Jumbo Oil Corporation started negotiations with the Nigerian government in October 1964 in hopes of being allowed to open operations in that country. The talks went on for five months to hammer out details on the proposed plan. Details discussed ranged from government revenue, site location, and environmental concerns. The Nigerian government welcomed Jumbo Oil, the world’s second largest oil company to take interest in its country’s natural resource. A deal was made with the government in February of 1965, pending the final approval of its executive board. Jim Mason, president and CEO, gave his approval to go ahead and start the voting process with its stockholders. Jumbo’s corporate lawyers along with the project committee wrote the proposals to be voted on. Jim Mason reviewed all the documents and gave his consent to have the documents printed and distributed by March 15 of that year. All votes had to be returned by April 10, to be counted and tallied before the next board meeting.
April 25, 1965
In the boardroom of Jumbo Oil was a huge table made of solid oak, and around the table were forty chairs, all made of oak padded with soft red leather. The walls were also covered in oak panels with hand-carved scenes of oilrigs, seagoing barges, and tank farm layouts, each scene created in exacting detail by a master carver. Three crystal chandeliers hung over the table, each measuring eight feet in diameter, and the ornate ceiling was hand painted and trimmed in gold leaf. It was a room of awe and demanded respect. CEO Jim Mason called the meeting to order on April 25, 1965. He addressed the board by saying. “Thank you all for coming. I know you are all aware of the proposal and have read it. I have the results from our stock holders; but before that vote is revealed, let me just say the voting response was outstanding. Ninety-six percent of our stockholders have returned their vote. I know that this is a big step for our company. And now I would like to address any concerns before we make our final vote. Thank you.
“The chair recognizes Mr. Franklin.”
“Thank you, Mr. Chairman. I see in the report that the project will cost twenty million dollars.”
“That’s correct,” the chairman replied.
“My concern, Mr. Chairman, is… will the Nigerian government be helping us out with anything during the construction phase?” he asked.
“No, not monetarily. In the beginning, what they have offered to do is hold the cost of the land until the complex has been built and operational for six months, at which time we will have five years to pay for the land in full at zero percent interest. Does that answer your question, Mr. Franklin?”
“Yes, yes it does. Thank you, Mr. Chairman,” he said.
“Any other questions?”
“Yes, Mr. Chairman.”
“The chair recognizes Mr. Adams.”
“Thank you, Mr. Chairman. How much do we know about this country and will our assets and our people be safe there?”
“That is a good question, Mr. Adams. Those questions cannot be answered at this time. We do know that the country is poor economically, but we have at this moment promises from that government that they will assist us in any way they can by safeguarding the complex with military forces until we are in operation.”
“Thank you, Mr. Chairman. Nothing further at this time.”
“Are there any other questions?” A second time he repeated, “Are there any other questions? With no more questions I suggest we take a twenty-minute recess before we vote. All in favor?” All the hands at the table were raised. “Opposed?” he asked. With no hands showing, the chairman sounded his gavel. At that the board members rose and exited the board room to a smaller, adjoining room where they were served morning beverages and assorted pastries. The board members gathered in groups to discuss the proposal to be voted on. After the break, all members returned to their seats to cast their votes. With the voting outcome unanimous the company now faced its biggest task: to build another facility.
PRESS RELEASE
Jumbo Oil Corporation Headquarters, Houston, Texas, April 30, 1965
With the ever-increasing demand for oil, Jumbo Oil Corporation has announced that by unanimous decision by its board of directors and stockholders, Jumbo Oil Corporation will start up operations in Nigeria. At a projected cost of twenty million dollars, the company will build an oil-export