✅Case Study - Shell in Nigeria Flashcards

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1
Q

How many miles of oil pipeline run through Nigeria?

A

2500

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2
Q

How much money does oil contribute to the Nigerian government?

A

£1.1billion in taxes and royalties

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3
Q

How many barrels of oil are extracted every day?

A

572,000

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4
Q

How many people does Shell employ in Nigeria?

A

6000

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5
Q

What percentage of Shell in Nigeria cocnract are awarded to Nigerian companies?

A

94%

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6
Q

Where are Shell’s headquarters?

A

The Hague, Holland

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7
Q

Why was the choice of location for their headquarters criticised?

A

The Netherlands has traditionally behaved pragmatically towards the kinds of tax relief claimed by the company

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8
Q

Why is being based in the Netherlands beneficial for Shell?

A

It allows easy access to EU markets

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9
Q

How much of Nigeria’s Petroleum production does Shell account for?

A

21%

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10
Q

How many Nigerian oil fields does Shell operate in?

A

More than 80

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11
Q

How much did Shell contribute to the Niger Delta Development Comission?

A

$1.9 billion since 2002`

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12
Q

How much did Shell contribute to social investment funds for community driven projects?

A

$228 million

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13
Q

Why is Shell being based in Nigeria beneficial?

A

Jobs created
Economy of country improves through exports
Development through money donated/given
Develops trade relationships

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14
Q

What social event happened in the 1990s?

A

Tensions rose between Shell and the Ogoni people of the Niger delta

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15
Q

Why were there tensions between Shell and the Ogoni people?

A

Because locals felt that they were getting very little money from the oil on their land and environmental damage was ruining it.

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16
Q

What happened between Shell and the Ogoni people in 1993?

A

Protests were organised against Shell and the Government, occupying company production facilities.

17
Q

What actions did Shell take following the 1993 protests?

A

They suspended operations in the area

18
Q

How did the Nigerian government respond to Shell suspending operations?

A

They raided the villages and arrested the protest leaders, with some later being executed

19
Q

What percentage of its oil spills did Shell claim were due to sabotage?

A

98%

20
Q

What constitutes sabotage?

A

Individuals from local villages drilling holes in the pipelines to capture the oil and selling it illegally

21
Q

When was Shell’s estimation on sabotage lowered?

A

When Dutch courts ruled that Shell was liable for the pollution in the Niger Delta in 2013

22
Q

What did Shell lower their sabotage estimation to?

A

70%

23
Q

How many people live in the Ogale community?

A

40,000

24
Q

How have the Ogale community been affect by Shell’s operations?

A

They have not had clean drinking water, farmland or rivers since oil spills as far back as 1986

25
Q

What did a 2011 report by Amnesty International show?

A

That the water supplies contained benzene and other carcinogens

26
Q

What did soils samples in Bodo show?

A

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

27
Q

What have levels of environmental damage in the Delta been described as?

A

Catastrophic

28
Q

What impact have oil spills had on people’s livelihoods in Nigeria?

A

They have no chance to farm or fish due to contamination, so have to find other means of work

29
Q

Why are Nigeria still willing to allow Shell access to oil reserves?

A

They provide huge economic benefit to the country by extracting oil