News / Africa

    Piracy Cuts Oil Production in Cameroon, Threatens Future Investment

    Cameroon says its oil production is falling, in part, because of piracy. Our correspondent looks at the economic impact of piracy in the Gulf of Guinea and how it differs from piracy off the coast of Somalia.

    Cameroon's National Hydrocarbons Corporation says crude oil production is averaging just over 73,000 barrels a day. That is down 13 percent from levels just one year ago as spending in the oil sector has dropped by more than one-third.

    The state oil firm says that is partly a result of the international financial crisis and partly a result of insecurity in the Gulf of Guinea brought on by increasing piracy.

    As much as 95 percent of Cameroon's oil comes from a basin in the Gulf of Guinea, where attacks on commercial shipping and raids on government outposts have made the area increasingly lawless, threatening the region's export of oil, natural gas, and bauxite.

    Seven Chinese fishermen were kidnapped last month in international waters off the Bakassi Peninsula which separates Cameroon from Nigeria. The previously-unknown Africa Marine Commando group is thought to have been paid a ransom for their release.

    Days later, the group raided a gendarmerie post in Bakassi stealing weapons and ammunition. It then hijacked a Nigerian boat off the coast of Cameroon, demanding more than $1 million for its release.

    Raymond Gilpin is an associate vice president for sustainable economies at the US Institute of Peace. He says piracy is partly a result of the breakdown in a deal that resolved a long-running border dispute between Nigeria and Cameroon over the Bakassi Peninsula.

    "The issues have a lot to do with the fall-out from Bakassi and the apparent harassment of Nigerian nationals on the peninsula," said Raymond Gilpin. "There is a lot of disaffectation in the communities. And as they have done in the Delta, the main way that they demonstrate how disaffected they feel and how wronged they feel they have been is by criminal activity."

    Gilpin says piracy threatens the profitability of new oil exploration off Cameroon, Equatorial Guinea, and Nigeria's Niger Delta. The interest in new sources of oil will always be there, but Gilpin says it is the quality of investment that will suffer.

    "You are less likely to see oil majors who have the capacity and the deep-pockets for the sort of exploration that will be required go in first," he said. "You are more likely to see smaller concerns go in and test the waters. And what this does it costs the countries because when the oil majors come in later, the beneficiaries are the smaller companies that took the risk to go in in the first place, not the countries."

    Gilpin says very few countries in the Gulf of Guinea have addressed what he calls vast gaps in maritime security from Nigeria to Angola. Pirate groups that withdrew after increased security in 2000 are now reemerging. But unlike the more-publicized piracy off the coast of Somalia, Gulf of Guinea pirates are less organized.

    "Somalia is a projection of lawlessness on land out at sea," said Gilpin. "And therefore you have more organization among the clans to support and sustain piracy. You also have more organization out on the high seas with mother ships supplying and sustaining the skiffs. You also have a lot more organization in terms of financial flows with business communities in Yemen and Kenya and some in Somalia financing, supporting and facilitating the whole chain of piracy through to the ransom."

    In the Gulf of Guinea, Gilpin says most pirates operate individually or in less organized groups of small boats.

    "What they do share in common is a general trend toward non-lethality unless they feel that their lives are in danger because what both sets are after is the ransom," he said.

    The U.S. private security firm MPRI last month won a $250-million contract from Equatorial Guinea to provide nationwide coastal surveillance against piracy.

    Gilpin says there should be a broader regional approach to maritime security either through the Economic Community of West African States or the Gulf of Guinea Commission established by former Nigerian president Olusegun Obasanjo.  

    You May Like

    Russian-speaking Muslim Exiles Fear Possible Russia-Turkey Thaw

    Exiled from Russia as Islamic radicals and extremists, thousands found asylum in Turkey

    US Presidential Election Ends at Conventions for Territorial Citizens

    Citizens of US territories like Guam or Puerto Rico enjoy participation in US political process but are denied right to vote for president

    UN Syria Envoy: 'Devil Is in the Details' of Russian Aleppo Proposal

    UN uncertain about the possible humanitarian impact of Russian proposal to establish escape corridors in Aleppo

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Uganda Unveils its First Solar-powered Busi
    X
    July 28, 2016 4:16 AM
    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Philadelphia Uses DNC Spotlight to Profile Historic Role in Founding of United States

    The slogan of the Democratic National Convention now underway in Philadelphia is “Let’s Make History Again” which recognizes the role the city played in the foundation of the United States in the 18th century. As VOA’s Kane Farabaugh reports, local institutions are opening their doors in an effort to capitalize on the convention spotlight to draw visitors, and to offer more than just a history lesson.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.

    Special Report

    Adrift The Invisible African Diaspora