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Crisis in the South China Sea - Shell Indonesia manages it on the move

Early in the morning on a busy working day in late May, the Shell Duty Manager in Jakarta was int...

Its cargo of heavy crude oil was spilling into the South China Sea threatening the Riau coast and the livelihood of local fishermen. The environmental nightmare could not have happened at a worse time as Shell was in temporary accommodation while the new offices were being completed in South Jakarta, and the Chairman was travelling out of country.

None the less the Crisis Management Team quickly swung into action and within the hour it was in session at the alternative crisis room in the Country Chairman's nearby house. SCI were ready for any eventuality as they sought to regain control of the shipping disaster at sea and protect the company's commercial position throughout the country.

Then to make matters worse following the initial search and rescue of crew and passengers, the Shell tanker was prohibited from entering Singapore until its cargo was lightened and authorities arrested the Captain. International media interest peaked early in the day and breaking news around the world equated the drama to not unlike the recent 'Prestige' incident off the Spanish coast.

However through much prior preparation, the crisis procedures in Indonesia contained a precise plan for this substantial commercial exposure, and it enabled the team to quickly identify and engage the relevant stakeholders. Shell was soon back in control.

Luckily for the CMT the incident was terminated after only four hours, as it was just an exercise to test their team skill in developing and implementing crisis strategy and emergency plans under pressure. Shell's senior management is to be commended for deciding to schedule the exercise while in transition between offices.

This was the first time that a company has dared to test its ability to be activated out of hours, and under such difficult working conditions.

Moreover the scenario was complex enough to gain a lot of learning, and the overall performance was good. The lesson for all other Country CMTs is to be courageous in preparing for crisis, which are inevitable; the best time to test and adjust your capability is when you are least prepared. If nothing else, doing it at the Chairman's house sure beats the usual stress of the Boardroom!

Note: The authors - the Director and Principal of JTA Crisis Leaders and Practitioners - have facilitated simulations for many Shell OPCOs throughout Australasia.

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