http://www.saharareporters.com/news-page/wikileaks-nigeria-shells-ann-pickard-says-turai-tanimu-and-nnpc-gmd-yaradua-were-collectin

Wikileaks On Nigeria: Shell's Ann Pickard Says Turai, Tanimu and NNPC GMD Yar'adua Were Collecting Bribes From Oil Lifting Contracts

Posted: January 24, 2011 - 13:38

By SaharaReporters, New York

A cable recently released by Wikileaks paints a portrait of the extent to which powerful oil giant, Shell, was involved in the political schemes in Nigeria. The US ambassador routinely contacted Shell to discuss important political and economic developments in Nigeria.

In this cable, Shell executive, Ann Pickard, reveals that Umaru Yar'adua's wife, Hajia Turai, his economic adviser, Tanimu Kurfi, and the former Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Abubakar L. Yar ‘Ádua, were receiving bribes from companies lifting oil from Nigeria. SaharaReporters revealed these illicit activities in a report we did on Turai in 2008.
http://www.saharareporters.com/news-page/exclusive-report-crude-oil-lift,
Reference ID Created Released Classification Origin
09ABUJA259 2009-02-10 16:04 2011-01-22 21:09 SECRET//NOFORN Embassy Abuja
Appears in these articles:
www.spiegel.de

VZCZCXRO7442
OO RUEHPA
DE RUEHUJA #0259/01 0411610
ZNY SSSSS ZZH
O 101610Z FEB 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5253
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHOS/AMCONSUL LAGOS 0802
RHEBAAA/DEPT OF ENERGY WASHDC

S E C R E T SECTION 01 OF 03 ABUJA 000259

NOFORN
SIPDIS

STATE PASS USTR FOR AGAMA
USDOE FOR GEORGE PERSON AND CHAYLOCK

E.O. 12958: DECL: 10/02/2028
TAGS: EPET ENRG ELAB PINR ECON SENV PGOV NI
SUBJECT: (C) NIGERIA: SHELL BRIEFS AMBASSADOR ON OIL GAS ISSUES,
COMMENTS ON PRESIDENT'S HEALTH AND HIGH-LEVEL CORRUPTION

REF: ABUJA 203

Classified By: Ambassador Robin R. Sanders for reasons 1.4. (b
& d).

1. (S/NF) SUMMARY: Shell's regional executive vice president for Africa Ann Pickard and government relations representative Pete Francis met with the Ambassador on January 27 in Abuja and provided an update on problems in the oil and gas sector. Pickard said that things were going from bad to worse, especially the security situation. She said that Nigeria now had one of the highest negative ratings for maritime operations, creating problems for Shell in hiring oil tankers to load, as tanker operators will work only under highly selective conditions. Last year there were about 80 piracy attacks on land and water combined. This year already 15 have been tallied, which includes 3 for Shell and 3 for Exxon. On corruption, Pickard said that Nigerian entities control the lifting of many oil cargoes and there are some "very interesting" people lifting oil.

Oil buyers would pay NNPC GMD Yar'Adua, Chief Economic Advisor Yakubu and the First Lady Turai Yar'Adua large bribes to lift oil. Pickard also reported an instance of the Attorney General Aondoakaa allegedlysoliciting a $20 million bribe to sign a document. The International Oil Companies (IOC) are quite concerned about the "very flawed" new petroleum sector energy bill. The IOCs will be asking U.S., Dutch, and U.K. COMs to convey points on the bill to GON policymakers. Pickard agreed that the President's health is a guessing game. She said that in her recent meetings with Yar'Auda he seems alert, though very drawn in the face, thin, and frail. Her information is that the President was not in danger of dying soon, but also was unlikely to ever fully recover from his ailments. (Note: see septel on oil/energy sector issues for the Ambassador's meeting with the new Minister of Petroleum Resources. End Note). END SUMMARY.

2. (C) Shell's regional executive vice president for Africa Ann Pickard and government relations representative Peter Francis met with the Ambassador on January 27, 2009 in Abuja and provided an update on problems in the oil and gas sector. Pickard reported that Shell's meeting with Minister of Petroleum Resources Dr. Rilwanu Lukman scheduled for earlier that day had been cancelled; the third week in a row where key appointments had fallen through, with the excuse of being summoned to the Presidential Villa. (Note: Emboffs have observed that meetings with ministers and senior staff are indeed often cancelled with the explanation that they have been summoned to the Presidential Villa, even when the President is out of
town. End note). Econ Counselor and Econoff (notetaker) also
attended the discussion.

- - - - - - - - -
from bad to worse
- - - - - - - - -

3. (C) The Ambassador took the opportunity to share with Pickard that the Mission was in the midst of completing its Strategic Plan and asked Pickard where she thought Nigeria was headed. Pickard said that things were going from bad to worse, especially in terms of security. She said that Nigeria now had the highest negative rating for maritime security, creating problems for Shell in hiring oil tankers to load; tankers will work only under highly selective conditions.
She also noted that late on the evening of Saturday January 17, Nigerian militants attacked and boarded two vessels at a Shell crude oil loading platform in Bonny and took eight crew members hostage.
Standard procedure on the tanker was followed: the ship went into immediate lock down; there were no injuries or fatalities from the boarding. The eight Nigerian crew members who were taken hostage were later released. The pirates who went through the sections of the boat to which they were able to gain access, smashing and stealing computers, electronics, and personal items of the crew members. The second vessel was a tug boat towing a supply vessel from Bonny to Calabar. Last year there were about 80 incidents of piracy; this year already 15 had been tallied, which includes 3 for Shell and 3 for Exxon. GON officials have told Shell to "hire more security."

The price of doing business in the oil and gas sector in Nigeria continues to climb she concluded. [Note: The International Maritime Bureau (IMB), a division of the International Chamber of Commerce -www icc-ccs org - reports that the waters off the Gulf of Guinea (Nigeria) remain the second worst, with 40 incidents in 2008 to the Horn of Africa (Somalia) with 42 recorded incidents. The IMB notes that in 2009 the Horn of Africa will be more intense as Spring comes due to the large number of foreign warships in the region on active patrol to ensure the safety and security of vessels. The same increased security is not expected for Nigeria in 2009. End Note]




- - - - - - - - - - - - - - - - - - - - - - - - -
shell believes coup unlikely; corruption worsening
- - - - - - - - - - - - - - - - - - - - - - - - -

4. (S/NF) The Ambassador asked what Shell's thoughts were on any potential for a coup. Pickard answered that there is little intellectual capital to plan and execute a coup and Shell sees little potential for one. Pickard then went on to say that corruption in the oil sector was worsening by the day. The Ambassador asked for a few examples. Pickard said that Nigerian entities control the lifting of many oil cargoes and there are some "very interesting" people lifting oil (People, she said that were not even in the
industry). As an example she said that oil buyers would pay Nigerian National Petroleum Corporation (NNPC) General Managing Director Yar'Adua, (Note: not related to President Yar'Adua. End Note)
Chief Economic Advisor Yakubu, and the First Lady Turai Yar'Adua large
bribes, millions of dollars per tanker, to lift oil. The IOCs control the liquefied petroleum gas (LPG) cargos, so GON actors do not have the same opportunity for illicit gain. Pickard also said xxxxxxxxxxxxAttorney General Aondoakaa had told a visitor that he would sign a document only if the visitor paid $2 million immediately and another $18 million the next day.

- - - - - - -
very bad bill
- - - - - - -

5. (C) Pickard reported that Shell, Exxon-Mobil and Chevron all have big license review disputes with the GON. Shell has taken its dispute to court and the court is supporting Shell's position.
According to her, Shell is stepping back for the moment, however, to see how the other two majors negotiation fair, but is not taking its case out of court yet. The IOCs are quite concerned about the "very flawed" new petroleum sector energy bill. The bill is silent on what fiscal regimes would be applied. Shell says that the bill could reduce the corporation's overall value in Nigeria. GON discussions around the bill have mentioned the possibility of moving to five-year licenses and prohibiting exploring both oil and gas from the same source, which would contradict how oil and gas extraction works in practice. The bill is silent on joint ventures; it just states that NNPC will be incorporated. Pickard said the bill was "likely to sail through." The IOCs will be asking U.S., Dutch and U.K. COMs to convey points on the bill to GON policymakers. (Note: Pickard mentioned that the IOCs will not share company information directly; they will hire consultants, like McKinsey, to produce common themes so the messages from the IOCs to be shared with the relevant Ambassadors are clear and consistent. End note). Pickard lamented that the expected cycle of petroleum is at least five years for the first oil to flow, another 10 years of production to begin to break even. These numbers change when oil is $40 per barrel instead of $100 per barrel. Hence, a five year license would not be an incentive for investment and development.

- - - - - -
gas issues
- - - - - -

6. (C) The Ambassador said that the Mission was looking at performance measures for the economy, i.e. the linkage between the country's electricity output and gross domestic product (GDP). The Ambassador shared that the Mission feels strongly that gas for feedstock is the key to Nigeria's power production, which is only about 2,800 average megawatts for a country of 140 million people. Pickard agreed and added that the U.S. got it wrong on its domestic natural gas policies, which it took over 20 years to sort out. So it is not surprising that Nigeria has it wrong at this point. She said there is not adequate infrastructure for gas. Gathering plants and pipelines to carry the product to the power plants still have to be financed and built. The Nigeria Independent Power Projects (NIPP) were located where there is no gas and no infrastructure. In addition, the international oil companies were coerced into building a power plant each, something they have no expertise in, and they are scrambling to deliver gas to these plants.

- - - - - - - - - - - - - - - - - - - - - -
yar'auda vacation is perhaps something else
- - - - - - - - - - - - - - - - - - - - - -

7. (S/NF) Pickard agreed that the President's health is a guessing game. She said that in her recent meetings with Yar'Auda he seems alert but drawn in the face and frail. She reported that a xxxxxxxxxxxx contact says that the President was not in danger of dying soon but has serious ailments from which he will never fully recover. Pickard shared that Berger provides transportation including planes for the President and has reportedly flown in doctors and technicians to attend the President (reftel). She said,
for instance, that xxxxxxxxxxxx confided that they flew the President from Germany to Saudi in September 2008. Additionally, the Berger contact thought the President would not return to the Villa offices, as they were moving the President's personal things out of the Villa. (Note: What we think this means is that Yar'Adua is spending most of his time in the presidential residence and not in the Villa offices. End Note).

- - - - - - - - - - - - - - - - - - - - - -
hopes that oil nationalism can be tempered
- - - - - - - - - - - - - - - - - - - - - -

8. (C) The Ambassador asked how comfortable Shell was with the new appointment of Dr. Rilwanu Lukman as Minister of Petroleum Resources, and the appointment of Mohammad Sanusi Barkindo as the new NNPC GMD. Pickard sees the nationalism card cooling with the removal of former NNPC GMD Yar'Adua, given that new Minister of Petroleum Lukman is more "pragmatic" and will hold sway over deputy Minister Ajumogobia.

(Note: Ajumogobia's technical assistant told EconOff in a meeting on January 14, 2009 that the State Minister was focusing on Gas, since before the mass cabinet change he was State Minster of Petroleum, with a separate State Minster for Gas.) End Note. She said she was also okay with NNPC chief Barkindo. She has worked with Barkindo several times over the past few decades, especially when they were both working climate change. She said Barkindo led Nigeria's technical delegation to climate change negotiations that produced the United Nations Framework Convention on Climate Change (UNFCCC)and the Kyoto protocol to UNFCCC during while he served on its Bureau at various times. She indicated that although his undergraduate studies were in political science, he obtained his MBA from Southeastern University in Washington DC and did postgraduate work in petroleum economics and management at Oxford University. Although she also said terms like nationalistic and Chavez she however said that she thought
he could be steered in the right direction on the petroleum sector.

- - - -
comment
- - - -

9. (C) Although Pickard clearly seems frustrated with the way things are going in the maritime security, oil sector legislation, and corruption which affects Shell's bottom line, it was useful to hear that she has hopes for the new Petroleum Minister and NNPC chief. Septel on the Ambassador's meeting with new Petroleum Minister Lukman will address many of these same issues.

10. (U) This cable was coordinated with Consulate Lagos.

Sanders

http://www.saharareporters.com/news-page/wikileaks-nigeria-shells-ann-pickard-says-turai-tanimu-and-nnpc-gmd-yaradua-were-collectin

This is not shocking relevations. The fact remains that Nigerians will not do anything with this news. Now that is the sad truth.

EzeUche_:

This is not shocking relevations. The fact remains that Nigerians will not do anything with this news. Now that is the sad truth.

I agree - unfortunately we have Nigerians who think GEJ is the messiah hence we have long way to go in pursuit of deliverance

Another one that will be swept under the carpet. Under Buhari's regime, the three named would be fleeing on the first bus to Chad.

[size=18pt]All the mothers could be violated (including Granny's) in Nigeria, there still wouldn't be a reaction.[/size]

We need to fix this State, so we can fix the problem.

We definitely need to execute corrupt officials. No tolerance for corruption should be our motto. And some Nigerians need to stop celebrating these looters. In a civilized democracy, IBB, OBJ, Gowon, Atiku etc would have been executed or thrown in jail for life.

Vote Gen Buhari 2011 and you shall hav all these criminals behind bars. . .

At times i feel our rulers placed a curse on Nigerians. How can we be exposed to such information and still keep quiet about it like nothing happened.

EzeUche_:

We definitely need to execute corrupt officials. No tolerance for corruption should be our motto. And some Nigerians need to stop celebrating these looters. In a civilized democracy, IBB, OBJ, Gowon, Atiku etc would have been executed or thrown in jail for life.

Execute corrupt officials. Hmmm where does one start? Here's a hint; let him who has no sin cast the first stone.

Bawss1:

Execute corrupt officials. Hmmm where does one start? Here's a hint; let him who has no sin cast the first stone.

Execute them all then. I think 90% of all Nigerian politicians are corrupt in a way. Or we should look at in this way. If you weren't wealthy when you entered Nigerian politics, but now you are wealthy, then that should be a red flag.

afam4eva:

At times i feel our rulers placed a curse on Nigerians. How can we be exposed to such information and still keep quiet about it like nothing happened.

True

I heard on news recently that one of the reasons for the Tunisia people revolution could be traced to wikileaks report claiming that the former president, allies and family were enjoying some serious lavish lifestyles.

This kind of revelation or leaks would turn the world upside down in other regions. I am sure you remember the expenses saga in the U.k a number of Ministers lost their jobs fast - some even have pending jail sentences.

But come to Nigeria we just take it on the chin and walk away.

blacksta:

True

I heard on news recently that one of the reasons for the Tunisia people revolution could be traced to wikileaks report claiming that the former president, allies and family were enjoying some serious lavish lifestyles.

This kind of revelation or leaks would turn the world upside down in other regions. I am sure you remember the expenses saga in the U.k a number of Ministers lost their jobs fast - some even have pending jail sentences.

But come to Nigeria we just take it on the chin and walk away.

EzeUche_:

Execute them all then. I think 90% of all Nigerian politicians are corrupt in a way. Or we should look at in this way. If you weren't wealthy when you entered Nigerian politics, but now you are wealthy, then that should be a red flag.

Even though it is understandable that is an unfair generalization.

Besides if we are really intent on doing away with corruption what about the followers (i.e non-politicians). Do the corrupt politicians get to the office they occupy solely by their own means? Many of us are involved in this than we will admit, its just convenient to blame it all on the politicians.

Let someone burn himself like Bouazizi, them the revolutions shall start.

Mobinga:

Let someone burn himself like Bouazizi, them the revolutions shall start.

This one does not work in Nigeria. What can be worse than women going naked. I think some corrupt leaders should be burnt, then the revolution will start.

afam4eva:

This one does not work in Nigeria. What can be worse than women going unclothed. I think some corrupt leaders should be burnt, then the revolution will start.

It only takes one person to be a martyr for the cause. We already seen one person attempt something with OBJ at Murtala Mohammed Airport.

[size=20pt]The problem is Nigerians are too politically docile.[/size]

Why is this the case? It is culturally embeded in us. Yes sah, No Sah, Yes Mah, No Mah, Bow down, Kabiyesi O, O wise elder, Oga sah,
three bags four sah!

[size=16pt]What a load of crap.[/size]

Can you believe the Prime Minister of Japan, see's himself as a servant of the people when he performs the functions of  public office.
I have seen quite a few Japanese pm's resign in my life time. They enter the cabinet room, show extreme humility and bow down to all.
Then they resign in disgrace, sometimes due to being smeared, and sometimes due to failed policy implementations. If they enter halls
to address the public they humbly bow to the public too.

The bottom line is 'we' as Nigerian citizens are complicit in holding her back if not in her demise.

There are no unifying threads of common decency that have trancended all geo-polities in Nigeria, hence
we are all culpable regarding how we arrived at the status quo. Yes, what I'm saying is that in my humble opinion, we as citizens have to take
some responsibility for the scenario that we have today.

I say this again and again, I blame my Father's generation (the 'Independence Generation') for this mess that we are about to inherit ,
and what a mess it is, a culture of never ending excuses, visionlessness, talkshop politics, and cowardly inaction ,  they have failed us.

The only question for me is whether the next generation will have the balls or will to release their imposed shackles from the previous generation
and 'fix the State' or not?

The situation is still rectifiable even though there are penalties of 'oppotunity cost' for inaction. If we can fix the State, we will fix the
problem!

Its amazing that the US state department through its embassy in Nigeria had to rely on sahara reporters to get an accurate picture of the moribund state of Yar 'Adua's health in late 2008 and early 2009.

Most of the facts contained in the leaked diplomatic cables from the US Mission in Nigeria had already been published by Sahara Reporters during the time in question but a lot folks in Nigeria doubted the authenticity of sahara reporters then.

The question now is, will action be taken against the principal fraudsters revealed by Wikileaks i.e Turai , Taminu, Rima and Turai's brother who was then a GMD at NNPC.

These tyrants disgust me. They all feel they are better than us, the majority of the population. Everywhere they go they feel the need to use convoy with sirens and whips so we "common people" cannot have any opportunity to stain them. I detest them all, from Turai (that was not even appointed or elected) to Aondoakaa (who showed the worst abuse of public office in Nigeria's young democracy). They do not see the need to feel the heartbeat of the nation because the truth is they are the enemies of the nation.

Just last week Tony Blair was still being called to answer questions on his governmental decisions and policies (which ended years ago) in a public inquiry, yet Aondoakaa has not been made to account for any of his actions as AGF, even though it has become public knowledge that it was he that aided Ibori's escape and delayed Jonathan's assumption of president as prescribed by law.

Even Jonathan does not deserve to be seen as a saint, why does he harbor questionable men close to himself? The absence of his actions speak even more than his actions (Why could he not instigate actions against Aondoakaa and Turai on becoming president?). If it was because he did not want to be president, then he should just have made sure the elections were credible and hand over to the next (That would have been the best legacy to leave).

I cry for Nigeria. Everyday I think to myself, I dream, and I envision a place in Africa, in Nigeria, where the black world can call her own! A place where people from all over the world would flock to because it is prosperous. A place where people would dream of one day emigrating to. A place where people would dream of one day being "Nigerian Citizens". . . Nigeria doesn't know the black race is betting on its success. Nigeria gets it right, and the black man is finally free, for real. Why these politicians haven't been murdered and hung upside down (a la Mussolini) is the very description of "astonishment". Until blood is shed Nigeria will never be free. If Nigeria is not free then exploitation of the black race will continue forever. . .

kuramo:

Its amazing that the US state department through its embassy in Nigeria had to rely on sahara reporters to get an accurate picture of the moribund state of Yar 'Adua's health in late 2008 and early 2009.

Most of the facts contained in the leaked diplomatic cables from the US Mission in Nigeria had already been published by Sahara Reporters during the time in question but a lot folks in Nigeria doubted the authenticity of sahara reporters then.

The question now is, will action be taken against the principal fraudsters revealed by Wikileaks i.e Turai , Taminu, Rima and Turai's brother who was then a GMD at NNPC.

ALLEGATIONS, no CONFIRMATION as claimed by Sahara Reporters.

Jonathan, man up and do something with this information. Never stopping to think for one moment the effect their actions would have on Nigerians. Its like the masses don't even exist right in their own country. Lets just share the cake and give the crumbs to the dogs----sighs.

US  by such activities is carrying out acts of sabotage on a friendly sovereign Country. I wager that they are not using only Shell but other Multinationals. This is espionage gone crazy. Germany could be using Berger, Uk,France, China, and all these seeming friendly Nations could all be doing same. They are all looking out for themselves. Nigeria save thyself. Do not ever think that your salvation will come from elsewhere.

jay_getta:

I cry for Nigeria. Everyday I think to myself, I dream, and I envision a place in Africa, in Nigeria, where the black world can call her own! A place where people from all over the world would flock to because it is prosperous. A place where people would dream of one day emigrating to. A place where people would dream of one day being "Nigerian Citizens". . . Nigeria doesn't know the black race is betting on its success. Nigeria gets it right, and the black man is finally free, for real. Why these politicians haven't been murdered and hung upside down (a la Mussolini) is the very description of "astonishment". Until blood is shed Nigeria will never be free. If Nigeria is not free then exploitation of the black race will continue forever. . .

So true

jay_getta:

I cry for Nigeria. Everyday I think to myself, I dream, and I envision a place in Africa, in Nigeria, where the black world can call her own! A place where people from all over the world would flock to because it is prosperous. A place where people would dream of one day emigrating to. A place where people would dream of one day being "Nigerian Citizens". . . Nigeria doesn't know the black race is betting on its success. Nigeria gets it right, and the black man is finally free, for real. Why these politicians haven't been murdered and hung upside down (a la Mussolini) is the very description of "astonishment". Until blood is shed Nigeria will never be free. If Nigeria is not free then exploitation of the black race will continue forever. . .

Recently, I have come to the conclusion that "most Nigerians" do not believe in or care about the notion of a 'BLACK RACE'
Think about it, if citizens are continually willing to accept 'Butchered women and children' as part of collateral damage
due to the conflict in Jos, do they really give a flying fu@*ck about the 'BLACK RACE'.

houvest:

US by such activities is carrying out acts of sabotage on a friendly sovereign Country. I wager that they are not using only Shell but other Multinationals. This is espionage gone crazy. Germany could be using Berger, Uk,France, China, and all these seeming friendly Nations could all be doing same. They are all looking out for themselves. Nigeria save thyself. Do not ever think that your salvation will come from elsewhere.

[size=18pt]Neo-Slavery: Phase 2 . Bluntly put, they are doing it, and so what is anybody going to do about it?[/size]

The main question for me is will the next generation actually have a nation they own, or by that time would the country
have been sold or mortgaged off to the Indians, Chinese and MultiNationals ? ? ? ?