders across the organisation in English and Arabic where required, producing a verified assessment of how policies operated in practice as well as on paper. 

Findings were analysed and presented to senior management, highlighting strengths, weaknesses and priority areas for remediation. 

GoodCorporation then supported the company’s compliance function in developing a programme of preventative measures to address identified gaps and risks. This capacity-building phase focused on strengthening internal ownership of the compliance framework and embedding effective governance practices.

Outcome 

Following implementation of the recommended improvements, the company was complying with the requirements of the credit facility syndicate that participated in the financing. This enabled it to strengthen operations and expand its offshore drilling capabilities. 

GoodCorporation insight 

Risk analysis is fundamental to developing an effective anti-corruption and compliance programme, particularly in complex operating environments and forms the bedrock of GoodCorporation’s Integrity Compliance services. Capacity building is equally important to embed awareness across the organisation and engender support from senior leaders. 

On this project, close engagement with the senior management team ensured their perspectives were taken into account, strengthening internal ownership of the programme. This created a solid foundation for company-wide implementation and enabled the new controls and procedures to be embedded quickly and effectively. 

This collaborative approach resulted in a compliance framework aligned with recognised good practice and capable of protecting both the investment and the investee company from integrity risks. 

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