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Shell Oil Spill

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A Study of Shell Oil and its Stakeholders in Nigeria
Part 2 (Week 9)

A review of basic issues regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria

Somaya Rhoda
16069635

Chapter 1
Introduction
In a major oil spill that occurred in the Niger Delta Region of Nigeria in 2008, Shell Petroleum Development Company (SPDC) stated that this was caused by a fault in a pipeline. In the town of Bodo, tens of thousands of oil barrels caused pollution to the land and creek. Shell’s official investigation report claims that 1,640 barrels of oil were spilt in total. Nigerian regulators have confirmed that the spill lasted for 72 days and estimate that between 103,000 and 311,000 barrels were spilt in this time. Besides the under-recording of this incident, Shell has repeatedly claimed to its investors, media and customers that the majority of the spill was caused by sabotage. Amnesty International has now confirmed that more than 50% of the oil spill was a result of operational failures. After more than 3 years since this oil spill, Shell has failed to perform a proper clean-up to the affected area, or to pay any form of official compensation to the affected communities. Thousands of activists in more than 14 countries have undertaken protests against the major oil giant, and the people of Bodo have now taken their claim of a leak of 500,000 barrels to the UK courts. Observing this particular situation involving Shell in Nigeria, an understanding will be established of how leadership could be used to address the situation. This paper is organised as follows: First, I will provide a background and history into the Shell Nigeria operations. Secondly, I will establish an understanding of how the affected stakeholders might make sense of the situation in different ways. Then I will identify the possible outcomes that could

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