Skip to main content

Home/ Can Petroleum Aid development?/ Group items tagged responsibility

Rss Feed Group items tagged

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.’
Arabica Robusta

Ghana's oil worries | Pipe(line)Dreams - 0 views

  • Another article, How Overpriced is Ghana’s Jubilee Field Expansion Project?, questions the projected cost of the Jubilee expansion. The higher the costs, the lower the revenues for Ghana. “It is important to note,” the article states, “that the more money that is spent on the project the longer it takes for the field to be profitable, the lower the taxes Ghana can collect, and the longer it takes for even those meagre taxes to show up.” Besides providing an important public service, the IMANI articles have also prompted a response from the Ghana National Petroleum Corporation.  You can read the lengthy GNPC press release on Ghana Oil Watch: Recent Media Discussions on GNPC and Jubilee Oil. The press release refutes IMANI’s allegations and IMANI has since issued a final statement backing up the think tank’s original estimates and statements.
  • Rather uncharacteristic of the secretive organisation, the Ghana National Petroleum Corporation (GNPC) finally issued a press statement to respond to concerns raised by civil society about Ghana’s underperforming oil industry. While the GNPC is to be commended for its increasing responsiveness and transparency … The truth is that the information the GNPC has now supplied to inform the public debate about Ghana’s oil sector would not have received broad coverage had IMANI not engaged in strong advocacy to demand such information.
  • On a somewhat related note, a U.S. law firm has announced it investigation of potential claims against KOSMOS Energy, one of the Jubilee partners: The investigation concerns allegations that the Registration Statement and Prospectus issued in connection with the Company’s initial public offering (the “IPO”) were materially false and misleading and misrepresented or failed to disclose that:
  •  
    "I have a decent internet connection this morning, so I'll take advantage of that to post some of the back and forth between Ghanaian think tank, IMANI, and the Ghana National Petroleum Corporation (GNPC). IMANI has recently published some interesting articles on the Jubilee field's underperformance. In contrast to the excited tone of most of the business news about the country's oil industry, the IMANI articles raise serious questions about the industry's costs and prospects."
Arabica Robusta

U.S. Supreme Court: Shell Nigeria gets a boost from Obama administration | Pipe(line)Dr... - 0 views

  • Shell had asked the U.S. Supreme Court to rule the company can’t be sued by Nigerians seeking damages for torture and murders committed by the national government in the early 1990s. With a U.S. government brief that supports Shell’s position, where does this leave Nigerians? The U.S. brief suggests that the Nigerians should seek redress in their own courts, as the human rights abuses occurred in Nigeria and not the U.S. This is a chilling message.
  •  
    Earlier this year, the US government argued on the side of victims of human rights abuses at the US Supreme Court. In Kiobel v. Royal Dutch Petroleum (Shell), the government argued that corporations should not be exempt from responsibility for committing human rights abuses. But when the Supreme Court ordered a rehearing in the case, and asked whether human rights lawsuits could be brought when the abuses happened outside the US, we wondered whether the Obama administration would continue to side with the victims.
Arabica Robusta

Pambazuka - Leave new oil in the soil in Africa - 0 views

  • The desire to capture more oil reserves is driving exploration and development of oil and gas fields in Eritrea, Ethiopia, Somaliland, Puntland, Somalia, Kenya, Uganda, Rwanda, Burundi, Tanzania, Mozambique, Madagascar, Malawi, Mauritius, the Comoros, Seychelles and the coast of Durban in South Africa.
  • The National oil spill detection and response agency (NOSDRA), the United Nations Environment Programme (UNEP) and the United Nations Development Programme (UNDP) have identified over 2,000 spill sites that need to be remediated. Some of these spills happened over 40 years ago. The Ebubu spill that occurred in 1970, has not been cleaned up and Shell, the company implicated in the disaster, is vigorously appealing a judgement of a federal high court which ordered it to pay US$40 million compensation as at 2001.[3]
  • Even though Ikiogha is the government bureaucrat in charge of penalising Shell for the spill and signing off on the cleanup, he is also the contractor hired by Shell to do the cleanup… His cleanup operation consists of four shirtless men scooping oil from the surface of the polluted river with Frisbees… he claims that most of the oil had earlier been removed with absorbent foam and blankets.’[5]
    • Arabica Robusta
       
      Kenneth Feinburg.
  • ...3 more annotations...
  • The idea of leaving oil in the ground within the Yasuni forest was taken up in far away Ecuador by no less than the government of the country itself and is receiving widespread acceptance.
  • The world’s ecosystem is one and we have merely scratched the surface in understanding the intricate interconnectedness of nature at different levels. It is therefore short sighted to continue the reckless expansion of drilling around the world because in the long run the revenue we may earn today from oil extraction would not be sufficient to adequately return our environment to what it was before extraction when incidents like these occur.
  • We must begin by acknowledging that the sensible use of our ecosystem has the capacity in the long-term to provide much more benefits and revenue than oil can ever provide. We must individually and consciously take up the responsibility of drastically reducing our use of oil and its by-products. We must also set up international tribunals that would try entities and individuals for their role in destroying the ecosystem. But more importantly we must begin to have the consciousness and think along the lines of building capacities within our communities to ensure as much as possible that the role of oil our energy matrix becomes inconsequential by investing more in renewable energy, energy efficiency, better public transportation and small decentralised energy projects.
Arabica Robusta

Nigeria: Whistleblower Accuses Shell of Concealing Data On Nigerian Oil Spills - allAfr... - 0 views

  • But a Shell Nigeria spokesman, Mr. Precious Okolobo, said the company accepted responsibility for the two deeply regrettable operational spills in Bodo and was fully committed to ensuring clean-up but that since 2015, the Bodo community of Rivers State has failed to permit access by contractors appointed to carry out the clean-up.
  • Chairperson of BMI, Inemo Samiama, to whom Holtzman addressed the letter, said in a statement that BMI had carried out Shoreline Clean-up Assessment Technique (SCAT) as recommended by the UNEP representative in the BMI, Dr. David Little, so as to form judgments on the best remedial methods applicable to each grid at individual sites. According to Samiama, the results of the pre-SCAT and main SCAT as issued by the SCAT team leader, Dr. Erich Gundlach, had confirmed areas of pollution and the need for clean-up but the results did not raise new concerns because they were not different from existing observations from earlier reports.
  • Shell had accepted liability for the 2008 and 2009 oil spills, and in 2015, agreed to pay £55m to the Bodo community for losses caused by the spills. UNEP had in 2011 published a damning report anticipating that it would take up to 30 years to clean the Niger Delta from oil spills, caused by theft and operational failures.
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

Shell returns to massively polluted Nigeria oil region - 0 views

  • “The intention is to determine the state of our facilities since we suspended operations in the area in 1993, and determine how best to decommission them,” the head of Shell Petroleum Development Company of Nigeria (SPDC), Mutiu Sunmonu, said in a statement.
  • “If the purpose is to clean the spills, they are welcome but UNEP should supervise the exercise… The problem we have with Shell is that it is not socially responsible,” said Wiwa, an activist with the Movement for the Survival of the Ogoni People.
Arabica Robusta

Some good background reading while waiting for the Kiobel decision - Pipe(line)Dreams - 0 views

  • Amid severe repression, nine members of the movement, including Dr Barinem Kiobel, were arrested, charged with specious crimes, tortured and summarily hanged. Dr Kiobel’s widow Esther and 11 other plaintiffs, all either victims of torture or relatives of victims residing in the US brought a class action suit in the US District Court.
  • In its defence, Shell argued that “the law of nations” does not recognise corporate liability for human rights abuses and that the ATS does not apply extraterritorially. Legal observers expect a decision in the Kiobel case at any time.
  • In justifying its position against the extraterritorial application of US laws, Shell underscored the “adverse consequences to US trade and foreign policy of a liberal expansion of private causes of action against corporations under international law”. It also posited that the costs associated with potential liability “may lead corporations to reduce their operations in the less-developed countries from which these suits tend to arise, to the detriment of citizens of those countries who benefit from foreign investment”.
  • ...4 more annotations...
  • The US is not alone in grappling with the liability of transnational corporations for human rights abuses: in path-breaking litigation, Hudbay Minerals stands accused in Canadian courts of complicity in human rights abuses in Guatemala.
  • Complicating efforts to hold transnational corporations accountable is the fact that companies often construct a series of subsidiary companies that mask their true ownership, make it hard to impost corporate liability. Imposing corporate accountability is further impeded by other factors.
  • Logistically, many countries in the Global South where many transnational corporations operate lack the institutional and judicial capacity to manage complex litigation. Moreover, subsidiary companies often funnel profits to the parent corporations, leaving them with inadequate cash reserves to satisfy legal liabilities. Lastly, as noted above, governments may be reluctant to send a message of corporate accountability because those in power are often the most direct beneficiaries of corporate activity.
  • The corporations that voluntarily adhere to principles of Corporate Social Responsibility are likely not the vociferous opponents of accountability, and are arguably at a competitive disadvantage when others are permitted to violate human rights with impunity. Given corporate complicity in egregious abuses around the world, respect for human rights should not be a function of voluntary compliance but instead a matter of enforceable legal rights. The international community must demand accountability, and reinforce and reaffirm the practices of corporations that do take seriously the impact of their behaviour. The Supreme Court’s decision in the Kiobel case should advance global justice by categorically rejecting impunity for human rights abuses in which transnational corporations are complicit.
Arabica Robusta

Kenya, Oil and Populism: Learning from Germany | Global Policy Journal - Practitioner, ... - 0 views

  • Unlikely as it may seem, Africa can learn from Germany: Germany is the best managed economy in Europe. Of course, it does not have natural resources, and so its economic management addresses entirely different issues. However, the political foundations for Germany’s success can be generalized beyond the particularities of economic policies. Germany is today the best-run economy in Europe because it used to be the worst. Three generations ago, Germany collapsed into hyperinflation. From that searing experience Germans too emerged with that inchoate sense of ‘never again’. The German genius was to harness those sentiments into practical measures.
  • The most important and remarkable step taken by Germany was the third. The sentiment of ‘never again’ was turned into a critical mass of ordinary citizens who understood the economic issues underlying hyperinflation sufficiently to support the new rules and institutions. Collectively, these citizens provided the political defences that made the rules and institutions robust to the pressures for dysfunctional policy choices: this has persisted for three generations.
  • Political leaders self-flatteringly see their role as that of taking decisions. In fact, in large part they should leave decisions to their technocrats who are better informed. But only leaders, not their technocrats, can communicate with citizens, presenting a narrative of responsibility towards the next generation in managing good fortune.
Arabica Robusta

Can indigenous operators cope after foreigners' exit? - The Nation - 1 views

  • Akabogu added: “Local content in the oil industry is supposed to be a long term thing; it is supposed to be implemented in a gradual manner because the enabling environment is not there. The ideal thing would have been to retain the IOCs by addressing the issues that necessitated their divestment.” He said the IOCs were merely shifting their risks to the local operators who would now deal with issues of oil bunkering and theft.
  • To renowned environmental expert and coordinator of Oil Watch International, Mr. Nnimmo Bassey, the development is hardly surprising. According to him, divestment is a business strategy by the IOCs to cut losses and maximize profits. “You will notice that they are divesting mostly from onshore and swamp fields that intersect with communities that they have massively polluted and abused. Their aged facilities in those locations will certainly bring on more resource ownership and social conflicts. So, if local companies are happy to step in and take the flak that means ‘good’ business for the IOCs,” he observed
  • Bassey also said that on the other hand, the IOCs mostly divested to the extent of their equity holdings in such fields and production also activities. “They still own the pipelines and related facilities. What that means is that they are renovating their image, collecting rents from their facilities and generally smiling to the bank while the local companies will eventually take the beating for the pollutions, conflicts and other social disruptions. We see the divestment as a business strategy that benefits the IOCs and leaves the oil field communities and the environment at risk,” he told The Nation.
  • ...4 more annotations...
  • Bassey noted, for instance, that although the PIB is a good first step, the document as packaged, is not as strong as it ought to be. According to him, the PIB does not have stringent pro-people and pro-environment provisions, as the country, despite the PIB, will still be having illegal routine gas flaring. He blamed the delay in passing the bill on what he described as ‘toxic politics’ and pressure from the IOCs who have openly said they would not accept laws that curb their excessive profits as well as wrong perception by some legislators that provision of funds for communities mean more money to the oil-bearing states.
  • Nnimmo argued that although, the PIB makes the offer of money to oil-bearing communities on one hand, it takes it away on the other. “The PIB criminalises communities when it says that if oil facilities are tampered with then the communities, local government areas, and states would pay. Communities are not the policemen of oil facilities. The PIB speaks the old language of subsisting laws that free IOCs of responsibility where facilities are interfered with by third parties. That has made the claim of sabotage the favourite refrain of the oil companies even before incidents are investigated. The PIB fell into the same anti-people trap,” he explained.
  • Bassey insisted that what Nigeria needs to do right now is to “massively increase oil revenues by halting oil theft. We are not talking about poor villagers scooping crude oil in buckets and jerry cans. Those also need to be stopped. We are talking about the industrial-scale oil theft going on in the oil sector. The official figure bandied by the Ministry of Finance as well as the National Assembly is that 400,000 barrels of crude oil are stolen everyday,” he said As for local operators, Bassey and other experts and stakeholders said the ability of local operators to hold their own would depend, to a very large extent, on better collaboration, better host community management, proper valuation and raising smart financing. They also require huge investment in knowledge, research and development (R&D).
  • Mutiu Sunmonu, Managing Director of SPDC, said the divestment of his company’s assets was a deliberate measure to encourage indigenous participation in the upstream oil and gas industry. His words: “We want to create a new set of indigenous players in Nigeria’s oil and gas industry within the next 10 to 20 years from now, while the IOCs concentrate on more difficult issues and also allow us focus on material oil and gas fields.” The divestments are seen by some industry watchers as representing the single largest opportunity for Nigerian operators with the requisite expertise and capital to emerge as major upstream players.
Arabica Robusta

Pambazuka - The Chevron precedent - 0 views

  • The Bowoto case is the legal reaction to Chevron’s role in a 1998 protest by Nigerian community activists in the Niger Delta. The unarmed demonstrators boarded an oil platform and adjacent barge, property of subsidiary Chevron Nigeria Ltd, in protest over the environmental and economic damage caused by oil production in the region. The activists were attacked on 28 May by Nigerian authorities ferried to the floating protest by the oil corporation. Two men were killed and several more protestors injured. Three others claim detention and torture.
  • After nearly 10 years of pre-trial motions wherein many claims were dropped by a pre-trial judge, the case finally debuted in trial in October 2008 and a decision was handed down on 1 December the same year. The nine-bench jury decided in favour of Chevron, clearing the corporation of any liability under the various claims. It was a defendant’s victory, but civil society groups and legal experts still label the case a milestone in advancing corporate accountability.
  • The Bowoto case is the first time the multinational magnate Chevron USA Inc. has been successfully taken to a US court for the actions of an overseas subsidiary. ‘Chevron has a very intricate structure, used in part to try and shield itself from liability,’ Simons said. The case has effectively scrapped this corporate strategy.
    • Arabica Robusta
       
      To what extent will Chevron's corporate response strategy be scrapped by this decision?  It is a sad lesson in the state of corporate recklessness that a blanket victory for Chevron in court is nevertheless considered a "milestone in advancing corporate accountability."
  • ...3 more annotations...
  • The case also broadens the recourse for victims of human rights abuse by American corporations, who can seek redress in US courts under the aiding-and-abetting theory used in Bowoto v. Chevron Corp. that a corporation can be held liable as a third party.
  • The ATS is a US law that lets foreign citizens bring claims to US courts for damages done outside of the country. Claims are rarely upheld however, because judges have narrowly interpreted how the ATS is applied. This happened in a 1993 class action suit against Chevron and subsidiary Texaco, representing some 30,000 residents in the Amazon according to Amnesty International. The case was dropped by the US courts and palmed off to Ecuador where it is still ongoing. Other corporations domestically unscathed after US courts dismissed ATS claims include Talisman Energy Inc., the Southern Peru Copper Corporation and Coca-Cola.
  • At trial the District Court judge found a corporation is not an individual and can therefore not be sued under the TVPA. ‘This is significant. Most of the important legal precedents in this case have already been set … this is the only rule of law question [in the appeal].’ The TVPA is a civil law that lets citizens file a suit against another party that, acting for a foreign nation, commits torture or extrajudicial killing. In Bowoto v. Chevron Corp. the TVPA claim was thrown out. The word ‘individual’, according to the trial judge, does not describe the multinational Chevron.
Arabica Robusta

Monthly Review September 2006 Michael Watts ¦ Empire of Oil: Capitalist Dispo... - 0 views

  • Although Africa is not as well endowed in hydrocarbons (both oil and gas) as the Gulf states, the continent “is all set to balance power,” and as a consequence it is “the subject of fierce competition by energy companies.” IHS Energy—one of the oil industry’s major consulting companies—expects African oil production, especially along the Atlantic littoral, to attract “huge exploration investment” contributing over 30 percent of world liquid hydrocarbon production by 2010. Over the last five years when new oilfield discoveries were scarce, one in every four barrels of new petroleum discovered outside of Northern America was found in Africa. A new scramble is in the making. The battleground consists of the rich African oilfields
  • Africa is, according to the intelligence community, the “new frontier” in the fight against revolutionary Islam. Energy security, it turns out, is a terrifying hybrid of the old and the new: primitive accumulation and American militarism coupled to the war on terror.
  • To see the African crisis, however, as a moral or ethical failure on the part of the “international community” (not least in its failure to meet the pledges promised by the Millennium Development Goals of reducing poverty by half by 2015) is only a partial truth. The real crisis of Africa is that after twenty-five years of brutal neoliberal reform, and savage World Bank structural adjustment and IMF stabilization, African development has failed catastrophically.
  • ...14 more annotations...
  • The pillaging and privatization of the state—whatever its African “pathologies”—and the African commons is the most extraordinary spectacle of accumulation by dispossession, all made in the name of foreign assistance. The involution of the African city, notes Davis, has as its corollary not an insurgent lumpenproletariat but rather a vast political universe of Islamism and Pentecostalism. It is this occult world of invisible powers—whether populist Islam in Kano or witchcraft in Soweto—that represents the most compelling ideological legacy of neoliberal utopianism in Africa.
  • The African accumulation crisis, and the dynamics of capital and trade flows, are in practice complex and uneven. In addition to oil (and the very few cases of manufacturing growth in places like Mauritius which are little more than national export-processing platforms), the other source of economic dynamism is the (uneven) emergence of global value chains. This can be seen especially in relation to high-value agricultures (fresh fruits and vegetables) in South Africa, flowers in Kenya, green beans in Senegal. Such forms of contract production, typically buyer-driven commodity chains in which retailers exert enormous power, have created islands of agrarian capitalism that contribute to and deepen patterns of existing inequality across Africa and further the interests of business elites, which are often not African. The deepening of commodification in the countryside in tandem with demographic pressures (caused as much by civil war and displacement as high fertility regimes) has made land struggles a vivid part of the new landscape of African development.
  • It is no surprise that against this backdrop the development establishment flails around wildly. On the one side stands former World Bank economist William Easterly for whom all aid (“planning”) has been a total (and unaccountable) failure.
  • On the other stands the one-man industry otherwise known as Jeffrey Sachs who seeks to expand foreign aid—$30 billion a year for Africa—and to initiate a Global Compact by which “the rich will help save the poor,” who are as much hampered by poor physical geography as governance failure.
  • In reality what is on offer is an even bleaker world of military neoliberalism. At one pole are enclaves of often militarily fortified accumulation (of which the oil complex is the paradigmatic case) and the violent, sometimes chaotic, markets so graphically depicted in the documentary film Darwin’s Nightmare. At the other pole are the black holes of recession, withdrawal, and uneven commodification. These complex trajectories of accumulation are dominated at this moment by the centrality of extraction and a return to primary commodity production.
  • All African governments have organized their oil sectors through state oil companies that have some forms of collaborative venture with the major transnational oil companies (customarily operated through oil leases and joint memoranda of understanding).
    • Arabica Robusta
       
      Production share arrangements and joint ventures.
  • In general the international oil companies operating in Africa have production share arrangements with state oil companies (Nigeria is the exception which operates largely through joint ventures).
  • The nightmarish legacy of oil politics must be traced back to the heady boom days of the 1970s. The boom detonated a huge influx of petro-dollars and launched an ambitious (and largely autocratic) state-led modernization program. Central to the operations of the new oil economy was the emergence of an “oil complex” that overlaps with, but is not identical to, the “petro-state.” The latter is comprised of several key institutional elements: (1) a statutory monopoly over mineral exploitation, (2) a nationalized (state) oil company that operates through joint ventures with oil majors who are granted territorial concessions (blocs), (3) the security apparatuses of the state (often working in a complementary fashion with the private security forces of the companies) who ensure that costly investments are secured, (4) the oil producing communities themselves within whose customary jurisdiction the wells are located, and (5) a political mechanism by which oil revenues are distributed.
  • The oil revenue distribution question—whether in a federal system like Nigeria or in an autocratic monarchy like Saudi Arabia—is an indispensable part of understanding the combustible politics of imperial oil.
  • there has been a process of radical fiscal centralism in which the oil-producing states (composed of ethnic minorities) have lost and the non-oil producing ethnic majorities have gained—by fair means or foul.
  • the oil complex. First, the geo-strategic interest in oil means that military and other forces are part of the local oil complex. Second, local and global civil society enters into the oil complex either through transnational advocacy groups concerned with human rights and the transparency of the entire oil sector, or through local social movements and NGOs fighting over the consequences of the oil industry and the accountability of the petro-state. Third, the transnational oil business—the majors, the independents, and the vast service industry—are actively involved in the process of local development through community development, corporate social responsibility and stakeholder inclusion. Fourth, the inevitable struggle over oil wealth—who controls and owns it, who has rights over it, and how the wealth is to be deployed and used—inserts a panoply of local political forces (ethnic militias, paramilitaries, separatist movements, and so on) into the operations of the oil complex (the conditions in Colombia are an exemplary case). In some circumstances oil operations are the object of civil wars. Fifth, multilateral development agencies (the IMF and the IBRD) and financial corporations like the export credit agencies appear as key “brokers” in the construction and expansion of the energy sectors in oil-producing states (and latterly the multilaterals are pressured to become the enforcers of transparency among governments and oil companies). And not least, there is the relationship between oil and the shady world of drugs, illicit wealth (oil theft for example), mercenaries, and the black economy.
  • oil complex is a sort of corporate enclave economy but also a center of political and economic calculation that can only be understood through the operation of a set of local, national, and transnational forces that can be dubbed as “imperial oil.” The struggle for resource control that has taken center stage o
    • Arabica Robusta
       
      oil complex as a corporate enclave economy.
  • The current crisis points to the fact that the oil-producing region in Nigeria now stands at the center of Nigerian politics—for four reasons. First, the efforts led by a number of Niger Delta states for “resource control” expanded access to and control over oil and oil revenues. Second, there was the struggle for self-determination of minority peoples in the region and the clamor for a sovereign national conference to rewrite the constitutional basis of the federation itself. Third, there is a crisis of rule in the region as a number of state and local governments are rendered helpless by militant youth movements, growing insecurity, and ugly intra-community, inter-ethnic, and state violence which—as the recent events point out—can threaten the flow of oil and the much vaunted energy security of the United States. And not least, there is the emergence of a so-called South-South Alliance making for a powerful coalition of small and hitherto politically marginalized oil producing states (Akwa Ibom, Bayelsa, Cross River, Delta, Ondo, and Rivers) capable of challenging the ruling ethnic majorities (the Hausa, the Yoruba, and the Ibo) in the run-up to the 2007 elections.
  • Not surprisingly the deadly operations of corporate oil, autocratic petro-states, and the violent potentialities of the oil complex have forced the question of transparency and accountability of oil operations onto the international agenda. Tony Blair’s Extractive Industries Transparency Initiative, the IMF’s oil diagnostics program, and the Soros Foundation’s Revenue Watch are all (voluntary) efforts to provide a veneer of respectability to a rank and turbulent industry. But the real action lies elsewhere. The danger is that the ongoing U.S. militarization of the region could amplify the presence of mercenaries and paramilitaries, creating conditions not unlike those in Colombia.
  •  
    In reality what is on offer is an even bleaker world of military neoliberalism. At one pole are enclaves of often militarily fortified accumulation (of which the oil complex is the paradigmatic case) and the violent, sometimes chaotic, markets so graphica
Arabica Robusta

Ghana's New Oil Wealth May Trigger Borrowing Spree - BusinessWeek - 0 views

  • Ghanaian President John Atta Mills says the country will learn from the mistakes of other African oil producers and save some of the revenue for future generations after production starts today. Government agreements to borrow more than $14 billion say otherwise.
  • “We must give thanks to God for giving us this natural asset,” Mills said after opening a tap to release oil aboard a storage ship today. “It means we are assuming very serious responsibilities. Those of us in leadership positions must ensure oil is a blessing is not a curse.”
  • Ghana has been overspending since the oil was discovered in 2007, with the government posting a fiscal deficit in excess of 5 percent of GDP in each of the past three years.
  • ...1 more annotation...
  • Ghana has a good track record, after cutting hunger by 75 percent between 1990 and 2004 and maintaining one of Africa’s most stable democracies in the past 20 years. Buoyed by a burgeoning financial sector and record prices for cocoa and gold, its two largest exports, growth has averaged more than 5.5 percent over the past decade.
Arabica Robusta

The Chevron Pit: Chevron in the Gulf - 0 views

  • Ever since BP’s disastrous oil spill, there have been no new drilling permits in the Gulf. Well, that’s changed and the first company to get a permit…drum roll please… Chevron. Never mind that they have destroyed the Ecuadorian Amazon. Never mind that they have been sued by indigenous tribes for the death and disease they have caused. Never mind that they refuse to take responsibility for their actions. They now get to try the same thing in the Gulf. Because the environment and livelihood of the region haven’t already taken enough of a hit.
Arabica Robusta

Tomgram: Michael Schwartz, The New Oil Wars in Iraq | TomDispatch - 0 views

  • It was a moment of remarkable contradictions.  Obama managed, for example, to warn against “mission creep” even as he was laying out what could only be described as mission creep.  Earlier that week, he had notified Congress that 275 troops would be sent to Iraq, largely to defend the vast U.S. embassy in Baghdad, once an almost three-quarters-of-a-billion-dollar symbol of imperial hubris, now a white elephant of the first order.  A hundred more military personnel were to be moved into the region for backup.
  • In tandem with the military moves, the president and his national security team, perhaps reflecting through a glass darkly the “democracy agenda” of the Bush era, also seemed to have dipped their fingers in purple ink.  They were reportedly pressuring Iraqi politicians to dump Prime Minister Maliki and appoint a “unity” government to fight the war they want.  (Adding to the farcical nature of the moment, one name raised for Maliki’s position was Ahmed Chalabi, once the darling of Bush-era officials and their choice for that same post.)
  • There is, however, no way that an American intervention won’t be viewed as a move to back the Shia side in an incipient set of civil wars, as even retired general and former CIA director David Petraeus warned last week.
  • ...6 more annotations...
  • Fortunately, sociologist Michael Schwartz, an old-time TomDispatch regular, is back after a long absence to remind us of The One Fact in Iraq, the one we should never forget. Tom
  • Under the seething ocean of Sunni discontent lies a factor that is being ignored. The insurgents are not only in a struggle against what they see as oppression by a largely Shiite government in Baghdad and its security forces, but also over who will control and benefit from what Maliki -- speaking for most of his constituents -- told the Wall Street Journal is Iraq’s “national patrimony.”
  • When, in 2009, the Obama administration first began withdrawing U.S. combat troops, Iraqis everywhere -- but especially in Sunni areas -- faced up to 60% unemployment, sporadic electrical service, poisoned water systems, episodic education, a dysfunctional medical system, and a lack of viable public or private transportation. Few Westerners remember that, in 2010, Maliki based his election campaign on a promise to remedy these problems by -- that figure again -- increasing oil production to six million barrels per day.
  • none of this oil wealth trickled down to the grassroots, especially in Sunni areas of the country where signs of reconstruction, economic development, restored services, or jobs were hard to discern. Instead, the vast new revenues disappeared into the recesses of a government ranked by Transparency International as the seventh most corrupt on the planet.
  • In a rare moment of ironic insight, Time magazine concluded its coverage of the F-16 purchase with this comment: “The good news is the deal will likely keep Lockheed’s F-16 plant in Fort Worth running perhaps a year longer. The bad news is that only 70% of Iraqis have access to clean water, and only 25% have clean sanitation.”
  • With conditions worsening, Sunni communities only became more insistent, supplementing their petitions and demonstrations with sit-ins at government offices, road blockades, and Tahrir Square-type occupations of public spaces. Maliki’s responses also escalated to arresting the political messengers, dispersing demonstrations, and, in a key moment in 2013, “killing dozens” of protestors when his “security forces opened fire on a Sunni protest camp.” This repression and the continued frustration of local demands helped regenerate the insurgencies that had been the backbone of the Sunni resistance during the American occupation. Once lethal violence began to be applied by government forces, guerrilla attacks became common in the areas north and west of Baghdad that the U.S. occupiers had labeled “the Sunni triangle.”
Arabica Robusta

Pulling A Fast-One on Transparency | The Con - 0 views

  • Until the September 11th 2001 attacks in New York City, corporations could vie for lucrative concessions and shroud their payoffs into the offshore secret accounts of politicians and other key players. But more open banking practices instituted worldwide in the fight against terrorism have made secret bank accounts difficult to hide.
  • Companies and governments are now resorting to “in-kind payments” to disguise these backhanders. For instance, leasing office space from an individual with the right political connections at a rate higher than the prevailing market price is a common way of making an in-kind payment. Another practice is to recruit relatives or friends of an influential and politically- connected individual and retain them on payrolls as “facilitators” or “consultants” without clearly-defined responsibilities. Inflating costs for replacing equipment and parts is another fraudulent practice.
  • Nigeria is Africa’s largest oil producer and has decades of experience. But it still relies on oil companies to determine the volume of oil produced and shipped out of its territory.
1 - 20 of 21 Next ›
Showing 20 items per page