Identifier
Created
Classification
Origin
07LAGOS172
2007-03-12 11:11:00
CONFIDENTIAL
Consulate Lagos
Cable title:
MILITANT THREATS, BUNKERING & INSECURITY PLAGUE
how-toVZCZCXRO2451 OO RUEHPA DE RUEHOS #0172/01 0711111 ZNY CCCCC ZZH O 121111Z MAR 07 FM AMCONSUL LAGOS TO RUEHC/SECSTATE WASHDC IMMEDIATE 8586 INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY RUEHUJA/AMEMBASSY ABUJA PRIORITY 8411 RUEHWR/AMEMBASSY WARSAW PRIORITY 0184 RUEHCD/AMCONSUL CIUDAD JUAREZ PRIORITY 0164 RUEHIT/AMCONSUL ISTANBUL PRIORITY 0165 RUEHSO/AMCONSUL SAO PAULO PRIORITY 0177 RUFOADA/JAC MOLESWORTH AFB UK PRIORITY RUEKJCS/SECDEF WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RHEFDIA/DIA WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000172
SIPDIS
SIPDIS
STATE FOR AF/W
STATE FOR INR/AA
E.O. 12958: DECL: 03/12/2017
TAGS: NI PGOV PREL PTER
SUBJECT: MILITANT THREATS, BUNKERING & INSECURITY PLAGUE
NIGER DELTA
LAGOS 00000172 001.2 OF 003
Classified By: Consul General Brian L. Browne for reasons 1.4 (B) and (
D)
C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000172
SIPDIS
SIPDIS
STATE FOR AF/W
STATE FOR INR/AA
E.O. 12958: DECL: 03/12/2017
TAGS: NI PGOV PREL PTER
SUBJECT: MILITANT THREATS, BUNKERING & INSECURITY PLAGUE
NIGER DELTA
LAGOS 00000172 001.2 OF 003
Classified By: Consul General Brian L. Browne for reasons 1.4 (B) and (
D)
1. (C) Summary. Managing Directors (MDs) of American oil
majors Chevron and ExxonMobil both received a similar email
threat purportedly from the Movement for the Emancipation of
the Niger Delta (MEND). The threat listed the names of the
company's rigs as potential targets for militant activity.
Militants illegally bunker the equivalent of one very large
crew carrier of oil out of the Niger Delta per week,
according to the MDs. ExxonMobil told visiting AF/W Director
Phillip Carter that oil companies are investing as much as
they can into developing the Delta and Nigerians must hold
their government accountable for not using their revenues
wisely. End Summary.
-------------- --------------
GOOD COMMUNITY RELATIONS, OFFSHORE SITES NO PROTECTION
-------------- --------------
2. (C) Fred Nelson, Managing Director of Chevron Nigeria,
told AF/W Director Phillip Carter on March 2 that Chevron's
positive relationship with communities, mostly in Delta
state, allows it to operate more smoothly than Shell
Petroleum Development Company (SPDC). That said, Chevron is
not immune from militant hectoring; Nelson received an email
from the Movement for the Emancipation of the Niger Delta
(MEND) threatening to attack Chevron's Escravos operations in
Delta State. When Chevron checked with the leadership of
Delta State-based militants, all disavowed authorship of the
threat. Chevron operating procedures call for military Joint
Task Force (JTF) escorts for all contractors and a no-payment
policy to militants, important because of Chevron's travels
along Chanomi creek, which passes Camp 5 run by militant
leader Tom Polo.
3. (C) John Chaplin, Managing Director of ExxonMobil,
received a similar email, his included the names of
ExxonMobil's rigs. He said ExxonMobil, which primarily
operates offshore of Akwa Ibom State, is still susceptible to
militant attacks, demonstrated by prior attacks carried out
on a rig 70 miles offshore of Bayelsa State. Chaplin was
surprised militants had not yet attacked Bonny Island,
Escravos, or Eket, as doing so would shut down Nigeria's oil
production and debilitate the country. Nelson commented
"MEND" is likely a moniker used by unassociated groups or
individuals to attract attention. Chaplin added that this
made it difficult to identify MEND's objectives.
--------------
MILITARY COMPLICIT IN ILLEGAL OIL BUNKERING
--------------
4. (C) Chaplin estimated illegal oil bunkerers take out of
Nigeria approximately one very large crew carrier (VLCC) per
week. He suggested both ship and crew details be tracked to
determine the destination. Chaplin said many high ranking
military are rich and "everyone retires with money," from
which he deduces the military is complicit in the illegal oil
bunkering business. Nelson questioned why the international
community fails to address the demand side, including the
transport and sale, of illegally bunkered oil.
5. (C) Nelson told Director Carter illegal bunkering has
become Chevron's biggest problem and has lowered Chevron's
pipeline pressure. The company has little it could do
unilaterally to combat a clandestine system wherein barges
could lift up to 15,000 barrels per day of illegally bunkered
oil. The military Joint Task Force (JTF) is based throughout
the Niger Delta but is incompetent and unwilling to stem
these illegal activities, Nelson said. (Note: An increase in
illegal bunkering on Chevron's pipelines may be attributed to
Shell's diminished production over the past year. End Note.)
-------------- --------------
CRISIS IMPACTS IOC'S ACCESS TO OIL SERVICES WORKERS
LAGOS 00000172 002.2 OF 003
-------------- --------------
6. (C) Chaplin did not think increased deployment of
military personnel would improve security in the Delta, but
he did think mobile police could do a better job and lessen
tensions if they improved their relations with communities.
Mobile police are poorly trained and often are stripped of
their weapons by militants. The police have been
hard-pressed to such an extent that many officers have taken
to removing their uniforms at the slightest hint of militant
activity, Chaplin said. Chevron in Escravos teaches
voluntary principles to the military, police, and mobile
police to enhance government provided security. (Note:
Nelson said the Navy does not want to receive training; they
merely want "toys, equipment and arms.")
7. (C) Chaplin said militant activity has made it more
difficult to attract contractors, not due to the "CNN factor"
but because their families, believing Nigeria to be too
dangerous, have discouraged them from coming. While IOCs
offer the best security and protection currently available in
the Niger Delta, only so much can be done to control
contractors' social habits. The innumerable
hostage-incidents have taken their toll on oil majors'
ability to obtain needed services. For example, Nelson said
Chevron had difficulty attracting skilled workers, especially
welders, many of whom tend to be Filipino, ever since the
Philippines banned travel to Nigeria.
8. (C) Nelson warned if contractors such as Bristow, which
provides nine helicopters on contract to Chevron's Escravos
site, are forced to withdraw from the Niger Delta, IOCs will
be severely restricted; there is only one road into Escravos.
Without air transport, operations are significantly choked.
Additionally, Nelson warned that one rocket propelled grenade
in the wrong place would quickly change the company's entire
security equation.
--------------
NIGER DELTA NEEDS GOVERNANCE, DEVELOPMENT
--------------
9. (C) Chaplin identified IOCs as the only entities in the
Delta doing their fair share of development activities.
However, he complained that oil majors cannot continue to be
the only entities that address communities' needs because the
companies simply are not equipped nor well suited to become
quasi-governments. Governor Peter Odili of Rivers State, for
example, has a state budget larger than that of many African
countries but has accomplished little, Chaplin complained.
Both state government and local government areas (LGAs) need
to be more productive, he said. He recognized the benefit of
development-oriented NGOs such as Pro-Natura International
(PNI). Now is the time for Nigerians to hold their
government accountable, Chaplin commented.
10. (C) Nelson listed the company's efforts to help develop
communities but explained these efforts by themselves do not
lead to sustainable development. Chevron found it needed to
hire NGOs to provide record-keeping training so communities
could implement memoranda of understanding. Chevron was
conducting Sustainable Livelihood Assessments (SLAs) every
2-3 years, but funding must come from another source.
Chevron spends more money in Nigeria than anywhere outside
the United States. Twenty-three percent of Chevron's revenue
goes to the Niger Delta Development Commission (NDDC),whose
annual budget is USD 5 million; Nelson could identify no NDDC
projects of note. IOCs receive five percent of revenue, the
GON takes 95 percent and, in the end, LGAs receive a
pittance.
11. (C) However, Chevron's efforts have not gone
unappreciated. A Regional Development Council (RDC) composed
of community members was set up so Chevron could get first
hand information from the communities. The militant Tom
Polo, leader of the Federated Niger Delta Ijaw Communities
LAGOS 00000172 003.2 OF 003
(FNDIC),sent Chevron a note March 1 stating the company is
"okay." Chevron also has positive relations with Father
O'Hara in Port Harcourt and Judith Asuni of the NGO Academic
Associates PeaceWorks.
-------------- --------------
CHEVRON EXPECTS TO MEET 2010 UN GAS FLARING AGREEMENT
-------------- --------------
12. (C) Chaplin said that while tax and other pending
legislation will provide incentives for investment in power
plants, he doubts the government will be able to deliver the
gas, especially in light of the government's inability to
repair the pipeline that supplies gas to Lagos. Nelson said
Chevron is flaring 100 percent of its gas and doubted the
West African pipeline would ever carry gas once completed.
Nelson said Chevron plans to meet the 2010 UN agreement on
gas flaring, rather than the Nigerian 2008 Flare Mandate,
because the GON has not provided the enabling environment for
companies to achieve this goal.
--------------
COMMENT
--------------
13. (C) Chaplin and Nelson described problems which have
been well known for sometime, but which, in the run up to the
elections, risk becoming more severe. End Comment.
BROWNE
SIPDIS
SIPDIS
STATE FOR AF/W
STATE FOR INR/AA
E.O. 12958: DECL: 03/12/2017
TAGS: NI PGOV PREL PTER
SUBJECT: MILITANT THREATS, BUNKERING & INSECURITY PLAGUE
NIGER DELTA
LAGOS 00000172 001.2 OF 003
Classified By: Consul General Brian L. Browne for reasons 1.4 (B) and (
D)
1. (C) Summary. Managing Directors (MDs) of American oil
majors Chevron and ExxonMobil both received a similar email
threat purportedly from the Movement for the Emancipation of
the Niger Delta (MEND). The threat listed the names of the
company's rigs as potential targets for militant activity.
Militants illegally bunker the equivalent of one very large
crew carrier of oil out of the Niger Delta per week,
according to the MDs. ExxonMobil told visiting AF/W Director
Phillip Carter that oil companies are investing as much as
they can into developing the Delta and Nigerians must hold
their government accountable for not using their revenues
wisely. End Summary.
-------------- --------------
GOOD COMMUNITY RELATIONS, OFFSHORE SITES NO PROTECTION
-------------- --------------
2. (C) Fred Nelson, Managing Director of Chevron Nigeria,
told AF/W Director Phillip Carter on March 2 that Chevron's
positive relationship with communities, mostly in Delta
state, allows it to operate more smoothly than Shell
Petroleum Development Company (SPDC). That said, Chevron is
not immune from militant hectoring; Nelson received an email
from the Movement for the Emancipation of the Niger Delta
(MEND) threatening to attack Chevron's Escravos operations in
Delta State. When Chevron checked with the leadership of
Delta State-based militants, all disavowed authorship of the
threat. Chevron operating procedures call for military Joint
Task Force (JTF) escorts for all contractors and a no-payment
policy to militants, important because of Chevron's travels
along Chanomi creek, which passes Camp 5 run by militant
leader Tom Polo.
3. (C) John Chaplin, Managing Director of ExxonMobil,
received a similar email, his included the names of
ExxonMobil's rigs. He said ExxonMobil, which primarily
operates offshore of Akwa Ibom State, is still susceptible to
militant attacks, demonstrated by prior attacks carried out
on a rig 70 miles offshore of Bayelsa State. Chaplin was
surprised militants had not yet attacked Bonny Island,
Escravos, or Eket, as doing so would shut down Nigeria's oil
production and debilitate the country. Nelson commented
"MEND" is likely a moniker used by unassociated groups or
individuals to attract attention. Chaplin added that this
made it difficult to identify MEND's objectives.
--------------
MILITARY COMPLICIT IN ILLEGAL OIL BUNKERING
--------------
4. (C) Chaplin estimated illegal oil bunkerers take out of
Nigeria approximately one very large crew carrier (VLCC) per
week. He suggested both ship and crew details be tracked to
determine the destination. Chaplin said many high ranking
military are rich and "everyone retires with money," from
which he deduces the military is complicit in the illegal oil
bunkering business. Nelson questioned why the international
community fails to address the demand side, including the
transport and sale, of illegally bunkered oil.
5. (C) Nelson told Director Carter illegal bunkering has
become Chevron's biggest problem and has lowered Chevron's
pipeline pressure. The company has little it could do
unilaterally to combat a clandestine system wherein barges
could lift up to 15,000 barrels per day of illegally bunkered
oil. The military Joint Task Force (JTF) is based throughout
the Niger Delta but is incompetent and unwilling to stem
these illegal activities, Nelson said. (Note: An increase in
illegal bunkering on Chevron's pipelines may be attributed to
Shell's diminished production over the past year. End Note.)
-------------- --------------
CRISIS IMPACTS IOC'S ACCESS TO OIL SERVICES WORKERS
LAGOS 00000172 002.2 OF 003
-------------- --------------
6. (C) Chaplin did not think increased deployment of
military personnel would improve security in the Delta, but
he did think mobile police could do a better job and lessen
tensions if they improved their relations with communities.
Mobile police are poorly trained and often are stripped of
their weapons by militants. The police have been
hard-pressed to such an extent that many officers have taken
to removing their uniforms at the slightest hint of militant
activity, Chaplin said. Chevron in Escravos teaches
voluntary principles to the military, police, and mobile
police to enhance government provided security. (Note:
Nelson said the Navy does not want to receive training; they
merely want "toys, equipment and arms.")
7. (C) Chaplin said militant activity has made it more
difficult to attract contractors, not due to the "CNN factor"
but because their families, believing Nigeria to be too
dangerous, have discouraged them from coming. While IOCs
offer the best security and protection currently available in
the Niger Delta, only so much can be done to control
contractors' social habits. The innumerable
hostage-incidents have taken their toll on oil majors'
ability to obtain needed services. For example, Nelson said
Chevron had difficulty attracting skilled workers, especially
welders, many of whom tend to be Filipino, ever since the
Philippines banned travel to Nigeria.
8. (C) Nelson warned if contractors such as Bristow, which
provides nine helicopters on contract to Chevron's Escravos
site, are forced to withdraw from the Niger Delta, IOCs will
be severely restricted; there is only one road into Escravos.
Without air transport, operations are significantly choked.
Additionally, Nelson warned that one rocket propelled grenade
in the wrong place would quickly change the company's entire
security equation.
--------------
NIGER DELTA NEEDS GOVERNANCE, DEVELOPMENT
--------------
9. (C) Chaplin identified IOCs as the only entities in the
Delta doing their fair share of development activities.
However, he complained that oil majors cannot continue to be
the only entities that address communities' needs because the
companies simply are not equipped nor well suited to become
quasi-governments. Governor Peter Odili of Rivers State, for
example, has a state budget larger than that of many African
countries but has accomplished little, Chaplin complained.
Both state government and local government areas (LGAs) need
to be more productive, he said. He recognized the benefit of
development-oriented NGOs such as Pro-Natura International
(PNI). Now is the time for Nigerians to hold their
government accountable, Chaplin commented.
10. (C) Nelson listed the company's efforts to help develop
communities but explained these efforts by themselves do not
lead to sustainable development. Chevron found it needed to
hire NGOs to provide record-keeping training so communities
could implement memoranda of understanding. Chevron was
conducting Sustainable Livelihood Assessments (SLAs) every
2-3 years, but funding must come from another source.
Chevron spends more money in Nigeria than anywhere outside
the United States. Twenty-three percent of Chevron's revenue
goes to the Niger Delta Development Commission (NDDC),whose
annual budget is USD 5 million; Nelson could identify no NDDC
projects of note. IOCs receive five percent of revenue, the
GON takes 95 percent and, in the end, LGAs receive a
pittance.
11. (C) However, Chevron's efforts have not gone
unappreciated. A Regional Development Council (RDC) composed
of community members was set up so Chevron could get first
hand information from the communities. The militant Tom
Polo, leader of the Federated Niger Delta Ijaw Communities
LAGOS 00000172 003.2 OF 003
(FNDIC),sent Chevron a note March 1 stating the company is
"okay." Chevron also has positive relations with Father
O'Hara in Port Harcourt and Judith Asuni of the NGO Academic
Associates PeaceWorks.
-------------- --------------
CHEVRON EXPECTS TO MEET 2010 UN GAS FLARING AGREEMENT
-------------- --------------
12. (C) Chaplin said that while tax and other pending
legislation will provide incentives for investment in power
plants, he doubts the government will be able to deliver the
gas, especially in light of the government's inability to
repair the pipeline that supplies gas to Lagos. Nelson said
Chevron is flaring 100 percent of its gas and doubted the
West African pipeline would ever carry gas once completed.
Nelson said Chevron plans to meet the 2010 UN agreement on
gas flaring, rather than the Nigerian 2008 Flare Mandate,
because the GON has not provided the enabling environment for
companies to achieve this goal.
--------------
COMMENT
--------------
13. (C) Chaplin and Nelson described problems which have
been well known for sometime, but which, in the run up to the
elections, risk becoming more severe. End Comment.
BROWNE