World Petroleum, Inc. - 1402 Words

World Petroleum, Inc., is a large, international, publicly-traded energy company currently seeking growth opportunities abroad. Their latest interest is Afrinia, a small nation on the west coast of Africa with largely untapped resources. The area is divided into two sections, both geographically and socioculturally. The southern region is made up of grasslands, populated by the Abani tribe. The northern region is made up of rainforest, populated by the Banu tribe. These regions are joined together by the Afrinia River. The Banu people have always resented those belonging to the Abani tribe. The Abani, having easier access to higher education, quickly assumed the higher-raking government positions and corporate jobs after gaining†¦show more content†¦Afrinia’s oil reserves are located in the north and northwestern part of the nation. Drilling, exploration, and production, termed the â€Å"upstream† sector of the oil business, are largely conducted by for eigners because the locals don’t have the technical expertise or knowledge. The Churchill Refinery is the only â€Å"downstream† operation in Afrinia, located in the northwest nearby the upstream activity. There are several ethical quandaries that must be dealt with. The first set comes with the initial decision to invest in oil operations in Afrinia. As mentioned before, the Churchill Refinery is the only downstream operation in the West African nation. This refinery is unable to process the crude oil that is being extracted, necessitating the piping of the excess crude oil to the coastal area for export, and incapable of yielding high-quality product, requiring many of the finished products from crude to be imported. In addition to this, the plant emits a lot of pollution, operates unreliably, is not maintained properly, and has a poor safety record. Economic analysis has shown that it would not be viable to build another refinery, and World Petroleum is leani ng towards upgrading the current facilities to a small, complex plant. Upgrading the Churchill Refinery would be a great opportunity for the nation to