✅Case Study - Shell in Nigeria Flashcards
How many miles of oil pipeline run through Nigeria?
2500
How much money does oil contribute to the Nigerian government?
£1.1billion in taxes and royalties
How many barrels of oil are extracted every day?
572,000
How many people does Shell employ in Nigeria?
6000
What percentage of Shell in Nigeria cocnract are awarded to Nigerian companies?
94%
Where are Shell’s headquarters?
The Hague, Holland
Why was the choice of location for their headquarters criticised?
The Netherlands has traditionally behaved pragmatically towards the kinds of tax relief claimed by the company
Why is being based in the Netherlands beneficial for Shell?
It allows easy access to EU markets
How much of Nigeria’s Petroleum production does Shell account for?
21%
How many Nigerian oil fields does Shell operate in?
More than 80
How much did Shell contribute to the Niger Delta Development Comission?
$1.9 billion since 2002`
How much did Shell contribute to social investment funds for community driven projects?
$228 million
Why is Shell being based in Nigeria beneficial?
Jobs created
Economy of country improves through exports
Development through money donated/given
Develops trade relationships
What social event happened in the 1990s?
Tensions rose between Shell and the Ogoni people of the Niger delta
Why were there tensions between Shell and the Ogoni people?
Because locals felt that they were getting very little money from the oil on their land and environmental damage was ruining it.
What happened between Shell and the Ogoni people in 1993?
Protests were organised against Shell and the Government, occupying company production facilities.
What actions did Shell take following the 1993 protests?
They suspended operations in the area
How did the Nigerian government respond to Shell suspending operations?
They raided the villages and arrested the protest leaders, with some later being executed
What percentage of its oil spills did Shell claim were due to sabotage?
98%
What constitutes sabotage?
Individuals from local villages drilling holes in the pipelines to capture the oil and selling it illegally
When was Shell’s estimation on sabotage lowered?
When Dutch courts ruled that Shell was liable for the pollution in the Niger Delta in 2013
What did Shell lower their sabotage estimation to?
70%
How many people live in the Ogale community?
40,000
How have the Ogale community been affect by Shell’s operations?
They have not had clean drinking water, farmland or rivers since oil spills as far back as 1986
What did a 2011 report by Amnesty International show?
That the water supplies contained benzene and other carcinogens
What did soils samples in Bodo show?
That out of 32 samples taken from the top two inches of soil, only one was within Nigeria’s legally acceptable limit for oil contamination
What have levels of environmental damage in the Delta been described as?
Catastrophic
What impact have oil spills had on people’s livelihoods in Nigeria?
They have no chance to farm or fish due to contamination, so have to find other means of work
Why are Nigeria still willing to allow Shell access to oil reserves?
They provide huge economic benefit to the country by extracting oil
