2023-09-01
No agreement in mediation between NGOs and Aker
The mediation regarding an alleged breach of the OECD Guidelines related to the merger of Lundin Energy and Aker BP, did not result in an agreement between the parties. Swedwatch and the other organizations behind the complaint, will now await the final statement from the Norwegian National Contact Point, hoping that it will clarify corporate responsibilities in the case.
The mediation of human rights complaints regarding Aker BP’s merger with Lundin Energy did not result in an agreement between the parties. Three South Sudanese and five European organizations, including Swedwatch, submitted complaints in May 2022 that Aker BP and Aker ASA had breached the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.
The complainants argued that the Aker companies had not conducted adequate human rights due diligence on the merger – a key OECD requirement – and that the structure that was chosen for the merger would forever deny justice to victims of war crimes. The Norwegian National Contact Point (NCP), that handles complaints about breaches of the Guidelines, found the complaints admissible and invited the parties for dialogue with an initial three-day session taking place in Oslo on August 23-25. Unfortunately, this did not resolve the issue.
As the mediation did not result in an agreement, the NCP will itself examine the complaint to assess whether it is justified. This usually takes several months.
"It is unfortunate that we did not reach a mediated agreement. However, I hope that the assessment from the NCP can clarify what proper human rights due diligence looks like in these contexts, particularly with regards to remedy for those who might have been impacted by the Lundin activities in Sudan", says Olof Björnsson, Swedwatch, who took part in the dialogue.
Before its merger with Aker BP, Lundin Energy was split into two legal entities, one comprising 98% of the company, and another one with 2%. The small one, Orrön Energy, would own Lundin’s legacy in South Sudan, including the war crimes trial and all related risks and liabilities. The large entity merged with Aker BP to form a combined company, called Aker BP. This is now the second largest oil producer in Norway. Despite the fact that 98% of Lundin is now Aker BP, Aker BP denies any links with Lundin other than its oil assets. This way, the merger separates the shares of the Lundin family and other shareholders in Lundin Energy from Lundin Energy’s past.
The eight organizations argue that Aker BP is a combined company. As it comprises the essence of Lundin Energy, it holds its human rights legacy too. Swedwatch, together with the other organizations that filed the complaint, argue that human rights legacies of corporations cannot be divided and restructured as if they were commercial assets. Business law is meant to facilitate economic development, not to serve companies to escape accountability or deny victims their right to justice.
- Focus Areas: High-risk and conflict areas
- Publication: Article
- Region: Middle East and Africa
