SHELL OIL SPILL IN NIGERIA

Shell Oil Spill in Nigeria

Shell Oil Spill in Nigeria

Introduction

The purpose of this study is to expand the boundaries of author's knowledge by exploring some relevant facts and figures relating to leadership and its different aspects of application in a particular context. Leadership occurs in context and is increasingly complex due to globalisation and a myriad of ethical considerations. Oftentimes, leading becomes an exercise in addressing wicked problems. The successful leader performs this work in a social context: synthesising varied knowledge from different sources and people, drawing conclusions (or drawing out conclusions from others), and exercising appropriate judgement. Most importantly, leading means facilitating the creation of a shared sense of meaning as to what is happening in a given situation and what the desired outcomes of that situation are for the group or organisation. In this paper, the author will conduct a critical analysis on “a Shell oil spill in Nigeria” and analyze the impact of its CSR activities on the enviornment.

Discussion

Company Overview

Shell company started its operation in Nigeria in 1936. During this time, Shell compnay was granted lincene for oil exploration, however the first successful oil drilling project came about at Oloibiri in 1956. From there onwards, Shell D'Arcy started to be called as Shell-BP Petroleum Development Company of Nigeria Limited (Griseri, 2010, pp. 121).

In October 1979 Nigeria was returned to democratic rule after almost 13 years of military rule, and by December 1979 Company name was changed to Shell Petroleum Development Company of Nigeria (SPDC) after which there was a fifth participation agreement when NNPC's equity was reduced to 60%, Shell at 30%, Elf and Agip at 5% each. A memorandum of understanding and joint venture operating agreement was signed in July 1991 and a sixth participation agreement further was signed in July 1993 to reduce NNPC's equity to 55%, Shell still at 30%, Elf 10% and Agip 5%. (Griseri, 2010, pp. 121)

SPDC achieved the 1 million barrels of oil per day production from operations by October 2003. In 2004 Nigerians are given top management position jobs the first Nigerian Basil Omiyi was appointed MD and became country Chairman.

Due to militant attacks, SPDC had decided to pospond its project in western Niger Delta. Similarly, because of increase in rebillious activites, and due to instability in the region, the project of producing gas by Shell Nigeria Gas Company was also suspended. For the purpose of encouraging the contribution of Nigerain business in all operations, the company has entered in to agreement with Nigerai Content Development, this was done to support the growth of Nigeria's industrial sector and economy on the whole. Through its activities, Shell has undoubtedly made significant contribution to Nigeria's economic growth, and contributed the growth of local communities; the Organisation employs over 12,000 people for skilled and peripheral jobs (Griseri, 2010, pp. 121).

Shell had for some years prior to the merger of the RGS-IBG been engaged in oil extraction activities in the Niger River Delta in ...