OIL AND BIAFRA: AN ASSESSMENT OF SHELL-BP’s DILEMMA DURING THE NIGERIAN CIVIL WAR, 1967-1970

Abstract

The attempt by Biafra to secede from the federation provoked the Nigerian Civil War that raged for almost three years. Oil was one of its major causes. Shell-BP was a ritish multinational company that had dominated the exploration process of the
Nigerian oil industry since the 1950s. This study focuses on Shell BP’s dilemma in Nigeria during the civil war era (1967-1970). By using relevant primary and  secondary sources, the paper explores the complexities that surround Shell-BP’s position either on the side of Federal government in Lagos through which it got its operating license or the Biafra government in the East that was desperate to secede from the federation. The paper further highlights the economic value of Shell-BP’s investment in oil exploration, its position during the civil war barely eleven years of oil production in eastern and mid-western Nigeria, problem of royalties’ payment in the face of dreadful threat to installations by Biafran troops, and the involvement of British government. The major findings of the paper show that despite Shell-BP’s claim of non-partisanship, its exploration activities went on almost smoothly for the larger part of the war period. This feat could have been achieved by Shell-BP only with payment of adequate royalties to the federal government, and at the same time payment of certain undisclosed token to the Biafran leaders to avoid severe damage to its installations. This study contributes to the existing knowledge on oil and war, particularly the conflict of interests associated with oil companies, the government and other stakeholders. It also contends that it is difficult for any oil company to be completely non-partisan in the conduct of its business activities in a country like Nigeria. The paper concludes that the circumstances of war era compelled Shell-BP to adopt the strategy of constructive negotiation with the Biafran leaders without undermining the Federal Government.