Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Shell oil in nigeria case study pdf

25/12/2020 Client: saad24vbs Deadline: 7 Days

part one I N T E G R A T I N G C A S E 1


Shell Oil in Nigeria


Introduction Nigeria is a country that is slightly more than twice the size of California. In July of 2011, its population was estimated at just over 155 million people making it the 8th


most populated country in the world. It is Africa’s most populous country and is composed of more than 250 ethnic groups. The country has the second highest rate of HIV/AIDS deaths and is ranked number three with respect to total number of people living with HIV/AIDS in the country.


The country itself is full of rich natural resources such as natural gas, petroleum, tin, iron, coal, and limestone. Despite these rich resources, the country has been crippled by civil wars, military rule, religious tensions, and corruption. Even more devastating was the poor macroeconomic management that has left the country completely dependent upon its number one resource which is petroleum. Petroleum provides 95% of the foreign exchange earnings and close to 80% of its budgetary revenues. In 2010, Nigeria surpassed Iran to become the second largest oil producer behind Saudi Arabia. It shipped 2.464 million barrels of oil per day compared to Iran who shipped 2.248 million barrels per day.


The United States imports 17% of its petroleum from West Africa with Nigeria being the key supplier. That number is estimated to rise to over 25% in the year 2015. Despite the potential for oil to change the lives of this resource rich country, the majority of the Nigerians live on less than $1USD per day. The poor living condi- tions, low wages, and lack of quality of life improvement is attributed to the large amount of corruption by the citizens, politicians, and companies who exist within the country.


0


200


400


600


800


1,000


Total Population


M ill


io ns


1,200


1,400


C hi


na


In di


a


U ni


te d


St at


es


In do


ne si


a


B ra


zi l


Pa ki


st an


B an


gl ad


es h


N ig


er ia


R us


si a


Ja pa


n


A History of Corruption While petroleum drives the majority of the economy, it also drives the majority of the corruption. Nigeria has long been considered the most corrupt country in the world. Its citizens, government and corporations have been party to and involved in political corruption, bureaucratic corruption, electoral corruption, embezzle- ment, and bribery. In fact, it has been said the corruption is actually a viable enter- prise in the society with no way to trace these activities or prosecute those involved.


The companies operating in this region have long been blamed for allowing, par- ticipating, and even creating the corruption that has taken place. Not only have they failed to engage reformers but they have been accused of doing things like bribing officials, obscuring oil revenue figures, and failing to invest in the infrastructure and improvement of the people in the country. While the oil companies point to mil- lions of dollars of investment into the region, one look at the impoverished condi- tions common to the people of Nigeria and its difficult to say it was enough.


An estimated $200 billion in revenues is planned to go to African treasuries in the next 10 years as new oil fields are opened throughout this region. This oil will bring the largest influx of revenue in the continents history and more than 10 times the amount western donors give each year in aid. There is great concern about what countries like Nigeria will do with this money and the potential corruption that will take place.


Oil giant Royal Dutch Shell Group stands to benefit the most from these new oil fields as they are the largest producer of oil in the region. The company produces more than 1 million barrels of oil per day. With that said, there is much concern due to Shell’s storied past in this country.


Shell Operations in Nigeria The Royal Dutch Shell Group, more commonly referred to as Shell, is a group of more than 1,700 companies all over the world. 60% of the company is owned by Royal Dutch of the Netherlands and 40% is owned by Shell Transport and Trading Group of Great Britain. The full merger between these two companies was official in 1907. This conglomerate of companies includes companies such as Shell Petroleum of the USA, Shell Nigeria, and Shell Argentina. The company’s mission was to bulk ship and export oil revolutionizing the transport of this precious resource. Soon after the merger was complete, the company rapidly expanded across the world with both marketing offices and exploration and production facilities. Within twelve months, both of the struggling entities were transformed into successful ones.


In 1937, Shell entered the Nigeria making it the first energy company to enter the market in this country. By 1938 they were granted an exploration license that allowed them to prospect for oil in the region. It was not until January of 1956 that the company drilled its first well. Later that year, the company changed its name to Shell-BP Petroleum Development Company of Nigeria Limited (SPDC). Over the course of the next twenty years Shell entered into a number of agreements with the Nigerian government that gradually increased the government’s ownership of the company from 35% all the way up to 80% in 1979.


As it stands today, Shell operates two businesses related to the exploration, pro- duction, and transportation of oil and gas within Nigeria. The SPDC still exists and is the largest private sector oil and gas company in Nigeria. It is a joint venture between the government owned Nigerian National Petroleum Corporation (NNPC) which owns 55%, Shell which owns 30%, Elf Petroleum Nigeria Limited which owns 10%, and Agip which owns 5%. The other business operated by Shell in Nigeria is called Shell Nigeria Exploration and Production Company (SNEPCO)


168 Part 1 Integrating Case 1


which was formed in 1993 to develop deep water drilling resources. It operates two deep water licenses and a production sharing contract with the NNPC.


The SPDC’s operations are spread over a 30,000 square kilometer area in the Niger Delta. Its network consists of 6,000 kilometers of flowlines and pipelines, 90 oil fields, 1,000 producing wells, 72 flowstations, 10 gas plants, and two major oil export terminals. This business unit is capable of producing up to one million bar- rels of oil per day on average. The SNEPCO is committed to the discovery of new resources and sources of oil and is charging towards the goal set by the Nigerian government of being able to have a capacity of four million barrels per day.


While Nigeria was once the shining star of Shell’s portfolio, it is now a large black cloud that hangs over the entire organization. Shell Nigeria has been accused of pol- lution, collusion, corruption, bribery, and false accounting. Every time the company settles a claim or accusation, another one pops right up. The following provides an account of the accusations and corruption that have scared this organization through- out its history.


Ken Saro-Wiwa Shell’s first problems began in the early 1990’s when criticism of human rights pol- icies and the destruction of the environment in Nigeria became a hot topic. Ken Saro-Wiwa was a leading environmentalist and author who happened to be a Nigerian native and part of the Ogoni tribe. He was one of the more determined and articulate critics of the government and of Shell Oil’s destruction of his home- land. He argued that neither party had appropriate regulations for protecting the Ogoni people’s land and did not return any of the immense wealth that was taken from their region.


Saro-Wiwa organized a group called the Movement for Survival of the Ogoni People and quickly grew to be the largest political organization in the region. This group began to protest and demonstrate for an end to destructive behaviors such as oil spills, gas flaring, and the destruction of property to make way for pipe- lines that Shell was building. They also began demanding they be given a share of the revenues from the land Shell was using. Shell denied these claims and stated the group was greatly exaggerating their claims.


Nigeria’s military began to respond to the groups claim through a strategy that has been referred to as a “scorched earth campaign against the Ogoni” which included burning villages and committing rapes and murders. Shell refused to get involved stating that the company does not get involved in politics. This led to Saro-Wiwa and eight other Ogoni members were arrested on charges that west- ern governments and human rights groups called trumped up. The Nigerian gov- ernment ultimately executed all nine with Saro-Wiwa’s body being burned with acid and buried in an unmarked grave.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Best Coursework Help
University Coursework Help
Top Essay Tutor
Homework Guru
Helping Hand
Writer Writer Name Offer Chat
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$112 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$115 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$112 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

From inception of operations to december - 3 panel gate fold - The fish elizabeth bishop symbolism - International business 6 - Loading and unloading employment - Royal gwent hospital wards - The fashion channel harvard case solution - Top shakespeare love quotes - Financial Management - Ready player one theme essay - CHRISTIAN SERVANT LEADERS - Clifford the ethics of belief summary - Organizational Analysis Paper - Tips to beat bulimia - Why cell phones should be in school - Switch expression must be a scalar or a character vector - South westminster osteopathic clinic - Humanistic tradition 7th edition pdf - Which sentence's evaluative modifiers convey strong disapproval - Healthy Communications 10/20 - 2365 level 3 assignments answers - Practical connection (course: Information security risk management) - Bonaire evaporative cooler cleaning - 6.1 Reading Reflection - Profile of an Economist - For anyone - Penn Foster Bookkeeping Final Project - Write 1500 words for this task: - Which mission statement best represents the chester company - Adela encantar la música de tito el bambino - Nutrition and drugs - Suppose that xtel currently is selling - Memento psychology - On january 1 puckett company paid - Keithley 6517b reference manual - The great italian trivia game - Is stage direction a technique - How to calculate sxx - Http web6 seattle gov travelers - Who is the audience of mother tongue by amy tan - Chapter 7 legal aspects of business study guide answers - D-8 - John lewis partnership model disadvantages - Approbative ethical theory - Operational excellence refers to companies that ________. - When would a cell use dehydration and hydrolysis of polysaccharides - Aqa required practicals chemistry - Apple compensation strategy - Wave on a string simulation answers - Making the right choices - Enhancing qualities of accounting - Discovering psychology the developing child worksheet answers - Match the forecasting method to the appropriate classification. - E Marketing-6 - Highered mheducation com seasons interactive - Psychiatric mental health nurse practitioner review and resource manual pdf - Nursing - Define electron dot diagram - Chep pallets corporate office - Dawn alcohol water ice melt snopes - Human Needs Theory and Psychosexual Theory - In n out marketing strategy - Research and describe a product ideation model or methodology - Anthem for the doomed youth - Mth 220 answers - Science - Week 3 Discussion - Philosophy W5-Rough Draft of Signature Assignment - Belly button biodiversity github - Benefits of xs energy drink - Nursing - Prometheus reference in frankenstein - Speech to actuate outline - As you like it film 1992 - 7 pin cdi wiring diagram - Cateye double wireless sensor - DATA Handling in the Hotel Management system - Noli me tangere tagalog story - The house on mango street questions and answers - FRAME YOUR ISSUE AND COLLECT YOUR DATA - How can Detroit schools ensure students are able to transition to new routines, expectations, and responsibilities virtually? - Wk 5 - Practice: Potential Risk Factors - A++ Work ( No Plagiarism, On time, Quality Work) Science Assignment - Firework by katy perry figurative language - Dna replication illustration worksheet answer key - 5 - mi familia audio listen to the description and indicate if the statements are cierto or falso. - The man your man could smell like script - Leininger's theory of culture care diversity and universality - Elvive thickening shampoo tesco - Physical threat to information systems? Fire? Hurricanes? Sabotage? Terrorism? - Www bakertilly co uk - Fry high frequency words - Updater process ended with error 255 moto g4 plus - HLS685 A2 - Oversize load regulations western australia - Gavin parsons and associates - Families of organic compounds and functional groups - Ethical dilemma worksheet law enforcement - Employee engagement project charter - 3 phase pole mounted transformer - Discussion120