No sooner was it known that four members of a notorious militant gang in the Niger Delta, alleged to have been responsible for last year's attack on Mobil Producing Nigeria (a subsidiary of Exxon), have been arrested by men of the State Security Service (SSS), news broke that gunmen in Nigeria's oil region have attacked and killed 12 people including at least four local chiefs.
It appears the attack might in fact not have targeted the oil companies at all this time, but rather is the result of a long-standing chieftaincy vendetta. The chiefs who were killed had been in control in Kula over the past two years, whereas the faction that launched the boat attack are alleged to have been driven out of Kula two years ago. The dispute arose in 2004 when members of the faction challenged the authority of the local chiefs in deciding how to share the money and benefits given by the oil companies. In an apparent bid to re-enter the community, the assailants felt it necessary to dispose of the evil chiefs. As with most things in the Niger Delta, the attacks are directly related to the "blessing" that is oil, which once again highlights the difficulty of instilling anything remotely resembling stability.
Despite the attack not targeting the oil companies, Royal Dutch Shell decided to evacuate staff from two oil installations, leaving "only a skeleton crew" at the two evacuated pipeline hubs, according to Bisi Ojediran, a spokesman for Shell PLC. Production at the sites (approximately 60,000 barrels per day) has not been affected by the attack, however. Nevertheless, the fear that violence will only increase in the run-up to the Nigerian elections in April seems to be manifesting itself.
Besides the many cases of violence and murder, a new report highlights the lack of transparency and corruption that exist in the Nigerian oil sector. A report compiled by the Hart Group - a United Kingdom based audit firm for the Nigerian Extractive Industry Transparency Initiative (NEITI) - found that about 65 million barrels of crude oil could not be accounted for by the Nigerian National Petroleum Corporation (NNPC) between 1999 and 2004. 65 million barrels of crude oil translates into the kind of money that should normally be able to pay off rebels for long enough to create a viable solution to the region's problems.
Whether it be corruption, mafia style tactics, forced nationalization, extremism, or acts of terror, one thing appears to be certain: the terms kosher and oil rarely go hand in hand. Venezuela, Iran, Iraq, Nigeria, Russia, Libya, Angola, and Algeria are prime examples. Ironically, the poorest regions in all of these countries happen to be the ones where the bulk of the oil is situated. Countries like Saudi Arabia, the United Arab Emirates, and Kuwait are exceptions in this respect, but then again I doubt they would want to be associated with a term like "kosher" anyway. Let's just say that although clearly not in the same league as the aforementioned countries, they still aren't exactly Halal. True exceptions are countries like Norway, the USA, and Canada, but of these three only Norway is a significant net exporter (Canada and the USA consume most of their own production). Perhaps Central Asian countries like Kazakhstan and hermit-state Turkmenistan could become shinning examples of kosher oil producers/exporters when they increase production, though this isn't too likely.
It will be interesting to see whether gunmen will attack ethanol producing farms in Brazil any time soon, or whether the end of oil will mean the end of such shenanigans. Sadly, I think we all know that there is no end sabotage, greed, violence, or exploitation.
It appears the attack might in fact not have targeted the oil companies at all this time, but rather is the result of a long-standing chieftaincy vendetta. The chiefs who were killed had been in control in Kula over the past two years, whereas the faction that launched the boat attack are alleged to have been driven out of Kula two years ago. The dispute arose in 2004 when members of the faction challenged the authority of the local chiefs in deciding how to share the money and benefits given by the oil companies. In an apparent bid to re-enter the community, the assailants felt it necessary to dispose of the evil chiefs. As with most things in the Niger Delta, the attacks are directly related to the "blessing" that is oil, which once again highlights the difficulty of instilling anything remotely resembling stability.
Despite the attack not targeting the oil companies, Royal Dutch Shell decided to evacuate staff from two oil installations, leaving "only a skeleton crew" at the two evacuated pipeline hubs, according to Bisi Ojediran, a spokesman for Shell PLC. Production at the sites (approximately 60,000 barrels per day) has not been affected by the attack, however. Nevertheless, the fear that violence will only increase in the run-up to the Nigerian elections in April seems to be manifesting itself.
Besides the many cases of violence and murder, a new report highlights the lack of transparency and corruption that exist in the Nigerian oil sector. A report compiled by the Hart Group - a United Kingdom based audit firm for the Nigerian Extractive Industry Transparency Initiative (NEITI) - found that about 65 million barrels of crude oil could not be accounted for by the Nigerian National Petroleum Corporation (NNPC) between 1999 and 2004. 65 million barrels of crude oil translates into the kind of money that should normally be able to pay off rebels for long enough to create a viable solution to the region's problems.
Whether it be corruption, mafia style tactics, forced nationalization, extremism, or acts of terror, one thing appears to be certain: the terms kosher and oil rarely go hand in hand. Venezuela, Iran, Iraq, Nigeria, Russia, Libya, Angola, and Algeria are prime examples. Ironically, the poorest regions in all of these countries happen to be the ones where the bulk of the oil is situated. Countries like Saudi Arabia, the United Arab Emirates, and Kuwait are exceptions in this respect, but then again I doubt they would want to be associated with a term like "kosher" anyway. Let's just say that although clearly not in the same league as the aforementioned countries, they still aren't exactly Halal. True exceptions are countries like Norway, the USA, and Canada, but of these three only Norway is a significant net exporter (Canada and the USA consume most of their own production). Perhaps Central Asian countries like Kazakhstan and hermit-state Turkmenistan could become shinning examples of kosher oil producers/exporters when they increase production, though this isn't too likely.
It will be interesting to see whether gunmen will attack ethanol producing farms in Brazil any time soon, or whether the end of oil will mean the end of such shenanigans. Sadly, I think we all know that there is no end sabotage, greed, violence, or exploitation.
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