Title: Corporate Governance, Environmental Crime, and Accountability of International Oil Company Mergers
Authors: Dr. Christine Esther Kisubi
Dr. Mohammad Aldabbous
Volume: 10
Issue: 5
Pages: 46-54
Publication Date: 2026/05/28
Abstract:
. (Corporate mergers among international oil companies (IOCs) have raised significant concerns regarding environmental protection and corporate governance, particularly in ecologically sensitive regions. This study examines the legal, institutional, and governance structures tasked with safeguarding the environment, highlighting how IOCs have been implicated in environmental crimes such as oil spills, toxic waste dumping, gas flaring, and ecosystem degradation. These harms are most pronounced in resource-rich but governance-weak regions, including the Niger Delta in Nigeria and the Amazon in Ecuador, where communities experience severe health, ecological, and economic impacts during and after mergers and acquisitions (M&A). Drawing on case studies such as the Exxon-Mobil merger (1999), Texaco, Shell-Chevron, and the Total-CNOOC-Tullow transactions in Uganda, the analysis reveals how environmental liabilities are frequently transferred, minimized, or concealed in consolidation processes. The findings underscore failures in governance mechanisms, deficiencies in due diligence, and the limitations of domestic and international legal frameworks in preventing environmental crime. The paper argues for the integration of robust Environmental, Social, and Governance (ESG) standards, stronger corporate governance oversight, and enforceable cross-border accountability mechanisms to ensure transparency, sustainability, and justice in oil-sector consolidations.)