SHELL is to go ahead with a .;multi-million-pound gas project in Nigeria, defying international pressure to halt the scheme in the wake of the execution of Ken Saro-Wiwa, the political activist. Announcing the signing of the contract yesterday, Brian Anderson, managing direct itor of Shell Petroleum Company of Nigeria, said: "We recognise there have been calls for the project to be halted as a gesture of politi cal protest. We respect these views and understand the concerns they reflect. But we cannot accept that this would contribute to the good of Nigeria. Shell is a 25-6 per cent shareholder in the œ2.5 billion lion construction contract for the Nigeria Liquefied Natural Gas Project.
Mr Anderson said that the scheme would bring "great and measurable benefits" to Nigerians, including the environmental benefit of a reduction in the need to "flare" gas.
Shell says that up to now there has been no other way to dispose of large volumes of the gas produced with the oil of the Delta region. The company says that the collapse of the project, which has taken almost 30 years to -devise, would have meant the collapse of inter-dependent contracts. About 6,000 jobs would be created locally during the construction phase and many more permanent jobs would be created to operate the plant dur ing its 30-year Life.
The executions of Mr Saro-Wiwa and eight others last month was condemned by the international community and Shell came under pressure to withdraw from Nigeria. The company was involved in controversy earlier this year over the proposed deep sea disposal of the Brent Spar oil platform in the north Atlantic.
After a campaign by Greenpeace and other environmental groups, opposition from European governments and threats of consumer boycotts, Shell backed down.-PA
Alec Russell in Johannesburg writes: The African National Congress and its affiliates have called on South Africans to boycott Shell garages for two days next week to protest at the company's policy in Nigeria.
The South African- Nigerian Democratic Support Group, a mixture of political, religious and sports organisations said yesterday it had decided on the action to pressure Shell to push the Nigerian government for democratic reform. The ANC deputy- secretary general Cheryl Carolus, said that the group would consider a protracted campaign if the boycott on Tuesday and Wednesday had no effect.
For Shell South Africa, this is a throwback to the Eighties, when anti-apartheid activists applied similar tactics to try to force the company to disinvest from the country.
Shell produces half of Nigeria's daily Output œ 1-9 million barrels of oil, and ' critics of the ruling junta believe the Anglo-Dutch company could do more to encourage reform.
The South African governmental is split on the call for a boycot.