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Nigeria the Price Of NIGERIA th 350 Fifth Ave 34 Floor New York, N.Y. 10118-3299 HRW Index No. 1-56432-225-4 January 1999 http://www.hrw.org THE PRICE OF OIL Corporate Responsibility and Human Rights Violations in Nigeria’s Oil Producing Communities 1630 Connecticut Ave, N.W., Suite 500 33 Islington High Street 15 Rue Van Campenhout Washington, DC 20009 London N1 9LH UK 1000 Brussels, Belgium TEL (202) 612-4321 TEL (44171) 713-1995 TEL (322) 732-2009 FAX (202) 612-4333 FAX (44171) 713-1800 FAX (322) 732-0471 Human Rights Watch is dedicated to protecting the human rights of people around the world. We stand with victims and activists to prevent discrimination, to uphold political freedom, to protect people fr om inhumane conduct in wartime, and to bring offenders to justice. We investigate and expose human rights violations and hold abusers accountable. We challenge governments and those who hold power to end abusive practices and respect international hum an rights law. We enlist the public and the international community to support the cause of human rights for all. “The Price of Oil: Corporate Responsibility and Human Rights Violations in Nigeria’s Oil Producing Communities” Copyright © January 1999 by Human Rights Watch. All rights reserved. Printed in the United States of America. ISBN: 156432-225-4 Library of Congress Catalog Card Number: 99-60123 JANUARY 1999 ISBN: 1-56432-225-4 The Price of Oil Corporate Responsibility & Human Rights Violations In Nigeria’s Oil Producing Communities SUMMARY......................................................................................................................................1 The Role and Responsibilities of the International Oil Companies............................................. 2 The Oil Industry and the Oil Producing Communities ................................................................ 6 Protest and Repression in the Oil Producing Communities........................................................ 9 The Role of Shell in the Ogoni Crisis ........................................................................................12 Attempts to Import Weapons................................................................................................... 13 Threats to Community Members..............................................................................................14 Oil Company Failure to Monitor or Protest Abuses ...................................................................14 Shell’s Internal Review Since 1995 ..........................................................................................16 Conclusion ............................................................................................................................. 17 RECOMMENDATIONS....................................................................................................................18 To the Nigerian Government....................................................................................................18 To the International Oil Companies Operating in Nigeria......................................................... 20 To the International Community ..............................................................................................23 OIL AND NATURAL GAS IN NIGERIA ...............................................................................................25 Crude Oil ................................................................................................................................25 The Structure of Oil Company Agreements with the Nigerian Government ............................... 26 Natural Gas.............................................................................................................................32 The Downstream Sector ..........................................................................................................33 OIL WEALTH AND THE NIGERIAN CONSTITUTION ...........................................................................37 State Creation and Revenue Allocation....................................................................................37 THE ENVIRONMENT...................................................................................................................... 49 The Framework of Nigerian Law on Oil and the Environment ....................................................50 The Impact of Oil Operations on the Environment....................................................................52 Oil Spills and Hydrocarbon Pollution .................................................................................54 Infrastructure Development .............................................................................................. 62 Gas Flaring ........................................................................................................................65 Compensation for Land Expropriation .................................................................................... 68 Compensation for Oil Spills..................................................................................................... 71 Sabotage ................................................................................................................................74 The Niger Delta Environmental Survey .....................................................................................79 OIL COMPANIES AND THE OIL PRODUCING COMMUNITIES........................................................... 82 Minorities in the Oil Producing Regions.................................................................................. 82 Social and Economic Conditions in the Oil Producing Communities Today...............................85 Oil Company Relations with the Oil Producing Communities................................................... 88 Employment ......................................................................................................................91 Development Projects....................................................................................................... 92 The Effect of the Oil Economy on Community Politics.............................................................. 96 The Warri Crisis.....................................................................................................................100 SECURITY...................................................................................................................................104 Security Arrangements for Oil Facilities .................................................................................104 Special Task Forces...............................................................................................................109 PROTEST AND REPRESSION IN THE NIGER DELTA ........................................................................ 112 Umuechem ........................................................................................................................... 112 The Ogoni Crisis.................................................................................................................... 113 Attempts to Duplicate the MOSOP Protests ............................................................................117 Targeting of Community Leaders and Environmental Whistle-blowers.................................... 119 Day-to-day Protest and Repression in the Oil Producing Communities ................................... 122 Suppression of Demands for Compensation: Damages, Development Projects, and Employment ............................................................................................................................................. 127 Other Abuses Resulting from Oil Company Security ............................................................... 141 Litigation .............................................................................................................................. 142 THE ROLE AND RESPONSIBILITIES OF THE INTERNATIONAL OIL COMPANIES ............................... 145 Corporate Responsibility in Nigeria .......................................................................................146 The Role of Shell in the Ogoni Crisis ...................................................................................... 154 Attempts to Import Weapons................................................................................................. 159 Threats to Communities ........................................................................................................160 Oil Company Calls for Security Force Assistance....................................................................162 Oil Company Failure to Monitor and Protest Abuses ..............................................................164 Shell’s Internal Review Since 1995 ........................................................................................166 INTERNATIONAL LAW.................................................................................................................. 170 THE ROLE OF THE INTERNATIONAL COMMUNITY.......................................................................... 173 The Commonwealth .............................................................................................................. 173 The United Nations and International Labour Organization.................................................... 174 The African Commission.......................................................................................................
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