3. Nigeria Nigerian state is heavily dependent on oil sales accounting for 80% of government revenues and 95% of foreign exchange Despite its plentiful resources and oil wealth, poverty is widespread in Nigeria. The situation has worsened since the late 1990s, to the extent that the country is now considered one of the 20 poorest countries in the world. Over 70 per cent of the population is classified as poor earning less than $1 a day, with 35 per cent living in absolute poverty
4. 1 in 5 Nigerian children die before the age of 5. Infant mortality rate is 98 per 1000 births which is second highest after India. Only 36% of the Nigerian children reach grade 5. More than 15 million Nigerian children work. Niger Delta unemployment is 40% for ages 15-24 and 70-90% for adults. Breathing particularly from flaring is linked to disease and premature death. Portable water in the Niger Delta is virtually non-existent due to oil contamination.
5. The Niger Delta covers an area of 70,000 sq. km It produces 100 per cent of Nigeria’s crude oil and gas resources The Niger Delta accounts for over 90 per cent of revenues accruing to Nigeria’s federation account. The Niger Delta accounts for oil reserves of about 36.2 billion barrels It also accounts for Nigeria’s gas reserve of about 160 trillion cubic feet. The region is rich in agricultural resources. The irony however is that it is the poorest region in Nigeria, due to years of neglect by generations of military Governments. Niger Delta
6. Shell Global. We believe that oil and gas will be integral to the global energy needs for economic development for many decades to come. Our role is to ensure that we extract and deliver them profitably and in environmentally and socially responsible ways. Royal Dutch Shell is a global group of energy and petrochemical companies. It has 104,000 employees in more than 110 countries. Shell plays a key role in helping to meet the world’s growing demand for energy in economically, environmentally and socially responsible ways.
7. Shell Global. Shell's compliance to corporate social responsibility also includes its Live WIRE programme. This initiative has over 21 years experience of encouraging young people to start and develop their own businesses in the UK and elsewhere in the world (26 countries). Due to Shell Pipeline rupture in Washington two ten-year-old boys and a teenager were killed and at least nine other people were injured Federal civil penalty of $5 million in addition to criminal fines of $15 million was imposed to shell and shell also cleared the gasoline spill within couple of months.
8. Shell in Nigeria. November 1938 - Shell D'Arcy granted Exploration licence to prospect for oil throughout Nigeria January 1956 - First successful well drilled at Oloibiri by Shell D'Arcy April 1956 - Changed name to Shell-BP Petroleum Development Company of Nigeria Limited February 17, 1958 - First shipment of oil from Nigeria April 7, 1961 - Shell's Bonny Terminal was commissioned September 1971 - Shell's Forcados Terminal was commissioned April 1, 1973 - First participation agreement; Fed. Govt. acquires 35% shares in the Oil Companies April 1, 1974 - Second Participation Agreement; Federal Government increases equity to 55% July 1, 1979 - Third Participation Agreement (through NNPC) increases equity to 60% August 1, 1979 - Fourth Participation Agreement; BP's share holding nationalized NNPC = 80%, Shell = 20% December 13, 1979 - Changed name to Shell Petroleum Development Company of Nigeria (SPDC)
9. Shell in Nigeria. June 30, 1989 - Fifth Participation Agreement; (NNPC = 60%, Shell = 30%, Elf = 5%, Agip = 5%) July 11, 1991 - Signing of Memorandum of Understanding & Joint Venture Operating Agreement April 19, 1993 - Production Sharing Contracts signed - SNEPCO July 1993 - Sixth Participation Agreement; (NNPC = 55%, Shell = 30%, Elf = 10%, Agip = 5%) 1995 - SNEPCO starts drilling first Exploration well November 1995 - NLNG Final Investment Decision taken March 30, 1998 - Shell Nigeria Gas Company established 2000 - Shell Nigeria Oil Products established Dec. 2002 - Commencement of production from EA field. October 5, 2003 - Achievement of 1 million + barrels of oil per day production from SPDC operations. 2004, - THE NEW SPDC - A restructuring exercise; Nigerians placed in top positions of Management. January 1, 2005 - New SPDC launched, Basil Omiyi appointed first Nigerian MD. September 1, 2005 - Basil Omiyi became Country Chair, Nigeria; oversees all Shell Companies in Nigeria as well as Shell interests in NLNG.
10. Ogoni Story 5 Lakh member community among Nigeria’s 110 million people Ogoni claims to have been overlooked during allocation of jobs Shell’s poor environmental safeguards have resulted in numerous oil spills and widespread contamination of soil and drinking water. Oils spills have not been cleared up even after 30 years Ogoni alleges that Government of Nigeria and Shell work hand in hand, as Shell has bribed the top brass of Government. No single school and hospital was built in this region till 40 years of its independence Their leader and environment activist Saro- Wiva was executed death penalty along with 8 other members, this execution led to clashes between the tribe and the government Demanding compensation.
11. Ken Saro-Wiwa Nigerian author & environmentalist. Also a successful television producer & a businessman. Devoted most of his time to human rights and environmental causes. Hanged on 10th November 1995, along with 8 of his other colleagues.
12. Nigeria Government Story We spend 1.5 percent of oil revenue on the development of this region Military rule for more than 30 years and military foiled every attempt to restore democracy Nigerian army accused of assaulting local women and killing activists on regular basis Nigerian government accused of not cooperating with Human Rights Teams being sent there
13. Story We operate with responsibility and we take every measure to clean up oil spills. Local people sabotage pipelines to back up claims for compensation and to support claims of environmental degradation. It is commonly referred to as oil bunkering… Small Barges Large Ships Larger Oil Tanker. Atleast 1 lakh to 3 lakh barrels per day… The Niger Delta… Much of the oil bunkering is driven by local militants… The soldiers are also… The dark side of theft… The delta region continues to remain underdeveloped, using military power is not a solution…
14. In Controversies 1965 Sanctions busting in Rhodesia. 1973Corruption in Italy around £2.5 million. 2005 opposes against the proposed construction of a high-pressure raw gas pipeline through Ross port, Ireland October 2005 $153.6 million damages for U.S. patent infringement December1994 Jiffy Lube International’s environmental surcharge. April 2000 $2 million fine by UN for violation of embargo against Iraq. 2001 The Economist reported that of 81 claimed projects visited by the reviewers of the scheme, 20 did not exist, 36 were partially successful and only 25 were working. Shell was also found to be providing money and supplies to the Nigerian military.
15. In Controversies Exchange Control speculation in Japan - Loss of US$1.4 billion from unauthorized forward currency transactions in Showa Shell Sekiyu. May 2004 Tainted Shell gasoline in North America. April 2008 Poor fuel supply problem at Manchester Airport. September 2004 Retirement fund deficiencies in Malaysia. 1999 - Tell Shell Forum 2004 - False reporting, fictitious sales, manipulation of prices. Shell courted controversy in January 2007 when they announced that they had signed a deal to help Iran develop a major gas field in defiance of pressure from the United States.
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17. Corporate Social Shell Contributed to $110 million in 2007 for the improvement in infrastructure, health care and education through Niger Delta Development Commission (NDDC). They spent $500,000 to train 261 youths in vocational, enterprise and leadership development as well as non-violence and conflict management. They awarded about 2,730 secondary school and 850 university scholarships in the Niger Delta region.
Some 2 million barrels a day are extracted in the Niger Delta. Since 1975, the region has accounted for more than 75% of Nigeria's export earningsThe region is rich in agricultural resources, including oil palm, cassava, rubber, cocoa, coconut and a diversity of aquatic resources.
His satirical television series, Basi & Co., is purported to have been the most watched soap opera in Africa. In the late 1970s, he established a number of successful business ventures in retail and real-estate. He was one of the earliest members of the Movement for the Survival of the Ogoni People (MOSOP), which advocated for the rights of the Ogoni people. According to most accounts, Ken was the last person to be hanged and thus forced to watch the death of his colleagues. Information on the circumstances of Saro-Wiwa's own death are unclear, but it is generally agreed that multiple attempts were required before Saro-Wiwa died. A memorial in the memory ofSaro-Wiwa was unveiled in London on 10 November2006.
Oil bunkering is where local militants, oil smugglers, oil company employees attach illegal valves to crude oil pipelines, from where in the darkness of the night oil is transferred onto small oil barges, which then carry oil to atleast 10 large ships at the oil exporting terminals, which would further move in a convoy in deep sea to transfer oil onto a oil tanker which would spirit away the stolen oil into the world markets.Atleast 1 lakh to 3 lakh barrels per day… oil industry analyst, estimates that at least 100,000 barrels of oil are stolen every day through the process known as bunkering, while Human Rights Watch says it could be as much as 300,000.The Niger Delta… The Niger Delta, a vast wetlands region, sits atop more than 30 billion barrels of top-grade oil and substantial gas deposits, but it is one of the most impoverished regions in Nigeria, according to the UN Development Programme.Much of the oil bunkering is driven by local militants… who are angry at under-development in the region, have taken up arms to demand a greater share of Nigeria's oil wealth. Militant groups are made up primarily of unemployed youths who have few opportunities to earn a living wage.Since the 1970s… Nigeria has produced more than US$300 billion worth of crude from the Delta region. Just 13 percent of the region's oil revenues return to the Delta's local economy.The soldiers are also… The soldiers are deeply involved. There is no bunkering activity that is taking place in the Niger Delta that the military is not involved in. Eighty percent of soldiers in the region own the best cars - these are people who did not own a motorcycle before coming to the Delta.The dark side of theft… Fires easily break out when crude methods are used to tap into the oil pipelines. There have been several instances where charred bodies are all that were left to tell the story of a failed attempt to tap into the pipelines. The delta region continues to remain underdeveloped, using military power is not a solution… the military is using heavy handed techniques to curb oil bunkering. But some residents say that such an approach is a mistake, because there cannot be a military solution to the crisis in the Niger delta region. The Delta needs jobs, schools, electricity and roads...There is [no development] happening in the Delta...It remains under-developed and desperately poor.
