Addressing Complex Challenges in Nigeria
The Niger Delta illustrates some of the most difficult conditions ChevronTexaco faces anywhere. Poverty, ethnic and tribal tensions, and unstable law and order are among the challenges faced by Chevron Nigeria Ltd. (CNL).
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| Chevron's Riverboat Clinic brings medical services to communities near Escravos, Nigeria. |
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The Escravos oil terminal, located in the Niger Delta and operated by CNL in partnership with the Nigerian National Petroleum Corp. (NNPC), processes up to 480,000 barrels of oil a day. CNL employs 2,000 people, approximately 90 percent of whom are Nigerians. Three out of four CNL managers are Nigerian.
"The Niger Delta presents extraordinary challenges for CNL and other companies that operate there," says Robert Wasserstrom, a former Columbia University anthropologist who is helping CNL redesign its community development strategy. "In my view, this area is one of the most difficult social environments in the world, especially after 37 years of military government. Traditional economies and social organizations have been severely damaged, leaving the area with no way to make consensus decisions or resolve conflict. Meanwhile, anger is growing among local villagers, who feel they have received few benefits from either oil companies or the government."
ChevronTexaco's affiliates have operated in Nigeria for more than 40 years and, in that time, have worked to find means of helping to address these complex challenges. As part of its commitment to contribute to the local community, CNL has partnered with aid organizations, nongovernmental and community-based organizations. CNL has spent more than US$90 million on community development since the early 1990s for water and power projects, roads, canals, jetties, schools and hospitals. Through these efforts, CNL has learned much about engaging with local communities, trying to make meaningful and sustainable contributions to social and economic development and working to support universal human rights.
CNL is proud of the many positive impacts it has had on people's lives - on the more than 5,000 students per year who receive company-sponsored scholarships or the thousands of villagers each year who receive medical care at CNL's riverboat clinic. But CNL also recognizes that despite the company's and its partners' determination to help solve community problems, many of the region's residents lack jobs, adequate clean water, education, training or health care.
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| In the Niger Delta, thousands of miles of rivers form the highways and communication routes for hundreds of villages that sit above some of the most oil-prolific geology in the world. |
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In the Niger Delta, frustrations over these chronic problems at times swell into protests, which sometimes have become violent. Over the last several years, CNL facilities and employees have encountered several such situations, a powerful illustration of the challenges of operating in the region. Faced with such difficult situations, the company's first priority is always to protect people's safety, then to seek inclusive dialogue to resolve differences.
In 1998, an incident involving a CNL facility ended in tragedy. In that case, 200 militant youths seized the offshore Parabe oil production platform, holding close to 200 national and expatriate employees hostage, protesting inadequate job opportunities and demanding a substantial increase in community development investments. In hopes of a peaceful resolution, CNL management negotiated with the group's representatives, but without success. When, after three days, the negotiations were not advancing, and the threats against CNL employees held captive continued, Nigerian authorities were called in to restore order. When the military arrived, conflict ensued between the Nigerian authorities and the protesters, shots were fired, and two protesters were killed. CNL deeply regrets these deaths.
In the summer of 2002, CNL's commitment to peaceful resolution of conflict was tested again, this time with a more positive outcome. Local women occupied CNL's Escravos oil terminal, insisting that CNL provide municipal services and facilities to their communities and create new jobs for the men in their villages. CNL managers halted oil operations, a critical step to protect people's safety, and began discussions with the protesters. Ten days later, the occupation ended peacefully.
Shortly after, CNL formed a partnership with several third-party development organizations, including the United Nations Development Program (UNDP). CNL and UNDP will develop a coordinated master plan for separate Delta projects, such as building schools, roads and hospitals.
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| In early 2003, unrest in the Niger Delta led ChevronTexaco to airlift workers and 2,000 displaced community members to safety in nearby Warri. |
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Illustrating that the challenges will continue, in early 2003, militant youths in the Delta region embarked on a violent protest against the local government prior to general elections in the country. This action led to community members' deaths, as well as significant loss of life among military personnel and oil workers, and resulted in widespread destruction of homes and property. Acting quickly to protect lives, CNL shut down operations, mobilized its medical personnel, hired planes from Nigeria and neighboring countries, and airlifted more than 3,000 people - including 2,000 displaced community members - to safety in the neighboring city of Warri. While these protests were not directly tied to CNL, the company used its resources to evacuate both employees and community members. The company also made repeated public calls urging all parties to exercise restraint and to seek inclusive dialogue and peaceful resolution.
The difficult situation in the Niger Delta affords us the opportunity to contribute to the improvement of conditions and learn important lessons about the limitations of what can be achieved through our corporate responsibility efforts. As an individual company, CNL can help provide much-needed infrastructure, educational, health and other developmental needs to the people. But it cannot solve historic, fundamental governance, security and economic problems. CNL is continuing to collaborate with others to help improve the living conditions of the people close to our operations, while leaving minimal footprints of our activities.
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