OIL IN SIERRA LEONE?

 

Part 1:  A history of secrecy, public deception and pipedreams

 

FACTS about the occurrence of deposits of black gold – oil – in Sierra Leone are hard to come by.  The story has been shrouded in mystery ever since the country gained its independence from Britain in April 1961.  Nevertheless, despite the institutional secrecy surrounding this potential source of wealth creation for our country, it is now beyond all dispute and doubt that there is oil in Sierra Leone.  However, the location, extent, and quality of the find have remained a subject of uninformed speculation, intense curiosity, and often-wild conjecture.  It is a state of affairs to which both official secrecy and the lack of transparency in the conduct of public affairs in Sierra Leone have largely contributed.

On 25 May 1963, the expatriate chief inspector of mines, Mr W C Fairbairn, who remained in his post two years after independence, presented his annual report to the Sierra Leone Government.  He made the following disclosures in three key paragraphs of his report:

*  Paragraph 12:  “The Oil Agreement between the Government and Tennessee (Sierra Leone) Inc., was ratified and the Company was preparing to start a seismic survey of their oil exploration licenses early in 1963.”

*  Paragraph 104: “The act to ratify and confirm the Agreement between the Government and the Tennessee Gas Transmission Company was passed by the House of Representatives during the year [1962]”

*  Paragraph 105: “The local oil company, Tennessee (Sierra Leone) Inc., set up offices in Freetown and by the end of the year [1962], preparations were being made to start a marine seismic survey within the company’s Oil Exploration Licenses.”

(See: Report of the Mines Division of the Ministry of Land, Mines and Labour, 1962; submitted to Government on 25 May 1963)

Frank statements like that above, by the chief inspector of mines, were the norm in government right up to, and immediately after, independence in 1961.  It had been hoped then that such standards of accountability and transparency would be maintained and become the order of the day under the new dispensation, once Sierra Leone’s own class of indigenous civil servants took over the reins from their colonial masters.  Instead, as we have come to experience, many who ran our national affairs afterwards did not seem to care much about the public or national interest.  Secrecy and autocratic rule replaced openness and the free supply of information.

Contrast, for example, Mr Fairbairn’s precise and unambiguous statements about his department’s transactions, with the shambolic and contemptible way in which the Kabbah government has recently conducted arrangements relating to the exploitation of Sierra Leone’s rumoured oil discovery.  In particular, the award of a contract in August 2000 to a man whose antecedents they did not take care to check.  Because of the lack of openness of the present transactions, Focus has yet to lay hands on a copy of this so-called contract, although as most visitors to this site know, we managed to secure a copy of a memorandum of understanding, which is a sort of annex to that contract.  It has not been for want of trying!  The plea of commercial confidentiality is unavailing, because Kabbah and his minister for mineral resources have never told the country that they wish to undertake prospecting for oil.  That’s why Mr Fairbairn’s example is important.  This point will be discussed further in a follow-up article.

As far back as the early sixties and, possibly, long before that, the hunt for oil had been conducted in earnest.  In the 1969 edition of the book Sierra Leone In Maps edited by J I Clarke, former Professor of Geography at Fourah Bay College, K Swindell, also a former Geography lecturer at FBC commented that “recent prospection for petroleum along the coastal and offshore areas of the Southern Province was unsuccessful”.  There is no reason to believe that since that time the quest for oil had diminished, slackened, or been abandoned, as subsequent governments wanted people to believe. 

The records show that the Margai (SLPP) governments between 1961 and 1967 were interested more in the exploitation of diamonds, bauxite, rutile, and iron ore.  Iron ore production ceased in 1975 because of dwindling ore reserves and the non-viability of the remaining deposits for profitable commercial exploitation.  The Margais  - Sirs Milton and Albert - were most probably aware of the country’s oil potential as a new means of wealth creation, but they might have been put off by the huge capital investments required, compared with the relative ease and instantaneous benefits deriving from diamond, especially alluvial, mining.  We do not know the nature and extent of the information that was available to them.

We can safely assume that when he came to power in 1967, Prime Minister (later President) Siaka Stevens already had solid information about the extent and content of Sierra Leone’s potential mineral wealth, informally as well as formally:

*  Informally, by virtue of his position as co-founder of the United Mine Workers Union, which secured his appointment to the Protectorate Assembly in 1946 as the workers representative; and,

*  Officially, by virtue of his election to the Legislative Council in 1951 as the second protectorate member, and his appointment the following year (1952) as Sierra Leone's first Minister of Mines, Lands, and Labour.  Stevens must have been privy to any hard information about the mineral, including oil, prospects of the country, and would have had access to all the hard insider information available at that time.  (See, for example, this table of mineral exports and a narrative of potential mineral discoveries published in 1962.)

With his insider knowledge of the country’s mineral resources, Stevens was able to resurrect interest in Sierra Leone’s oil prospects.  However, true to his well-known tendencies, he was careful to keep it under wraps, away from public discussion or scrutiny in any shape or form.

In June 1979, when this editor produced the pamphlet Sierra Leone Report in opposition to Stevens’ and his APC government’s kleptocracy and misrule, he reported an incident concerning a corrupt oil transaction as follows:

*  “A group of American businessmen of questionable credentials were, notwithstanding, recently in Sierra Leone.  They are reported to have succeeded in buying a concession for prospecting for oil and other valuable mineral resources in the country.  In fact, we gather now that these Americans did not negotiate the deal through a company of their own.  The signatory of the contract is a fictional company – it does not exist.  But the Americans now have the OK to go and resell the contract to the best bidder, a transaction which has no doubt ensured that the big fish in the APC government will get their big share in the end”.  (SLR. No.9; June 1979)

What is common to developments since 1967 is the secrecy in which they have been conducted and the attendant whispers of shady deals.  Stevens dealt with the matter as a personal business adventure.  Limited information about it was available only to a tiny circle of his closest aides.  He treated it as a trade secret, and refused to let it be raised as a matter that the Sierra Leone public should have an interest in, or even know about.  The issue then as now never once came up in parliamentary discussions or debates.

In comparison with the two Margai governments before him, Stevens had the better chance of materialising any oil discovery.  During his term, and ever since then, prospecting and drilling technology had become relatively cheaper and was improving all the time, with a sophistication that included satellite imagery.  Comparatively speaking also, these facilities were easier to access, hire, and deploy.

In 1980 Stevens invited a British company, BP we are told, again secretly, to investigate the possibility of oil deposits in Sierra Leone.  On and off offshore prospecting was carried out between 1980 and 1982.  The first results suggested the presence of oil deposits but that further explorations, with more sophisticated equipment, were needed to pinpoint the areas in which they occurred, and to identify the quantity and quality of the find.  What was discovered was said to be uneconomical to exploit.

Stevens’ desire to become an oil sheikh received a boost from this mere suggestion that there might be occurrences of the black stuff in Sierra Leone’s geophysical structures.  Therefore, by the middle of 1982, he gave the go-ahead for further prospecting.  This took place inland along the southwest coast of the country, and offshore under the territorial sea.  According to one source, these activities identified encouraging viable deposits, with three areas in the Southern Province of the country proving to be of special interest to the prospectors.  One was the Bonthe Sherbro Island, a short distance from the mainland, which was rumoured to be “virtually sitting” on a pool of oil.  Further down were the Sherbro straits and the coastal inlets off the mainland running southwards into Turners Peninsula.  The third covered coastal areas and inlets around Sulima in the Pujehun District, the southernmost tip of Sierra Leone with its lagoon-like swamplands.  (See Prospected areas, taken from Sierra Leone in Maps by J I Clarke)

This time round, news of these activities managed to get out to some members of the public.  They began to see structures being erected on their landscape in isolated areas, accompanied by periodic drilling activities.  Premature rumours of an oil discovery began to circulate, but there was no official comment to confirm or dispel them.

Two major setbacks confronted both the prospectors and Stevens:

*  There was frustration for the prospectors, because the rock formations in overwhelming parts of these areas were such that penetration was impossible with the drills that had been imported.  Although the explorations had extended below the seabed, and samples had been taken, drilling could not go all the way down.  The quality of the samples was said to be promising but there was uncertainty about the quantity and extent of the deposits.  The sum total of their findings was that the cost of drilling would be too expensive and the deposits might not prove commercially beneficial after all.  With no money forthcoming for further exploration, the prospectors left the country soon afterwards.

*  As for Stevens, his dream of pipelines criss-crossing Sierra Leone’s seabed and landscape turned into a pipedream.  He was advised to abandon his immediate expectations in the light of other unfavourable factors that were at play at that time.  For example, the world economy was enjoying an all-time oil glut.  Long-established Arab and Middle Eastern oil-producing countries were racing to maximise profits by increasing the tonnage of their crude oil productions.  Stevens was told that he would be pouring money literally down the plughole to undertake any further oil exploration activities in Sierra Leone.

Afterwards, all whispers and rumours about oil in Sierra Leone suddenly died out.  Stevens and his closest allies kept hidden the company’s report, which included an assessment of the prospects for further exploration work.  Thus, the possibility that the country might be on the verge of a momentous oil discovery in the future, and the story of what had gone on, was never officially or informally disclosed.  It remained so when Stevens left office and handed over to President Joseph Momoh in 1985.  We do not know whether or not the latter ever saw, or was given, this report.  As far as it can be ascertained, no “oil prospecting activities” were officially or unofficially undertaken by or under the Momoh regime, which ended with the NPRC coup in 1992.

During our research, two Sierra Leoneans were mentioned to us who might throw light on President Stevens’ and, by implication, Sierra Leone’s frustrated search for oil in the 1980s:

*  Mr Arnold Gooding, a prominent Freetown lawyer, who was allegedly recommended to the prospecting company by Stevens himself, to become the company’s legal consultant;

*  Mr Eku Lake, a former Director of the Wellington Distilleries, who was allegedly appointed as the ‘Government Representative’ in dealings with the prospecting company.

Both were allegedly paid a stipend of about $1,000 per month.

No formal, official statement has ever been made to the citizens of Sierra Leone since 1967, about the oil situation, contrary to a recent reported claim by President Kabbah that he is the first to ‘declare’ that Sierra Leone has oil.  How dare he!  If he has, then he is by no means the first to do so.  Mr Fairbairn in 1962 thought there might be and said so.  This editor had long stated that fact way back in June 1979, and only recently in September 2000 (see part 2).

The facts have always been there, hidden away from the public. The information which Kabbah now claims to have been the first to declare, had to be drummed out of his government only when they were caught, with their pants down, concluding a deal behind the back of Sierra Leoneans, using the same tactics of deception and secrecy to keep the public in the dark.

 

 

© FSL

27/08/01