Oil: Shell’s Covert Hijack Of Jonathan’s New PIB? By Ifeanyi Izeze

By Ifeanyi Izeze

The Wikileaks saga of last year helped revealed some of the evil forces at play in frustrating genuine reform of the structure and fiscal relationships in the Nigeria’s oil and gas sector. The leak revealed a confession of a top executive of Shell Petroleum Development Company of Nigeria (SPDC) as saying his company dispatched some of its top staff to various Nigerian government agencies to sabotage and ensure the government’s efforts at reforming the oil and gas sector was frustrated. And from what’s on ground already, Shell is fully having its way.

 

Is it not interesting that the Presidency which hitherto had never shown any sense of urgency in any issue is trying to make the preparation and passage of a new draft Petroleum Industry Bill (PIB) a taskforce matter? If President Goodluck Jonathan had demonstrated similar interest and commitment in the previous draft, it wouldn’t have pended for more than four years until it finally died at the floor of the 6th National Assembly. So where did the suddenly bustle come from?

It would be recalled that the crux of the opposition to the original PIB by the foreign oil operators was that it will create a harsh environment that would materially change the economics of the existing and new operations particularly in the deepwater regions. Undoubtedly, the tax changes would instigate an increased government take from an average of 73% to a projected 82% under the original PIB terms. This calculation was derived on projections of a mid-size deepwater oil field with production of around 50 million barrels a year and oil price of US$75bbl. Therefore, the groundswell of opposition to the PIB is not farfetched since the existing arrangements have put the foreign oil companies in advantage positions of reaping greater share from higher production and current high oil prices.

Nigerian fiscal terms are currently lenient compared to its peers, particularly the countries with the same geological character. For instance, Libya has 93% government take and UAE Abu Dhabi is on an average of 94%. Recent trends in global fiscal terms especially in this era of rising oil prices have built-in mechanisms of increased government share in windfall prices through increased royalty/taxes and linkages of royalty/tax rates to prevailing prices to ensure automatic adjustment of government share to price increases. But it’s not so in the arrangements.

Now, this is the real picture of the covert maneuvering against the government’s intentions as entailed in the spirit of the original PIB:

There are two most critical government offices whose influences and decisions would heavily or rather exclusively determine how the new draft PIB is packaged: the Department of Petroleum Resources (DPR) and the Office of the Minister of Petroleum Resources. Whatever goes into the new draft and comes out as the final copy to be endorsed as law depends on these two offices attached to the Presidency.
Also, the single most critical anticipated outcome of the oil and gas sector reform initiative is the emergence of an autonomous and powerful policing agency- the Petroleum Inspectorate, which would not only make sure things are done the right way, but insist the interest of the nation is not short-circuited by the foreign operators and their Nigerian collaborators.

Now, these two agencies (offices), DPR and Office of the Minister of Petroleum, have been hijacked by the Anglo-Dutch oil concern, Shell Petroleum Development Company.

This is it: The appointment of Diezani Allison-Madueke as the minister of Petroleum Resources was a historic event. She came into the Yar’adua government in 2007 from her position as a Director of Shell Petroleum Development Company (SPDC). She is a Shell girl having grown up with her parents who were employees of Shell.

Allison-Madueke studied architecture in Washington D.C. before returning to Nigeria in 1992 to work for her father’s old employer -Shell. Over the next 15 years she rose to become Shell’s first female director in Nigeria, before she was appointed minister in 2007.

Now this Shell girl (woman) whose first name Diezani means “look before you leap” in her local izon dialect is the alpha and omega in the new draft PIB  which means to a great extent, she determines or rather influences what goes into it. She also will have to oversee its implementation when passed into law by the National Assembly at least until the end of the life of this administration.

And as if this was not enough, recently also, President Goodluck Ebele Jonathan approved the appointment of Mr. Osten Oluyemisi Olorunsola as the new Director of the Department of Petroleum Resources (DPR) which is expected to metamorphose into the policing agency- The Petroleum Inspectorate.
Before the appointment, Olorunsola was the Vice-President (Gas) at Shell Upstream International. He has served as Strategic Business Adviser to the Minister of Petroleum Resources (2008-2009); Manager, Opportunity Delivery and Studies Centre, Shell; Reserves and Technology Manager (Africa), Shell (E&P) International, Netherlands; Business Interface Manager (Russia), Shell Technology (E&P) International, Netherlands; and Petroleum Engineering Manager, Shell Nigeria. He is an indigene of Kogi State where the present NNPC group managing director, Austin Oniwon also hails from.

Interestingly, the Presidency did not give any reason for bringing another Shell director to take over the DPR at this critical time of the dirty politics of oil and gas sector reforms.

Is the picture clearer now? A company, Shell, at the forefront of the protest and threats against the original PIB and the entire spirit of reform in the nation’s oil and gas sector is now covertly dictating what goes into the new draft.

It is outright nonsense for anybody to claim that the appointment of the new DPR boss was based on merit. Agreed he is well qualified by experience and as a Nigerian also, but is it only in Shell we have well-qualified Nigerians to head the DPR and other sensitive oil and gas monitoring and regulating agencies? There are scores of equally well-qualified Nigerians all over the place including the current DPR system, NNPC and even in indigenous private oil and gas businesses.

And then if we must poach from from the IOCs, must it be Shell when we already have a Shell woman as our minister of Petroleum? Are there no Nigerians in Dubri and Consolidated Oil amongst others? Are there no Nigerians in Nigerian Agip, TotalFinaElf, ExxonMobil, and Chevron amongst others? You see the deceit?
The crucial question is: why should a Shell director, a top management staff, who is doing very well in the organization and with very bright chances of heading Shell Nigeria and even Shell worldwide scheme to grab the office of a civil servant (the DPR director) with no special attraction minus bribe and corruption?

Whosoever does not know should know now that the loyalty of any Shell staff especially those who rose to top senior positions whether retired or still active in service is first to the company before the country-Nigeria.

This is an outright challenge to the civil society groups and all stakeholders particularly the media to show genuine interest in what provisions are included in this new document. We should all wake up and constructively engage (even confront if necessary) the National Assembly on this matter that borders heavily on Nigeria’s strategic economic interest. I don talk my own o!
IFEANYI IZEZE, ABUJA (iizeze@yahoo.com; 08033043009)

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Let us wait

Fg has inaugurated a committee to harmonise opinions of the industry players.Let us wait till the bill is made public,then we can call for changes.

Let us wait

Fg has inaugurated a committee to harmonise opinions of the industry players.Let us wait till the bill is made public,then we can call for changes.

Shell is present in all OPEC Countries

Shell is operating in most OPEC countries and these countries are not doing badly compared to Nigeria.
Shell Middle east head office is in Dubai. Shell made the largest investment in Qatar,more than $20 billion on key projects in the last 4 years; Pear GTL, LNG etc.And spending billions in Iraq presently and in other countries, even in Saudi arabia as a JV partner to Aramco.

Osten is first and foremost a Nigerian before being a shell staff and same goes for Diezeani. These people are dedicated Nigerians and you may not know their stands on the growth of Nigeria even while they were employed by Shell. Osten was the champion of Domestic gas and power projects within Shell and in the industry at large. He is passionate about the government Gas master plan and he is always pushing for more on this from Shell. Osten is well suited and respected in the industry especially when it comes to championing the course of the governments plan on power improvement and gas usage.!!

Suffering from PREMATURE

Suffering from PREMATURE EJACULATION??? Then you have got to visit http://www.stopeja.wapka.mobi

Are we safe??????????

There is no way you can investigate corruption in nigeria without shell involvement. IBB could not be investigated because at the end of the tunnel you will see shell involvement. Obasanjo the same. Shell is sucking blood oil using it to build british empire. the blood of nigeria is too sweet that is why they want one nigeria. thats why they lied they like nigeria. thats why they lied we are optimistic. thats why they lied nigerians are the happiest people on earth. I don't know if you read their media, all what they write about nigeria is lie. while they are not nigerians they want us to live one nigeria

Are we safe??????????

Shell is part & parcel of corruption in nigeria. shell produce 2 million barrels a day. this is being exported to london directly. no official can talk and if you talk the next day a kind of allegation will be laid against you and you will be fire from work. the corruption in NNPC was introduced by shell. a shell worker overseas nigeria economy, when you talk of nigeria economy you talk of oil. I have said it and I will continue saying it. white people represent evil to africans. they brought hausa/fulani/yoruba & igbo to share one nation when they know very well these people cannot stay together in peace. the only reason nigeria exist is bcos of oil & shell know if SNC succeed it will be hard for them to steal our oil

when will the land use decree be abrogated the year 2099?

9ja is the only oil producing abode in the world, to have Shell control our thought process in the SS. Whereas Shell is so scared of planting her blood stained oily foot into any of the Opec member nations in the ME, she is in 9ja, easily twisting our brains as if she owns our tomorrow. In that successive 9ja leaders, have allowed Shell to manipulate the nations oil resources to the point of FGN, refusing to accept the co-ownership of the resources of the sea, between indigenous communities, their local government, and states. If Shell encourage FGN, to expropriate just 70% of the sea and the resource therein exclusively to itself without respecting the collateral rights of littoral communities to them, what hope do we have that the moles planted around the nooks and crannies of the House by shell, will not ensure that little or no benefit accrues to the shoeless ogogoro consuming humans with brains no better than dolphins in the SS? That bill has been in the House for 8yrs!

Tambuwla cannot pass an ordinary bill-8yrs old-let us split 9ja!

9ja is the only oil producing abode in the world, to have Shell control our thought process in the SS. Whereas Shell is so scared of planting her blood stained oily foot into any of the Opec member nations in the ME, she is in 9ja, easily twisting our brains as if she owns our tomorrow. In that successive 9ja leaders, have allowed Shell to manipulate the nations oil resources to the point of FGN, refusing to accept the co-ownership of the resources of the sea, between indigenous communities, their local government, and states. If Shell encourage FGN, to expropriate just 70% of the sea and the resource therein exclusively to itself without respecting the collateral rights of littoral communities to them, what hope do we have that the moles planted around the nooks and crannies of the House by shell, will not ensure that little or no benefit accrues to the shoeless ogogoro consuming humans with brains no better than dolphins in the SS? That bill has been in the House for 8yrs!

SNG and occupy 9ja nko? them dey! think of regime change

9ja is the only oil producing abode in the world, to have Shell control our thought process in the SS. Whereas Shell is so scared of planting her blood stained oily foot into any of the Opec member nations in the ME, she is in 9ja, easily twisting our brains as if she owns our tomorrow. In that successive 9ja leaders, have allowed Shell to manipulate the nations oil resources to the point of FGN, refusing to accept the co-ownership of the resources of the sea, between indigenous communities, their local government, and states. If Shell encourage FGN, to expropriate just 70% of the sea and the resource therein exclusively to itself without respecting the collateral rights of littoral communities to them, what hope do we have that the moles planted around the nooks and crannies of the House by shell, will not ensure that little or no benefit accrues to the shoeless ogogoro consuming humans with brains no better than dolphins in the SS? That bill has been in the House for 8yrs!

Blame IBB and OBJ-again when is the land use decree going?

9ja is the only oil producing abode in the world, to have Shell control our thought process in the SS. Whereas Shell is so scared of planting her blood stained oily foot into any of the Opec member nations in the ME, she is in 9ja, easily twisting our brains as if she owns our tomorrow. In that successive 9ja leaders, have allowed Shell to manipulate the nations oil resources to the point of FGN, refusing to accept the co-ownership of the resources of the sea, between indigenous communities, their local government, and states. If Shell encourage FGN, to expropriate just 70% of the sea and the resource therein exclusively to itself without respecting the collateral rights of littoral communities to them, what hope do we have that the moles planted around the nooks and crannies of the House by shell, will not ensure that little or no benefit accrues to the shoeless ogogoro consuming humans with brains no better than dolphins in the SS? That bill has been in the House for 8yrs!

Nigeria is finished in the

Nigeria is finished in the hands of this Shell and the colonial masters. Too bad

This is a very serious case

This is a very serious case that the National Assembly should urgently intervene to save this nation. Senate president and Speaker of the House, please and please stand up for the entire country in this matter.

This writer is talking of

This writer is talking of only DPR and the minister. The sitting nnpc boss is also a Shell man. and above this, our senate and House of Reps are peopled with Shell men. I mean this strongly. It is very pathetic

IFEANYI, you missed out one

IFEANYI, you missed out one very important fact: The current NNPC GMD is also from the Shell system. Check this out. That means Shell has completely taken over the nation's Oil sector from the government angle- both joint venture issues, regulations and administration. Naija for real!

Well briefed...

Thanks Mr. Ifeanyi Izeze. From the information you have given above, it shows that there is conflict of interest, not in favour of the our country Nigeria but rather, in favour of Shell. I hope the presidency would read this article and take a stand on removing the present minister and the director of DPR. We are suffering and we need change for the progress of Nigeria and Nigerians.

Wikileaks had earlier warned

Wikileaks had earlier warned Nigeria of Shell company but because Shell controls government, those who rule us did not take it seriously. This Shell has been enjoying proceeds from Nigeria's biggest offshore oil field BONGA without a single dime coming to the Nigerian government

This PIB thing is a complete

This PIB thing is a complete charade. I have said it before and I'm still saying it. Nothing good would ever come out of it.

This is an outright challenge

This is an outright challenge to the civil society groups and all stakeholders particularly the media to show genuine interest in what provisions are included in this new document. We should all wake up and constructively engage (even confront if necessary) the National Assembly on this matter that borders heavily on Nigeria’s strategic economic interest. I don talk my own o! GBAM!

This article has facts

This article has facts clearly stated. How can anybody come out now to deny this exposition? This Shell company is as corrupt as the Nigerian government or even worse. Go check their community development bills. How can a company claim to use hundreds of millions of naira to build a single line of six-classroom block?

Where is the Civil Society

Where is the Civil Society Groups in Nigeria? If they are serious and not looking for their pocket money, this is the kind of case ordinary Nigerians would want them to take up and make sure the oil sector reform is not bastardized

O'God please come and help

O'God please come and help this country if for nothing but for we the youths and future generations of this country. The president cannot do anything in this case because Shell throughout its existence in this country has always shown that it's more powerful than whoever calls himself the president of this country.

This Shell, this Shell all

This Shell, this Shell all over the place. They have killed Ogoni people and devastated ogoni environment with their oil spillages and yet they hobnob with the powers that be at Abuja. Sovereign National Conferences

This is very terrible for a

This is very terrible for a country

All the stories and rhetorics

All the stories and rhetorics are just imaginations of the writer. Do you have anything against Osten serving his country? Since you cannot run him down on morals and competence, you cleverly devised a plot to appeal to sentiments. It will not work. Nigerians are smarter and can read between lines.

Please don't distract him. Allow him to use the remaining energy in him to contribute his quota to Nigeria and serve her the way he has served Shell Upstream International.

Anglo-Dutch Conspiracy Theory

Well,if this article is anything to go by then this guyz have it locked down the naija Style. Patriotism definitely has the back-sit in a country where corruption is a Grand Patron.

We are not independent

who told you NNPC DPR belongs to nigeria? by the way, what is nigeria? the name was giving by britain flora shaw, meaning nigeria is their child. its like when you bear a child and give his name nigeria,it's your child. do not question shell activities in nigeria for its their country and shpere of influence, their colony. nobody can be governor,senate,house member, without being submisive to britain. thats why obasanjo continues to play role in nigeria because he is the fool thats been use by britain up til now. obasanjo was not president becos of cleverness,wisdom or anything but becos him gowam & others was used by britain to reclaim & occupy nigeria against BIAFRA

We are not independent

I don't know why some poeple who call them self labor leaders will not rise up against this shit. because of fuel subsidy they called on nigerians to occupy nigeria. Now, my question is, do nigerian belongs to nigerians? why are you calling people to occupy some thing that does not belong to them??? nigeria belongs to britain, it's not only NNPC or DPR any other top position in nigeria you must be submisive to the british before you become president, vice president, army staff chief, bank governor,finance minister etc. thats why fools rule us, they gave power to fools because they are submisive. nigeria is the property of britain and until we realize and beging to push for independent through SNC we ll not be save

PIB

which kind wahala be dis. dont u think dat it is de same house (reps.) dat screened her? n do u no how many of shell representatives re in the house? dis is beyond emargination, but i strongly tank u (sahara) 4 exposing yet anoda ojuju calabar, it is now left 4 us to standup on these atrocities.pray! it may sound simple but i no wat God can do 4 us.

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