The Impact of Nigerian International Petroleum Contracts on Environmental and Human Rights of Indigenous Communities
Author | Okechukwu Ejims |
Pages | 345-377 |
Published date | 01 October 2013 |
DOI | 10.3366/ajicl.2013.0068 |
Date | 01 October 2013 |
The use of international petroleum contracts in petroleum development has become a contemporary trend throughout the world.
See D. Bishop, ‘International Arbitration of Petroleum Disputes: The Development of a Lex Petrolea?’, 23
Bishop,
It is a known fact that international oil companies explore oil and gas in regions that are inhabited by indigenous communities. For instance, a lot of exploration activities take place in the South American Amazon region inhabited by indigenous communities.
See generally UN Development Programme – Nigeria,
Ogoni Bill of Rights (1990), available at
UN Development Programme – Nigeria,
The Niger Delta, with an estimated area of about 75,000 km2, is estimated to be the world's largest wetland, with the most extensive freshwater swamps inhabited by various communities.
Ibid.
UN Development Programme – Nigeria,
The fact is that the plight and movement of communities in the Niger Delta is similar to the movement of indigenous peoples to claim their rights to land and natural resources, and the tide of international opinion and law favours the involvement of indigenous peoples in decisions that relate to their rights to land and natural resources. These developments show why the right of indigenous peoples in international law to land and natural resources is seminal to the discussion in this article.
Such concerns have arisen because of the tide of Nigerian international petroleum investment contracts, which has given the State and multinational companies full rights and control over petroleum resources, without providing for stringent measures in these contracts for protecting the environment of the communities of the delta region during petroleum development, thus depriving the communities their rights to their petroleum resources and threatening the rights and survival of the communities where these resources are found. Having said that, it is pertinent to note that the strong investment protection in the contracts portrays neo-liberal values in that they do not consider other competing issues such as environmental and human rights,
See M. Sornarajah, ‘Mutations of Neo-Liberalism in International Investment Law’, 3(1)
This article therefore examines indigenous peoples’ rights to land and natural resources as an instrument in dealing with the petroleum development concerns in the Niger Delta region of Nigeria. Before analysing the indigenous peoples’ rights concept, this article necessarily examines the human rights and environmental impact of contracts on the communities of the Niger Delta of Nigeria, as well as the contract system. In so doing, the approach that will be adopted here is primarily to consider, on the one hand, the extent to which the Nigerian international petroleum investment contracts contribute to depriving these communities during petroleum development of the enjoyment and use of their natural resources, and their right to a satisfactory environment. It frames the impact in terms of several provisions in the contracts in the view of neo-liberalism, and draws on concrete examples from (1) the Operating Agreement between the Nigerian National Petroleum Corporation and Texaco, and (2) the Participation Agreement dated 12 January 2005 for Oil Mining Lease No. 113 among Yinka Folawiyo Petroleum Company Limited, Syntroleum Limited, Lindin Petroleum BV, Palace Exploration Company, Challenger Minerals Inc., Providence Resources PLC and Howard Energy Co. Inc.
Next, this article deals with the way forward in terms of the practicability of using the rights of indigenous peoples to land and natural resources to enhance the situation of these communities, which will bring about sustainable development. In other words, the neo-liberals views present in the contract will be confronted in order to have a more balanced contract. This article concludes that international law principles on the rights of indigenous peoples to land and natural resources are mechanisms that could be employed to deal with the particular concerns in the Niger Delta region. It also argues that these principles can be used for standard setting in overcoming the dominant viewpoint of neo-liberalism expressed in the Nigerian international petroleum investment contracts.
It is pertinent to note that in Nigeria, leases for the exploration and exploitation of petroleum are granted by the Nigerian government and that the government's State-owned oil company (Nigerian National Petroleum Corporation, NNPC) has reserved the rights to the exploration and production of petroleum within Nigerian territory.
‘Operating Agreement between Nigerian National Petroleum Corporation and TOPCON Company (Texaco Overseas) 1988’, in Barrows Company (ed.),
‘Participation Agreement dated 12 January 2005 for Oil Mining Lease No. 113 among Yinka Folawiyo Petroleum Company Limited, Syntroleum Limited, Lundin Petroleum BV, Palace Exploration Company, Challenger Minerals, Inc., Providence Resources PLC and Howard Energy Co., Inc. January 12, 2005’, in Barrows Company,
To continue reading
Request your trial