Nigerian National Petroleum Corporation : Oil

1616 WordsNov 24, 20157 Pages
During the 1950’s vast reserves of petroleum were discovered in Nigeria, making oil a crucial aspect of the Nigerian economy. Foreign oil companies have then since dominated the oil exploration, drilling, and shipping and 87% of the government’s revenue comes from oil production. Shell Oil decided to enter Nigeria in 1937 through a joint venture with the government owned Nigerian National Petroleum Corporation (55%), Total E&P Nigeria Ltd (10%), and Agip Oil Company Limited (5%). Shell Oil controls approximately 60% of the domestic oil market and operates majority of its facilities in the Delta region of Nigeria. The Ogoni region is a highly oil rich area in the Delta region that has been greatly affected by the environmental degradation due to the installation of oil wells by multinational oil companies such as Shell, who have individually drilled over 96 wells. The local indigenous minority communities in the area receive no economic benefits and are further impoverished by the environmental conditions. These groups have had to face food shortages, air pollution, forced migration, unemployment, loss of land, and health hazards. As a results, communities protested and the Ogoni elders made an Ogoni Bill of Rights calling for “the right to protect the Ogoni environment an ecology from further degradation”, which led to the formation of a non-violent activist group called the Movement for the Survival of the Ogoni People (MOSOP). The group started a campaign against
Open Document