Madagascar Oil: Non-technical risk assessment


Plexus carried out a pre-feasibility Non-technical Risk Assessment of Tsimiroro, an onshore heavy oilfield development project in Madagascar. The objective was to identify material issues in a business context which, individually or collectively, constitute a business risk to the project and/or which are likely to result in social, environmental, regulatory and reputational impacts at local, regional and/or national level. The project identified key mitigation measures, strategies and plans to address these issues and manage the associated risks, with a focus on socio-economic and environmental issues. It played a key role in the project’s preparation of the field development plan.


Plexus carried out a field trip to the project site in Madagascar, reviewed key project documentation and conducted extensive stakeholder interviews. This was supplemented by web-based research. On this basis, Plexus prepared a report identifying material issues affecting the business and setting out key mitigation measures. Key issues were ranked in terms of their priority for the project and impact potential, in accordance with the risk matrix developed for this purpose. In addition, we prepared the project’s SES/SEP. All mitigation measures, including the SES/SEP, were designed to comply with international project finance standards, in particular the IFC Performance Standards.


The project helped Madagascar Oil’s board and senior management to identify material risks to the business and, on that basis, to prepare an action plan to address these risks and secure the licence to operate. In addition to contributing to the field development plan and environmental licensing process, the report was a key part of the company’s international project finance strategy and approach. An integral part of this process was the preparation of the SES/SEP and the provision of key terms of reference for the subsequent ESHIA.