Regaining trust after the storm (C): Crisis management lessons from an oil spill in Peru

In 2022, as a result of a tsunami on the other side of the Pacific, an oil tanker offloading at the Repsol refinery in Las Vistillas, north of the Peruvian capital, broke its moorings and spilled part of its cargo into the ocean. Initially, it appeared to be only a few gallons of oil, and the company followed its protocol. However, it was later discovered that the spill was much larger than expected. The discovery of the true extent of the spill angered the affected communities, and the local authorities reacted against the Spanish company. After some hesitation, Repsol launched an ambitious recovery plan, both in terms of cleanup and support for the fishing communities.
Collection: IESE (España)
Ref: DPO-863-E
Format: PDF
Number of pages: 8
Publication Date: Jun 20, 2024
Language: English, Spanish

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Description

In 2022, as a result of a tsunami on the other side of the Pacific, an oil tanker offloading at the Repsol refinery in Las Vistillas, north of the Peruvian capital, broke its moorings and spilled part of its cargo into the ocean. Initially, it appeared to be only a few gallons of oil, and the company followed its protocol. However, it was later discovered that the spill was much larger than expected. The discovery of the true extent of the spill angered the affected communities, and the local authorities reacted against the Spanish company. After some hesitation, Repsol launched an ambitious recovery plan, both in terms of cleanup and support for the fishing communities.
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Year: 2022
Geographic Setting: Peru
Industry Setting: Energy and environment

Learning Objective

This case illustrates a successful recovery from a technical crisis.

In class, participants can first focus on analyzing the initial missteps and why they were made, and then turn their attention to the technical and reputational recovery plan that was implemented once the company realized the seriousness of the incident, disregarding the costs, and thinking long term.

The case can be used in a crisis management course to study post-crisis recovery, or in a public affairs course.


Regaining trust after the storm (C): Crisis management lessons from an oil spill in Peru

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"Regaining trust after the storm (C): Crisis management lessons from an oil spill in Peru"