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1. Oil and the Cameroonian Economy: A Story of Unfulfilled Potential

Author:
Léonce Ndikumana, Hans Tino Mpenya Ayamena, and Juste Lokossou
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
While Cameroon is one of the most endowed African countries in a wide range of overground and underground natural resources, it has struggled to leverage these resources to secure a decent living standard for the majority of its population. Instead of boasting impressive development outcomes, Cameroon is among African resource rich countries that are known for suffering high financial hemorrhage through capital flight. In a sense, capital flight from Africa has become a chronic manifestation of the ‘resource curse’ that tends to plague countries that are endowed with vast amounts of resources in a context of poor institutions and weak regulatory frameworks. This study provides a detailed analysis of the historical emergence of an externally dominated oil sector and the institutional and regulatory arrangements governing the sector to shed light on the causes of the country’s failure to fulfill its potential considering its impressive resource endowment. The evidence may shed light on strategies to usher a new path towards a Cameroonian economy beyond oil.
Topic:
Oil, Natural Resources, and Economy
Political Geography:
Africa and Cameroon

2. Uganda’s Oil Refinery: Gauging the Government’s Stake

Author:
Paul Bagabo and Thomas Scurfield
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Uganda’s planned oil refinery will have several benefits for the country, including for its security of fuel supply and balance of payments. The refinery could be reasonably profitable, generating an internal rate of return of 13 percent in a baseline scenario. The government is planning to take a 40 percent stake but may ultimately pay a higher price for this equity than it expects. Even if it borrows to cover its upfront contribution to costs, it will need to divert around $330 million in present value terms from the national budget for loan repayments in the 2030s. This price will increase if downside risks, such as cost overruns or lower global oil prices, materialize. The government can take several steps to increase interest from other investors, including by reducing the risk of cost overruns, ensuring deregulated product prices continue, and providing less risky forms of state support such as tax incentives. These should reduce the need for the government to take a large stake.
Topic:
Oil, Regulation, and Investment
Political Geography:
Uganda and Africa

3. Guidebook on Nigeria’s Energy Transition

Author:
Tengi George-Ikoli and Nafi Chinery
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
This guidebook serves as a comprehensive reference tool for the Nigerian government, as well as an accountability tool that enables Nigerian civil society actors to track the government’s implementation of its commitments to the energy transition. Nigerian government has designed to transition from fossil fuels—oil, gas and coal—to renewable energy technologies, including institutional, policy, legal and fiscal frameworks. It is informed by engagements with state and non-state actors including representatives of the government, the private sector, communities, youth and women’s groups, and by their views of the strengths and weaknesses of Nigeria’s energy transition plans. Accounting for Nigeria’s unique context and peculiarities as a fossil-fuel-dependent nation, the guidebook seeks to provide greater clarity on ways to navigate the energy transition for the Nigerian government, civil society, the media, the country’s citizens and the international community. It also seeks to mitigate transition led shocks and strengthen the overall transition process in Nigeria. The guidebook can enhance stakeholder knowledge of Nigeria’s energy transition process and government action to accelerate the transition. This should encourage the adoption of a comprehensive plan aligned with the needs and realities of most Nigerians. The insights provided in the guidebook may also inspire and influence regional conversations across the African continent, creating a collective demand for a people-centered and just energy transition in multiple countries.”
Topic:
Climate Change, Oil, Gas, Fossil Fuels, and Energy Transition
Political Geography:
Africa and Nigeria

4. Exxonmobil and Community Development: an Evaluation of its Corporate Social Responsibilities to Host Communities in Akwa Ibom State

Author:
Edet Joshua Tom, Itoro Bassey Ebong, and Maureen Oki
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Multinational oil companies are expected to be socially responsible to their workers, communities and other stakeholders through their social activities, even at the expense of their immediate profit. In line with the above, ExxonMobil has claimed to have invested millions of dollars in community development projects within the host communities since her inception. The host communities on the hand claimed that the company has reneged on its corporate social responsibilities to them. The main objective of this work is to assess ExxonMobil efforts in discharging its corporate social responsibilities (CSR) in oil producing communities of Akwa Ibom State in Nigeria. To achieve the objective of the study, survey and descriptive research design were adopted. Data were drawn from both primary and secondary sources. Accordingly, stakeholder theory of CSR was used as theoretical framework. The major finding of the study revealed among others that ExxonMobil h ad not significantly engaged in health care and skill acquisition programme in its host communities in Akwa Ibom State due to poor implementation of corporate social laws as well as the complicity of the Community Liaison Officers (CLOs) and the Exxon Mobil officials in the implementation of corporate social projects and programmes within the host communities. Based on the findings, the study recommended among others that the government should put a legal framework on ground that will make Corporate Social Responsibility mandatory as against the practice currently in vogue where Corporate Social Responsibility is discretionary. This will make the oil and other multinational companies operating in Nigeria to take CSR as a serious business rather than what is obtainable.
Topic:
Development, Oil, Multinational Corporations, and Exxonmobil
Political Geography:
Africa and Nigeria

5. Facing the Future: What National Oil Companies Say About the Energy Transition

Author:
Andrea Furnaro and David Manley
Publication Date:
11-2023
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
National oil companies (NOCs) should publicly acknowledge the risk of the energy transition, assess this risk, and act by implementing mitigation plans. Only 9 out of 21 NOCs analyzed acknowledge the risk of the energy transition, 4 have mentioned the use of transition risk assessments, and 5 have explicitly mentioned strategies to mitigate the risk. None of the NOCs have published “just transition plans” detailing how they will help workers and communities. NOCs do not plan to decrease investments in risky oil and gas assets. Petrobras (Brazil), Petronas (Malaysia) and Sonangol (Angola) are divesting from less valuable assets, but not necessarily to mitigate transition risk or downsize operations. Some NOCs, such as NNPC (Nigeria) and GNPC (Ghana), want to expedite drilling before oil and gas demand falls and acquire assets divested by other companies. At least six NOCs intend to increase oil and gas investment to secure energy supplies. Most NOCs intend to diversify, especially into gas, oil refineries, petrochemicals and renewable energy. However, it is unclear how much NOCs are spending on diversification or whether these are effective mitigation strategies. NOCs can learn from each other. Two NOCs—Ecopetrol (Colombia) and Petrobras—are clear leaders in terms of recognition of energy transition risk. However, NOCs disclosing more transition risk information are not necessarily also those reducing higher-risk investments.
Topic:
Oil, Business, Investment, and Energy Transition
Political Geography:
Africa and Global Focus

6. Optimizing the Role of the Extractive Industries in Domestic Revenue Mobilization: Analysis of Uganda's Mining, Oil, and Gas Revenue Generation and Management Laws

Author:
Dan Ngabirano and Onesmus Mugyenyi
Publication Date:
12-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
Dwindling aid and more recently the devastating effects of the COVID-19 global pandemic have rendered many African countries socially, politically, and economically vulnerable. Many are unable to effectively provide basic goods and services for their people, and their ability to pursue long-term development goals has been severely undermined. Given this situation, several African governments continue to fall behind in honouring their global commitments such as those made under the UN Sustainable Development Goals (SDGs) and the various regional and international human rights treaties that they are party to. To bridge the current funding gap, several African countries have turned to extensive borrowing with even more damaging consequences. In the face of this crisis, African countries have been urged to embrace and, in some instances, enhance their domestic revenue mobilization efforts as a more reliable and sustainable option. Uganda has heeded this call and in 2019, the country adopted a five-year Domestic Revenue Mobilization Strategy (DRMS). The key objective of this strategy is to improve revenue collection and lift the country’s tax-to-GDP ratio to between 16%-18%. More critically, DRMS recognizes the strategic role and potential contribution of oil, gas, and mineral revenues to national development. The DRMS underlines the need for the development of a strong extractive industries taxation fiscal regime. Given this reality, this study was conceived and set out to review and analyze the various laws, policies, and practices relevant to Uganda’s extractive industries fiscal regime, and to establish the extent to which these may enhance revenue generation, management, and equitable sharing of resource wealth. While focused on petroleum revenue generation, management and sharing in the Albertine region districts of Hoima, Buliisa and Kikuube, the study refers to experiences from gold mining in Mubende district. In this regard, the study established that gold mining in the district has for the most part been informal and unregulated. For this reason, both the central government and Mubende district local government have not been very successful in generating critical revenues from the largely artisanal and small-scale miners-dominated sector. Secondly, where revenue has been realized from gold mining in a few instances, it has been paid to the central government with less benefit to the district local government.
Topic:
Oil, Gas, Mining, Revenue Management, and Extractive Industries
Political Geography:
Uganda and Africa

7. New Producer Contract Terms and Uncertainty: Lessons From the Recent Past

Author:
Patrick Heller, Perrine Toledano, Tehtena Mebratu-Tsegaye, and David Mihalyi
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
The petroleum industry is volatile, and governments in “new producer” countries have operated at a significant information disadvantage when negotiating with international oil companies. This challenge is growing today; new producer countries face intensifying questions around whether to offer fiscal incentives to maintain investment in the face of 1) the pandemic-induced volatility in oil prices and 2) long-term questions about the future of the industry in the face of the climate crisis and the global energy transition. This confluence of short-term and long-term uncertainty is prompting a reexamination of the narrative that once took hold in many new producer countries. The traditional story was one of linear progression from being non-producers to small levels of production to ultimately having oil and gas become a major economic contributor over the long term. This notion of progression was associated with a commonly held theory: After a country’s first major discovery, the geological risk that wells will be dry was expected to decrease. Countries could therefore shift from a position of having to grant tax breaks (and other concessions) to international investors, to taking a tougher stance in laws and negotiations for new projects going forward. In this paper we examine whether this theory has been borne out in practice and make recommendations to support new producers in their navigation of the uncertainty associated with the energy transition. Among the eight “new producer” countries, for which we analyzed a total of 26 contracts signed before and 25 contracts signed after discovery events (all occurring between 2001 and 2014), the evidence is mixed. Only three of the eight countries in our sample—Ghana, Mozambique and Uganda—demonstrated a clear pattern in the direction of more stringent terms in post-discovery contracts. They featured definitive steps to increase some of the obligations of contractors to the state, and no significant terms that became less stringent. Five out of eight countries did not meaningfully alter their approach to gain greater concessions from their company partners.
Topic:
Energy Policy, Oil, Governance, Gas, and Private Sector
Political Geography:
Uganda, Africa, Mozambique, and Ghana

8. North Africa Can Reduce Europe's Dependence on Russian Gas by Transporting Wasted Gas Through Existing Infrastructure

Author:
Mark Davis, Perrine Toledano, and Thomas Schorr
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
North Africa can reduce Europe's dependence on Russian gas by transporting wasted gas through existing infrastructure.
Topic:
Energy Policy, Oil, Military Strategy, Natural Resources, Gas, and Conflict
Political Geography:
Africa, Russia, Europe, and Ukraine

9. The impact of stakeholder management on the oil and gas industry in Africa: A case study of oil companies and African host communities

Author:
Nnaemeka Madumere
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
African Journal on Conflict Resolution
Institution:
The African Centre for the Constructive Resolution of Disputes (ACCORD)
Abstract:
The oil and gas industry is regarded as one of the most dynamic, complex and controversial industrial sectors and involves activities that generate a whole range of diverse viewpoints. This has resulted because the industry has several stakeholders who can influence and, at the same time, be impacted upon by activities associated with the value chain of oil and gas oriented business. However, one extremely important stakeholder is the community. Many researchers (Orsini 2016; Wall 2012; Mascarenhas 2011; Kinslow 2014; Boladeras, Wild and Murphy 2016) agree that the viewpoints of communities where oil and gas operations are carried out should be given high priority due to their significant influence over industry activities in their region, as well as the fact that they are the entities most impacted by these activities. This research examined notable conflicts experienced between oil companies and host communities in Africa with the aim to identify means by which relationships between the two aforementioned parties could be made cordial and sustainable. An integrated literature based research method and a case study strategy were adopted for this research. Two frameworks that will support organisations in effectively engaging and establishing cordial relationships with stakeholders were developed by the author; and the key findings of this research are that an effective means of establishing sustainable cordial relationships with host communities in Africa is by involving them in the ownership of operations in their region. This will naturally instill in them some sense of responsibility over the operations, which will in turn enable oil and gas companies to gain the trust, cooperation and support of host communities, as well as the social license to operate in their region. This relationship can be sustained if both parties work collaboratively to determine ways in which benefits from the operations may be maximised.
Topic:
Environment, Oil, Gas, and Stakeholders
Political Geography:
Africa

10. How Violent Conflicts Impact Women in Oil-Producing Niger Delta Communities: A Policy Perspective

Author:
Onyinyechukwu Durueke
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Social Science Research Council
Abstract:
This policy brief focuses on how women are affected by violent conflicts in the oilproducing Niger Delta region of Nigeria, including the coping mechanisms women victims adopt in conflict-affected communities. It draws on the findings of fieldbased research on the experiences of women in the aftermath of the military invasions of Odi1 and Gbaramatu,2 the leadership tussle in Rumuekpe,3 communal/ intra-ethnic conflict in K-Dere and B-Dere,4 communal conflict with a multinational oil corporation in Evwreni,5 and electoral violence in Imiringi. This brief also makes recommendations for addressing gender-based violence in the region.
Topic:
Energy Policy, Oil, Natural Resources, Women, Violence, and Gender
Political Geography:
Africa and Niger