How to do business in Africa: oil

Eerybody coulld become an oil baron (much better word than mogul). To prove that, the case of Dr. Kase Lawal. He was born in Nigeria, but convinced his parents to study in USA. He began his own business trading agriculture commodities, but not much later took advantage of his background as chemical engineer and oil experience in the 70's. He convinced Conoco to drill oil In Nigeria. This was the origin of CAMAC group.

http://www.camac.com/corpsocial.aspx

As part of their business, CAMAC participates in CAMAC Energy, a listed company.

http://www.camacenergy.com/about.php

Its main asset, wihout counting integrity, is an oil field (Oyo oilfield) offshore the coast of Nigeria (the same country of the fruitful Pfizer experiments), in partnership with a subsidiary of the Italian ENI. The production began at the end of 2009, and apparently a recent small problem with more gas than needed has been sorted out.

Dr. Lawal has been very intelligent. From its headquarters in Houston, he has cultivated important relationships, including Clinton family (Lawal was a fundraiser of  Hillary's campaign) and Bush. 

USAfricaonline. 20/09/2010. U.S President Barack Obama has appointed one of the leading executives across the United States and Africa continents, Dr. Kase L. Lawal, to his 30-member Advisory Committee for Trade Policy and Negotiation.

But do not think that with this type of friends, business in Nigeria becomes easier. It takes a lot of efforts and knowledge to be granted with an oil licence.

wikileaks. cable from Abuja 21/02/2008. Rumors abound alleging that the First Lady, Special Advisor Tanimu Yakubu, and Minister of Agriculture Sayyadi Ruma are involved in corrupt practices. Reports of both the First Lady and Yakubu's taste for the high life and tendencies toward illicit enrichment surfaced during a December 2007 debrief by XXXXXXXXXXXXX outlined problems he saw in the Villa and cases XXXXXXXXXXXXXwas closely watching (Ref A). Several contacts from XXXXXXXXXXXXX, moreover, maintain that while the President "appeared incorruptible" during his tenure as governor, his wife siphoned off millions in public funds for private use.

Rumours, only rumors, and in any case it could be his wife, not the president (Mr. Yar'adua, who died in May 2010), that "appeared incorruptible".

Then, why do not buy CAMAC shares? Well, it's a complicated world, suitable only for profesionals. First of all take a look to this page of important events where the rich people of Houston (including Dr. Lawal) help the poorest.

http://www.newyorksocialdiary.com/node/71677

If you don't throw up, then you are ready for the next step.

According to Forbes, CAMAC was among the top 200 USA private companies, with a turnover of $2,5 bllion. But do not get confused. This is CAMAC International. The listed company is CAMAC Energy, the one  with the oilfield in Nigeria, trading in AMEX with the code CAK. If you go to the SEC filings and see no revenues, do not worry. Oil will flow. Of course if you bought shares nine months ago at $6 or even in December capital issue at $2.20, do not lose your patience. On 28/02/2011 it is quoting at $1.72, but this is temporary of course.

As always, the world and the net are crowded with envious persons and liars:

2011 The Associated Press. Feb. 20, 2011, 7:53PM DALLAS — A private jet owned by a North Texas company has been impounded for the past 2 1/2 weeks and its passengers and crew detained by the Congolese government in central Africa, where officials say it was used to smuggle gold from rebel territories in the nation's eastern provinces. The plane was leased by Southlake Aviation, based in suburban Dallas-Fort Worth, to a subsidiary of CAMAC International, The Dallas Morning News reported in its Sunday editions. The jet's passengers and crews have been detained since Feb. 3, when the jet was seized before leaving the airport in Goma, on Congo's eastern border with Rwanda. Congolese officials say the plane was loaded with about $20 million in gold and several million dollars in cash. The passengers included Mickey Lawal, brother of the Texas oilman, and Houston diamond merchant Edward "Carlos" St. Mary, a longtime Lawal family friend, the newspaper reported.

McCLATCHY. 03/04/2008. Another Clinton fundraiser has a suspect past HOUSTON — A Texas oilman who's accused of defrauding the Nigerian government by illegally pumping and exporting 10 million barrels of oil is a major fundraiser for Hillary Clinton's presidential campaign. Kase Lawal of Houston is at least the fourth person accused or convicted of criminal wrongdoing to help finance Clinton's political ambitions since 2000 and the second in her quest for the White House. The list also includes Chinese and Pakistani fugitives and a former Miami lawyer who was convicted of defrauding Cuba.

Sahara reporters. 14/01/2009. Sources knowledgeable about crude oil lifting contracts in Nigeria told SaharaReporters that it remains the biggest source of quick but questionable wealth for top-level Nigerian officials especially at the presidency as well as officials of the Nigerian National Petroleum Corporation (NNPC). The sources revealed that companies lifting crude oil have to pay bribes on a “per barrel” basis to the president and favored members of his cabinet.
Other companies in the crude oil lifting business include CAMAC Petroleum, a company owned by the controversial Houston-based Nigerian-American, Kase Lawal, Sahara Energy, Oando, which belongs to former Governor Bola Tinubu’s cousin, Petro Energy, which belongs to Nigeria’s highly connected cross-border smuggler and Yar’adua’s front man, Alhaji Dahiru Barau Mangal, Isla Oil, said to represent the interests of the current GMD of the NNPC, Mr. Abubakar Yar’adua.