Fuelling the World – Failing the Region? Oil Governance and Development in Africa’s Gulf of Guinea Fuelling the World – Failing the Region? TABLE OF CONTENT Preface by Sebastian Sperling & Michael Roll ................................................... 4 Introduction: Resource Governance, Development and Democracy in the Gulf of Guinea by Michael Roll ....................................................................... 8 PART I Analysis of the challenges ............................................................... 33 1. The Natural Resource Curse and State Failure: A Comparative View of Sub-Saharan Africa by Indra de Soysa ...................................................................................... 34 IMPRESSUM 2. Organised Crime and Illicit Bunkering: Only Nigeria’s Problem? by Nnamdi K. Obasi ................................................................................... 55 First Printing: August 2011 3. New Oil Finds in the Region: New Risks for the Region? by Matthias Basedau and Annegret Mähler ............................................... 73 Published by: Friedrich-Ebert-Stiftung PART 2 Possible Solutions: Making Oil and Gas Work for Development Abuja Regional Office and Democracy ................................................................................ 101 12 Marrakesh Street, Wuse II, Nigeria 4. Democratising the Petro-State in West Africa: Understanding the Phone: +234-(0)9-4137977 Challenges by Cyril Obi ............................................................................ 102 Web: www.fes-westafrica.org 5. Overview of Existing Regional Initiatives in the Oil and Gas Sector in Email: [email protected] the Gulf of Guinea ................................................................................. 121 6. Is There Need for EITI Reloaded? Building on its Successes Edited by: by Peter Eigen ........................................................................................... 136 Michael Roll, FES Berlin 7. Is There Need for EITI Reloaded? An Assessment of the EITI Process Sebastian Sperling, FES Abuja by Dauda S. Garuba .................................................................................. 141 8. The Brazilian Experience: A New Independence? Layout by: by Ildo Sauer ............................................................................................. 153 Werbestudio Zum weissen Roessl, Schäpe, Germany 9. Breaking the Resource Curse Politically: Direct Oil Revenue Distribution and Taxation in the Gulf of Guinea by Michael Roll ......... 171 Printed by: 10. Making Oil and Gas Governance Work for Democratic Development bub – Bonner Universitäts-Buchdruckerei – A Civil Society Perspective from Ghana by Steve Manteaw ..................................................................................... 182 ISBN: 978-3-86872-882-8 11. Labour Rights in the Oil and Gas Industry – A Trade Union FREE COPY Perspective by Louis Brown Ogbeifun ...................................................... 192 Conclusion: Solutions to the Resource Curse Reconsidered Please note: The views expressed in this volume represent the views of the authors and do not by Michael Roll ................................................................................................. 208 necessarily reflect the views of Friedrich-Ebert-Stiftung, nor of the organisations the authors are affiliated with. Annex ............................................................................................................. 225 A commercial resale of published brochures, books and general printed matters by the Official Conference Report ............................................................................ 225 Friedrich-Ebert-Stiftung is prohibited unless the Friedrich-Ebert-Stiftung gives its explicit and Conference Programme ................................................................................. 237 written approval beforehand. List of participants Oil and Gas Conference Abuja ...................................... 241 3 Friedrich-Ebert-Stiftung Fuelling the World – Failing the Region? Preface tions, parliamentarians, researchers, civil society activists and journalists from more than a dozen countries in the region and beyond.2 Since the 1960s Friedrich-Ebert-Stiftung (FES) has maintained offices in seve- A strong focus on three particular features distinguished these two FES-events ral countries of the oil-rich Gulf of Guinea region.1 Over the decades, we have from other conferences on the topic. The first one was the focus on the potential witnessed oil and other natural resource bonanzas in many of these countries. As and scope for action of national governments and regional organisations in the an organisation committed to the values of social democracy, we have critical- Gulf of Guinea. Unlike at most other conferences, representatives of the Economic ly observed the often negative impacts of natural resource extraction on stability Community of West African States (ECOWAS) as well as the Gulf of Guinea Com- and peace, social justice, human rights, economic development and democratic mission participated in both events, for example. The second feature was more governance. One of FES’ more recent activities in this field was a conference in methodological. Especially with regards to the Gulf of Guinea, the international Yaoundé, Cameroon in 2003, titled: “Oil Policy in the Gulf of Guinea: Security academic discussion about resource governance and national policy debates and and Conflict, Economic Growth, Social Development”. A volume with the same decision-making exist in isolation from each other. The actors in one field hardly title containing selected papers presented at this conference was published one take notice of what is going on in the other field and remain unconnected. There- year later (Traub-Merz and Yates 2004). fore, we wanted to bring together researchers and policy-makers as well as other Since then a number of things have changed in the region: its geostrategic impor- practitioners and provide a forum for exchange and public discussion of results tance in terms of oil and gas reserves has grown, new oil and gas discoveries have and experiences. The third particular feature of both conferences was the focus been made, new countries have joined the oil-exporting countries’ club, new initi- on current and new, innovative solutions to the resource curse. Overall, the confe- atives for promoting better resource governance have been implemented for some rences as well as this book focus less on the macroeconomic and instead more on time and new consumer countries have become involved in the latest ‘scramble for the political and governance aspects of natural resources. Africa’. These dramatic changes within a short period of time led FES to take this Participants at the conferences stressed the necessity for more regional and inter- topic up again at the regional level. Against the background of the 2004 contribu- national exchange on both the analysis of the challenges as well as the experiences tions, a workshop for regional experts was organised in 2009 in Accra, Ghana. The with innovative solutions. By making findings and suggestions of the conferences focus of this forum was on regional oil and gas governance approaches and policy available to a larger audience, this volume seeks to contribute to that. While no responses to the recent changes outlined above. chapter addresses the national and regional scope for action on resource gover- Based on this event, an international conference followed in Abuja, Nigeria, in nance explicitly, the conference results are integrated into some of the chapters May 2010. The papers presented at this conference provided the latest analyses of and the conclusion. The official report of the Abuja conference, edited by Charles oil and gas governance in the Gulf of Guinea, the region’s current global position Ukeje based on the work of Gerald Ezirim, can be found in the annex. and especially innovative solutions to breaking the ‘resource curse’, particularly in The authors have different professional backgrounds (scholars, civil society acti- the areas of security, development and governance. This conference, titled “Fuel- vists, trade unionists), different academic backgrounds (political science, sociolo- ling the World – Failing the Region? New Challenges of Global Energy Security, gy, economics, history) and come from different places of the world (some from Resource Governance and Development in the Gulf of Guinea” brought together the region, others from Europe, America or elsewhere). This diversity explains representatives of governments, regional organisations, international organisa- the differences in style, in approach to the topic and allows for a telling variety of perspectives and opinions. 1 Of the Gulf of Guinea countries, FES maintains offices in Côte d’Ivoire, Ghana, Benin, Nigeria, Cameroon and Angola. Guinea and Togo are covered by offices in neighbouring countries while the Cameroon office is also responsible for the Central African region. 2 Oil companies were invited as well but did not attend. 4 5 Friedrich-Ebert-Stiftung Fuelling the World – Failing the Region? FES will continue to facilitate international, intra- and inter-regional discourse on improving resource governance. The volume at hand will hopefully serve its purpose in this regard, by triggering further discussion. We are grateful to all part- ners, experts and authors who have enriched this book and the above mentioned meetings