Nigeria's Delta oil plan not to affect IOC's share

By Randy Fabi

ABUJA (Reuters) - Nigeria's plan to allocate 10 percent of its oil joint ventures to Niger Delta residents will not affect the country's partnerships with international oil companies, a presidential adviser said on Tuesday.

President Umaru Yar'Adua has proposed giving a larger share of the country's energy wealth to its oil-producing southern states in his latest bid to bring peace to the impoverished region.

Emmanuel Egbogah, special adviser to Yar'Adua, told Reuters the 10 percent stake would be taken from the national oil company's majority stake in joint ventures with Western oil firms. Royal Dutch Shell, Chevron, ExxonMobil and other international energy giants operate in Nigeria through these partnerships.

"(The foreign oil companies) won't be affected. This is our thing to give back to the Niger Delta," Egbogah said.

TRUST SYSTEM

Under the initiative, which must be approved by parliament, Niger Delta residents would receive hundreds of millions of dollars each year in cash benefits or through a "trust system."

Officials said details were still being worked out with lawmakers on ensuring the funds were given to Niger Delta residents and not misused by corrupt politicians or businessmen.

It was also not clear which of Nigeria's 36 states would fall under the initiative. There are nine oil-producing states in Africa's most populous country, but some say only six are in the Niger Delta.