Shell IN Nigeria

2 Pages 596 Words

ROYAL DUTCH SHELL/NIGERIA

When still examining foreign direct investment in Africa, we came across a case that made history. The Royal Dutch/Shell Company made one of the biggest FDI’s in the country of Nigeria. The company came up with a proposal for an $8.5 billion dollar oil and natural gas investment for the company. It was then that Shell Co, counter proposed with an offer for 70% ownership of the FDI, while the country was only to retain 30%. It is my belief that the company acted on this proposal for the overall improvement of the company and to also build better relationship not only for in the country of Nigeria, but also in Africa in whole.
As we examine the Shell Company over the many years, we realize that they have faced many different types of risk. It is my belief that the key risk among all of the risks has been political since the company entered the country. It is due to this fact Shell has spent a great deal of money in hiring political analysts and specialist to aid in these risks. The new hired employee’s main focus was to determine the differences in the “Inter” and “Intra” relations between the country and the company. These specialists also had to organize for future circumstances that might affect global demands and supplies of petroleum and to prepare for different methods of alternative planning. This was is one of the reasons why the company made so much improvement over the last few years.
Over the years, Shell has faced much criticism for its activity in Ogoniland. The fact is that the Nigerian government’s revenues from these operations have traditionally gone to the country’s central government and a small portion has gone back to the Ogoniland people. Its is these problems that has made relations so hard for Nigeria. Looking at groups such as the Movement for the Survival of Ogoni People (MOSOP), it is stated that they have emerged to campaign against what they believe to ...