The position of Shell BP on gas flaring ,environmental degradation and other issues in Niger Delta: A web chat with Shell BP(contd)

Posted at 14:36
• Emybrad
Hi Nick, Just wondering. If shell contributed $82 million dollars for community development last year, why then do Shell still has issues with the community?

Nick Wood
In any country in the world the government has primary responsibility for the development of its people and this is true of Nigeria . . . . and the Niger Delta communities. The contribution that Shell makes anywhere it operates is intended to supplement this.

Most of the 30 million people living in the Niger Delta remain poor despite oil production. Unrest has grown. Frustrated by the lack of benefits from oil production, communities have targeted the operations of energy companies including Shell. They demand better public services and a greater share of government revenues.

The funds we contribute in our social investment will not solve the problem but we do our best to make a difference.

Our greatest contribution are through the taxes and royalties we pay. The federal government receives about 95% of the revenue after costs from oil and gas production in the Niger Delta.
Posted at 14:36
• RON EDEMA
I would like to know cooperate social responsibility(CSR) strategy put in place to give Peace to the region?

Bjorn Edlund
Peace is the one thing we am for morethan anything else. We are working with local, state and federal authorities as well as local communities in several ways to try and find solutions to the tensions and conflicts in the region. Our strategy is to be a positive contributor in any way we can. We cooperate with NGOs and other development partners to find practical ways to contribute to peace. Much of the situation in the Niger Delta is totally outside our "control" of course, and peace will depend of others, like the militants, coming to the table with better intentions than in the past.
Posted at 14:37
• Presubmitted Question
At present, what is the proposed structure of the Kiisi Trust (to which the recent settlement money will be directed)? Is there a model for this kind of undertaking in Nigeria? How will progress be measured?

Shell’s purpose includes the statement: “We aim to work closely with our customers, partners, and policy-makers to advance more efficient and sustainable use of energy and natural resources.” Was it a conscious decision not to include other stakeholder groups (employees, communities, etc.) in this statement?

Aside from the settlement money, how much of Shell’s community development contribution ($240 million in total, $82 million from Shell in 2008) has directly benefitted the Ogoni? What programs have been implemented?

Is the continued use of Ogoni land for pipelines a point of contention with the Ogoni? Does Shell directly compensate the Ogoni for this right to operate?

Sustainable economic growth in Nigeria depends on economic diversification (promoting manufactured exports and supporting agricultural development). Shell can’t necessarily set Nigerian economic policy, but it has already contributed millions to small businesses and job training. Has Shell considered increased investment in cleaner biofuels and green technology in the Delta?

jonathan feinstein project coordinator, CSR

Olav Ljosne
Hello Jonathan,
The trust fund is handled by an independent board of trustees appointed by the plaintiffs so you need to raise this with the board.
Shell stopped operations in Ogoni-land in 1993 because for security reasons. We have anyway been running important community programmes within Ogoni.
We have a leading portfolio of biofuels technologies, these are located mainly in North America and Europe - please find out more on www.shell.com/biofuels - and also invest in a range of CO2 technologies such as Carbon Capture & Sequestration. In the Niger Delta we focus on operating our assets efficiently and safely, and also work to mitigate environmental impacts, however you will be aware that the security situation in the Niger Delta has a major impact here.
Olav
Posted at 14:38
• Michael Persson
We know that you pay royalties and taxes to the central government. Do youthink a fair deal of this money is redirected to the regions where you operate?

Bjorn Edlund
Michael - that is a big problem, that the money doesn't seem to be spent on creating real benefits in the communities.
Posted at 14:40
• Daubenton
What would be the likely consequences on Shell and on Nigeria as a country, if Shell simply stopped all operations in Nigeria.

Olav Ljosne
Hello Daubenton,
Shell has never considered to stop our operations in Nigeria so your question is hypothetical,
We have no intention to leave Nigeria where we have operated for over 50 years.
Olav
Posted at 14:41
• alagss
Hi, how do we ensure we get a true sustainable development for Nigerian Oil producing communities and what are our own grouse about the current petroleum Industry Bill before the National assembly?

Basil E. Omiyi
You may be aware that the most crisis impacted parts of the Delta is the marine and riverine part completely devoid of Government's social and economic infrastructure. This has hampered development. The little there is is what Oil companies have provided. But given that this an area the size of England the oil companies can help but really it is for Government to do. In summary, the solution is for Government to integrate the region with the rest of the Nigerian economy through infrastructure investments and businesses will move in there to creat jobs and livelihoods.
There are many good things about the PIB and many areas that need improvements so that Nigeria will continue to attract FD investment dollars in a competitive capital short world. We Share Goverment's aspiration for oil and gas growth, higher revenue and domestic gas and power urgency.
Posted at 14:42
• Paul
Thanks for that comment, Richard Dion. Are there any available human rights assessments or can you point me to an environmental and social impact assessment that includes analysis of human rights? I have been trying to understand how these are currently conducted. Paul Lawrence

Richard Dion
Paul, Fiona,

I'll answer this jointly as you asked similar questions. We have published impact assessments in other countries, such as the Sakhalin Energy project in Russia's Far East. The publication of impact assessments was one recommendation coming out of the recent Amnesty International report and this is something that we are studying.
Posted at 14:42
• Dill
Dear Nick, If Shell have spent all these millions on community development and put so much effort in sustaining the environment, how do you explain the levels of contamination that affect both the health and the livelihoods of so many of the local people, particularly in Ogoniland, as reported by Amnesty International.

Nick Wood
Dill, this is a very generic question. As far as livelihoods go, the oil industry generates employment. 95% of Shell Petroleum Development Company 9SPDC) staff are Nigerians, many from the Niger Delta. There are are approximately another 20,000 people employed by contractors working for SPDC. 90% of contracts let by Shell last year were to Nigerian companies.

In terms of health you will have to be specific but we built hospitals for communities in the Niger Delta, run malaria programmes and an AIDs programme that won an international award in New York last month. Our work is all about improving health.
Posted at 14:42
• DUMLETAM
Why does Shell fear committing to adhering to international standards, example, standards that require the conduct of Social Impact Assessment Studies(SIAS) Environmental Impact Assessment Studies (EIAS) and Economic Impact Assessment Studies (ECIAS), especially when it comes to doing business in the Niger Delta?

Bjorn Edlund
I don't know where you get the idea from that we're afraid to adhere to international standards.
Posted at 14:43
• aggy
How can you say that gas flaring has no significant impact on people's health - but still claim a desire to stop it? Why would you bother if it had no negative impact? Shell clearly recognises that flaring has negative health impacts but is trying to brush over it on this chat.

Nick Wood
Aggy, I was quoting an independent report on flaring and health. We want to stop continuous flaring because we recognise it is a waste of resources and is a source of CO2 emmissions which we are committed to reducing as muchas possible. We have made progress on reducing flaring - but I have already covered this.
Posted at 14:45
• akirraboo
please excuse the inevitable cynicism that emanates from this question - but given the information at hand i find it difficult to accept the 'rose couloured' picture being painted here. i would, however, find it far easier to see Shell emerging from its past recklessness (of which all petroleum companies are guilty) if certain materials were made public - obviously that includes certain studies and data (as requested by Amnesty) but on a PR level, perhaps some evidence of the millions of dollars spent in the Niger Delta region rebuilding the community and addressing environmental issues. Clear records identifying where money went, how it was used and by whom, and media records of the 'benefits' now being enjoyed by local communities. i would find such information so much more convincing then just this Q&A format (though i appreciate this dialogue) and certainly better then the 'we're so green' marketing adds. i sincerely thank you all for your time, alison.

Bjorn Edlund
Alison - we report on these aspects in our sustainability report, and on the Shell Nigeria website.
Posted at 14:46
• charlessheridan
Would Shell look at helping to solve two problems at once? Would Shell look at the possibility of building skid mounted bottling plants that would draw on the gas stream going to flares? This gas would be part of a community program to provide jobs and income by donating bottled gas to the local community. Charles Sheridan

Alice Ajeh
Dear Charles,
Thanks for your concern and interest. We would like nothing better than to see the flares put to good use(as we are doing with the gas gathering projects currently on-going). We are also interested in options to benefit the communities and are working on options with NGOs and other agencies with like ideas which will be sustainable.
Posted at 14:46
• isaac boro
Olav Ljosne, re Phil's question, can you prove most spills are caused by attacks to your installations? Shell's infrastructure is over 40 years old in many areas, well beyond the normal lifespan of pipelines. In that case, it would seem most spills are caused by company neglegence.

Why do community leaders repeatedly claim Shell is unresponsive to their pleas to clean up spills?

Olav Ljosne
Thanks isaac,
We have a proper assessment of each spill through a joint investigation team composed of representatives from the authorities, the community and Shell. Based on their reports we know the reasons for the spills. Shell is maintaining the infrastructure and your indication that spills happens because of negligence is wrong. Shell is giving all spills immediate attention, but where we are denied access to the spill sites we get delayed.
Olav
Posted at 14:47
• Caroline Rees
Dear Bjorn, Thanks for hosting this webchat. I look forward to learning from the exchanges. I would be interested in knowing what systems or mechanisms Shell has in place to handle concerns/complaints/grievances/disputes from communities around its operations and how these work.

Basil E. Omiyi
Shell has an open door policy for concerned persons or organisation to express their views on our operations. We have published complaints hotlines but in country and out of country to give options to people who wish to use them.
Posted at 14:47
• Michael Persson
We've seen a lot of activity of the MEND lately. Are you trying to negotiate with them or do you leave that to the government?

Nick Wood
Michael, this is government matter.
Posted at 14:50
• julia
It is reported in Amnesty International's report ‘Petroleum, pollution and poverty in the Niger Delta’ (see p 59) that Shell’s former Head of environmental studies told reporters in 1995 that that Shell ‘were not meeting their own standards; they were not meeting international standards. Any Shell site that I saw was polluted. Any terminal that I saw was polluted. It was clear to me that Shell was devastating the area’.

What are your comments on this?

Bjorn Edlund
There were problems in the Niger Delta in the 1990s and the industry affected the environment there. We have always recognised that. But the facts are the real damage since that time has been caused by oil theft and sabotage of our installations. In 2008, 85 percent of the oil spills in the Delta were the result of sabotage.
Posted at 14:51
• christtuk
Also, between 2003 and 2005, Shell established a Pipeline Integrity Management System in the Niger Delta and carried out an asset integrity review (which examined the condition of Shell’s pipelines). Why has Shell not made the full results of the asset integrity review public?

Basil E. Omiyi
Maintaining Asset integrity is a continuing business activity with parts of the organisation fully devoted to this. The biggest challenge today is not about reports but about stopping the contnuing criminal willful damage to oil and gas assets especially pipelines.
Posted at 14:54
• Desiree Abrahams
Thanks for the opportunity to post a couple of questions. It's good to hear that you have been considering human rights issues in your impact assessment processes. Do you feel that the process you've adopted has adequately met Shell's needs? Are there any lessons learned you can share?

Richard Dion
Desiree,

Thanks for your question.

Throughout the last number of years, we have learned a great deal from projects and regularly carry out reviews which look at how we can perform better in future projects. We are continuously learning - we haven't gotten it right always, but we have improved in a number of ways with regards to potential environment, social, health and human rights impacts of our operations. Equally so, we are continually learning how to maximise the positive from our presence on the ground. We have shared some of these learnings informally in various industry associations where we consider issues related to our industry.
We closely follow societal developments in terms of the expectations for companies to respect amongst others things human rights, and keep under review whether we have in place policies and procedures to properly address the needs.


Posted at 14:54
• geertritsema
Dear Mrs Alice Ajeh, I am referring back to your anwser to the question posed by AkpoBari Celstine from Nigeria. I am sorry to say, but I think you are avoiding his key question: will Shell stop gasflaring in Nigeria by December 2009 ? Apparently stopping gasflaring by the end of this year is required by the Nigerian Senate. Furthermore, Shell Nigeria itself has promised in its annual report in 2006 that it 'intends to shut production at oil fields in 2009 where no solution has been found to gather gas.' So I repeat the question: "Will Shell stop the flaring of gas in Nigeria by the end of 2009, as required by the Nigerian Senate and as promised by Shell Nigeria in 2006" Please a clear "yes" or "no". Thanks in advance for your anwser, Kind regards, Geert Ritsema Friends of the Earth Netherlands Amsterdam Can you please anwser this

Alice Ajeh
Dear Geert,
The Senate proposed stop date for flaring is December, 2010. However, all Oil and producers in Nigeria including SPDC have been advised by the Federal Ministry of Energy to maintain the status quo with respect to the flares until further explicit government directives on the issue. It is simply not up to Shell to act unilaterally against the express wishes of the government. As you know, flaring is a waste of resources and we are equally anxious to complete our programmes to harness the gas.
Posted at 14:56
• rathfern
Why does Shell find it impossible to admit it is one of the principal contributors to pollution and human rights abuse in the Niger Delta?

Bjorn Edlund
Because it simply isn't true. First of all we recognise and take action where we can to remedy pollution, whether it is caused by our operations directly or by sabotage. And it is simply wrong to say Shell abuses human rights.
Posted at 14:56
• beclo
Does Shell believe that pollution and environmental damage associated with the oil industry (including oil spills, gas flaring, waste disposal, river dredging) over the past five decades has contributed to poverty and conflict in the Niger Delta?

Olav Ljosne
Hello Belco,
The challenges facing the Niger Delta are complex and covers poverty, unemployment, growing population, governance and several other issues. Handling of these issues are for the State and Federal government and for the communities to handle. The oil industry's footprint is impacting on small parts of the delta. Something you will know if you have been in the area with the size of Portugal. Environmental impact is according to the World Bank mainly from local industrialization and population growth. We are handling environmental issues linked to our operations.
Olav
Posted at 14:57
• charlessheridan
Thank You, panelists, for fielding my questions! Charles Sheridan
Posted at 14:57
• mjc
is Shell acting in an ethical way?

Richard Dion
MJC - thanks for your question.

Our core values of honesty, integrity and respect for people as well as our Business Principles and Code of Conduct require that we act ethically. Our staff and stakeholders want us to behave ethically. Our business is not a short-term business. We have not been around for over a century by cutting corners and acting unethically. That's not to say that we are perfect.

All companies like other institutions frequently have to deal with dilemmas and our principles help us reach decisions. It simply doesn't pay to act unethically when you are in business for the long term.

Posted at 14:58
• H_Shaw
Has Shell done any studies or data gathering on the impact of oil operations and oil pollution on fisheries or agriculture in the Niger Delta? If so, will Shell publish them?

Olav Ljosne
Thanks, and I am sure you are referring to the Niger Delta Environmental Survey that has been done for all the oil companies operating in Nigeria. We have been of the opinion that this should be published, and we will raise that with the other companies behind this study.

Olav
Posted at 15:00
• mostmodern
The loss of civilian lives in the recent military offensive in the Niger Delta is a cause for grave concern. The offensive indicates that the Nigerian military is more interested in protecting oil company facilities than it is protecting its people. Is it in line with Shell's business principles to operate behind a military shield in the Niger Delta? What is the consequence for human rights in the region?

Bjorn Edlund
We regret any use of violence. Of course it is not in line with our principles to operate behind a military shield. In the Niger Delta, we've seen violence escalate in recent years, as armed militants have attacked oil installations. It is hard to make sure that our staff and operations are safe, in this situation -and as you know we have shut down parts of our operations since 2006.
Posted at 15:05
•
Shell team member 1
As you'll have noticed, we have received a lot of questions, and the team is still answering as many as we can.
We may not be able to answer all of them before closing the session, but we are doing our best and will continue to work offline after the session closes.
Again, all participants will receive an email from us soon announcing that the transcript with the questions and answers is on Shell Dialogues.
Posted at 15:05
• angelo de souza
hello. i would like to ask: is shell optmist about peace in delta (end of militancy, vandalisation, kidnapping and so) as a result of the amnesty proposed by the govt?

Basil E. Omiyi
Given the fact that the political demand by the people in the Niger Delta for a greater share of the oil income is the main cause of the crisis in the region ( as every person in the region will tell you) and not pollution or other secondary issues, I believe that the current dialogue between the Federal Govt and the people of the region if approached honestly and generously will lead to a solution.
Oil in itself is not the issue and it infact a blessing. It is how the blessing is managed to meet the needs of the local communities and host goverment as well as how it is used for the needs of thw world.
Posted at 15:06
• inroads
If the government and criminal gangs are the obstacle to much of your work cleaning and re-greening, how are you addressing solving these problems? Thank you Louise

Nick Wood
Louise, I dont see the government as an obstacle but a partner and we all need to work together with other parts of civil society to find solutions to the problems the Niger Delta faces.
Posted at 15:08
• AYOOLA
What is the overall impact of the drastic reduction in Shell production in Nigeria on the long-term sustainability of Shell business in Nigeria?

Would it be right to conclude that in the face of the prevailing security situation, incessant attacks on production facilities and infrastructure, constantly declining production and restricted access to field locations; doing business in Nigeria would become unprofitable for Shell?

What is being done to ensure that Shell does not get to this point?

Olav Ljosne
Hello Ayoola,
Shell has been in Nigeria for around 70 years and have produced oil for over 50 years. You are right that the situation is challenging. But Shell is important to Nigeria and Nigeria is important to Shell. The main focus is safe operations and as little impact on the environment as possible. Security is a responsibility of the government. Several initiatives have been taken, and I am convinced that we will operate in Nigeria for long time ahead.
Olav
Posted at 15:08
• Segun
Are we working on how to mitigate the impact of the PIB if passed as is?

Basil E. Omiyi
Yes indeed.
Posted at 15:09
• wmsimon
17. The Niger Delta Environment Survey (NDES) was initiated by Shell in the mid-1990s and reportedly cost several million dollars to carry out. It was subsequently established as an independent entity. It looked at a wide range of environmental issues and impacts, including human health and pollution, and is reported to comprise 53 volumes. It has never been released. Can Shell explain what it is doing to get this data released?

Olav Ljosne
Please see my previous answer on the same issue,
Olav
Posted at 15:10
• Charles
Hi Nick, You said in your answer to Beck's question that SPDC does restore operational sites to its original situation before operating in it. How true is this statement considering that facts and pictures of what has been resported in the news media.

Nick Wood
Charles, if you are talking about oil spills, we are committed to cleaning up and restoring the sites not matter what the cause. Most of the oil spilled is due to sabotage which creates an enormous environmental problem.
Posted at 15:11
• ibukun
Hi,

It is obvious that the crisis in the Niger Delta has affected Shell greatly as an organisation. How does Shell hope to ensure that the Nigerian Government meets the needs of the people in this region, so as to be free to continue business with support from the people in the Niger Delta?

Regards

Basil E. Omiyi
We ensure we are on the table where solutions are being discussed and play our legitimete business role in being part of the solution. We continue to advocate that a people centered and development led solution is what will be sustainable. This is the heart of our Business Principle and Corporate Values.
Posted at 15:14
• aggy
Does Shell think that government failure to protect rights does not absolve Shell from responsibility for their actions?

Richard Dion
WM Simon and Aggy,

You've asked the same question, thus a joint answer.
You of course are referring to the mandate of Professor John Ruggie, UN Special Representative on Business and Human Rights, where his framework discusses the state duty to protect human rights, businesses to respect human rights and providing access to remedies. We have been following the Ruggie mandate closely as well as working closely with the Danish Institute for Human Rights and the Institute for Human Rights and Business as well as governments where we operate to help us in clarifying our obligations on the ground.
We cannot replace the state and its role in protecting human rights. We can however play our role in respecting human rights and ensuring that we carry out business in a responsible way. Even when there are difficulties related to government fulfilment of protecting human rights, we are committed to running our business ethically and respo
Posted at 15:15
• mostmodern
Dear Bjorn, Your colleague Basil Omiyi admitted minutes ago that oil industry pollution was driving the conflict. Isn't gas flaring a violation of human right to clean air water, livelihood and dignity?

Bjorn Edlund
Thanks for the question - as you know, we aim to stop flaring as soon as we can. If you want to know more, please visit here. This is a high priority.
Posted at 15:15
• ifufu
Hi,

I have just read in one of your answers what looks like Shell talking point - amount spent on community dev. One of the major criticisms against oil companies in Nigeria is that despite the huge amount of money they ve spent, sometimes it does not show in the lives of the people or their communities in terms of infrastructure.
How will Shell ensure that all the millions of dollars they disburse actually get to the people that need it and that it reflects on the infratructure in the oil communities?

Olav Ljosne
Hello,
We are as concerned as you ensuring that the money is used as planned and agreed with the communities. General development of the Niger delta will anyway be a responsibility for the State and Federal government. What we do will come in addition and support some social, infrastructure and educational in community around our operations, beside thousands of scholarships to high school and university students.
Olav
Posted at 15:16
• tundebello
As far as I am concerned the need for re-orientation of people of the Niger Delta and the desecration of its environment are the major problems. What is Shell doing to galvanise investment in human capital and socio-transformation of the people of the Niger Delta and tackle the environmental challenge once and for all?

Alice Ajeh
Tunde,
Shell recognises that human capital development is key to the development of the Niger Delta. From the earliest days, Shell was involved in secondary and Tertiary level scholarships. SPDC has several Youth training schemes to develop technical and entrepreneural skills as well as training for the oil and gas industry called the Shell Intensive Training Programmes(SITP) for graduates and non-graduates. Shell also works with Universities to provide work experience for Engineering and geosciences students. We also support entrepreneurs through micro credit schemes.
Posted at 15:17
• Vero
If Nigeria depends on oil for about 80 percent of government revenue. How much Shell is controlling / or can influence easily Nigeria?

Nick Wood
Vero, Shell is one of a number international companies operating in Nigeria. We do not get involved in politics. We don't control the government. The government is a majority partner in the joint venture which is operated by the Shell Petroleum Development Company of Nigeria in the Niger Delta. SPDC makes its position known on matters affecting the industry, for example the Petroleum Industry Bill now being debated in the Senate and House of Representatives. The government decides.
Posted at 15:18
• Your question has now been submitted
Posted at 15:18
• Michael Persson
We know that you pay royalties and taxes to the central government. Do youthink a fair deal of this money is redirected to the regions where you operate?

Basil E. Omiyi
It is very difficult to agree on what is fair and we leave that to Nigerian people and their Government to decide. We do know that the needs on the ground in the Delta are currently not being met. This could mean the region does not get enough or that what they get is not properly applied for all sort of reasons..
Posted at 15:19
• Fiona
If you are blaming the Nigerian government for many of the problems in Nigeria, then why do you continue to supply them with 80% of their revenue. Do you not think this money could instead be distributed to local communities, so improvements can be made from a grass root level up?

Richard Dion
Fiona,

Issues around revenue transparency and distribution have been centred around Nigeria for a number of years. The government did recognise a number of years ago that there was a problem regarding transparency and took leadership in supporting the EITI from the beginning. We also took leadership and became the first company to publish in Nigeria.

The government has allocated more money towards the producing states over the last several years, which has addressed some of the local population's concerns. We realise that there are still some debate regarding continual allocation and we look forward to working with government should they require our assistance in addressing outstanding concerns.
Posted at 15:25
• inroads
Hi, please could you tell me as a shell customer about how you address your responsibilities regarding the welfare of the people and the environment in Nigeria, thank you

Alice Ajeh
Hi,
We consider ourselves corporate citizens of the communities we operate in. Apart from statutory contribution to the government developmental agency(NDDC),we currently work with the communities,using development partners to advise them. In 2008, Shell spent $25.2m for communitydevelopment programmes including health, agricultural development,economic empowerment9micro credit) and human resources development, etc.
Posted at 15:28
•
Bjorn Edlund
Hi - thanks for taking part in this dialogue session. I would be surprised if we did manage to respond to all of your questions to the satisfaction of each and everyone of you. But I expect you will also understand that we will be firm if we disagree with the tone and content of a question. We look forward to the next engagement.
Posted at 15:29