CAN GOVERNANCE INITIATIVES DELIVER VALUE TO THE OIL AND GAS INDUSTRY?

Abstract

The objective of this paper is to provide food for thought to executives on how governance initiatives can deliver value—and not just be a compliance cost—with the focus on oil and gas organisations in Australia.

We have seen increased governance legislation around the world following the collapse of companies such as Enron. In Australia we have the ASX governance principles.

We will explore the lessons learnt from the implementation of compliance by US-listed companies with their Sarbanes-Oxley legislation and what it means to us in Australia.

Governance initiatives can be costly—there is, therefore, a need for us to leverage off these initiatives, driving business value where we can, by proactively focussing in the right areas.

This paper focusses on practical suggestions for obtaining value from governance initiatives, and is accessible to readers without a strong financial background.