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Arabica Robusta

AMAZON WATCH » Chevron: Clean Up Ecuador - 0 views

  • Unlike BP's Gulf spill that was the result of a single cataclysmic event, Texaco's oil extraction system in Ecuador was designed, built, and operated on the cheap using substandard technology from the outset. This led to systematic pollution from multiple sources on a daily basis for almost three decades.
Arabica Robusta

Publish What You Pay - 0 views

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    The Publish What You Pay coalition of over 300 NGOs worldwide calls for the mandatory disclosure of the payments made by oil, gas and mining companies to all governments for the extraction of natural resources. The coalition also calls on resource-rich developing country governments to publish full details on revenues. This is a necessary first step towards a more accountable system for the management of natural resource revenues.
Arabica Robusta

Ecuadoreans Plan Spasm of Lawsuits Against Chevron - NYTimes.com - 0 views

  • The case stems from oil pollution in the Ecuadorean rain forest, but Chevron does not operate there and has no significant assets in the country. It was Texaco, which Chevron acquired in a merger in 2001, that was accused of widespread environmental damage before pulling out of Ecuador in the early 1990s.
  • Chevron has much larger operations elsewhere in Latin America, and the plaintiffs’ strategy of pursuing the company across the region could open a contentious new phase in the case — one that would test Ecuador’s political ties with its neighbors and involve some of Washington’s most prominent lobbyists and lawyers.
  • Advisers to the plaintiffs said Brazil, Argentina and Venezuela would be obvious candidates to pursue Chevron assets, but they acknowledged it would not be easy. Venezuela, for instance, is a close Ecuadorean ally and its president, Hugo Chávez, is a frequent critic of the United States. But Chevron has extensive operations in Venezuela and enjoys warmer ties with Mr. Chávez’s government than just about any other American company.
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  • In the memo, lawyers also identified the Philippines, Singapore, Australia, Angola, Canada and several other countries where Chevron has significant assets as potential targets. In the Philippines, it even suggested using the services of Frank G. Wisner, the retired diplomat and a foreign affairs adviser for Patton Boggs, who recently waded into the crisis in Egypt as an envoy for the Obama administration.
  • The ruling’s impact is already being felt in Ecuador and beyond as a cautionary tale of the environmental and legal aftermath of oil exploration. Alberto Acosta, a former oil minister in Ecuador, called the ruling “a historical precedent.” It is “a reminder that we have to defend ourselves from the irresponsible activity of extraction companies, both oil and mining,” Mr. Acosta said.
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    The case stems from oil pollution in the Ecuadorean rain forest, but Chevron does not operate there and has no significant assets in the country. It was Texaco, which Chevron acquired in a merger in 2001, that was accused of widespread environmental damage before pulling out of Ecuador in the early 1990s.
Arabica Robusta

A great day for oil! | Pipe(line)Dreams - 0 views

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    And for those of you wondering if Transocean or BP are involved in Ghana's oil industry, BP, along with China National Offshore Oil Corp. (CNOOC) and the Ghana National Petroleum Corporation, recently made a bid to buy Kosmos Energy's interest in the Jubilee Field operation. Kosmos rejected the bid. For the moment, then BP is not active in Ghana, but a subsidiary of Transocean, Challenger Minerals Inc., is part of an exploratory drilling operation in the country.
Arabica Robusta

Oil companies in emerging markets: Safe sex in Nigeria | The Economist - 0 views

  • Malabu then sued the government. After much legal wrangling, they reached a deal in 2006 that reinstated the firm as the block’s owner. This caught Shell unawares, even though it had conducted extensive due diligence and had a keen understanding of the Nigerian operating climate thanks to its long and often bumpy history in the country. It responded by launching various legal actions, including taking the government to the World Bank’s International Centre for the Settlement of Investment Disputes.
  • Tom Mayne of Global Witness, an NGO, has followed the case closely; he believes things were structured this way so that Shell and ENI could obscure their deal with Malabu by inserting a layer between them. Mr Agaev, Malabu’s former fixer, lends weight to this interpretation. It was, he says, structured to be a “safe-sex transaction”, with the government acting as a “condom” between the buyers and seller.
  • Shell and ENI reject the suggestion that their joint purchase was a thinly disguised transaction with a dodgy brass-plate company. Shell says it made payments to the Nigerian government only and that it has acted at all times in accordance with Nigerian law. It previously said it had “not acted in any way that is outside normal global industry practice”. ENI says its payments to the government “were made in a transparent manner through an escrow arrangement with a major international bank”. That bank was JPMorgan Chase. A Lebanese bank had earlier declined to handle the payments, it emerged in court.
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  • The companies’ claim that they bought the block from the state, not Malabu, is disingenuous, says Mr Mayne of Global Witness. It is also contradicted by Nigeria’s attorney-general, Mohammed Bello Adoke, who told a parliamentary committee last July that the companies “agreed to pay Malabu”, with the government acting as an “obligor” and “facilitator.”
  • The EFCC’s report states: “Investigations conducted so far reveal a cloudy scene associated with fraudulent dealings. A prima facie case of conspiracy, breach of trust, theft anmd [sic] money laundering can be established against some real and artificial persons.” Officially, the EFCC’s investigation is still open, but a source familiar with it says that its sleuths have been discouraged by higher-ups from moving forward. However, other countries’ fraudbusters have taken an interest. At least one of the parties involved in the oil-block sale has been contacted by America’s Department of Justice.
  • The saga is a striking example of an ethical dilemma that is growing more acute for international oil companies. They are desperate to replace their shrinking reserves with new finds, but many of the most attractive fields are in unstable or poorly governed places.
  • Mr Hughes argues that when foreign companies turn a blind eye to questionable aspects of a deal, it can sometimes benefit developing countries with natural resources. The publicly traded oil majors are, on balance, a force for good, raising overall standards of behaviour by trying to operate as cleanly as possible in most circumstances, he says; better that than leaving the field to less scrupulous operators.
  • Global Witness prefers to see the OPL245 affair as “a lesson in corruption” that demonstrates how important it is for rich-world governments to press on with transparency initiatives
Arabica Robusta

Pambazuka - Review of Duncan Clarke's Crude Continent: the Struggle for Africa's Oil Prize - 0 views

  • The thrust of Crude Continent is precisely (and often, not so precisely) this: oil, far from being a curse, could actually save Africa. It is oil that will modernise Africa and oil that will lead it out of what Clarke dubs – without ever defining – ‘African medievalism’. Clarke argues that those countries without oil are the ones that are truly cursed, for they will be left ‘largely backward’.
  • This intriguing notion is preached throughout Crude Continent, with Clarke seeking to expose as fools those who argue that Africa's oil-rich countries are being poisoned to the core by the so-called ‘resource curse’. Our candid author is particularly incensed by two experts' ‘scribblings on oil’, both released last year: Oil and Politics in the Gulf of Guinea by Ricardo Soares de Oliveira, an Oxford lecturer; and Poisoned Wells: The Dirty Politics of African Oil by Nicholas Shaxson, an associate fellow at Chatham House, London.
  • Clarke asks us to consider what he calls the long-term ‘multiplier effects’, the direct and indirect benefits of the oil and gas industry, including employment creation, foreign exchange inputs and capital inflow, technology transfers, fiscal funding and ‘indirect supply chain effects’. These are much more significant than the ‘palliative band-aid…of corporate social investment’ that Clarke clearly detests. He berates the fact that no one has ever ‘properly identified and measured’ the social and economic benefits of oil and gas projects in Africa.
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  • Regularly tumbling into appalling metaphor and analogy, Clarke nevertheless concludes: ‘North and south Sudan may be bound by the umbilical cords of a chequered politics and oil history, but as with Siamese twins these links can also be severed.’
  • Parts three and four provide the reader with 140 pages of comprehensive information on corporate oil operations in Africa and the global scramble for the big prize. Leaving aside his irritating penchant for metamorphosis – lions becoming countries, rhinos turning into multinationals – Clarke offers readers the chance to delve into his vast wealth of knowledge. Together with a comprehensive index, these two sections make it easy to find out which company is drilling what wells, where and with whom. Our expert guide also leads us around the world explaining how different nations are capturing Africa's oil and gas potential. All fascinating stuff.
  • The perpetuation of the petroleum age might make the current crop of oil executives and certain political leaders happy, but it is dangerously optimistic to suggest that the future well-being of African people depends primarily on drilling oil.
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    The thrust of Crude Continent is precisely (and often, not so precisely) this: oil, far from being a curse, could actually save Africa. It is oil that will modernise Africa and oil that will lead it out of what Clarke dubs - without ever defining - 'African medievalism'. Clarke argues that those countries without oil are the ones that are truly cursed, for they will be left 'largely backward'.
Arabica Robusta

The World Bank's new energy strategy (Bretton Woods Project) - 0 views

  • Based upon the model implemented in England and Wales and in some parts of the United States and Latin America, reforms were geared towards restructuring and privatising state-owned electricity utilities in order to try to improve efficiency through competitive wholesale electricity markets.
  • The impact of reform on poverty reduction also became a cause for concern. Even where private sector participation had occurred, expanding access to non-industrial consumers had been considered unprofitable. Stark figures for household access levels, such as 2 billion people without access to electricity worldwide, were difficult to ignoreii.
  • interestingly, PSMPs tend to emphasise use of large-scale generation projects to exploit hydro and thermal potential and regional integration of grid networks. Whilst a stable grid serving the entire population might be an attractive long-term goal, rarely has such distributional equity been achieved. More often than not, grid extension programmes have failed to reach the rural poor because they have not always proven to be the most cost-effective means of expanding access to rural areas, mainly due to low population density and greater technical losses as transmission networks increase.
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  • the mobilisation of private investment is still very important and Bank funding can play a key role in leveraging it. Private investors look to fund ‘bankable’ projects – projects with low risk and quick returns. The result is a bias toward established fossil fuel technologies. Given this bias, when the Bank aims to leverage private sector investment, its funds should be directed towards making low-carbon energy technologies commercially available and competitive.
Arabica Robusta

Cable regarding proposed Petroleum Industry Bill; showing extent of Shell interference ... - 0 views

  • NNPC General Managing Director Dr. Mohammed Barkindo was interested in doing something on climate change in preparation for the climate change summit in Copenhagen December 6-18. Barkindo was spread pretty thin so Shell will ask him how they can help him prepare for the summit.
  • She said it would be helpful if the Embassy would continue to deliver low-level messages of concern. In particular, she thought it would be helpful for the Embassy to call on Speaker of the House Dimeji Bankoke to see where he stood on the bill. Beyond that, she would like to keep the Embassy in reserve and use it as a “silver bullet” if the PIB passes the House. The Ambassador noted that the U.S., U.K., Dutch and Qthe House. The Ambassador noted that the U.S., U.K., Dutch and French Embassies had already made a joint call on NNPC General Managing Director Dr. Mohammed Barkindo.
  • Pickard said Shell had good sources to show that their data had been sent to both China and Russia. She said the GON had forgotten that Shell had seconded people to all the relevant ministries and that Shell consequently had access to everything that was being done in those ministries.
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  • Pickard also noted that Shell saw Israeli security experts in Bayelsa, but not in the Delta, and that there had been “a big drop in kidnapping” as a result.
  • In the event that the PIB retains negative terms or violence returns to the Delta, Shell can be expected to hurt the most and cry the loudest.
Arabica Robusta

Ghana / Oil / Building Capacity to Manage Ghana's Oil - World Bank assists wi... - 0 views

  • The World Bank Board today approved a credit of US$38 million to the Government of Ghana for implementation of an Oil and Gas Capacity Building Project.
  • Ghana and its partners in the Jubilee field have worked hard to bring it into production in barely three years a record time by industry standards but institutional development for sector management by the state and education and skills development face significant challenges.
  • Given the strategic role civil society is expected to play in promoting accountability and community participation, an additional grant of US$2 million is being provided under the Banks Governance Partnership Facility (GPF) to support a wide range of activities to be championed and implemented by civil society and community based organizations.
Arabica Robusta

Oil City: Where are the Jobs, pt. 2 | Pipe(line)Dreams - 0 views

  • Both Tullow Oil and Kosmos Energy have posted scam alerts on their websites. Here’s the warning from Kosmos: NOTE: POTENTIAL RECRUITMENT FRAUD Kosmos Energy has learned that job applicants in the international oil and gas business, as well as other industry sectors, may be contacted by individuals or organizations that offer false employment opportunities. These communications are often via email and may request personal information or money. Kosmos only makes job offers after candidates have completed a formal interview process and does not ask applicants to pay fees during recruitment. Specifically, please note that any communications from or about the “Kosmos Group” are not associated with Kosmos Energy. This is good, but I don’t know how useful these alerts are. There are a lot of people in Takoradi who don’t have internet access. And even when you get to the Tullow or Kosmos websites, it’s not easy to get information.
    • Arabica Robusta
       
      Corporate websites as greenwashers.  They know that consumer "stakeholders" are the audience because producing areas have very limited access to Internet.
Arabica Robusta

Big Oil's sleazy Africa secrets: How American companies and super-rich exploit natural ... - 0 views

  • Luanda consistently ranks at the top of surveys of the world’s most expensive cities for expatriates, ahead of Singapore, Tokyo, and Zurich. In glistening five-star hotels like the one beside Chicala, an unspectacular sandwich costs $30. The monthly rent for a top-end unfurnished three-bedroom house is $15,000.
  • The railways, the hotels, the growth rates, and the champagne all flow from the oil that lies under Angola’s soils and seabed. So does the fear.In 1966 Gulf Oil, a US oil company that ranked among the so-called seven sisters that then dominated the industry, discovered prodigious reserves of crude in Cabinda, an enclave separated from the rest of Angola by a sliver of its neighbor, Congo.
  • “When the MPLA dropped its Marxist garb at the beginning of the 1990s,” writes Ricardo Soares de Oliveira, an authority on Angola, “the ruling elite enthusiastically converted to crony capitalism.” The court of the president—a few hundred families known as the Futungo, after Futungo de Belas, the old presidential palace— embarked on “the privatization of power.”
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  • the family of José Eduardo dos Santos, the party’s Soviet-trained leader who assumed the presidency in 1979, took personal ownership of Angola’s riches. Isabel dos Santos, the president’s daughter, amassed interests from banking to television in Angola and Portugal. In January 2013 Forbes magazine named her Africa’s first female billionaire.
  • Vicente built Sonangol into a formidable operation. He drove hard bargains with the oil majors that have spent tens of billions of dollars developing Angola’s offshore oilfields, among them BP of the UK and Chevron and ExxonMobil of the United States. Despite the tough negotiations, Angola dazzled the majors and their executives respected Vicente. “Angola is for us a land of success,” said Jacques Marraud des Grottes, head of African exploration and production for Total of France, which pumped more of the country’s crude than anyone else.
  • Sonangol awarded itself stakes in oil ventures operated by foreign companies and used the revenues to push its tentacles into every corner of the domestic economy: property, health care, banking, aviation. It even has a professional football team
  • Oil accounts for 98 percent of Angola’s exports and about three-quarters of the government’s income. It is also the lifeblood of the Futungo. When the International Monetary Fund examined Angola’s national accounts in 2011, it found that between 2007 and 2010 $32 billion had gone missing, a sum greater than the gross domestic product of each of forty-three African countries and equivalent to one in every four dollars that the Angolan economy generates annually. Most of the missing money could be traced to off-the-books spending by Sonangol; $4.2 billion was completely unaccounted  for.
  • For Joe Bryant, Cobalt’s founding chairman and chief executive, a punt based on prehistoric geology appeared to have paid off spectacularly. A hundred million years ago, before tectonic shifts tore them apart, the Americas and Africa had been a single landmass—the two shores of the southern Atlantic resemble one another closely. In 2006 oil companies had pierced the thick layer of salt under the Brazilian seabed and found a load of crude. An analogous salt layer stretched out from Angola. Bryant and his geologists wondered whether the same treasure might lie beneath the Angolan salt layer.
  • There was just one snag. What Cobalt had not revealed—indeed, what the company maintains it did not know—was that three of the most powerful men in Angola owned secret stakes in its partner, Nazaki Oil and Gáz. One of them was Manuel Vicente. As the boss of Sonangol at the time of Cobalt’s deal, he oversaw the award of oil concessions and the terms of the contracts.
  • A long-neglected 1977 statute prohibits American companies from participating in the privatization of power in far-off lands. Updated in 1998, the Foreign Corrupt Practices Act (FCPA) makes it a crime for a company that has operations in the United States to pay or offer money or anything of value to foreign officials to win business. It covers both companies themselves and their officers. For years after it was passed the FCPA was more of a laudable ideal than a law with teeth. However, from the late-2000s the agencies that were supposed to enforce it—the Department of Justice, which brings criminal cases, and the Securities and Exchange Commission, the stock market regulator, which handles civil cases—started to do so with gusto. They went after some big names, including BAE Systems, Royal Dutch Shell, and a former subsidiary of Halliburton called Kellogg Brown & Root.
Arabica Robusta

Obama on Wrong Side in Shell Oil Human Rights Case | Black Agenda Report - 0 views

  • But now, under these circumstances, Shell Oil claims it is not a person, subject to human law, but an entity possessing corporate immunities.
  • When Shell Oil walked into the U.S. Supreme Court building, this week, claiming that it is not responsible for the torture and murder of Nigerians in its oil fields in the Niger River Delta, the Dutch corporation had a friend in the courtroom: the Obama administration.
Arabica Robusta

West using terror to plunder oil resources of Nigeria | nsnbc - 0 views

  • With a population of 160 million, Nigeria is the known as the “giant of Africa”. In addition to crude oil, Nigeria has also the biggest reserves of natural gas among Sub-Saharan nations. Western energy companies are gearing up to tap this wealth even further in the coming years. Balkanising the country into North-South entities would undermine the central government in Abuja and bolster exploitation by these corporations.
  • However, some Nigerian analysts believe that the organization is being used by powerful external forces as a conduit for destabilizing Nigeria. Political analyst Olufemi Ijebuode says: “The upshot of this latest massacre is to destabilize the state of Nigeria by sowing sectarian divisions among the population. The killers may have been Boko Haram operatives, but Boko Haram is a proxy organization working on behalf of foreign powers.”
  • Campbell reiterated the significant observation: “The Mubi atrocity will feed a popular perception that the government can no longer ensure security in large parts of the country.”
Arabica Robusta

Courthouse News Service - 0 views

  • In the latter arbitration, Chevron claims that Ecuador had violated the Bilateral Investment Treaty (BIT) by letting the case advance.     Since that time, the BIT claimed jurisdiction over the case, and both parties are currently gathering evidence for proceedings on whether Chevron received a fair shake in Ecuador.
  • Under U.S. law, federal courts can issue discovery orders forcing parties involved in "foreign or international tribunals" to turn over information that would be useful in those proceedings.     The 5th Circuit, a New Orleans-based federal appeals court, found that Chevron cagily straddled this language to get Ecuador to cough up documents while protecting its own.
  • A federal judge quashed the subpoenas, deferring to Chevron's arguments that the BIT did not qualify as a "tribunal" - when Ecuador wanted evidence for it.
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  • Meanwhile, another litigant has declared a pox on both houses.     A group of Ecuadoreans known as the Huaorani had moved to intervene in Chevron's extortion suit late last year, but U.S. District Judge Lewis Kaplan found that such intervention "would delay and complicate the resolution of an already complicated case."
  •  Kimerling, a City University of New York professor and respected human rights advocate, is the author of "Amazon Crude," which The New York Times described as the "Silent Spring of Ecuador."
Arabica Robusta

Archbishop Justin Welby: The shady 'Monsieur Africa' and a £6billion mission ... - 0 views

  • He was quickly handed responsibility beyond his years. For instance, he  was directly involved in an attempted hostile takeover of an American oil company, Kerr-McGee. Hours before it was due to go ahead, the takeover was halted after the intervention of the French prime minister who feared it would damage French-US relations.Before it was stopped, Mr Skjevesland recalled Mr Welby was instructed by Elf’s group treasurer to transfer $2 billion. ‘One morning Justin came in to the office and told me, “I got a phone call from New York last night. We’re going to go ahead with the acquisition.”
  • Mr Welby had been a committed Christian since university yet rarely discussed his faith with colleagues. But some recall him wearing a cross pinned to the breast pocket of his tweed jacket. Isobel Gil-Noble, the warden of St Michael’s, the English-speaking Paris church Mr Welby attended, said: ‘Justin was a bit of a yuppie – and a real slick professional.’Mr Skjevesland, who was the company’s assistant treasurer for most of Mr Welby’s time with Elf, also attended the monthly talks in Lagos on the Bonny LNG project.It was at this time, unbeknown to Mr Welby who only learnt of the allegations last year, that abuses were being carried out in Elf’s name in the Delta.
  • Archbishop Welby said in a statement last night: ‘During my time at that company [Elf] I worked in a junior finance capacity on a project in Nigeria, travelling to Lagos from Paris. ‘To suggest that I was in some way responsible for making strategic decisions, or that I was even aware of any alleged dubious confidential strategy by Elf, is absurd given my youth and lack of seniority. ‘In the case of the Bonny LNG project, Elf only had a five per cent stake, so even the company itself had minimal influence in decision making.’
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