...Investment Report - British Petroleum in Nigeria Group D June 6, 2015 Table of Contents Introduction 3 Country Evaluation 6 Industry Overview 9 Regulatory structure 9 Competition – Major and minor competitors 12 Local financing options for the expansion 12 Overall attractiveness of the industry 13 Entry Strategy 13 Recommendations 17 References 20 Introduction Nigeria in West Africa is about twice the size of California in the US but is the largest country in Africa. Just over 160 million people live in this country with approximately 800,000 of them living in the capital city of Abuja which is located in the very center of Nigeria. (Nigeria) Nigeria has two distinct reputations. One as a corrupt and violent country that is not highly recommended for tourist type visitations (although it does have incredibly interesting historical sights) and the other for being the country visited mostly for unbelievably lucrative business transactions involving oil and gas. The Nigerian people live mostly in poverty in a country where oil and gas exports total billions in revenue. This is due to the fact that the Nigerian government has total control over their property rights. In addition corruption within that government runs rampant. According to an article by Michael Burleigh 70% of Nigerians live below poverty level struggling to survive. (Burleigh) What is even more interesting in a country rich in oil and gas is that the poverty stricken also have...
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...Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 1 Royal Dutch Shell ◦ 1907 - Merger of Shell Transport & Trading Company Ltd. and Royal Dutch Petroleum Company (Shell) ◦ 1936 - Shell operations started in Nigeria – Shell D’Arcy (Shell Nigeria) ◦ “Royal Dutch Group of Companies proved more than 50% of Nigeria‟s oil and gas reserves” – (Parboteeah, 2011) Nigeria ◦ Formed by Britain in 1914 - “…the colony and Protectorate of Nigeria, governed by „indirect rule‟ through local leaders” (BBC News, 2010) ◦ High poverty and deteriorated political and security stance since existence ◦ Worldwide economic importance – Huge oil reserves ◦ 80 % revenues to Nigerian Government through oil reserves Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 2 Compliments ◦ Support to Nigerian economy Criticism ◦ Oil Pollution (Jolly, 2011) ◦ Development of communities ◦ “Shell invests $1bn on Nigerian oilfield” (BBC News, 1999) ◦ “Currently the Delta gets 13 percent with the balance going to the central government and other states” (Ruseckas, 2009) ◦ Employment for Nigerians (Parboteeah, 2011) ◦ Involvement in violence – Ken SaroWiwa (Pilkington, 2009) ◦ Bribery (Wyatt, 2010) Ken Saro-Wiwa in 1993. Photograph: Greenpeace/AFP Shell’s Bonga offshore oilfield - Nigeria Global Business Strategy:...
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...ENVIRONMENT KHABAROVSK, RUSSIAN FEDERATION AUGUST 27.-29, 2007 The Adverse Impacts of Oil Pollution on the Environment and Wellbeing of a Local Indigenous Community: The Experience of the Ogoni People of Nigeria Paper by LEGBORSI SARO PYAGBARA MOVEMENT FOR THE SURVIVAL OF THE OGONI PEOPLE (MOSOP) OF NIGERIA Introduction Crude oil has had profound impact on the world civilization than any single natural resource in recorded history. Oil has become a very decisive element in defining the politics, rhetoric and diplomacy of states. This fact is adumbrated in a public lecture entitled “Oil in World Politics” delivered by a former secretary of the Organization of the Petroleum Exporting Countries (OPEC), the late Chief M.O.Feyide, when he asserted that “All over the world, the lives of people are affected and the destiny of nations are determined by the result of oil explorations. Oil keeps the factors of the industrialized countries working and provides the revenues, which enable oil exporters to execute ambitious national and economic development plans. The march of progress would be retarded and life itself would be unbearable if the world is deprived of oil. That is why oil has become the concern of governments, a vital ingredient of their politics and a crucial factor in the political and diplomatic strategies”[i] Yet behind this deification of oil,...
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...the Crude Oil and Natural Gas Sector of Nigeria Table of Contents A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria 1 Chapter 1 General Introduction 6 1.1. Background 6 1.1.1. Definitions 14 1.1.2. Trade Liberalization 14 1.1.3. International Trade Law 15 1.1.4. Right to Health 16 1.1.5. Human Right Laws 17 1.2. Research Questions 18 1.3. Justification of the Research 21 1.4. Research Objectives 30 1.5. Research Methodology 31 1.6. Research Structure 37 Chapter 2 Theoretical Framework and Literature Review 40 2.1. Introduction 40 2.2. International Trade Rules and Protection of People’s Right to Health 41 2.2.1. Sources of International Trade Rules 41 2.2.2. Trade Liberalization and the Protection of the Right to Health 44 2.3. Scope of the Right to Health 54 2.4. Brief Overview of State Intervention Theory 59 2.5. States Duty towards the Fulfilment of the Right to Health 65 2.6. Legislative and Institutional Regulations Protecting the Right to Health in Nigeria 73 2.6.1. The International Covenant on Economic Social and Cultural Rights (ICESCR) 1966 76 2.6.2. The African Charter on Human and People’s Rights (ACHPR) 78 2.6.3. The International Health Regulations, 2005 81 2.6.4. The Nigerian Constitution 82 2.7. Conclusion 83 Chapter 3 State Intervention in the Negative Effects of Trade in Crude Oil and Natural...
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...A REPORT ON SIX MONTHS STUDENTS INDUSTRIAL WORK EXPERIENCE SCHEME. AT NIKORMA (A SUBSIDIARY OF NIGERIAN NATIONAL PETROLEUM CORPORATION) HEADQUATERS, This located at no.7 lake chart crescent, Maitama. Abuja BY CS/08/1332 IN PARTIAL FULFILLMENT FOR THE REQUIREMENT FOR THE AWARD OF BACHELOR DEGREE IN TECHNOLOGY (B.TECH) IN COMPUTER SCIENCE. MODIBBO ADAMA UNIVERSITY OF TECHNOLOGY YOLA, NIGER STATE OCTOBER 2012 DEDICATION This report is dedicated to the Almighty ALLAH and to my beloved mother and Mrs Aisha Tijjani and her husband also with the entire staffs and students of Surveying and Geo-informatics Federal University of Technology Minna. ACKNOWLEDGEMENT My profound gratitude goes to the Almighty God who saw me through this training program and thanks my parents and siblings who encouraged me when the road seemed too tough, for shelter and financial support. My appreciation goes to the staff of Pipeline and Products Marketing Company (PPMC) especially my supervisor and the staff of Pipeline Right Of Way (PROW) and to all NNPC staff and development control for their kind support and for the knowledge they impacted on me during the period of my training. My thanks goes to the SIWES and ITF coordinators especially the Federal University Of Technology Minna SIWES coordinator, my Head of Department...
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...Impact of Nigeria's Bilateral Investment Agreements in Oil and Gas on the Right to Health and the Right to a Healthy Environment: A Case Study of the Niger Delta” Full Name of Student (Your student registration number) A XXXXXXXXXXX DISSERTATION SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF DEGREE OF XXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXX UNIVERITY Declaration I hereby declare that research thesis is my original work and has never been used presented for any degree or diploma in any university or institution. Where material is obtained from published or unpublished works, this has been fully acknowledged by citation in the main text and inclusion in the list of references. Table of Contents Declaration 2 Table of Contents 3 CHAPTER ONE: INTRODUCTION 11 1.1 Background of the study 11 1.2 Statement of the Problem 27 1.2 Research Aims 29 1.3 Research Objectives 30 1.4 Research Questions 31 1.5 Justification of the Research 32 1.6 Research Methodology 42 1.6.2 Research design 45 1.6.2 Target population 45 1.6.3 Sampling 46 1.6.4 Data collection 46 1.6.5 Data presentation 46 1.7 Definition of terms 46 1.8.2 Environment 47 1.8.3 The right to health and the right to a healthy environment...
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...information, please visit www.eccr.org.uk. Acknowledgements ECCR would like to thank the five civil society organisations that contributed case studies based on their work in the Niger Delta; Cordaid for generously sponsoring the report; members, partners and independent experts who advised, read and commented on the text before publication; Royal Dutch Shell Plc and Shell Petroleum Development Corporation of Nigeria for providing company information and commenting on the text. Cover photo credits: Friends of the Earth International; IRIN/UN Office for the Coordination of Humanitarian Affairs; Milieudefensie/Friends of the Earth Netherlands; Stakeholder Democracy Network. Disclaimers ECCR has commissioned and published these case studies as a contribution to public understanding. The text has undergone a careful process of fact-checking and review to achieve accuracy and balance. Nevertheless, the views expressed in the case studies do not necessarily represent in every respect or detail those of ECCR. The views expressed outside the case study written by Pro-Natura International (Nigeria) (PNI) are not necessarily those of PNI. How useful was this report? ECCR invites readers and users of this report to send us their comments. Please inform us of any engagement or dialogue you...
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...in a quagmire of violence and political issues in Nigeria, Royal Dutch Shell’s challenge was to establish socially responsible business practices to enable the company to sustain and expand its operations in Nigeria and the Niger Delta in particular. A conflict resolution and public policy consultant was brought in how to develop some constructive ideas on how best to address the problems Royal Dutch Shell faced in Nigeria. This case is intended to introduce students to some of the complex the complex issues faced by multinational corporations in developing countries. Although Shell is very lucrative company that makes millions of dollars a day, they would be very hurt to lose business operation base in Nigeria. Shell went from an egoistic operation in Nigeria to a benevolent and principle based operation. If Shell even took on a larger sense of social responsibility, they would have gained a larger competitive advantage over the competition. ii. Chronology 1. This case begins when Benjamin Aaron, a conflict resolution and public consultant, receives a request from one of his important clients, a potential new member to the board of Royal Dutch Shell, to provide advice on how to address the problems that Royal Dutch Shell faced in Nigeria. 2. The case goes on to review the turbulent political history in Nigeria, and taken to establish socially responsible business practice in Nigeria. 3. The case focuses on the oil-rich Niger Delta region, and describes how violence...
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...Niger Delta There is a long and terrible record of environmental destruction and human rights violations in the oil-producing regions of Nigeria. The gross level of environmental degradation caused by oil exploration and extraction in the Niger Delta has gone unchecked for the past 30 years. Evidence shows that the oil companies operating in Nigeria have not only disregarded their responsibility towards the environment but have acted together with the military’s repression of Nigerian citizens. The profit-driven collusion between multinational oil companies and the past and present Nigerian governments has cost many lives and continues to threaten the stability of the region. In the course of writing this paper, based on all the accounts of reports read, interviews conducted, news and report findings, I came to the realization that oil extraction and the related operations of multinational oil corporations pose a serious threat to the livelihood of the people of the Niger Delta. Tensions in the Niger Delta continue to erupt into violence as natural resources vital to local communities’ survival are destroyed by oil operations. Environmental and social justice for the people of the Niger Delta remain central issues for achieving peace in the region. As long as people’s calls for justice continue to be ignored and resisted by both multinational oil corporations and the Nigerian government, the situation in the Delta can only deteriorate. Many ethnic groups in the...
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...Leader, Sustainable Development Network World Bank Country Office, Nigeria (contact: sehui@worldbank.org) Marinos Tsigas U.S. International Trade Commission, Washington, DC June 28, 2009 Abstract Blessed with abundant land and water resources, Nigeria’s agricultural sector has a high potential for growth, but this potential is not being realized. Productivity is low and basically stagnant. Farming systems, which are mostly small in scale, are still predominantly subsistence-based and for the most part depend on the vagaries of the weather. Many agricultural policies have also been ineffective, either because they have been misguided, or because their impacts have been swamped by macro policies affecting inflation, exchange rates, and the cost of capital. Recognizing these challenges, the Federal Government of Nigeria has identified the modernization of the agricultural sector as a major priority. In this paper we have applied the Global Trade Analysis Project (GTAP) framework to estimate the growth potential of agriculture in Nigeria. Our results show that although a 1% percent technological progress in the oil sector gives the largest welfare benefits in dollar terms ($142.72 million), when we abstract for size several food and agricultural sectors have a value that is higher than that for the oil sector. Some subsectors in the agricultural sectors (e.g. cattle, fruit and vegetables) outperform some of the oil and manufacturing sectors in terms to return to investment. Also...
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...A Study of Shell Oil and its Stakeholders in Nigeria Part 1 (Week Six) A Review of Basic Issues Regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria Chapter 1 Introduction The complexity of understanding the Shell Nigeria oil spill and applying critical analysis and leadership theories to the problem is a challenging debate. A reader would tend to assume that Shell is at fault and should take all the blame for this corporate and ecological mess. Therefore, the introduction needs to provide the reader with sufficient historical information and background of stakeholders such as Royal Dutch Shell Company, Nigeria (country), Niger Delta (province of Nigeria) and its directly affected tribal communities of the oil spill. The introduction is thorough as to avoid explaining in other key elements of this research paper. The Royal Dutch Shell was ranked No1 as the largest organisation in the world in 2012 by Global 500. Shell has boosted its first quarter earnings of 2012 by 11% compared to that of 2011. Shells long term projects that have just commenced creating; a gas to liquids plant in Qatar and further projects in Canadian oil sands, have in part contributed to these revenues. Royal Dutch Shell has 87000 employees globally (Global 500, 2012) The first Shell Company in Nigeria was started in 1936 by The Royal Dutch/Shell Group. The Royal Dutch/Shell Group then founded Shell D’Arcy. Two years later in November 1928...
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...course EFO705 Tutor: Leif Linnskog 03.06.2008 Economic Development through Globalisation in Nigeria An analysis of Shell & the IMF Structural Adjustment Programs Sven Bokhari 820619-P291 Fabrizio Del Duca 791225-P114 Group number: 1983 Summary Date: Level: Authors: 2008/06/03 Master thesis in International Business and Entrepreneurship, 10p (15ECTS) Sven Bokhari Västerås Date of birth: 19820619 Fabrizio Del Duca Västerås Date of birth: 19791225 Title: Economic Development through globalisation in Nigeria. An analysis of Shell & the IMF Structural Adjustment Programs Leif Linnskog, Ph.D. Tutor: Research Question: Can globalisation be seen as positive or negative for the Economic Development of Nigeria? A focus on Shell and the International Monetary Fund Research Issue: Globalisation in its current form is viewed in the Western world as a positive influence for the Economic Development of under developed countries. However these views on the benefits brought to developing countries have been frequently disputed. The research we are undertaking is a pilot study based on documentary research. Our source of information is secondary data such as books, articles, newspapers and journals. The study employs a qualitative approach. Even though globalisation is often viewed as positive we have discovered that this is not always the case in relation to its effects in Nigeria. Judging from our analysis, globalisation through the IMF and Shell has had an overall negative...
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...What Causes High Gas Prices? There are various factors that play a role in the price consumers pay at the pump. The major cause in the fluctuation of gas prices is crude oil. Crude oil is that main ingredient involved in the manufacturing of gas. One body that has great influence over the worldwide price of oil is the Organization of Petroleum Exporting Countries (OPEC). OPEC is made up of twelve of the world’s biggest oil-producing nations which include: Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. Since OPEC’s nations produce so much of the world’s oil supply, they can control the level of production. Oil is one of the world's most important commodities, and as a result, the nations that control the majority of the world's supply have a great deal of power over its availability. In addition, conflicts such as war in an oil-producing region can also bring up the price of gasoline. Andre Gerolymatis, a history professor at Simon Fraser University, says political upheaval in Ukraine and Russia's military incursion into Crimea could be putting pressure on prices. The reason, of course, is that 40 per cent of Europe's gas and oil comes from Russia, and it comes through the Ukraine. So there's the potential that this could be disrupted, and that means that the Europeans would have to go elsewhere for gas, and that would drive the prices up. (Bains, 2014) Bibliography Bains, M. (2014, March 5). Russia-Ukraine...
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...Vol. 2 (5): 102 - 115 The impact of petroleum on economic growth in Nigeria Michael Baghebo Niger Delta University, Bayelsa State, Nigeria baghebomichael@yahoo.com Timothy Okule Atima Niger Delta University, Bayelsa State, Nigeria Abstract The study examines the impact of petroleum on economic growth of the Nigerian economy. Data covering the period 1980-2011 was collected from the Central Bank of Nigeria Statistical Bulletin, and transparency international Agency annual publications and analyzed using econometric approach. The stationary status of the time series data was examined using Augmented Dickey Fuller test. The regressand is Real Gross Domestic Product (RGDP), The regressors are Foreign direct investment (FDI), Oil revenue (OIL), Corruption index (CI), External debt (EXDEBT). The series attained stationary after differencing. The Johansen cointegration test was conducted to ascertain the long run equilibrium condition of the variables in the model. The variables were cointegrated because four cointegrating equations were found. The Parsimonous model was established to account for the short run dynamic adjustments required for stable long run equilibrium. It was discovered that the variables: oil revenue and corruption index impacts negatively on Real GDP, while FDI and EXDEBT have positive impact on the growth of the economy. This means that the resource curse theory is proven to be true in Nigeria. The study concludes that, if the petroleum industry bill is passed...
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...to Nigeria within 72 hours, requiring all soldiers to become familiar with the geography, culture, history, economy, governance, infrastructure, and other organizations operating in the region. All leaders should ensure that they are fully briefed in the above mentioned areas so that they may pass this information along to their soldiers. Understanding the culture of a region in the key to developing a strategy that will enable US forces to conduct operations in that region without unnecessary civilian casualties and without fomenting unnecessary hostility amongst the populace. MESSAGE Nigeria is located in the coast of western Africa, bordering Benin and Cameroon, and is about twice the size of the state of California. The only major river in the country is the Niger, which enters in the northwest and flows through tropical rainforests and swamps out to the Gulf of Guinea. The major geographical issue affecting the country is the loss of arable land due to soil degradation, rapid deforestation, and oil spills. In addition, the country is going through a period of rapid urbanization. A US force operating in the region will encounter environments ranging from open desert to tropical rainforests, and will be forced to operate in urban environments. Due to rapid desertification and air pollution, forces operating in the area will be forced to contend with high temperatures and a lack of potable water sources. Nigeria has the following natural resources: natural gas, petroleum...
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