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Article

16 May 2006

Author:
Carola Hoyos, Alison Maitland, Dino Mahtani, Financial Times

Royal Dutch Shell to rethink its Nigerian security [subscription only]

Royal Dutch Shell...was having to "rethink completely" its security in Nigeria after recent kidnappings and attacks on installations, Jeroen van der Veer, Shell's chief executive, said...Asked about Shell's use of two contract companies run by local militant activists, he said it would be "a hell of a job" to screen all of its 20,000 contractors in the country for their political affiliations. He said it was important to use contractors from local communities because it enabled them to "see some of the 'goodies' coming back home"...A draft Shell document obtained by the FT said the company was hoping for reconciliation to allow it to re-enter Ogoniland, a part of the delta that Shell had abandoned in 1993 after violent protests against environmental damage...Compared with many of its rivals, Shell and its closest peer, BP, have a reputation for taking sustainable development seriously...however...A resolution by British and Irish church groups highlighting projects in the Niger Delta, Russia's Sakhalin island and Corrib in Ireland has raised "significant concerns relating to the loss of production, environmental costs and reputational risk" faced by the company.