Article from ROAPE Volume 31 Number 101
Niger Delta: 'Petro Violence' and 'Partnership Development'

This article examines the globalisation of corporate strategic philanthropy as played out in the Niger Delta of Nigeria - a region that has been marked by a history of state and petroleum industry collusion both in social repression and environmental destruction. Social control of the Delta has rested largely on what Watts (2001) conceptualises as ‘petro violence’, the joint security imposed by the Nigerian military and oil companies to police their installations and the environment of social unrest that surrounds petroleum extraction. In examining the extractive industry's response to social dislocation, this study focuses on the adoption of a model of partnership and participatory development by Shell Nigeria. The implementation of the social stabilisation project promoted by Shell's partnership model and facilitated by international donors and state institutions (understood in corporate strategy as a ‘leveraged buy in’), exemplifies the reciprocal formation of the corporate social governance projects and development assistance in the Nigerian context. Yet this new model's attempt to achieve social consent is partially contradicted by the corporate requirement of profit maximisation served by rising prices associated with perceived and real threats to oil supplies. The oil companies' pursuit of a social ‘licence to operate’ thus rests uneasily with an industry whose underlying logic profits from the upward movement of oil prices, dependent on instability and violence.