Crime Pays Enough To Shut Down Nigeria Oil Industry

June 4, 2007:  The kidnapping of foreign oil workers has increased in the last month, despite police and military efforts to stop it. Nearly 150 have been taken so far this year, yielding at least $100,000 per captive in ransom. No one ever says anything, on the record, about ransoms. However, the money is simply too good, and has attracted some well run criminal organizations. The oil companies and kidnapping gangs have got it all organized, with negotiators showing up at the oil company headquarters, within hours of a kidnapping, proof-of-life in hand, along with ransom demands. Negotiations now usually take days, instead of weeks.  The flow of ransom money has attracted more kidnappers, and attacks on foreigners working at non-oil industry firms. Six Russians were recently seized from a smelter, and all foreigners are getting nervous. Even the heavily guarded residential compounds will not keep the gangs out. In a recent incident, the kidnappers simply shot their way into a compound, killing two policemen, and driving the rest away. Women and children are now being taken as well.  While the oil companies are trying to treat the ransoms, "danger pay" and additional security, as a cost-of-doing-business in Nigeria, it is reaching a point where is simply is not worth the extra effort. Nigeria is in danger of seeing its primary source of income (mainly for corrupt politicians), shut down by the cost of dealing with criminal activity. [MORE]