WAOW Launches Research Unit

 WAOW has launched a research unit to systematically examine the international political economy of African oil. According to Dr. Robert Tynes of Bard College, who is co-coordinating the research, “the focus is on how the market is shaped, steered, and/or commandeered by foreign and domestic players”.

Approaches:

We approach the problem from three angles. First, through social network analysis we are mapping the connections forming and formed between oil companies and states, states and states, and companies and companies. The goal is to visualize the political economy and answer several basic questions: Which oil companies hold a dominant position in the African oil market? Which African states appear to have the greatest control over their own resources? Is the African oil market highly centralized, captured by a few key players? Or, is the market decentralized, with multiple companies and/or states maintaining comparable stakes in the market?

Dr. Vandy Kanyako with Research Coordinator, Dr. Robert Tynes

Our second approach involves the construction of a database of all the companies and states engaged in the African oil market, and their role—exploration, extraction, refining. The database includes numerous state-based, political variables, such as: level of democracy, level of education, infant mortality rates, civil society participation as watchdog, membership in multinational transparency institutions, and measures for rule of law, transparency and corruption. These variables are used to reveal potential correlations between economic activities in an African state and political outcomes.

Third, we are also creating narratives for each of the oil companies and African states. These are detailed descriptions that hone in on specific dynamics of the industry—What is the history of oil in the state? How has the company grown in, or receded from, the African oil market? What type of contractual agreements does the state or company have? Taken together, our three-fold approach should provide a multi-dimensional model of the international political economy of African oil, one that has yet to be constructed.

West Africa Oil Watch

Fostering Transparency

Through Civil Engagement

Message From Sierra Leone

Sierra Leone: Consultative meetings on Oil

Introduction
According to the UNODC, between the years of 1960 & 1999, roughly $400 Billion was lost to oil corruption within Nigeria alone. This is approximately the same amount of International Aid given to the entire region within that same amount of time. Development projects have been enacted to address perhaps a few issues within the region pertaining to a marginalized and fractured program at reaching just one of the many implications inhibiting development but these projects fall short of addressing the issues at their source and in a comprehensive manner. Within this overview, we will describe our operations at addressing corruption within the oil sector and their salient liaison to the core issues of development.

Background
Between December 2012 and January 2013 the West Africa Oil Watch, in collaboration with various local partners, organized a series of civil-society-led consultative workshops on Sierra Leone’s nascent oil industry. The workshops were convened in Freetown and in the oil-producing district of Pujehun with the objective of providing an avenue for further consultations with the general public about the ongoing oil finds and its (socio-economic, political, environmental, and human rights) implication for sustainable development and peacebuilding. The meetings provided various stakeholders (government, civil society, private sector, business and religious leaders and academics) with an opportunity to extensively deliberate on issues of community engagement, environmental policies, legislations, regulations and guidelines relating to the country’s emerging oil sector.
Oil was discovered in Sierra Leone’s off shore waters in 2009 by the Texas-based Anadarko. According to the U.S. Geological Survey, the West African Coastal Province – which includes Liberia, Sierra Leone and Guinea – has an estimated 3.2 million barrels of oil. The development on these reserves, which could be significant, is still several years away. For a country with a GDP of 325 dollars – the oil find is expected to be a massive boost to its economy.  In 2011 the government announced the commencement of drilling. The country’s Petroleum Act, which was guided by agreements with oil companies, was rushed through parliament as an emergency bill by the president's office in July 2011.  The Petroleum Resource Unit, formerly the Petroleum Directorate, is under the Office of the President.
Participants:  For the consultative meeting in Freetown 30 Participants from civil society organizations and coalitions working directly on the extractive industry, as well as from academia and the private sector were present. In Pujehun district the meeting consisted of chiefs, landowners, farmers, students and representatives from the coastal communities, especially those engaged in the fishing industry.

Issues raised
There has been very little discussion and as such very little understanding so far of the ongoing discovery of oil in the country. This could be due to a number of reasons, deliberate or otherwise on the part of the government and the oil companies.
Location: The drilling is taking place offshore, away from the prying eyes of the general public. As such only the frontline communities, so far are experiencing the direct effects. Furthermore the oild finds are in one of the most remote and isolated districts in the country, far away from the seat of power in Freetown.
Specialized nature: Furthermore the oil industry is a very specialized sector which makes it hard for the general population to fully understand the key issues at stake.
New industry: It is also a very new industry
Few locals involved: Most of the activities in the oil sector are carried out by non-locals, who are increasingly feeling crowded out. This is partly because few of the locals have the requisite training and experience with the emerging sector. It is also the case that in general, the sector, even in the best of times, directly hires very few people. Most, if any of the benefit are bound to be indirect.

Concerns
Oil is being drilled in one of the poorest regions in the country.  In the short term, at least, it is unlikely the people will directly benefit much from the resource but will have to put up with the major disruptions to their way of life especially as it relates to land appropriation and fishing and maritime security threats such as piracy. Already there is simmering tension with other trans-national corporations in the country in general and the district in particular. Also because it is a volatile source of income it has the tendency to raise expectations both for the government and for the local communities.
The regional implications
It is the same players. Most of the oil blocks in different countries in the region are owned and operated by the same companies. There is therefore a need to engage regionally. Any such approach however also has to take into cognizance the differences in language, culture and kinds of governments. Many civil society networks at the regional level already exist and that WAOW should tap into this.
Interventions/ recommendations

1. There is a need for ongoing research to better understand the linkages between oil and human security. This is perhaps best done by couching WAOW as a thinkthank
2. There is a need to strengthen the capacity of existing institutions, especially those in the affected region, rather than create new networks. A loose and flexible coalition that is nimble and can adapt is the best tool to get the work done.
3. There is an urgent need for a national dialogue which involves all the stakeholders (government, private sector, oil companies, and civil society)
4. There is an urgent need to build the capacity of the local CSOs engaged in the extractive industry in general. This will foster networking and collaboration and help build a critical mass for sustained action
5. WAOW and partners need to develop tailored advocacy tools and a comprehensive media strategy to both raise awareness and disseminate critical and timely information
6. Engaging policy makers and other relevant stakeholders, especially with regards to legislation.
7. Forge stronger partnerships with other civil society groups and local grassroot communities in the oil producing district. This will foster better understanding of alternative sources of livelihoods for the affected communities.

Local and regional partners engaged with issues of oil

• Sierra Leone Environmental Protection Agency (SLIEPA)
• Mines and Minerals Agency
• Anti-Corruption Commission
• Petroleum Directorate- Strasser King
• National Commission on Privatisation
• Njala University College
• Institute of Public Administration
• Crown Polytechnic
• Dr. Sama Mondeh
• Mano River Union Youth Parliament (MRUYP)
• Mano River Union Women’s Network (MARWOPNET)

Conclusion and next steps
A Secretariat overseen by Peacelinks should be set up to coordinate the activities both in the country and in the region.

The Three Pillars of Transparency

 The most substantial approach we take on our activities with the West Africa Oil Watch is to first - ask the right questions. There is currently much debate over how to address corruption within each region of prevalence, (Azerbaijan, Ukraine, Russia, China and throughout the Middle East just to name a few..) Each situation carries with it the facets of historically grounded barriers of politically affiliated private motive within a select few whose dissonance from the realities of the common citizen are so divided within their wealth or position within that society that the desire to amalgamate that resource wealth with the commoner is simply non-existent.

This brief 'Three Pillar Approach' is in no way an adequate address to the opaque and arduous circumstances regarding corruption but although the need for transparency is vastly intricate and meticulously complicated to address, there can be a synopsis of three apparent issues to cover:

1.) Adequate representation regarding civil society within the drafting of oil contracts.
2.) Alleviation of the opulence in official positions which hold no immediate liaison with the executive office, (Cabinet 'Aids', 'Energy Ministers', 'Corporate Facilitators', family and tribal tendencies pertaining to resource management administrative power etc..)
3.) Providing Public Documentation of resource revenue wherever it is and to whomever collected and dispersed of it.

Privatization can be a messy business. From water privatization in Bolivia to food monopolies presented by the WHO, WTO and even that of America's debate over ethanol vs. fuel subsidiaries in the production of corn. Fact is - whomever controls the resource wealth, from corn to coltan, controls those who consume it. In this case, I am specifically referring to the corruption of petroleum extraction in West Africa.

Although these regions are unique in their intricate past and current circumstance, what we have found so far is that the need for community representation within the drafting of the oil contracts has never before been such a critical element in alleviating corruption from any private industry. Our approach is strategically aimed at unifying communities for more adequate representation within the drafting of oil contracts throughout the region. Our founder has just returned from Sierra Leone after speaking with civil activists, youth development groups, chiefs and communal civil society organisations to effectively facilitate communication between these groups and strengthen ties within the region to allow for a more substantial presence among affiliated oil agencies. Our agency is new and thus, we lack the funding necessary for providing a community representative, (lawyer) to preside as a direct contact to the people within the region but for now, our activities consist of integrated civil movements such as that formed by Ken Saro Wiwa prior to 1995.

According to Human Rights Watch, "Exxon Mobil, Chevron-Texaco as well as lesser known companies have been spending about $10 billion annually towards exploration of oil in West Africa". Africa is also currently supplying 15% of US Oil Consumption - a figure mind-blowing to gauge in itself as the US consumes 7 Billion barrels of oil per year according to the US Energy Information Administration. As these regions have not the capacity for adequate judicial address to the issues of corruption and poorly lack the parameters of positive law in regions susceptible to political turmoil and relapse into the status-quo that is war within many regions in West Africa, this influx of privatization is incredibly dangerous to a developing economy. The irresponsibility of negligent 'Aids' and corporate liaisons to the area provide a hazardously volatile position for the locals whose fishing communities have been devastated and fraught with crime as 'rebels' attempt to tap the pipelines and export the resource to corrupt third party industries. One example of this issue of fraudulent officials given power of industrial might can be sadly depicted in Liberia's Nobel Peace-Prize Laureate Eileen Johnson Sirleaf's firing of her own son from the position of Central Bank Deputy Governor for failing to report his assets - http://www.bbc.co.uk/news/world-africa-19333908

As Peter Eigen from Transparency International points out in the newly drawn free online document produced by the Governance of Extractive Industries team, (GOXI) entitled "How to Read and Understand an Oil Contract", the current issue regarding resource corruption in West Africa stems from not just the prevalence of direct governmental and corporate ties within the region, (Federal claims of land to privately auction to corporate involvement without consent of the people as can be seen in Nigeria's "Land Use Act of 1978") but seems to stem more predominantly from the grey area of cabinet 'aids' and officials whose position is not so clearly listed. These officials are easily bought off by oil and mineral companies to allocate force behind the decisions of political powers across the region, (Some would argue the world...)

The third point I would make would be the need for addressing adequate documentation for the resource wealth and its flow within government programs and affiliates. Accountancy is vital at this point as our need to document these sources adequately can mean the difference between life and death for the people of these highly impoverished regions. The indoctrination of the Extractive Industries Transparency Initiative (EITI) is a monumental feat for these developing economies as it publicly declares the amount of resource wealth taken from a country and who it has been given to. However, from here, the processes of laundering the money through governmental programs inducing exuberantly excessive spending can dilute the legitimacy of resource wealth as it seeds through the intricate filters of corruption. This is where we have to establish the need for cooperation among the officials of government which must be addressed through direct screening and public documentation of resource funds.

We must address these key points with a strong and persistent attitude that never digresses from our powerfully propelling plight of the people to tackle our issues head on and alleviate corruption in each of its dark and convulsively shallow niches for which it exists.

Weekly Roundup 1/5/13

Dr. Kanyako has referred back to us with some Very Exciting Information about the progress West Africa Oil Watch has been making throughout the region! Last week, Dr. Kanyako was in the prospective oil producing district of Pujehun, in the far south of the country. 

During that time he had the distinct pleasure of interviewing and discussing with a cross section of community members: Youths, Civil Society Activists, Religious Leaders, Chiefs, Women's Leaders, Riverine and Fishing Communities etc. 

From his experience with the groups, he found that the insights from the individual and focused group discussions are absolutely fascinating! He even had the opportunity to assess the quality of the water, which with the flow of oil could be under threat. 

Back in Freetown, Dr. Kanyako organized a workshop this past Thursday for Civil Society Activists working on the extractive industry. There were about 20 participants from a broad spectrum of civil society groups in the country.  We are surging through West Africa to establish a strong and confident community based on Justice Through Transparency. 

We are currently working with groups in the region to strengthen our communities and enlarge our impact on helping struggling communities fight against the resource curse. 

Weekly Roundup 12/10/12

Uganda’s Edgy Relation to Ghana: The Susceptibility of Uganda to the Threat of Irresponsible Corporate Activity

Uganda has increased its extraction of gold and communal benefit could be within its grasp but a dilemma has no arisen in how to properly sustain its processes and dispersion of wealth amongst the community. In relation, Ghana has been mining gold form its western territory for decades, however, the western area is ironically the poorest in the whole country. The area is fraught with environmental degradation through the contamination of local waters caused by mining activity. AngloGold Ashanti is currently working in the region. Could Uganda become affected by the same pillaging negligence as Ghana?

As stated by Stephen Nuwagira, Senior Sub-Editor for Vision Group of the Governance of Extractive Industries blog post, “Problems come when law-makers draft policies that do not properly guide on the use of the money accruing from the resource or how to exploit the resource sustainably”, (Nuwagira 2012). Already we are seeing an increase of corporate unaccountability as providers contracted by Tullow Oil are contaminating local streams and fishing waters of Hoima, Uganda and have done nothing upon the request of the local people to responsibly remove the contamination from the waters in which residents use for home consumption. Land takeovers are prevalent in the regions of heavy oil activity and frequently go on without adequate compensation for the land. The National Environmental Management Authority (NEMA) has been mentioned as developing a national oil spillage contingency plan but with the Albertine Graben being such a hot-spot of ecological importance, there is skepticism that the plans will fall short of their obligation towards the people.

The fact of the matter is that although these multinational corporations proclaim their watchful eye of the well-being of both the people and the environment, the truth is that there has not been one single company within Africa to sustainably and spotlessly contribute to the economic plight of any region affected by the resource curse. The environmental devastation and degradation of the local fishing communities have been immense cause for concern but are simply not addressed. We must now keep a close eye on Uganda and the operations of the companies guaranteeing they are “doing their best” in benefitting the true well-being of the region’s communities.

GOXI (Blog Post) Oil: Can Uganda avoid Ghana's gold curse?

Posted by Nuwagira Stephen on November 21, 2012 at 12:30

Opaque Transparency: Issues in Transparency Involving Digital Contracting Network

The South African Mineral Resources Administration Online System (Samrad) was officially put into place to improve the application process of,  “prospecting rights, mining rights and mining permits through the online submission of the requisite documentation, thereby avoiding the often convoluted manual application process”, (Greve 2012). This process provides fluency among acknowledging the parameters of a certain industry’s territory within a region. This means that the system is now susceptible to “double-granting” mineral rights and providing a gap in which the corporations can now wave accountability upon their involvement within mining sectors. To reiterate – TWO corporations can be pillaging in a region that has been declared to only host ONE.

With over 3,500 applications for mining rights submitted, there is no doubt that the system is being used even amongst criticism of its inability to handle the amount of requests. This gap in validity is dangerous for the communities of these regions as they are now more susceptible to the inability of registration processes to mandate a predominant industry in the area. The Department of Mineral Resources (DMR) cannot go beyond their powers and limit a certain contract from being passed and this system of incredulous contracting agreements will continue unless adequate measures are taken by the DMR to re-stabilize the contracting agreements within the area. Until then, transparency takes the back seat to the time it takes to register these corporations properly.

 

Natalie Greve Mining Weekly Creamer Media: 30th November 2012 - Electronic Source

Accessed 12/10/12

            http://www.miningweekly.com/article/concerns-that-south-africas-flawed-online-mining-cadastre-portal-could-be-constricting-an-already-stressed-mining-sector-2012-11-30

Our Progress

Policy forum

On Friday September 21, in commemoration of the international Day of Peace, WAOW organized its first in a series of policy forums designed to foster debate and generate knowledge on natural resources and conflicts. The seminal event brought together policy makers, academics, students and members of the NGO community in the Greater Washington DC area to explore emerging trends in resource-based conflicts. Rebecca Sutton highlighted the significance of the day, which she pointed out is a day to remember people and societies that find themselves confronting issues of conflict an under-development in many parts of the world. The keynote speaker Ambassador (ret.) Herman Cohen, Assistant Secretary of State for African Affairs (1989-1993) outlined the opportunities, challenges, strengths and limitations of big power peacemaking in sub-Saharan Africa in general and Mozambique in particular.

Drawing comparisons from his different duty stations, the ambassador outlined why peace

processes in resource-rich nations tend to fail when compared to their resource-poor neighbors. The financial windfall from the sale of the natural resources, lack of transparency and accountability, lack of civic participation all contribute to the so-called ‘resource curse’. But proactive peacemaking, as in Mozambique can yield positive results. Professor Lisa Breglia, of George Mason University, who has undertaken extensive research on the linkages between cultural and natural resources and conflict in the Americas outlined some lessons that emerging petro-regions such as West Africa can learn from the other oil producing regions. Professor Breglia pointed out that proactive civic engagement is vital to building a critical mass for the protection of cultural and natural rights.

In his presentation Dr. Vandy Kanyako highlighted the unique circumstances into which petro-culture is taking roots in West Africa. The region is enjoying a semblance of peace after the civil wars of the 1990s. If properly managed oil should help to integrate the region into the global economy. For that to happen however both governments and oil companies should be more transparent about their dealings in a politically combustible region. Stephen Woodward in his presentation highlighted various ways in which groups and individuals can remain engaged in the issues around oil and transparency. A groundswell of support and consumer awareness is critical to addressing the demand and supply side of transparency and accountability in the extractive industry.

• Engaging Civil Society Practitioners

In order to foster a mutually reinforcing relationship and promote collaborative partnerships between
CSOs in the region, the West Africa Oil Watch organized a series of informal consultations with civil society thought leaders about growing significance of petro-culture in their respective localities. Participants, mainly from civil society organizations and consortiums, were drawn from Liberia, Sierra Leone, Ghana, Guinea, Cameroon, Tanzania, Egypt and Uganda. Using traditional and new media (Facebook, email, phone, skype) participants were engaged directly in order to gain a first hand insight in ways of building actionable strategies for engaging the oil sector.

• A few key lessons that emerged from the various consultations include the following:

The civil society sector, while active, lack the knowledge and organizational capacity to realize their full potential to further sustained engagement with the oil sector The sector is too new in many of these countries and as such civil society is only now playing catch up, especially as negotiations and consultations between governments and oil companies are at an advanced stage. Authorities are content with sidelining civil society and other stakeholders, and in some cases are against any form of organized civic engagement. There is lack of coordination between various civic actors in the region.

On the basis of these findings there emerged the need for regular consultations as a way to provide the platform to engage various actors working on transparency and accountability issues in the region specifically. WAOW will be organizing a series of training programs in the near future to build the capacity of civil society actors active in transparency and accountability issues in the region.

Fostering Transparency and Accountability Through Enhanced Civic Engagement

ABOUT WEST AFRICA OIL WATCH (WAOW) 

WAOW is an independent Non-governmental Organization whose mission is to foster transparency and accountability in the region’s opaque oil sector through enhanced civic participation. It is the first civil society-led initiative dedicated solely to exploring the nexus between the increasing importance of oil and its implications for peace and stability in one of the World’s most fragile regions. We address the demand and supply side of the ‘oil complex’ by working with policy makers and grassroots communities to ensure that West Africa’s oil resource benefits its 240 million citizens. We provide technical assistance, raise consumer awareness, educate, and advocate on behalf of communities negatively impacted by the industry. Our goal is to empower and improve the quality of life of oil-affected communities in one of the world’s most conflict ridden regions.

          
WEST AFRICA OIL: FACTS AND FIGURES

• West Africa accounts for 1/3 of world’s new oil discoveries 
• The region currently provides 15% of US oil needs, set to increase to 25% by 2015 
• Some 500 oil and gas companies from all over the world operate in West Africa, including companies from China, India, Malaysia etc. 
• Its oil is mostly "sweet" crude, with low sulphur, considered easier/cheaper to process
• More than 50% of the citizens of the region’s biggest oil producers--Nigeria, Gabon, Equatorial Guinea and Angola – live on less than $2 a day 
• Angola—along with Saudi Arabia—is China’s largest oil supplier 
• President Obiang of Equatorial Guinea is Africa’s richest man, worth US $65 billion 
• Exxon Mobil, Chevron-Texaco and others have spent about $10 billion annually towards exploration of oil in West Africa 
• Nigeria is the largest source of EU oil imports 
• Angola’s ranking in Transparency International’s 2009 Corruption Perceptions Index is growing worse, from 158th out of 180 countries in 2008 down to 162nd in 2009

THE ENVIRONMENT: The discovery of oil has major environmental implications for the coastal communities in particular, whose way of life and economic well being have been subjected to growing stress from natural and human-induced changes. The development of infrastructure, improper use of their resources and extensive contamination by pollution, have all exacerbated the degradation of the West African coastal zone and marine environment. Oil is only going to accelerate the region’s degradation.

CONFLICT & STABILITY: 

West Africa is one of the most unstable regions in the world. Liberia, Sierra Leone, Cote d’Ivoire, Nigeria, Guinea Bissau and Guinea, have all experienced civil war and or various forms of political instability for a portion of the past two decades. These regional wars in the 1990s in particular crippled public and private institutions, handicapped governments, stifled economic development and severely weakened social networks. The competition for oil will renew old rivalries and add a new dimension.

HUMAN RIGHTS AND HUMAN SECURITY: Since the conclusion of its many violent wars, West Africa has made tremendous progress in the protection of human rights. But the discovery of oil will complicate issues. The relationship between human rights abuses and natural resources is well documented. Civilians have been displaced by governments to make way for oil companies, or in some cases they have been shot at and killed when they refuse to relocate or push for compensation. In Nigeria the way of life of the coastal communities have been ruined due to the poor management of oil. The most egregious human rights violators are also the region’s richest oil producers.

CORRUPTION AND GOOD GOVERNANCE: 
Oil ruts democratic institutions like no other commodity. It strengthens the hands of leaders who use the proceeds to reward cronies, quash any form of dissent and crush the opposition. Because its wealth is ‘concentrated’ (passes through only few hands), it is highly susceptible to misdirection.

CIVIL SOCIETY: Civil society has a significant role to play in ensuring a fair and responsible oil extraction that promotes peace, respects human rights and safeguards the environment. A vibrant civil society is critical to the strengthening of regional frameworks for the protection of human rights, justice and the rule of law through the cultivation of citizen capacities and multiple avenues for making collective decisions and organizing grassroots actions in an oil industry renowned for its secrecy.

To learn more and for ways to get involved please visit www.westafricaoilwatch.org