ON THE NEED FOR THE NIGERIAN FEDERAL GOVERNMENT AND THE NIGERIAN JUDICIARY TO CONSIDER THE CONSEQUENCES OF FRUSTRATING INTERNATIONAL OIL COMPANIES OUT OF NIGERIA WITH ITS POLICIES AND COURT JUDGEMENTS RESPECTIVELY
March 2, 2021 | News
In a recent write-up by one Davidson Iriekpen of Thisdaylive, he noted the fact that considering the number of litigations hanging over International Oil Companies like the Shell Petroleum Development Company and its parent company, Royal Dutch Shell, this could threaten its operations in Nigeria, if not properly managed.
ON THE NEED FOR THE NIGERIAN FEDERAL GOVERNMENT AND THE NIGERIAN JUDICIARY TO CONSIDER THE CONSEQUENCES OF FRUSTRATING INTERNATIONAL OIL COMPANIES OUT OF NIGERIA WITH ITS POLICIES AND COURT JUDGEMENTS RESPECTIVELY
In a recent write-up by one Davidson Iriekpen of Thisdaylive, he noted the fact that considering the number of litigations hanging over International Oil Companies like the Shell Petroleum Development Company and its parent company, Royal Dutch Shell, this could threaten its operations in Nigeria, if not properly managed. And to me, it will be a bad signal for the country in the eyes of the international community, if the nation’s leading oil giant would completely pack out of the country.
In the said write-up, Iriekpen noted that Shell (SPDC), since it commenced oil exploration in Nigeria 65 years ago, never have we witnessed a barrage of litigations and judgments against it as it has done in the last four years. The oil giant, locally and internationally, faces a litany of suits and compensations that threaten its existence in Nigeria. Just last Thursday, Feb.25th,2021, an Upper Area Court in Abuja presided over by Justice Gambo Garba issued a criminal summons against the oil major and seven of its top executives for stealing 16 million barrels of crude oil through the use of a fraudulent and unapproved metering system. The executives summoned are Chibueze Uduanochie, Simon Ruddy, Bashir Bello, Osagie Okunbor, Igo Weli, Toyin Olagunji, and Captain Callium Finlayson.
Some months back, I also wrote on a report that a High Court sitting in Port Harcourt, the Rivers State capital, presided by Justice George Omereji, had sentenced the Managing Director (MD) of Shell (SPDC), Mr. Osagie Okunbor, and two other top officials of the oil firm to three months’ imprisonment with hard labour for contempt, for refusing to obey a court order in 2008 instructing them to forfeit land where Bonny Crude Oil terminal was located. It was gathered that the said land belonged to the Jumbo Major House of Bonny and the Brown House of Finima in the Bonny Local Government Area of Rivers State.
In my own opinion, while it is imperative for the International oil and gas companies to always carry out their operations within the ambits of the law of the land and regulations guiding the industry where their operations are taking place, it is also important for the Nigerian Judiciary and Nigerian Judges to always consider the intricacies, complexities, and difficulties prevalent within the oil and gas industry operations, especially as it relates/affects oil and gas companies. In a situation where the judiciary may carelessly dish out court judgments in other to prove a point, without looking at/considering the economic implications, then it is a dangerous situation that should not be encouraged at all.
The knowledge of the complexities of the oil and gas industry will help the Judges not to issue/deliver Court Orders/Judgements that are difficult/near impossible to obey by oil and gas companies and can also push them out of the country to other African nations where they may see as a better operating environment. Court Orders/Judgements that will be like, asking someone to stop breathing for 30minutes, should be avoided by the Law Courts when addressing cases involving and affecting oil and gas operations/operators. They should always give room for ‘outside court settlement’ and dialogue between the parties involved in cases in this sector. This is important, especially when we consider the fact that the assets and facilities involved in the sector took years to build and they do not come cheap. But most importantly, these are usually viable assets that are like the building blocks of the nation’s economy.
So, whatever adversely affects the oil and gas operations in the region, automatically affects the nation’s economy. Let us not think that these oil corporations do not have a choice to exit from the country if they really want to. The oil city of Warri in Delta State is today a ghost town trying to survive because ever since Shell (SPDC) divested its oil and gas assets/operations some years ago, the economic life and business activities in the city have not been the same. Now, all those who contributed in one way or the other to create the unattractive environment that made Shell (SPDC) exit from the State, are regretting their actions today because they are beginning to see the severe consequences of their actions.
In other words, the Nigerian judiciary should always weigh the consequences of the economic implications of their court judgments. If anything, what the Nigerian Government and policymakers should focus on, is to create economic friendly policies and a conducive environment that would be attractive to International Corporations. We need to develop the right infrastructure, and also make the Nigerian business environment a safe haven to attract investments within, and outside the country. That is how countries grow economically. But if we use ‘sentiments,’ ‘selfish interests’ and ‘bias’ in addressing and managing issues in the nation’s oil and gas industry as it relates with the big players, then the country will be drowned the more. As advanced as the US economy is, they still strive for foreign investments. Nigeria, as a developing nation, should not use its hands to destroy its economy. That is how I see it!
Zik Gbemre.
March 2, 2021
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes
In a recent write-up by one Davidson Iriekpen of Thisdaylive, he noted the fact that considering the number of litigations hanging over International Oil Companies like the Shell Petroleum Development Company and its parent company, Royal Dutch Shell, this could threaten its operations in Nigeria, if not properly managed. And to me, it will be a bad signal for the country in the eyes of the international community, if the nation’s leading oil giant would completely pack out of the country.
In the said write-up, Iriekpen noted that Shell (SPDC), since it commenced oil exploration in Nigeria 65 years ago, never have we witnessed a barrage of litigations and judgments against it as it has done in the last four years. The oil giant, locally and internationally, faces a litany of suits and compensations that threaten its existence in Nigeria. Just last Thursday, Feb.25th,2021, an Upper Area Court in Abuja presided over by Justice Gambo Garba issued a criminal summons against the oil major and seven of its top executives for stealing 16 million barrels of crude oil through the use of a fraudulent and unapproved metering system. The executives summoned are Chibueze Uduanochie, Simon Ruddy, Bashir Bello, Osagie Okunbor, Igo Weli, Toyin Olagunji, and Captain Callium Finlayson.
Some months back, I also wrote on a report that a High Court sitting in Port Harcourt, the Rivers State capital, presided by Justice George Omereji, had sentenced the Managing Director (MD) of Shell (SPDC), Mr. Osagie Okunbor, and two other top officials of the oil firm to three months’ imprisonment with hard labour for contempt, for refusing to obey a court order in 2008 instructing them to forfeit land where Bonny Crude Oil terminal was located. It was gathered that the said land belonged to the Jumbo Major House of Bonny and the Brown House of Finima in the Bonny Local Government Area of Rivers State.
In my own opinion, while it is imperative for the International oil and gas companies to always carry out their operations within the ambits of the law of the land and regulations guiding the industry where their operations are taking place, it is also important for the Nigerian Judiciary and Nigerian Judges to always consider the intricacies, complexities, and difficulties prevalent within the oil and gas industry operations, especially as it relates/affects oil and gas companies. In a situation where the judiciary may carelessly dish out court judgments in other to prove a point, without looking at/considering the economic implications, then it is a dangerous situation that should not be encouraged at all.
The knowledge of the complexities of the oil and gas industry will help the Judges not to issue/deliver Court Orders/Judgements that are difficult/near impossible to obey by oil and gas companies and can also push them out of the country to other African nations where they may see as a better operating environment. Court Orders/Judgements that will be like, asking someone to stop breathing for 30minutes, should be avoided by the Law Courts when addressing cases involving and affecting oil and gas operations/operators. They should always give room for ‘outside court settlement’ and dialogue between the parties involved in cases in this sector. This is important, especially when we consider the fact that the assets and facilities involved in the sector took years to build and they do not come cheap. But most importantly, these are usually viable assets that are like the building blocks of the nation’s economy.
So, whatever adversely affects the oil and gas operations in the region, automatically affects the nation’s economy. Let us not think that these oil corporations do not have a choice to exit from the country if they really want to. The oil city of Warri in Delta State is today a ghost town trying to survive because ever since Shell (SPDC) divested its oil and gas assets/operations some years ago, the economic life and business activities in the city have not been the same. Now, all those who contributed in one way or the other to create the unattractive environment that made Shell (SPDC) exit from the State, are regretting their actions today because they are beginning to see the severe consequences of their actions.
In other words, the Nigerian judiciary should always weigh the consequences of the economic implications of their court judgments. If anything, what the Nigerian Government and policymakers should focus on, is to create economic friendly policies and a conducive environment that would be attractive to International Corporations. We need to develop the right infrastructure, and also make the Nigerian business environment a safe haven to attract investments within, and outside the country. That is how countries grow economically. But if we use ‘sentiments,’ ‘selfish interests’ and ‘bias’ in addressing and managing issues in the nation’s oil and gas industry as it relates with the big players, then the country will be drowned the more. As advanced as the US economy is, they still strive for foreign investments. Nigeria, as a developing nation, should not use its hands to destroy its economy. That is how I see it!
Zik Gbemre.
March 2, 2021
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes