Shell and Omiyi's appointment
FACED with agitation in the Niger Delta, the demands of its labour unions, and the expectations of the Nigerian public, the appointment of Mr Basil Omiyi to the position of Managing Director of the Nigerian arm of the Anglo-Dutch multinational, Shell Petroleum Development Company (SPDC) is a welcome development. Omiyi is the company's first indigenous managing director. The appointment, which takes effect from September 1, 2004, is coming as part of re-restructuring exercise seeking to make the company more relevant and cost-effective.
Shell is the operator of the NNPC/Shell/AGIP/ELF joint venture. The operation is the largest oil and gas enterprise in the country with a daily production capacity of over one million barrels and reserve levels in excess of 18 billion barrels. Omiyi's appointment shows that the company is responding to some of the challenges of doing business in modern Nigeria.
For too long, Nigerians have called on the oil majors to appoint Nigerians to very senior positions such as managing directors and finance directors. SPDC being Nigeria's biggest oil producer has now taken this bold step 67 years after it first set up shop in Owerri as Shell D'Arcy. This appointment can only trigger similar appointments in the other multinationals operating in Nigeria. As Omiyi himself rightly pointed out, his appointment is bound to be the first in a series.
Until now, Omiyi, 58, was the Production Director of SPDC. He joined Shell in 1970 as a petroleum engineer and has worked in Nigeria, the UK, and the Netherlands. He was appointed to the Board of SPDC in 1996, when he took up the position of General Manager, Relations and Environment. In 1999, he was appointed External Affairs Director before assuming his current role in 2002.
Much as Nigerians rejoice over this appointment, we must not fail to point out certain areas of concern. The idea that Mr Chris Finlayson, the outgoing Managing Director of SPDC is after all to remain in Nigeria for a job that previously existed abroad is somewhat curious. Finlayson, has been appointed Chief Executive Officer of Shell Exploration and Production (Shell EP) Africa, with effect from October 1, 2004. Finlayson will however be based in Lagos and will retain the role of Country Chairman for Nigeria.
In his new role, Finlayson succeeds Shell EP Africa's current Chief Executive Officer, Brian Ward, based in The Hague. By this development, Nigeria has become the headquarters of Shell EP in Africa.
Not being privy to the inner workings of the Royal Shell Group, we can only hope that our fears of domination and window-dressing are misplaced. The position of Country Chairman is also intriguing. We have been used to Shell managing directors that also occupied the position of Chairman and Chief Executive Officer " two appellations apparently reserved for Mr Finlayson. The restructuring currently being undertaken by SPDC may well be responsible for some of the ambiguities of nomenclature.
Whatever be the case, we expect that Omiyi in his new position must exercise the full powers and responsibilities of a Managing Director of SPDC. Indeed being a Nigerian, Omiyi should go beyond the achievements of his expatriate predecessors, by winning back the goodwill Shell has lost in the Niger Delta and among the angry communities such as Ogoni and Egbema. His experience as a former Community and Environmental Manager will stand him in good stead in promoting mutually beneficial initiatives between Shell and the many local communities in whose areas they operate.
As Omiyi occupies his new post, he must do so in the certain belief that he carries with him the good wishes of Nigerians for a successful outcome.
