Drilling and corporate social responsibility

Africans are naturally hospitable and accommodating to strangers and Nigerians are no exception.There was a time when prospecting for oil in host communities was carried out in friendly and accommodating atmosphere. Those were days when strangers, individual or corporate, carry out their businesses without fear, intimidation or harassment from their hosts. Not anymore! Since the Kaiama declaration of 1999, which was mainly to the effect that oil companies and their workers should vacate their host communities, business is no longer conducted as usual.

Government introduced a carrot and stick approach in pacifying the host communities. Carrot in the form of 13 per cent derivation which was seen more like 87 per cent deprivation! Stick in the form of using armed personnel to protect men and machine from the rage of their host communities. Corporate social responsibility is the minimum moral code expected of companies to deliver in their areas of operation, more importantly, to their host communities.

In the light of this, the then Mobil Producing Nigeria Unlimited, and now, ExxonMobil, transformed the fishing town of Ibeno and the entire Eket in Akwa-Ibom State to what it is today because their tank farm and operational base is headquartered there. Similarly, the then Elf Petroleum Limited and now, TotalE&P, transformed a farming town of Omoku in Rivers State to what it is today because their onshore assets are located there. The efforts of Chevron in Warri, Delta State cannot be overemphasized in this regard. Some marginal field operators are equally doing their best to drive corporate social responsibility in their various operational bases, but it would appear to their hosts that their best is not good enough! In the case of TotalE&P, the company managed to satisfy the different yearnings of the different groups in its host community for many years and in spite of their efforts, it would seem like they did nothing.

Some of these host communities have within them, youth groups, council of elders, women groups and the King, with each of these groups demanding, in most cases, for patronage in the way of employment, contracts, scholarships, sponsorship of town festivals and demand for outright cash. This is besides the erection of social infrastructures like roads, hospitals, electricity etc. Apparently, when Total took over Elf, they could no longer continue with the Elf idea of corporate social responsibility and decided to secure their accommodation and operational facilities with maximum-prison-like fences and armed escorts in tow, mainly from the Nigerian Army and Mobile policemen patrolling in between.

It is abundantly clear from the Total example that some of the agitators for the development of the host communities by the oil companies, drilling companies and in some cases, service companies are only interested in developing their pockets, making money for themselves instead of defending the interest(s) of their communities to the letter.

Some marginal field operators have to pay a certain amount of money to the youth group of their host communities, the council of elders, the women group and the king in a yearly basis through a community liaison officer. The drilling companies are not exempted from this ritual. In fact, some host communities have within them different families and communities that need to be settled each time the drilling rig is moved from one point to another even within the same community! it is therefore a standard practice for such companies to pay compensation to families and communities, employ some of the community youths as casual staff for the duration of their operations and when leaving, pay another round of compensation!

Despite all these efforts, workers are escorted in between their work places and accommodation areas under heavy security.
This is the politics of corporate social responsibility being played by the companies and their host communities to the benefit of these companies and a few indigenes of the communities. That is why the extracted crude oil from such communities rather than transform the community has transformed a few pockets! Why for instance, will such communities be without good roads, electricity and such other infrastructure that distinguishes a town from a settlement? Yet within this communal squalor, you find workers and management of the operating and drilling companies living large or so the hype seems.

A better way to solving this riddle is for operating companies to enter into a memorandum of understanding, MoU with their host communities before commencing operations. Such MoUs will include but not be limited to the provision of schools, good roads, portable water, employment of qualified indigenes, provision of electricity, scholarship for indigent students and sponsorship of community festivals depending on how long a company is operating in these communities and what their operating costs can allow. If we can change our thinking and attitude, the operating environment changes with our reputation for the better. Bonny Island in Rivers State is a classical example of how well to manage issues with companies to the good of the greater number. Borrowing a leaf from them will serve the interest of the people better and not that of a few. Perhaps, this approach will also reduce the cases of militancy to a manageable extent. It is time to default to our natural African settings of being friendly, accommodating and hospitable to our guests in spite of the ephemeral politics of corporate social responsibility!

. Kayode is an energy expert in Lagos.