HAPTER ONE

INTRODUCTION

The idea of oil companies contributing to some of he host communities particularlyPort Harcourtand Ogoni local government area is perhaps the most current development inNigeria.

Most oil companies have an obligation to the host communities in which they  live and operate and also a responsibility to the others who live in the society with them like the farmer who must put back into the ground minerals he takes out in crops.  The oil companies should patronize back the communities in which they operate because their activities produce negative externalities destroying vegetation and aquatic lives causing environment pollution and discomfort.  It is recommended that  they should invest in social projects such as hospitals school etc to compensate the inhertants, if  they expect the communities to work with them the concept of contributions of communizes to consider their acts with the frame work of the whole social system for instance a contribution to an academic institution.  Is to provide the communities with educated elites in the future.  The contribution of giving represent policy such investment in part have these mineral resources.

Oil companies cannot exist in a vaccum, isolation or an empty space.  It exists in an environment in the communities which is dynamic and ever changing.  The environment is an aggregate of the demographic social economic political technological and ecological condition that influences an organization.

These communities provide resources and limitation and determine opportunities open to threats that can be faced many Nigera oil companies NAOC, NNPC shell B.P and ELF OR companies have to contribute to educational development fund, supplying the tertiary institution with book and bursary award to those host communities while other go beyond more donation to the monumental project in aid of huger education still other oil companies make scholarship award to some individual in the host communities in which they operate while others donate money and materials to victims of natural disaster like fold desert encroachment and oil pollutions.

Forever, some other companies sponsor in supporting event particularly swimming lawn tention sqash and badmintion still others sponsor state and nation discordanceing completions.

The researcher nonetheless observed that oil companies in have accepted some of these responsibilities as part of their policy guidelines.

This research work is the study ofport Harcourtand Ogoni local government area.  It focused specially on the contributions of oil companies to the development of host communities which isport Harcourtand Ogoni.

Some of the oil companies which contribute immensely to the development of port Harcourt and Ogoni local government areas include NNPC,NAOC and others too numerous to mention but it is wise to give one of he oil companies its pronounce in this research work that is Nigeria national petroleum corporation (NNPC)

 1.1            BACKGROUND OF THE STUDY

Nigernational petroleum corporation is one of the major oil companies in river state and it is the largest oil producing companies inAfrica.  Construction of the refinery started in 1963 and came on stream in 1965 with an initial capacity of 35,000 bbls per day

The refinery has a staff of about 2,000 staff welfare is given priority attention and industrial harmony is sustained through monthly consultation meeting with nation workers the product they process is of two types domestic crude (TUP)and the Bonny medium crude oil.  The processing is either trip or a bind of the medium and trip to produce

a) Cg- cooking gas

b) PMS- petrol (vehicle fuel )

c) DPT- domestic and aviation fuel

d) AG- fuel for heavy vehicles.

 The objectives ofNigerianational petroleum corporation (NNPC) are in three fold.

1) TO THE NATION:      It provides the nations wealth the income and expenditure of the country that based on it.

2) TO THE EMPLOYEE:  To ensure that employee have good and safe condition of retirement benefits.  To promote and develop the best use   of human potentialities in particularNigeria staff.

3) TO THE SOCIETY: To conduct its business as responsible number of the society of Nigerian observing the  laws of the country giving due regard to safely and environmental standard to society needs.

 1.2       STATEMENT OF THE PROBLEMS

The major problem of oil companies inNigerwith particular reference to the contributions of the oil companies in development of the hoist communities  is that it is relatively difficult to administer well to the contribution in development of he host communities. The board of directors of oil companies who are in charged with the authority of a administering.  Social responsibilities are not carried out satisfactory assessment and collection of information from the host communities because of misunderstanding of some families in the villages of clients who want to drive the benefit alone

With these misunderstanding the implementation of social amenities to the communities has been difficult to embark upon.

The problems that appear outstanding are ignorance of greedy on the part of misunderstanding families in the village of the host communizes who want to benefit alone.

This is viewed from two perspectives.

a)  The host communities  do not seek for the relevant project to carry out as contributions from oil companies

b)  The project sited by the oil companies from the undesirable element in the community.

 1) Another problem is spending on host communities projects

2)  The project that would been earned by government as revenue is reduced.

3) Then the implications of the oil company not involved in the development of host communities with social amenities is that there will be conflict if they fail to carry out or compensate the host communities with social amenities conflict may be in from of violence between the companies and host communities.  If the situation is not arrested on time, it may lead to stoppage of he companies.

    1.3       RESEARCH QUESTIONS

1) How responsive are the oil companies to their surrounding communities?

2) Will these responsive of oil companies ensure mutual understanding between  oil companies and the host communities.

3) Will compensating the host communities bring out conducive atmospheres between the host communities and oil company?

4) Does the oil companies have yearly budget for social amenities to be provided to the host communities?

5) Will these oil companies with stand conflict if they fail to compensate.

6) What types of conflicts may likely rest in the absence of compensation by this oil companies.

 1.4    PURPOSE OF STUDY

The purposes of study are

1)  To identify the activities of these oil companies in the area of contribution to their host communities.

2)  To identify the problems encountered by the oil companies in pursuance of its contributions to the communities.

3)  To find out whether being responsive to the social responsibility on the host communities bring about a lasting peace.

4)  To suggest ways of improving on its contribution in developing the communities.

 1.5     SCOPE OF THE STUDY

In carrying out this study it was limited toport Harcourtand Ogoni local government area in river state.

 1.6     LIMITATION OF STUDY

Because of pressure of academic work and financial constraints, certain limitations were inherent in the research process due to obvious fact that conducing a research in Nigeria there is a low level of literacy multiplicity of language and prevalence of suspicion among respondent the persons who are unconnected by kind ship would naturally entail some problems.

Considering the state of economic instability it will not be easy meet all the financial requirements needed that is why it becomes necessary to limit the coverage to port Harcourt and Ogoni in River state and towns around it so as to cut down cost.

Again the study has a limited time to the submission of the report. This means if the researcher  goes for intensive research study meaning   missing lectures inspite of the   of the above limitation the study was very comprehensive and through as the method of investigation can show.

 1.7     SIGNIFICANCE OF STUDY

1) The finding of this study will be of benefit to all the host community and also see how the oil companies are helping them by contributing to their well being.

2)  The government will benefit by them in developing community by providing these communities with social amenities.

3) The  study will assist may future research in this area to know all the certain contributions the oil companies has been rendering to our communities particularly port Harcourt and Ogoni

 1.8    DEFINITION TERMS

1)  POLICT:   It is referred to the oil companies method procedure rules and administrative  practices associated with the strategic plan into results.

 2)  ENVIRONMENT DEGRADATION:      This is the wearing away of the surface oil through environmental operation of the oil companies.

 3)   OBLIGATION:  They are duty or promise act indicates that ought to be done by the companies.

 4)  INDUSTRIAL POLLUTION:        This refers to industrials waste either in the from of gas or chemical during their operations.