Continental Oil Withdrawing from Namibia Operations
Diocesan Press Service. November 22, 1974 [74335]
NEW YORK, N. Y. -- The mission boards of the United Church of Christ announced on October 31 that Continental Oil Company (CONOCO) has informed them that it has decided to withdraw from oil explorations off the shores of Namibia (South West Africa).
The spokesman for the United Church agencies holding shares in CONOCO, the Rev. Dr. Howard Schomer, said, "We understand that Continental Oil Company is in the process of making contractual arrangements with its partners in this particular venture, Getty Oil and Phillips Petroleum, for the re-assignment of its interest and has so notified the South African government."
This is the first time that a multinational corporation, faced with mounting shareholder concern about its investment in a white minority-ruled part of Africa, has chosen to withdraw from the area, according to Dr. Schomer.
The United Church of Christ boards filed a shareholder resolution in both 1973 and 1974 asking the corporation to wind up all business activities in Namibia and adjacent waters "under purported concessions obtained from South Africa, until a government approved by the United Nations is established. " The resolutions were defeated both years.
Namibia is currently occupied by the Republic of South Africa in defiance of the International Court of Justice and the United Nations General Assembly. U.S. government policy opposes any new investment in Namibian territory.
The Episcopal Church, owning 15,600 shares of common stock in Phillips Petroleum Co., one of CONOCO's partners in the Namibian operation, filed stockholder resolutions in both 1973 and 1974 asking that corporation to withdraw its operations from Namibia "as expeditiously as possible." The resolution received 5 percent of the vote at the annual meeting in 1974.
A Phillips spokesman said the corporation does not have any plans at this time to withdraw from the concession in Namibia.