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Nigerian Oil
FEBRUARY 2007
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| Curse of the Black Gold: Hope and Betrayal in the Niger Delta (continued) |
By Tom O'Neill
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Photographs by Ed Kashi
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At the Finima meetinghouse, the men grew restless and, one by one, drifted into the dusk. Before he left, Felix Harry declared that faith in God would reward the community. That belief must be deep on Bonny Island, judging from the barrage of signs for revival meetings and church services along island roads. One church promoted PUSH: Pray Until Something Happens. Christianity has found fertile ground in the delta after Protestant missionaries arrived in force in the mid-1800s, and it is now the dominant faith.
Harry recited Psalm 91, praising God with a flourish: "He is my refuge and my fortress." We walked outside. There, stranded on the shore, were the village fishing boats, several dozen of them. Only a miracle would get them into the water.
Across the delta, people are hoping that someone will pay attention to the region's problems and intervene. The U.S. and western Europe, the major consumers of Nigerian oil, are watching closely. With the U.S. consulate in Lagos warning of a possible rebel attack on Bonny Island, diplomats are urging greater military security. Stockholders of the oil companies are asking why the situation has turned so perilous. Who is to blame? The answers are as complicated and murky as the water trails in the delta.
When the oil curse began with that first great gusher in the creekside village of Oloibiri, 50 miles (80 kilometers) west of Port Harcourt, Nigeria was still a British colony. At independence in 1960, few observers expected that Nigeria would mature into an oil giant. But in subsequent decades, the oil companies, led by five multinational firms—Royal Dutch Shell, Total, Italy's Agip, and ExxonMobil and Chevron from the U.S.—transformed a remote, nearly inaccessible wetland into industrial wilderness. The imprint: 4,500 miles (7,200 kilometers) of pipelines, 159 oil fields, and 275 flow stations, their gas flares visible day and night from miles away.
No one can deny the sheer technological achievement of building an infrastructure to extract oil from a waterlogged equatorial forest. Intense swampy heat, nearly impenetrable mangrove thickets, swarming insects, and torrential downpours bedevil operations to this day. But mastering the physical environment has proved almost simple compared with dealing with the social and cultural landscape. The oil firms entered a region splintered by ethnic rivalries. More than two dozen ethnic groups inhabit the delta, among them the Ijaw, the largest group, and the Igbo, Itsekiri, Ogoni, Isoko, and Urhobo. These groups have a history of fighting over the spoils of the delta, from slaves to palm oil—and now, crude oil. The companies disturbed a fragile landscape that supported fishing and farming. Engineers and project managers constructing pipelines through a mangrove swamp, or laying roads through marshland, could disrupt spawning grounds or change the course of a stream, threatening a village's livelihood.
Recent reports by the United Nations Development Program and the International Crisis Group identify some of the questionable strategies employed by oil companies: paying off village chiefs for drilling rights; building a road or dredging a canal without an adequate environmental impact study; tying up compensation cases—for resource damages or land purchases—for years in court; dispatching security forces to violently break up protests; patching up oil leaks without cleaning up sites.
"After 50 years, the oil companies are still searching for a way to operate successfully with communities," says Antony Goldman, a London-based risk consultant. The delta is littered with failed projects started by oil companies and government agencies—water tanks without operating pumps, clinics with no medicine, schools with no teachers or books, fishponds with no fish.
"The companies didn't consult with villagers," says Michael Watts, director of the African Studies Program at the University of California, Berkeley. "They basically handed out cash to chiefs. It wasn't effective at all."
Last summer, skittish oil prices hit $78 a barrel, partly because of an attack on a Shell flow station. The high prices more than offset production losses caused by the growing instability, helping earn Shell and the other multinationals record profits in 2006. Meanwhile, more oil fields continue to open, many of them offshore where the infrastructure, though far more expensive than on land, is much safer from sabotage and theft. The deepwater fields are attracting aggressive new investors as well. China, India, and South Korea, all energy-hungry, have begun buying stakes in Nigeria's offshore blocks. "Most Western companies in Nigeria will find it difficult to compete, especially with China," Goldman says. That's because oil purchases by the Chinese come with their commitment to finance large infrastructure projects, such as rehabilitating a railroad line.
The largest new petroleum endeavor on the delta is taking shape along the Nun River, a tributary of the Niger. Operated by Shell, the Gbaran Integrated Oil and Gas Project, scheduled to begin producing in 2008, will encompass 15 new oil and gas fields, more than 200 miles (320 kilometers) of pipeline, and a sizable gas-gathering plant. New roads are already gashing the forest. Mounds of long black pipes await burial. Near a bank of the Nun, Nigerian soldiers crouch behind a ring of sandbags, a .60-caliber machine gun facing the road as they guard the entrance to the construction site of the gas plant. Cranes and bulldozers crawl over a cleared space large enough to fit two shopping malls. From the air, it must look as if a patch of skin has been removed from the face of the forest.
Activists with human rights groups are pressuring Shell to learn from past mistakes and treat this high-profile project, which affects 90 villages, as a chance to work better with communities. Michael Watts is advising NGOs on how to educate the local people about their rights. "For Shell to conduct business as usual would be a public relations disaster," Watts says. "Folks say, 'Look, these oil companies are making billions by taking out this black stuff from our territory—they should have some ethical and social responsibilities.'"
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