More bad news for Shell

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Wednesday February 14, 2007 22:49

by AXNC

Shell becoming an election issue

Latest development for the troubled energy giant in what is rapidly becoming a year of bad news is that the Nigerian election may be fought on plans to nationalise the country's natural resources.

It seems to be an emerging pattern that as energy becomes scarce, states don't like the idea of their oil and gas being sold or (in some cases) given away to transnational companies like Shell.

It seems unlikely, but who knows what is going to happen, maybe the general election in Ireland will be fought on similar issues.

On a day when the minister for justice is moaning about the cost of tribunals, and asking why the money spent there can't be used for parts of the economy which are underfunded like the Health Service, perhaps some smart candidate will start to question why the 51 Billion euro that the Corrib and associated fields are worth could not be used to fund something useful for the Irish economy.

Maybe even a tribunal of inquiry into the giveaway itself.

Shell in fresh Nigerian oil production threat
By : Richard Orange

14/02/2007
www.thebusinessonline.com

ROYAL DUTCH Shell, the energy giant, risks permanently losing some of its oil production in Nigeria amid growing anti-Western sentiment in the build-up to April’s presidential election.

The two leading presidential candidates, Major General Muhammadu Buhari and Umar Musa Yar’Adua, are considering nationalising oil fields in the Niger Delta should they come to power.

The Business has learnt that MD Yusuf, a powerful Nigerian political figure backing the Yar’Adua political campaign, has established links with the government of Hugo Chavez, the rabidly anti-Western Venezuelan president. Chavez has forcefully renegotiated the terms on which international oil companies operate in his country.

Jon Bearman, managing director of Clearwater Research Services, an oil industry specialist, said the Venezuelans were actively seeking to influence policy in Nigeria.

Bearman said: “MD Yusuf has the contacts with Chavez and has been introducing the Venezuelans to Yar’Adua. The Venezuelans are trying to talk to anyone who’ll listen to them, and people around Yar’Adua are very interested in this resource nationalism agenda.”

Yar’Adua is the anointed candidate of Nigerian president Olusegun Obasanjo, and his People’s Democratic Party, putting him in a strong position. He has pledged to continue with Obasanjo’s privatisation programme.

Advisers to the candidates, Bearman said, were considering whether bringing some of the fields in the most contested areas of the Niger Delta back under government control might be a way of bringing an end to violence in the region.

Shell’s operations in Nigeria have been seriously disrupted by violence in the Niger Delta. A fifth of Nigeria’s oil production capacity, or about 600,000 barrels per day, has been shut down for a year because of militant attacks.

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Comments (2 of 2)

Current situation

by NG Reader

Thu Feb 15, 2007 10:43

There is a very good article in the current issue of national geographic on the situation in the Niger Delta.
Available online here: http://www7.nationalgeographic.com/ngm/0702/feature3/

extract:

Alarmed by Saro-Wiwa's popular support, Nigeria's military government brought charges of murder against him and fellow activists. The government accused them of instigating the mob killings of four Ogoni leaders from a rival faction. At a tribunal widely regarded as a sham, and with the alleged complicity of Shell, Saro-Wiwa and eight others were found guilty and hanged in 1995. Though the world community reacted with outrage, and Saro-Wiwa's son initiated a lawsuit against Shell for human rights abuses (which is ongoing), the situation has not improved. In fact, Isaac Osuoka told me, "things have gotten worse since Ken was murdered."

Tribunal urgently needed

by Amanda S

Thu Feb 15, 2007 17:17

A tribunal is urgently needed into the great oil and gas giveaway in Ireland. How can the Irish Government justify giving Ireland's natural resources to a range of oil and gas companies? The period of corruption in the 1980s and 1990s brought an END to the royalties from Ireland's resources going back into the country; a REDUCTION in the tax rate for these companies and a favourable clause in their contracts whereby costs accrued over a previous 25 year period can be offset against tax so the companies DONT EVEN HAVE TO PAY TAX on the gas and oil the Government have handed to them. Ray Burke, Frank Fahy and Bertie Ahern were all involved in these changes to the terms of exploration and licensing. A tribunal needs to be established to find out why. Who benefitted?

The old excuse of the Irish Government not having enough money to explore and mine no longer washes. With a budget surplus of around 2.2 billion in 2006, an Irish state backed petroleum company and a Petroleum Affairs Division (Dept of Communications, Marine and Natural Resources) which conducts all the background surveys for the oil and gas companies, there is no excuse for there not being a state company exploring and mining its resources. Ireland's resources should benefit the people of Ireland, not just the private shareholders of companies with licenses such as Shell and Statoil. The Irish Government has the resources, money and expertise to explore and mine Ireland's gas and oil- use them ! In the meantime the Irish people have a right to know why their government gave away their resources with very little benefit to them - we are not even guaranteed a supply of our own resources in the event of an emergency.

We need a tribunal now!!

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More bad news for Shell

Comments (2 of 2)