Oil Revenues, Security and Stability in West Africa

This book offers a new look at the oil industry in West Africa, proposing to examine the entire region that has been viewed through the lens of Nigeria, Ghana and Gabon. The author argues that, in order to address peace and stability in the region, it is important to understand the transformative powers of petroleum revenue. The project also includes the author's analysis of the problem on multiple levels: international oil companies, states, and local communities. Also, it takes a deeper look at the effects and importance of local communities in the above countries and discusses adequately the strategic challenges that petro-capitalism poses for West Africa's regional stability and human security. Vandy Kanyako is Associate Professor at Portland State University, USA Acknowledgments 5 Contents 7 Abbreviations 8 List of Figures 10 List of Tables 11 1 Introduction: Human Security, Oil Revenues, and Conflict 12 The Rising Profile of West Africa’s Oil Wealth 12 Objectives and Approach 20 Challenges 20 The Urgency of Oil 23 Book Structure 25 Chapter 2: The History and Geology of Petroleum in West Africa 26 Chapter 3: External Stakeholders and the Geopolitics of Oil 27 Chapter 4: Oil Revenues and the State 27 Chapter 5: Oil and Community Agitation 28 Chapter 6: Civil Society and Global Frameworks 28 Chapter 7: Managing Disputes in West Africa’s Petroleum Industry 29 Chapter 8: Conclusion: Implications for Conflict Resolution 30 Core Themes of the Book 30 Summary 32 References 33 2 The History and Geology of Petroleum in West Africa 35 The History and Evolution of West Africa’s Oil 35 Colonial Period/Preindependence (Exploration and Discovery) 39 Postindependence and the Cold War (Drilling and Exportation) 42 Post–Cold War (Expansion and Consolidation) 43 Twenty-First Century and Beyond (Commercial Export) 44 West Africa’s Geologic Oil Provinces 45 The West African Coastal Province 49 Gulf of Guinea and Niger Delta 49 Role of Technology 51 Conclusion 52 References 53 3 External Stakeholders and the Geopolitics of Oil 55 Introduction 55 Oil Companies in West Africa 56 Colonial Politics and Commercial Oil in West Africa 60 Independence and Diversification of the Nascent Oil Industry 64 The Medium, Africa-Specialist Companies 66 Contractors and Equity Firms 68 Role of States 71 Multilateral Organizations: Strategies and Impact 75 Conclusion 77 References 78 4 Oil Revenues and the State 82 West Africa’s Oil Wealth: Issues and Context 82 Oil Revenue Streams 86 West African Oil Wealth: The Numbers 88 The Minnows 92 Producer Governments and the Role of the State 95 The Challenges of Managing Oil Revenues 105 Conclusion 111 References 112 5 Oil and Community Agitation 117 Nature and Sources of Grievances 117 Survival Needs 121 Employment 124 Environmental Degradation 126 Health Risks 127 Inadequate Compensation 128 Economic Deprivation 129 Human Rights Abuses 130 Identity Needs 130 Exclusion from Decision-Making 131 Different Actors: Different Needs and Expectations 132 Civic Response 133 Passive Resistance and Peaceful Disciplined Protest 134 Using the Oil Companies as Surrogates 136 Joint Ventures and Strategic Partnerships 136 Litigation 137 Sabotage, Vandalism, and Bunkering 138 Illegal Refinement of Oil 139 Counter-Response from Governments and Oil Companies 140 Armed Resistance 142 Corporate Philanthropy 145 Conclusion 146 References 147 6 Civil Society and Global Frameworks 150 The Issues and the Critics 150 Civil Society’s Visibility and Growing Influence 150 Classification and Typology 152 Single-Issue Organizations 156 Activities and Programs 157 Education and Skills Training: The Role of the University System 158 International Level: Global Frameworks for Promoting Transparency 159 Formal Frameworks for Promoting Transparency and Accountability in Resource Extraction 160 Civil Society in the NEITI Process 164 Impact of Civil Society’s Work 165 Weaknesses and Limitations: Persisting Challenges 167 Conclusion 168 References 169 7 Managing Disputes in West Africa’s Petroleum Industry 171 The Inevitability of Conflict in the Oil Industry 171 Types and Nature of Oil-Related Conflicts 173 Contract-Related Disputes 174 Performance-Related Disputes 176 Territoriality: Border and Maritime Boundaries 177 Community-Level Conflicts 180 The Case for Cooperation 181 Clarity in Petroleum Contracts 182 Bilateral Negotiations 182 Regional Agreements 183 International Mechanisms 184 Use of Statecraft: Sanctions and Embargoes 185 International Arbitration 186 Litigation 187 Maritime Conflicts 188 The Conflict and Peace Properties of Oil 188 Conflict Resolution 193 Bilateral and Multilateral Agreements 193 International Legal Instruments for Managing Disputes 193 Chapter Conclusion 194 References 195 8 Conclusion: Implications for the Field of Conflict Resolution 197 Conflict Resolution Theories 197 Implications for the Region 201 Moving Forward: Ongoing Challenges 205 Conflict Research Techniques “We Follow the Fish”: Oil and a Fishing Community 209 Lessons from the Diamond Industry: Sierra Leone and Angola 210 Recommendations 212 At the Global Level 212 At the Regional Level 213 Conclusion 215 References 215 Epilogue: West Africa and the Pandemic of Oil 218 References 219 Index 220 Front Matter ....Pages i-xiii Introduction: Human Security, Oil Revenues, and Conflict (Vandy Kanyako)....Pages 1-23 The History and Geology of Petroleum in West Africa (Vandy Kanyako)....Pages 25-44 External Stakeholders and the Geopolitics of Oil (Vandy Kanyako)....Pages 45-71 Oil Revenues and the State (Vandy Kanyako)....Pages 73-107 Oil and Community Agitation (Vandy Kanyako)....Pages 109-141 Civil Society and Global Frameworks (Vandy Kanyako)....Pages 143-163 Managing Disputes in West Africa’s Petroleum Industry (Vandy Kanyako)....Pages 165-190 Conclusion: Implications for the Field of Conflict Resolution (Vandy Kanyako)....Pages 191-211 Back Matter ....Pages 213-219