Watching the World Heated debate hits Niger Delta oil

April 22, 1996
With David Knott from London The lecture theater at the Royal Geographical Society in London is normally a forum for calm, cool debate. But on Apr. 15 the temperature went up several degrees during a seminar on petroleum and Nigeria's environment. Shell Petroleum Development Co. of Nigeria Ltd. came under intense fire. Since Nigeria's government executed nine protesters, Shell's relationship with the military regime has been questioned (OGJ, Nov. 20, 1995, p. 37).
With David Knott
from London

The lecture theater at the Royal Geographical Society in London is normally a forum for calm, cool debate.

But on Apr. 15 the temperature went up several degrees during a seminar on petroleum and Nigeria's environment.

Shell Petroleum Development Co. of Nigeria Ltd. came under intense fire. Since Nigeria's government executed nine protesters, Shell's relationship with the military regime has been questioned (OGJ, Nov. 20, 1995, p. 37).

Nick Ashton-Jones, consultant for Nigerian civil liberties group Environmental Rights Action, opened the attack: "Political energy in Nigeria is directed to getting control of the oil wells.

"The result is that the citizens of Nigeria's oil producing states no longer have basic human rights. Anyone not outraged by Shell's exploitation should examine their own conscience."

Industries accused

Another speaker was Gamaliel Onosode, chairman of the Niger Delta Environmental Survey launched by Shell to build a reliable database on the delta's environmental and social problems (OGJ, Feb. 13, 1995, Newsletter).

Onosode said human activities in the delta, carried out at various levels of sophistication, have harmed the area's environment. He listed the oil industry, logging, agriculture, and fishing among the culprits.

Onosode said, "The region's declining resources base and its poverty, viewed against a background of oil wealth, have created general alienation. But the communities have welcomed the survey as one positive result from their efforts over the years."

Onosode said the pivot of the survey is that existing environmental data are limited and questionable.

David Moffat, environmental consultant to the World Bank, said health issues are the biggest problem facing the people of the delta. The issues are mostly related to poor water supplies.

Moffat also listed major environmental problems as agricultural land degradation, flooding, fisheries depletion, deforestation, vehicular emissions, and dumping of toxic and hazardous substances.

He said, "Oil pollution by itself is only a moderate priority, compared with the region's other problems. Oil pollution has a relatively small impact on human health there, compared with poor water and sanitation facilities."

Shell's defense

Brian Anderson, chairman and chief executive of Shell Nigeria, fielded a number of questions and comments from the floor.

For example, one critic said Shell would not last a month if it tried to operate in other countries as it does in Nigeria.

Anderson said that by 1998 Shell Nigeria will have replaced every flow line and producing station in Nigeria that needs replacement: "But I will guarantee that by 1999 we will still have problems if the people of the delta don't get adequate returns."

Anderson said Shell Nigeria takes only 3.5% of the price of every barrel of oil, while government takes 75%.

He also said, "A failure by government to invest sufficiently in oil producing areas is fundamental to what's going on and has led to frustration. We've been targeted as a lever to get government to act."

Copyright 1996 Oil & Gas Journal. All Rights Reserved.