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Condoleeza Rice, Chevron Executive 1991-2001

Chevron named oil tanker the "Condoleezza Rice" *** Condoleezza Rice was a Chevron Director from 1991 until January 15, 2001 when she was transferred by President George Bush Jr. to National Security Adviser. Previously she was Special Assistant to President George Bush Sr. from 1989 to 1991.
For Faithful and Loyal Service:

Chevron named oil tanker the "Condoleezza Rice"
Below (linked page) is a picture of the oil tanker before Chevron quietly renamed it the "Altair Voyager" and before President George Bush appointed Ms. Rice as National Security Advisor.

Do you get the picture?

* * * * *
Condoleezza Rice was a Chevron Director from 1991 until January 15, 2001 when she was transferred by President George Bush Jr. to National Security Adviser. Previously she was Senior Director, Soviet Affairs, National Security Council, and Special Assistant to President George Bush Sr. from 1989 to 1991.

Another Chevron Corporation giant in the Bush administration is Vice President Dick Cheney. Vice President Cheney was Chairman and Chief Executive of Dallas based Halliburton Corporation, the world's largest oil field services company with multi-billion dollar contracts with oil corporations including Chevron. Lawrence Eagleburger, a seasoned Bush counselor who held top State Department posts under George Bush Sr., is a director of Halliburton Corporation.

Halliburton's global network of investments includes projects in politically volatile areas including the Caspian Sea region. Dick Cheney was instrumental in negotiating a Caspian Sea pipeline for Chevron. The crude oil pipeline is a 900-mile project stretching from western Kazakhstan to the Black Sea that will primarily benefit Chevron by connecting the Tengiz oil field to the Black Sea port of Novorossiysk in Russia. Chevron, the largest oil company member of the Caspian Pipeline Consortium, holds a 55 percent ownership interest with the Republic of Kazakhstan in Tengizchevroil. The 40-year, $20 billion joint-venture company was formed in 1993 to develop the Tengiz field. Tengiz is one of the world's largest oil fields with 6 to 9 billion barrels of recoverable oil.

Also, there are allegations that the Bush Administration declared war in Afghanistan, not necessarily to combat terrorism, but to make it possible for U.S. oil interests to construct gas and oil pipelines from the Caspian Sea through Afghanistan to Pakistani harbors on the Indian Ocean. The first phase, now accomplish, was to install a friendly "puppet" regime in Kabul.


homepage: homepage: http://aztlan.net/oiltanker.htm

Anchors Away! 14.Feb.2003 12:51


Anchors Away!
Anchors Away!

*real* Condi Rice tanker 14.Feb.2003 16:19


*real* Condi Rice tanker
*real* Condi Rice tanker

Condoleeza Rice's Chevron Service 14.Feb.2003 16:58

Erin Bartels

Condoleezza Rice's Chevron Service Could Pose Conflicts

By Erin Bartels

(Washington, March 7) Not everyone in the new Bush administration has an oil tanker bearing his or her name. But not everyone has had Condoleezza Rice's depth of involvement in the oil industry.

On Jan. 22, Condoleezza Rice assumed her duties as assistant to the president for national security affairs. For Rice, it's her second tour of duty on the National Security Council; she served from 1990 to 1991 in the administration of the senior Bush, specializing in Soviet foreign relations. Between her stints at the NSC, she served as a director of Chevron Corp., a position that gave her experience in international relations far beyond the former Soviet states.

Chevron Facing Lawsuit
Over Attacks in Nigeria

(Washington, March 7) From the early 1990s to the present, Nigerian security forces have skirmished with citizens in the country's delta region, protesting the environmental and economic consequences of the area's oil industry.

Oil multinationals have been accused of being complicit in human rights abuses at the hands of the military and Mobile Police.

In particular, Chevron is facing suit in U.S. federal court as a result of two attacks on civilians.

Full report...

The national security adviser inevitably will be confronted with decisions that directly affect the business of her former company. Chevron operates in 25 countries scattered over six continents, dealing in a product — oil — that's been a major factor in U.S. foreign relations for the past 50 years. From containing Iraq in the Middle East to dealing with separatist movements in Southeast Asia to setting African policy, Chevron's interests will come into play at almost every turn.

Chevron christened the Condoleezza Rice, a 136,000 deadweight-ton, double-hulled ship, early on in Rice's decade-long stint on the oil giant's board of directors. Rice, a member of Chevron's board of directors since 1991, explained on television's Fox News Sunday in August that Chevron had a policy of naming tankers after its directors. "There's also a George Shultz and a David Packard," she remarked.

That honor is not the only compensation she has received: As a corporate board member, Rice was paid a $35,000 annual retainer, $1,500 for each board meeting attended, $1,500 for each board committee meeting attended, and $1,500 for each committee meeting chaired, according to Chevron's 2000 proxy statement. She also holds 3,014 shares of Chevron stock, valued at approximately $241,000, her single largest asset. (According to a news release from the company, Rice has resigned from the board and will sell her stock in the company.)

In 1999, Chevron, which recorded net income of $2.1 billion, had oil and natural gas exploration and production operations in 25 countries. From the Middle East to Africa to Southeast Asia to Latin America, Chevron flies its corporate colors on drilling platforms on six continents. As a member of the oil giant's board, Rice has served on and chaired the board's public policy committee. According to Chevron's 2000 proxy statement, the public policy committee "identifies, monitors and evaluates domestic and foreign social, political and environmental issues" and "recommends to the board policies and strategies concerning such issues."


The Council advises and assists the President in integrating all aspects of national security policy as it affects the United States—domestic, foreign, military, intelligence, and economic...
— United States Government Manual, pp. 94-95.

The Public i attempted to contact Rice about her experience with Chevron, but she did not return calls. However, she said on the Fox TV broadcast, "I'm very proud of my association with Chevron, and I think we should be very proud of the job that American oil companies are doing in exploration abroad, in exploration at home, and in making certain that we have a safe energy supply."

But it hasn't all been smooth sailing for Chevron abroad. The oil giant has been accused of complicity with the Nigerian military and Mobile Police — a force so brutal it is known locally as the "Kill 'n Go" — in perpetrating human rights abuses, including extrajudiciary killings, beatings and detentions against local communities who have protested Chevron's production activities in Nigeria's delta region.

The problems surrounding Chevron's oil and natural gas production and exploration in the Nigerian delta have their roots in the country's political and economic history.

Oil revenue at all costs

Prior to the democratic election of President Olusegun Obasanjo in May 1999, Nigeria was ruled by military regime for 16 years. Under Gen. Sani Abacha, and then under his successor, Gen. Abdulsalami Abubakar, the government relied heavily on revenue from oil exports and pursued such revenue at all costs, often to the detriment of the environment and the social and political rights of its citizens. The vast majority of Nigeria's oil reserves are located in the delta region of the country, a 7,700 square mile region that makes up Africa's largest wetlands.

Oil is the lifeblood of the Nigerian economy. That sector accounts for more than 80 percent of government revenue, more than 95 percent of total exports, and more than 90 percent of the country's foreign exchange earnings. A member of the Organization of Petroleum Exporting Countries since 1971, Nigeria has estimated proven oil reserves of 22.5 billion barrels, and produced an average of 2 million barrels of crude oil per day in 1999. That same year, the country exported 623,000 barrels of crude per day to the United States (13.8 percent of U.S. imported crude oil), making it the sixth largest crude exporter to the United States. Only Saudi Arabia, Mexico, Venezuela, Canada and Iraq ranked higher. (Under the humanitarian "food for oil" program introduced in 1996 and administered by the United Nations, Iraq is allowed to sell as much oil as it can produce in return for shipment of food and humanitarian aid.)

Since the discovery of oil in Nigeria in 1956, multinational companies such as Chevron have drilled for crude oil, and later natural gas, in the delta. The companies operate joint ventures with the Nigerian National Petroleum Corp., the state oil company. Chevron Nigeria Ltd. is a subsidiary of Chevron Corp.; the subsidiary participates in a joint venture with the Nigerian National Petroleum Corp., with a respective 40-60 ownership split. In 1999, Chevron Nigeria Ltd. produced 420,000 barrels of crude oil per day, or 21 percent of Nigeria's total production. The company plans to increase production to 600,000 barrels per day by 2003.

Since the early 1990s, civil unrest has increased in the Nigerian delta as the rivers and streams have become polluted, farmlands contaminated by oil spills, and the air polluted by gas flaring. Local citizens say multinational corporations and the government have reaped the benefits of their petroleum-rich land while they suffered the consequences of the energy business. The people of the delta region largely belong to ethnic groups other than the three major ones in Nigeria (Hausa-Fulani, Yoruba, and Igbo), and have long complained of marginalization by the regional and federal governments. The economics of the country's oil industry have only exacerbated those feelings.

The delta region's people are poorer than the national average, despite the enormous wealth derived from their land. As a result, youth in the region have protested against the oil multinationals, demanding compensation for environmental damages as well as jobs, scholarships and other community investment.

The government's responses have often been violent. It has used the military and the Mobile Police to break up the protests, often resulting in killings, beatings and detentions. The oil multinationals have been accused of complicity in these abuses. They have allegedly supplied the military and police with weapons, vehicles and other equipment to defend the oil operations.

Human rights abuses investigated

These are among the charges leveled at Chevron in a civil suit in the U.S. District Court court in San Francisco. The suit comes as a result of two incidents in which Chevron allegedly supplied helicopters, boats, and other equipment for the military and Mobile Police to carry out attacks in the delta region. Several of the people injured and the families of some of those killed in these attacks have filed suit under the Alien Tort Claims Act, which allows non-citizens to sue in U.S. courts. The plaintiffs have charged Chevron with gross human rights abuses.

According to the complaint in the case, "Plaintiffs allege that defendant Chevron, in conjunction and in concert with Nigeria's military and police, which acted as Chevron's agent and co-conspirator, did willfully, maliciously and systematically violate plaintiffs' human rights, including summary execution, torture, and cruel, inhuman and degrading treatment, for the purpose and with the effect of suppressing plaintiffs' and others' peaceful protests about Chevron's environmental practices on and near plaintiffs' properties." The complaint goes on, "The grievous harm suffered by plaintiffs was inflicted by a combination of Nigerian military and police personnel who were acting at the behest of, and with the support, cooperation and financial assistance of defendant Chevron, including but not limited to the presence and participation of Chevron personnel."

The plaintiffs also charge that Chevron's management in San Francisco, as well as in Nigeria, conspired with the Nigerian military and police and provided them with the funding and the means to carry out the attacks. They maintain that Chevron and its employees met regularly with the Nigerian military and police to plan "security operations," including raids and terror campaigns.

In addition to the human rights violations covered under international law, the plaintiffs charge Chevron with other offenses actionable in the United States, including wrongful death, negligence, infliction of emotional harm, civil conspiracy and violation of business and professional practices. They seek compensatory and punitive damages and injunctive and declaratory relief, as well as disgorgement of profits from Chevron's unfair business operations in Nigeria; the suit does not specify the amount of money sought. The case is still pending in U.S. federal court.

But the lawsuit is not the only matter that has passed before the board regarding Nigeria. Several of Chevron's shareholders petitioned the company's board to include a resolution in Chevron's 1999 proxy statement. The proposed resolution, submitted by the Christian Brothers Investment Services, Inc., on behalf of several religious orders holding stock in Chevron, called on the oil company to reevaluate its code of business conduct with an eye toward adopting an "explicit commitment to human rights, social justice and environmental responsibility towards the communities in which we operate." Triggered by a May 1998 incident on an oil platform (see Chevron Facing Lawsuit Over Attacks in Nigeria), the resolution encouraged Chevron's board to take into consideration cases of "demonstrations and occupations of our company's facilities" and "allegations that our company has collaborated with security forces that have been responsible for human rights abuses."

But the resolution never appeared in Chevron's proxy statement, and Chevron's shareholders never got the chance to vote on the measure. In response to a petition by Chevron, the U.S. Securities and Exchange Commission allowed the company to exclude the resolution from its proxy statement on the grounds that the shareholders had twice voted down similar resolutions within three years. Under SEC rules, a company can petition to exclude a resolution if it deals with substantially the same matter as a prior proposal that has received less than 6 percent of the votes cast on its second submission.

In 1996 and 1997, shareholder resolutions related to Nigeria garnered 5.7 percent and 5.8 percent of the vote, respectively. However, in a letter to the SEC, Christian Brothers Investment Services points out that "while some [of] the 'whereas' clauses are similar to the resolutions of 1996 and 1997, the 1999 resolution includes substantially new text that refers to human rights abuses involving Chevron and shut-downs of Chevron production facilities in Nigeria that took place subsequent to Chevron's last annual meeting." Indeed, the resolution made specific mention not only of the May 28 platform incident, but also the impending lawsuit against Chevron. Despite Christian Brothers' objections, the SEC issued a "no action" letter, and the resolution was excluded from Chevron's 1999 proxy statement.

Actions questionable in Indonesia

But Nigeria is not the only part of the world where Chevron has been criticized for its dealings. Consider the company's actions in Indonesia. When U.S. government policy opposed any breakup of Indonesia's territory, Chevron took foreign policy into its own hands.

Faced with difficult contract negotiations with the central government over an oil field in Riau province, the site of a growing autonomy movement, a spokesman for Chevron's joint venture operation, Caltex, voiced his support for the Riau provincial government's quest to gain full control of the Coastal Plains Pekanbaru field when Caltex's contract expires in 2001. "Caltex will be ready to operate the block as it is doing now, if it is trusted" by the Riau provincial administration, spokesman Poedyo told the Antara news agency. If the company continued to operate the field, as was likely, Caltex might be able to get a better deal from the local government. Days later, the company claimed that the quote was taken out of context, and that, as a matter of policy, it did not involve itself in political issues.

Regardless, Caltex has put Jakarta in a very tough position. The central government, under President Abdurrahman Wahid, is currently in the process of renegotiating several of the government contracts from the Suharto era, 1966 to 1998, with foreign extraction companies. If it yields to one company, there could be a domino effect. And in other regions, such as Aceh, Timor and Irian Jaya, where the foreign extraction industry also dominates, there have been similar autonomy movements — only those have turned violent.

Pipeline mileage could double

In addition to exploration and production operations on six continents, Chevron owns, wholly or in part, 4,178 miles of crude oil pipelines, 950 miles of which lie outside the United States. The company also has ownership interests in 961 miles of natural gas pipelines, of which 325 miles lie outside of U.S. borders.

But the company's overseas crude oil pipeline mileage would nearly double upon completion of the Caspian Pipeline, a proposed 900-mile project stretching from western Kazakhstan to the Black Sea. To be completed in mid-2001, the pipeline would primarily benefit Chevron by connecting the Tengiz oil field to the Black Sea port of Novorossiysk in Russia. Chevron, the largest oil company member of the Caspian Pipeline Consortium, holds a 45 percent ownership interest with the Republic of Kazakhstan in Tengizchevroil. The 40-year, $20 billion joint-venture company was formed in 1993 to develop the Tengiz field. Tengiz is one of the world's largest oil fields with 6 to 9 billion barrels of recoverable oil.

From Nigeria to Indonesia to Kazakhstan and beyond, Chevron has interests in areas where U.S. foreign policy decisions will be made.

Rice, for her part, supports the U.S. oil industry, as shown in her August interview with Fox. "American oil companies are important to our security in that they give us the ability to explore abroad. They give us the ability to explore here in the United States and to protect the energy security of the United States." Rice went on, "Oil companies have come a long way in their environmental policies, for instance, actually going so far as to fund environmental projects around the country. They are good citizens. We can't live without oil. And we have to have American oil companies doing it."

When The Public i contacted Chevron to find out about Rice's service on the board in general, and the public policy committee in particular, the company declined to comment about Rice's tenure on the board of directors, repeatedly referring all questions to the Bush campaign, transition office, and finally the Bush administration. A September 1998 article in Directors & Boards, written by Kenneth T. Derr, then Chevron's chairman and chief executive officer, however, describes an active role for board members. The article, entitled "The Chevron Way to a Strong Board," holds up Chevron's board structure and policies as a model for other companies.

Board members expected to hear good and bad

Derr explains that Chevron's relationship with its board is one of trust: "The subject of trust is essential because it's at the heart of any discussion of what constitutes a good board. One of the most important things to do in developing trust is to ensure that management and the CEO lay the company's problems out on the table. Board members must hear the bad news along with the good. And they should hear it in board meetings, before it appears in the newspaper."

Derr also explains that the board meets nine times a year, and that the three-hour meetings typically focus on how the company is performing versus competitors. They also receive special reports on environmental issues, technology or pending legal matters. Derr notes that the most important session of the year is a full-day meeting in November, where the heads of the major operating units review their plans and budgets for the board. "The key here is to get the board to understand and 'buy into' the basic strategic direction of the company," Derr wrote. "If the directors' thinking is aligned with the company's strategies and plans, then issues that come up throughout the year can be addressed more easily."

In the cases of Nigeria and Indonesia, some of the strategies and plans Chevron has adopted are controversial.

Others have faced conflict questions

By advising the president to take military, political or economic action, the national security adviser can influence decisions that can disrupt or facilitate the operations of global multinationals like Chevron. Under the Clinton administration, the White House counsel's office advised members of the NSC to divest themselves of energy-related stocks. When then National Security Adviser Anthony Lake was tapped to become the CIA director in the mid-1990s, his failure to divest $300,000 in energy stocks became the subject of a Justice Department investigation.


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Lake stated that that failure came as a result of a miscommunication with his secretary and his broker; he settled the inquiry with the Justice Department by agreeing to pay $5,000.

Several months later, Samuel Berger, who succeeded Lake as national security advisor, settled a similar case with the Justice Department for $23,043 (an amount representing the price increase and dividends in the stock over the course of that year). Berger had also failed to immediately divest himself of energy stocks as directed by the White House counsel's office, forgetting to do so for a year when he was deputy national security advisor. And Al Gore, who as vice president was a charter member of the NSC, held more than $500,000 worth of Occidental Petroleum stock over his entire tenure.

The aims of oil corporations often conflict with U.S. policy goals. Peter Lewis, a scholar at the Woodrow Wilson International Center for Scholars, expressed doubt about how the Bush administration would respond to problems involving multinational oil companies, such as in Nigeria:

"What is the lens that they're going to approach this from? Oil. Where is Bush's experience? He was the governor of Texas, and before that, he was an oilman. Where was Cheney's experience? The head of Halliburton, the largest oil services company in the country, and doing a lot of work for Chevron. I think they're likely to be responsive to the concerns articulated by the corporations."

Chevron's pursuit of undisturbed oil production — and the hefty profits that go with it — has superseded concern for human rights, the environment or political stability in the nations in which the company operates. Rice, whose position does not require Senate confirmation hearings, has indicated that these concerns are secondary for her as well. In a television interview with Charlie Rose in October, Rice showed her reluctance to intervene in the case of gross human rights abuses. "One has to be very clear though that human suffering, man's inhumanity to man, very often has a political root, that what we tend to call humanitarian crises are usually humanitarian outgrowth of political circumstances," Rice said. "A famine is not just a famine. A famine is usually the withholding of food for political purposes. So, ask yourself are you prepared to go in and try to do something about the political circumstances and you might get a different answer."

Erin Bartels is a research assistant at the Center for Public Integrity. To write a letter to the editor for publication, send to  letters@publicintegrity.org. Please include a daytime telephone number.

Condoleeza Rice's Chevron Service
Condoleeza Rice's Chevron Service