Analysis: Stability key to oil output

Oil thefts from pipelines have led to disastrous fires

By Barnaby Phillips in the Niger Delta

The US believe a peaceful and prosperous Nigeria could help bring development to the whole of the West African region but President Clinton who starts his visit on Saturday is also concerned with the stability of America's huge investments in Nigeria's lucrative oil industry

The Niger Delta is a labyrinth of swamps, forests and creeks but it contains the treasures which keep Nigeria's economy moving.

Some two million barrels of oil are pumped out of the delta each day - much of it passing through the Escravos terminal on the delta's western edge.

More Nigerian oil goes to the United States than anywhere else, and America's oil companies are here in force.

Delta residenst have seen littleof the oil wealth

Escravos is run by Chevron. It has put the latest technology into this remote corner of Africa but it is planning to expand still further.

Ray Wilcox, the managing director of Chevron Nigeria, said: "We're looking at projects over the next few years that will probably total well over $2bn of investment in Nigeria, to develop gas resources, to develop new kinds of plants and technology.

"These are all things that we wouldn't be doing if we didn't have confidence in the fact that we'd be able to see a return on that investment and at the same time contribute to the economy of the country."

But the people of the delta say they pay a high price for the oil that surrounds them.

Lawlessness

Odi is a small town which was almost completely destroyed by the Nigerian army late last year. Nobody's house was spared, not even the local chief's.

The soldiers reportedly went to Odi to avenge the murders of several policemen by a gang of criminals. In the event they went on a far bigger killing spree themselves.

People here believe they were made an example of because the government cannot afford lawlessness in this oil-producing area.

And oil doesn't only bring repression - it brings pollution.

Spills have destroyed the livelihoods of thousands of fishermen and farmers.

The rivers and land are ruined. Oil companies say many spills are the result of sabotage by local people seeking financial compensation.

Misery

Whatever the truth, oil is often more of a blessing than a curse in the Niger Delta but the communities say the companies simply don't care about them.

Patterson Ogun, a Niger Delta activist, said: "Oil multinational corporations start the exploitation and exploration of oil without having in mind that they actually need to protect the environment so what you actually see in the delta is more of poverty, more of misery and more of an endangered ecosystem."

Nigerians hope President Clinton will use his talks with their government to stress the need for greater accountability and a fairer distribution of resources.

In the Niger Delta there is an urgent need for both.