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COMMUNITY RELATIONS STRATEGIES AND CONFLICT RESOLUTION IN THE NIGER DELTA: A STUDY OF THREE MAJOR OIL COMPANIES
ABSTRACT
The degree of violence in Nigeria’s Niger Delta has become endemic, characterized by 33 cases of kidnapping recorded between January 2006 and February 2007, with over 200 victims being mostly expatriate oil workers (Africa Masterweb, 2007). There were also about 12, 770 cases of vandalism, particularly of oil pipelines and installations, recorded in Nigeria between 2000 and 2007 with most of them occurring in the Niger Delta (Nwankwo and Ezeobi, 2008).
The implications of the Niger Delta crises are too far-reaching to be ignored: for the inhabitants of this area, there are constant environmental hazards and security threat, while for the Nigerian government, over N150.5bn in revenue was lost in eight years (Nwankwo and Ezeobi, 2008); there was also a drop of more than 20% in oil exports between April 2006 and October 2007 (BBC News, 2007). The concern of the research was why the escalation of conflicts rather than abatement between host communities and oil companies while the companies had in place community relations strategies to manage the conflicts in the communities?
The study, therefore, examined the community relations strategies used by oil companies in managing the crises in the Niger Delta. The study population comprised the community relations units of oil companies in the Niger Delta (among which Shell, Chevron and Agip were selected) and the indigenes of Omoku and Obrikom communities in Rivers State and Eruemukohwarien, Tisun and Kolokolo communities in Delta State. Though the communities studied were somewhat peripheral to the crisis, they still reflected the true situation of things in the Niger Delta.
Both quantitative (survey) and qualitative (key informant interview and focus group discussion) methods of data collection were employed. The respondents for the survey were randomly selected while those for the interviews and focus groups were purposively selected. The study established that conflicts between oil companies and host communities had serious implications for the two parties and that the community relations strategies adopted by the selected oil companies were not adequate in preventing and resolving conflicts in the Niger Delta. That was because there was a lacuna between the strategies the oil companies believed host communities preferred for conflict resolution and the ones actually preferred by those communities.
The research, therefore, suggested that to reduce conflict between oil companies and host communities in the Niger Delta, companies should be mindful of conflict propelling factors identified by the respondents and stated in the work, they should improve on their community relations strategies in order to impress the community and most importantly, they should introduce grassroots approach to the implementation of their strategies, particularly the Global Memorandum of Understanding (GMoU), for optimum results.
Keywords: Niger Delta, conflict, community relations, oil companies and host communities
TABLE OF CONTENTS
Page
Title Page i
Dedication ii
Acknowledgements iii
Certification vii
Table of Contents viii
List of Tables xi
List of Figures xii
Abstract xiii
CHAPTER ONE: INTRODUCTION
1.1 Introduction 1
1.2 Background to the Study 1
1.3 Statement of the Problem 7
1.4 Objectives 8
1.5 Research Questions 8
1.6 Scope of the Study 9
1.7 Justification of the Study 9
1.8 Limitation of the Study 10
1.9 Operational Definition of Terms 10
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 14
2.2 Conceptualization of Conflict 14
2.3 The History of Crises in Niger Delta 18
2.3.1 The Political Dimension of the Niger Delta Crisis 21
2.3.2 Oil dimension of the Crisis 24
2.3.3 Critical Issues on the Niger Delta Crises 27
2.3.4 Amnesty in the Niger Delta 28
2.4 Multinational Corporations 29
2.4.1 Major Multinational Oil Corporations in the Niger Delta 33
2.4.1.1 Shell Nigeria (SPDC) 33
2.4.1.2 Nigerian Agip Oil Company (NAOC) 34
2.4.1.3 Chevron Nigeria Limited (CNL) 35
2.4.2 Multinationals and Corporate Social Responsibility 35
2.5 Public Relations and Relationship Building 37
2.6 Conflict Resolution and Public Relations 43
2.6.1 What is an Issue? 43 2.6.2 Issue Management 43
2.6.3 Managing a Crisis 44
2.6.4 Community Relations and the Niger Delta Crises 45
2.7 Gap in the Literature 47
2.8 Theoretical Framework 49
2.8.1 Conflict Theory 50
2.8.2 Situational Theory 52
2.8.3 Stakeholder Theory 53
CHAPTER THREE: METHOD OF RESEARCH
3.1 Introduction 62
3.2 Study Design 62
3.3 Study Population 63
3.4 Sample size 64
3.5 Sampling Technique 65
3.6 Instrument of Data Collection 66
3.7 Measurable Variables 67
3.8 Data Management and Analysis 68
3.8 Reliability 68
3.9 Validity 69
CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION
4.1 Introduction 70
4.2 Quantitative Data Analysis 70
4.3 Qualitative Data Analysis 88
4.3.1 The Community Relations Structure of the Oil Companies 88
- 3.2 The Internal Structures of the Companies 96
4.3.2.1 Leadership Problems in the Communities 103
4.3.3 Communities’ Perception of the Direction of their Relationship with the Oil Companies
108
4.3.4 Factors Responsible for Crises or Non-Crises in the Communities 126
4.3.5 Effects of Crises on Host Communities and Oil Companies 132
4.3.5.1 Effects of Crises on Communities 132
4.3.5.2 The Perceived Effects of Crises on the Oil Companies 138
4.3.6 Oil Companies’ Community Relations Strategies for Conflict Resolution 140
4.3.7 Assessment of the Effectiveness of the Oil Companies’ Community Relations Strategies
156
4.3.8 Communities’ Preference for Community Relations Strategies 161
4.4 Discussion of Results 174
4.4.1 Introduction 174
4.4.2 Discussion 174
CHAPTER FIVE: SUMMARY, CONCLUTION AND RECOMMENDATION
5.1 Introduction 208
5.2 Summary 209
5.3 Conclusion 212
5.4 Recommendations 212
5.5 Suggestions for Further Studies 215
5.6 Contribution to Knowledge 216
RERENCES
APPENDIX 1 APPENDIX 2
APPENDIX 3
APPENDIX 4
CHAPTER ONE
INTRODUCTION
1.1INTRODUCTION
The “Niger Delta” in Nigeria has attracted a great deal of attention over the years. Among the major reasons for this is the rich natural endowment of the region. The Niger Delta is reputed to be one of the world’s largest wetlands, having ecosystems comparable to the Sundarbans in Bangladesh, Malaysia, and India (Osagie, Ibaba & Watts, 2009, p. 13). More importantly, it is also rich in crude oil, which has become the mainstay of Nigeria’s economy.
Another major reason for the popularity of the Niger Delta, unfortunately, is the frequent conflicts associated with oil production in the region. Osagie, Ibaba & Watts (2009, p. 9) observe that though it is rare for Nigeria to be emblazoned on the front page of the Wall Street Journal, the 9th September 2009 issue featured a story titled “Delta Farce: Nigeria’s oil mess.” This chapter, therefore, provides a background to this study and also conceptualises the research problem. Research objectives and questions are also presented to define the focus of the study.
1.2 BACKGROUND TO THE STUDY
There have been several attempts to define the characteristics of the Niger Delta over the years. Asakitikpi & Oyelaran (1999) observe that it is a densely populated area in Nigeria. Its boundaries, as defined by the Nigerian government, extend over 70,000 km. The area makes up 7.5% of Nigeria’s land mass. It stretches in an East-West direction and extends from South-West Cameroun to the Okitipupa ridge, forming an apex at the South-East of the Rivers Niger and Benue confluence.
According to the Niger Delta Development Commission (NDDC), the Niger Delta includes all the nine oil producing States of Nigeria: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers States (NDDC, 2000). The UNDP (2006) agrees with this definition of the area. The reasons for this grouping were largely political and they include administrative convenience, political expedience, and development objectives (UNDP, 2006). Ibaba (2005), however, observes that the inclusion of Abia, Imo, and Ondo States in the definition is wrong because the scope of the region should be defined not by politics, but by geography.
Ibaba (2005) goes on to say that the definition given by the defunct Oil Minerals Producing Areas Development Commission (OMPADEC) and the Willink Commission Report, which states that there are only 6 Niger Delta States, better captures the make-up of the area. He, nevertheless, notes that with states creation, it is probable that some Niger Delta communities may have now been placed in States other than the six widely accepted Niger Delta States. This current study adopts Ibaba’s description of the Niger Delta because the focus is on communities with resident oil activities and shared geographical characteristics.
The communities in the Niger Delta have settled in the area for several centuries (Alagoa, 2005). It is inhabited by over 7 million Nigerians from 20 ethnic groups in about 800 communities (Ibaba, 2005). According to Atakiti (2004) (as cited in Saiyou, 2006), the Niger Delta consisted mostly of agrarian communities before the 15th century. Those communities produced commodities such as oil palm, rubber, sugarcane and fruit trees like mango, banana, plantain, and pawpaw. They also engaged in fishing, handicraft and trading.
Oil exploration started in Nigeria between 1908 and 1914. The process was initiated when the German Nigerian Bitumen Corporation and the British Colonial Petroleum Company began drilling from the heavy oil seeps in the cretaceous Abeokuta formation (Nwaobi, 1980; Saiyou, 2006). Consequent on the discovery of only dry holes and particularly the break-out of World War I, the venture was abandoned. However, interest in oil exploration was resuscitated from 1937 to 1940 when preliminary investigation was undertaken by Shell D’Arcy Petroleum Development Company. This effort also was aborted due to the Second World War.
In 1946, the Royal Dutch Shell Group and British Company replaced Shell D’Arcy, and jointly financed the Shell-BP Development Company of Nigeria. Exploration continued in the northern part of the Niger Delta. In 1953, the first evidence of oil was found at Shell D’Arcy’s Atata-1 well; however, oil was not discovered in commercial quantity until late 1955 when Shell-BP made a find in the Tertiary Agbada formation at Oloibiri. More discoveries were made at Ughelli (Nwaobi, 1980). The first oil cargo from Nigeria was exported from Oloibiri oilfield in 1958 at the initial rate of 5,100 barrels a day.
Nwaobi (1980) notes that the Nigerian government, in 1961, granted 10 oil exploration licences to these five companies: Shell-BP, Mobil Exploration Nigeria Incorporated, Amosea, Texaco and Nigerian Gulf Oil. The government also commenced discussions that same year with the Royal Dutch Shell Group and Shell-BP on the establishment of Nigeria’s first oil refinery. The refinery was commissioned in 1965 and was located at Port Harcourt. It is interesting to note that before the civil war of 1967, Nigeria’s oil production had already exceeded 152 million barrels a year.
The Nigerian National Oil Corporation (NNOC) was set up in May 1971 to be involved in all the phases of the oil industry ranging from exploration to marketing. Nigeria became the 11th member of the Organization of Petroleum Exporting Countries (OPEC) in July 1971. In 1977, the NNOC and the Ministry of Petroleum were merged after the role of the government in oil management was rationalized and the Nigerian National Petroleum Corporation (NNPC) was formed.
Owing to the demands of the oil industry in Nigeria, NNPC was re-organized in 1985 into six sectors. This was done to encourage innovation, efficiency and positive aggressiveness. It is noteworthy, however, that 25 years after the re-organization, the objectives are yet to be achieved since oil refineries in Nigeria are in poor state and the price of the refined product constantly increases. In 1988, the Nigerian oil exploration and exploitation business was opened to private entrepreneurs by the Federal
Government.
Saiyou (2006) notes that the initial disposition of the host communities to the advent of oil companies in the Niger Delta was positive. The discovery of oil in the region and the influx of transnational oil corporations raised the hopes of the indigenes in respect of the long awaited development that suddenly seemed apparent. The author further points out that the discovery of oil was a welcome development. This was consequent on the general impression of most Nigerians that the Niger Delta, particularly the Ijaw territory, was one of the world’s vast wasted wetlands. Hence, the host communities readily accepted the oil companies, seeing them as an opportunity to address long overdue developmental issues.
The oil exploration and exploitation processes have, however, brought with them the degradation of the environment, thereby impoverishing the host communities and endangering lives. Asakitikpi & Oyelaran (1999) observe that tapping into the oil reserves requires the construction of rigs, industrial facilities and power plants; it also involves prospecting, exploring and drilling of crude mineral oil. They state that all these result in the degradation and destruction of life-supporting ecological systems and natural resources.
Apart from the destruction of vegetation during the exploration and production phases, the flaring of associated gas in the process of extracting the crude oil poses a threat to human life (Asakitikpi & Oyelaran, 1999). Unburned carbon is often transported into the homes and working areas of the Niger Delta inhabitants. Also, whenever it rains, thick soot is washed off roofs and other surfaces, causing water pollution, which is believed to contain harmful chemicals that affect the fertility of the soil. According to Alao (2005), some gas flaring sites in the Niger Delta have been in existence for more than 30 years running 24 hours a day. Hence, about 35 million tons of carbon dioxide and 12 million tons of methane are released in a year (Alao, 2005).
About 52 years after oil was first discovered at Oloibiri, the Niger Delta communities have declared war on the oil companies they once so readily welcomed. This development is due to the extent of damage suffered by those communities as a result of the oil exploration processes. They also consider there to be inadequate compensation by the oil companies and/or gross neglect of the region by successive Nigerian governments.
In 2005, the Niger Delta communities sued NNPC, Shell, Exxon, Chevron, Total and Agip joint venture companies for failure to stop gas flaring. According to Environmental Rights Action (ERA), though gas flaring had been prohibited under environmental regulations since 1984, Nigeria still has more gas flared than anywhere else in the world (F.O.E., 2005). According to Rizvi (2005), environmentalists estimated the amount of gas associated with crude oil that is wasted daily at about two million cubic feet. They stress that the wasted gas contains a mix of toxins that pose severe health risks to human populations. The author further notes that child respiratory diseases, asthma, cancer, and premature deaths are increasingly becoming the lot of a vast majority of Niger Delta residents, due to the massive gas flaring.
Hinman (2008), based on the case of the Oil Spill Intelligence Report commissioned by Greenpeace, an international organization for environmental conservation and the preservation of endangered species, states that Shell’s major spills in Nigeria total 7.4 million litres. It was also revealed in the 10-year spill record that of the major spills from Shell’s operations in over 100 countries worldwide, 40% occurred in Nigeria. Hinman also explains that since the Niger Delta is a catchment area for over 20 river systems, six million people depend on its fertile fishing grounds and agricultural land. Consequently, the spills constantly flow into nearby streams costing communities their farmland and water supply.
In 1999, the Shell Company was accused of allegedly injecting a million litres of waste into an abandoned oil well in Erovies. According to Ofehe (2008), investigations later revealed that several people who consumed crops or drank water obtained from swamps in the area displayed symptoms such as stomach ache, cough, vomiting and dizziness.
Ninety-three people died from the illness within two months. The results of independent researches conducted by three laboratories and two Nigerian universities a year after the health problem was detected revealed a poisonous concentration of lead, zinc and mercury in the dumped substance (Ofehe, 2008).
Consequent on the complex nature of the problems in the Niger Delta, members of the community have embraced violence as a means of curbing the excesses of oil companies, getting at the government and attracting international attention amongst others. According to Ogbogbo (2004), the various joint venture agreements entered into by the Federal Government and transnational oil companies indicate an increase in the parties involved in the crises. The government is perceived to have abandoned its responsibility to its citizens while the oil companies are believed to have failed to demonstrate corporate commitment to the welfare of their host communities.
Hence, the oil companies have been categorized as foes, thereby increasing the number of parties to the conflicts. This view was corroborated by Ron Van den Berg, the Chairman and MD of Anglo Dutch Shell Petroleum Development Company of Nigeria when he remarked that since the communities could not attack the government, they attacked the oil companies instead (“Niger Delta Situation,” 1999). In 2002, an international observation team declared the Niger Delta as one of the most volatile regions in the world (Alao, 2005). Since a higher percentage of the violence in the area is against the oil companies, it becomes imperative for the companies to re-evaluate their relationships with their host communities, that is, re-engineer their community relations strategies.
Basking, Aronoff and Lattimore (1997) explain that the community relations of an organization may be affected by a variety of factors, ranging from recruitment methods to waste disposal and energy use. This means that an organization’s community relations is a function, not only of those things it does to compensate and placate the community, but also of its ethical execution of business. For instance, why spend lots of money building health centers for communities while still poisoning their air and water?
According to Peak (1991, p. 117), “Today, no matter how large, small, or important an institution may be, it can be undermined if its community relations are haphazard”. In an empirical study carried out by Rim-Rukeh, Ogbemi and Imide (2008, p. 645-657) in 10 Niger Delta communities, it was discovered that the community in which there was the highest record of crises, also had 95% vote that the resident oil company was a bad corporate organization, owing to environmental degradation occasioned by incessant oil spillages and poor community relations.
This appears to establish a clear relationship between the community relations practice of an organization and its level of exposure to crises. Ironically, huge sums of money are usually quoted to have been spent on such communities by oil companies in the Niger Delta. The study also revealed that some communities with infrastructure provided by oil companies still had some degree of crises. This, therefore, brings to the fore the question of how community relations is practised, rather than whether or not it is practised at all.
1.3 STATEMENT OF THE PROBLEM
The degree of violence in the Niger Delta has become endemic, characterized by 33 cases of kidnapping recorded between January 2006 and February 2007, with over 200 victims being mostly expatriate oil workers (Africa Masterweb, 2007). There were also about 12, 770 cases of vandalism, particularly of oil pipelines and installations, recorded in Nigeria between 2000 and 2007 with most of them occurring in the Niger Delta (Nwankwo & Ezeobi, 2008).
The implications of the Niger Delta crises are too far-reaching to be ignored: for the inhabitants of this area, there are constant environmental hazards and security threat, while for the Nigerian government, over N150.5bn in revenue was lost in eight years (Nwankwo & Ezeobi, 2008); there was also a drop of more than 20% in oil exports between April 2006 and October 2007 (BBC News, 2007). The global community is not excluded from the effect of the crises; the crude oil price on the world market was raised to $100 per barrel in January 2008 (Arowolo, 2008 as cited in Alabi, 2008) and later to about $120 a barrel in April 2008.
The worst hit of all the victims of vandalism and kidnapping, however, are the oil companies. More than 95% of the kidnap cases mentioned above involved oil workers, and the installations of oil companies were the target of most of the vandalism. It is noteworthy, however, that the degree of these occurrences varies across different oil companies (Aaron & Patrick, 2008). Onua (2007) describes it as a sort of revenge on the multinational oil companies.
While the oil companies claim to be practising community relations and to have invested a lot in the development of their host communities, the communities, on the other hand, either claim that enough has not been done, or that the efforts have been made without due consultations with them. The concern of this study is why the escalation of conflicts rather than abatement between host communities and oil companies while the companies have in place community relations strategies to manage the conflicts in the communities?
This question forms the basis for this study.
1.4 OBJECTIVES
The purpose of this study is to examine the community relations strategies used by oil companies in managing the crises in the Niger Delta. Considering that most attacks are carried out by community members, it is plausible that a proper community relations scheme should be able to nip any conflict in the bud. This study, therefore, investigates the efforts by oil companies to use community relations in crises management in the Niger Delta. It also considers the perception of the communities concerning such efforts.
The specific objectives of this study are therefore to:
- Examine the extent to which conflict has occurred in selected Niger Delta communities in relation to oil exploration by Shell, Agip and Chevron and the causes.
- Assess the consequences of the conflicts in the Niger Delta on the communities and the oil companies.
- Identify the community relations strategies used by the oil companies in conflict resolution in the selected communities.
- Compare the form of community relations strategies adopted by the selected oil companies.
- Evaluate the host communities’ perceptions of the community relations strategies adopted by the oil companies.
- Investigate the community relations strategies preference by the host communities for conflict resolution.
1.5 RESEARCH QUESTIONS
In the light of the above, the following research questions were raised:
- How often have conflicts occurred in the Niger Delta involving Shell, Agip and Chevron and what are the causes?
- What are the consequences of the conflicts in the Niger Delta on host communities and oil companies?
- What are the community relations strategies employed by oil companies to avoid/resolve conflicts with host communities?
- What structural differences are inherent in the community relations strategies adopted by the selected oil companies in the Niger Delta?
- How do the host communities perceive oil companies’ community relations
strategies?
- What community relations strategies would host communities prefer in their relationship with oil companies?
- SCOPE OF THE STUDY
This study is on community relations strategies used by oil companies to resolve crises in the Niger Delta. It focuses on the specific techniques involved in building a good relationship with host communities. The oil companies under consideration in this study are Shell Petroleum Development Company (SPDC), Chevron and Agip. The study population is restricted to Omoku and Obrikom communities in Rivers State and Eruemukohwarien, Tisun and Kolokolo communities in Delta State.
- JUSTIFICATION OF THE STUDY
Although several studies have been carried out on Niger Delta conflicts and the roles of the oil companies, there is inadequate information on the specific community relations strategies employed by oil companies and the preference of host communities. Community relations is germane to the peaceful coexistence of the companies and the communities. Failure to give it its due attention engenders consequences such as the following:
- Distrust: one of the major causes of conflicts in the Niger Delta is host communities’ distrust for oil companies. Consequent on the poor relationship between the two parties, host communities believe that oil companies exploit them by extracting oil from their environment thereby destroying their natural habitat; but the companies fail to adequately compensate them. Hence, any advance from the companies is seen as placating the communities instead of dealing with the developmental challenges of the people.
- Restiveness: among the causes of the restiveness being witnessed in the Niger Delta is the ineffective community relations of oil companies. The youths who attack the installations of oil companies and abduct their staff are members of the communities. A favourable relationship with host communities would have forestalled this undesirable situation. This further underscores the importance of community relations.
- Revenue loss: it cannot be overemphasized that oil companies and the Federal Government have lost a great amount of revenue as a result of the Niger Delta conflicts. While most of the communities remain inhabitable because of clashes between the youths and military forces, business also becomes impossible for multinational companies for fear of attacks.
From the foregoing, it becomes pertinent to conduct a study that provides a clear analysis of the community relations strategies engaged by oil companies and how they can be effectively employed for conflict resolution. Hence, it is hoped that this study will expand the frontiers of knowledge in respect to community relations strategies and also serve as a launching pad for other researchers in public relations.
1.8 LIMITATIONS OF THE STUDY
In the course of this study, some challenges were encountered that imposed some limitations on this study. One of the major challenges encountered was the population of Tisun and Kolokolo communities. A crisis occurred in the communities in 2004, which led to the death of several indigenes and the displacement of others. The entire villages were razed down and deserted; and up to the time of conducting this study, only a few of the natives had returned home. Hence, only a small sample could be used in the communities. This problem was, however, managed by using about 80% of the available population to arrive at a considerable sample and to ensure a formidable representation of their perception.
Also, the study was to include the comparison of the community relations strategies of Shell, Agip and Chevron. While Shell and Chevron granted interviews for the sake of this study, Agip declined. All efforts made to secure an appointment with the company’s representative, including a letter of introduction from the Department of Petroleum Resources, NNPC, were stonewalled. Hence, the analyses made on the strategies of the oil companies excluded Agip. Considering that the information on Agip’s website was inadequate for the in-depth investigation required for this study, only the survey data were used to avoid presenting misleading information.
Consequent on the volatility of the Niger Delta at the time this study was conducted, some initially selected communities (Ogulaha, Ashaka-Ashimoke and Okpai communities in Delta State) had to be substituted. This was after due consultation with both supervisors of this work and advice from some resident Niger Delta indigenes. The substitution was done systematically by randomly selecting replacements for the affected communities to preserve the integrity of the study.
Due to the tensed situation and the air of suspicion it created, some of the respondents were reluctant to fill the questionnaire. Some also insisted on being paid before responding because they were under the impression that the study was sponsored by the government or the oil companies. In Tisun and Kolokolo communities, the women were reluctant to participate in the Focus group discussions (FGDs) and also to give their names for the record. This was because they claimed that several people, governments, agencies, and even their leaders had come to interview them and to collect their names without any benefit resulting from such contacts. This problem was resolved by presenting proper identification to prove that the study was unconnected with any of the suspected sources. The help of indigenous research assistants was also enlisted to help enlighten the participants on the purpose of the study. Consequent on the systematic approach adopted in managing the limitations of this study, it is believed that the overall quality of the study would not be undermined.
1.9 OPERATIONAL DEFINITION OF TERMS
Agip: it is an Italian company with the original Italian name Azienda Generale Italiana Petroli, which means General Italian Oil Agency. It operates in Nigeria as the Nigerian Agip Oil Company Limited (NAOC). The NAOC is a joint venture operated by Agip in which NNPC has the larger share (60%).
CDB: the Cluster Development Board is the administrative body representing each cluster under Shell’s design of the GMoU. A cluster is a group of communities that have been categorized based on specific shared characteristics, and which can jointly decide on their preferred development direction.
Chevron: it is an American company which operates in Nigeria under the joint venture name, Chevron Nigeria Limited (CNL). In this case also, NNPC has the larger share of the venture.
Communication: in this study, communication refers to the exchange of relevant information between the oil companies and the host communities.
Community Relations: it is a specialized arm of public relations that focuses on building mutual and profitable relationships between an organization and its host communities.
Conflict: it is a situation that occurs when the goals, objectives or values of competing groups- in this case oil companies and host communities in the Niger Delta- clash and result in aggression, which may not necessarily be violent (Cunningham, 1998).
Cordial Relationship: this is a polite display of friendliness towards another party. It is based on mutual respect. Cordial relationship is not one that is necessarily void of conflict, but one in which provision is made for proper settlement that is acceptable to all the parties involved.
Crisis: it is a situation that has degenerated into a critical stage in which extraordinary intervention is needed to remedy.
GMoU: the Global Memorandum of Understanding (GMoU) was originated by Chevron in 2005 and was adopted by Shell in 2006. It is an agreement that allows the communities to determine their own development priorities while the oil companies provide the funding.
IRDC: the Itsekiri Rural Development Council represents the clusters in relating with Chevron in accordance with the company’s GMoU.
Issue: It is a matter or an event that has the potential of far reaching consequences for a public or the publics of an organization or institution (Folarin, 1998).
Niger Delta: in this study, Niger Delta refers to the part of Nigeria’s land mass that stretches in an East-West direction and extends from South West Cameroon to the Okitipupa ridge, forming an apex at the South East of the Rivers Niger and Benue confluence (Asakitikpi and Oyelaran, 2000). It includes states such as Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers.
Oil Producing States: this refers to all the states in which oil is produced in Nigeria. They include the six states that are known as the Niger Delta states with the inclusion of Abia, Imo and Ondo States, making nine states in all.
Public Relations: The British Institute of Public Relations’ (BIPR) definition was adopted for this work which says that public relations is the “deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics,” (Daramola, 2003).
Shell Petroleum Development Company (SPDC): it is the subsidiary of Royal Dutch Shell, a British/Dutch company, and it operates in Nigeria. The company is simply known as Shell Nigeria and is in joint venture with the Nigerian National Petroleum Corporation (NNPC) and other oil companies.
Strategies: in this study, they refer to elaborate and systematic plans that are put in place by the oil companies to resolve conflicts with their host communities.
