The Nation Newspaper

Tag: Shell Petroleum Development Company (SPDC)

  • Why six power plants remain idle – SPDC

    Why six power plants remain idle – SPDC

    Despite the worries over a record of 800 million standard cubic feet per day flared gas in Nigeria, six power plants remained idle for want of gas to fuel their operations, it was learnt Wednesday.

    The Shell Petroleum Development Company (SPDC), Senior Commercial Adviser, Upstream Gas, Emmanuel Anyaeto made this known to journalists on the sideline of “Gas Aggregation Buyers’ Forum” which the Gas Aggregation Company of Nigeria (GACN) organized in Abuja.

    According to him, the plants could not operate as there were no infrastructure to convey gas to their locations.

    He added that the gas producers were also reluctant to supply them gas owing to their rising the debt profile which was almost hitting $500million.

    He said Nigeria needed about two billion Standard Cubic Feet of gas to meet its needs for both domestic and power plants.

    Anyaeto said that: “The reason is because we have about six power plants in this country that are standing idle that are not getting gas. The reason why they are not getting gas even though we are flaring 800million per day is that we don’t have enough pipelines to deliver the gas to the power plants.

    “That begs the question why was the power plants built far away from where the gas is? The second thing is that the most of the producers are owed a lot of money. The producers are being owed close to $500million today.”

    The power plants, according to him, are government owned, but since the governments were not paying, the producers now required a guarantee that they would be paid upon supply of gas.

    This, condition, according to him, was what the governments were not meeting up with that culminated in the shortage of gas for the power plants.

    He said that amount of investment that is needed to meet the two billion SCUF in Nigeria is about $6million dollars for gas, pipelines and other infrastructure.

    According to him, producers were readily available for the gas business, but the challenge was whether customers are readily available to pay for the gas.

    Also speaking with reporters, the GACN, Managing Director, Engr. Morgan Okwoche, noted that for Gas Purchase Agreement (GPAs) that were signed were not effective because there was no security for the electricity generation companies that need a bank up while the Nigerian Bulk Electricity Trading (NBET) was yet to come up with any security instrument.

    He said that the N701billion intervention from the Central Bank of Nigeria had not been extended to the gas producers, stressing that GACN is in a position to certify any invoice dispute free.

    He revealed that the GACN wrote to the NBET and Minister of Power to involve the company to help in disbursing the N701billion to avoid dispute future.

    Okwoche said Nigerian gas market was still evolving and that the forum was convey to enhance the market.

    He said that the essence of the forum was that there are so many areas of the gas business that are not clear from the buyer, seller, transporter and consumer sides.

    Asked what was wrong with the market, he said that “the market is segmented, particularly the Domestic Supply Obligation, when it came into force has the power sector with a different price, gas based industry has a different price, and bulk distribution of gas has a different price.

    “And also, the gas volume that should be in the market we are not getting the required volume from the suppliers and they have a chain of reasons: one of them is debt and two is non-compliance with the regulations.”

  • Shell, regulators disagree as oil spill ravages Bayelsa community

    Shell, regulators disagree as oil spill ravages Bayelsa community

    Oil spewing from equipment belonging to the Shell Petroleum Development Company (SPDC) has ravaged parts of Tein-Biseni environment, Biseni, Yenagoa Local Government Area.

    A report compiled by the Environmental Right Action/Friends of the Earth (ERA/FoE), showed that while Shell believed the spill was caused by sabotage, other stakeholders including regulators and the community argued it resulted from equipment failure.

    The report, compiled by ERA’s state Representatives, Mr. Akpotu Ziworitin and Alagoa Morris, described the spill, which occurred on August 11 as massive.

    The Auditor of the Community Development Committee (CDC) Clinton Beworu Amaoru confirmed that the spill occurred at 2pm but said since the incident, Shell had not reached out to the landlords of the environment.

     ‘’The cause of spill is equipment failure. And it occurred right at the Well Head, Adibawa North East, location1, Atumatu. Atumatu is the name of the lake in the environment and, it is identified with the facility. The body of water in the impacted environment is a swamp that connects the lake’’.

    Amaoru confirmed that after the spill, Shell officials and government representatives visited the area but failed to agree on the cause of the incident.

    He said: “Shell argued that the spill was caused by sabotage, but the government officials said the cause was due to Shell’s equipment which failed’.

    “When they went for inspection our family was not actually informed and represented officially. But what happened was this, there is a contractor who is bearing the same surname with us; the Amaoru families.

    “That very contractor was with the Shell officials; but the landlord family was not officially invited to be part of the inspection visit. Although the contractor is our family member; he is a contractor to Shell. So, I am not sure if that visit could be interpreted as Joint Investigation Visit (JIV).’’

    He lamented that the spill had destroyed aquatic lives, ponds, lakes, farmlands and economic trees and urged Shell to meet the impacted families in roundtable.

    But the report also quoted Shell’s Spokesman, Mr. Precious Okolobo, as saying that the spill happened in an unproductive well.

    Okolobo said: “The spill Incident occurred on August 11, from a well that has not been producing. We commenced recovery of spilled oil the following day but this was disrupted by community people who alleged this was an operational spill.

    “However, during the joint investigation visit which held August 13 – 17, it was clear that unknown persons had tampered with the well valve.  The JIV report has yet to be signed off.

    “The community people have now agreed that SPDC should resume the recovery of spilled oil. SPDC will continue to operate with a high sense of responsibility for humans and the environment.”

    However, ERA in the report said the Bayelsa State Ministry of Environment faulted the claims of Shell and argued that the spill could not have been attributed to third party interference.

    In its recommendations, ERA in the report advised the oil giant to stop a divide-and-rule approach to reduce conflicts among families and communities.

    It appealed to Shell to treat a letter sent to it by the Awowaris, a famous family in the area, on the matter, adding that there was nothing wrong in according recognition to a host or landlord.

    ERA said: “Shell should not limit recovery and cleanup efforts to the immediate environment alone, but ensure that cleanup extends to wherever the crude oil has spread to. Proper cleanup should follow recovery of spilled crude oil.

    The owners of the impacted environment, who has lost swamp fishing grounds, should not be made to suffer from the inconclusive JIV; they should be treated as folks who are seriously impacted by oil industry induced pollution.

    “If necessary, they should be sent relief material, be carried along in all discussions and be adequately compensated for damages/losses.

    “The concerned families should continue to be peaceful while they take all necessary steps to get this sorted out. Allowing Shell to carry on with recovery is in the best interest of the environment.

    “As long as the regulators: State Ministry of Environment (some) and National Oil Spill Detection and Response Agency (NOSDRA) are involved and have the details; the matter shouldn’t be expected to be swept under the carpet.

    “Shell and the concerned families should be alert in terms of ensuring that this site does not go up in flames as often observed in some of Shell’s spill impacted sites in the state”.

     

  • FG to add 340 megawatts to power grid before December – Fashola

    FG to add 340 megawatts to power grid before December – Fashola

    Mr Babatunde Fashola, the Minister of Power, Works and Housing said on Thursday that 340 megawatts of electricity would be added to the national grid in or before December.

    Fashola said this during his inspection tour of Afam Power Plant in Oyibo local government area of Rivers as part of Federal Government Power Sector Recovery Programme.

    He said the 340 megawatts of electricity would be generated from Afam power plant alone while another 270 megawatts would be generated from same facility before end of 2018.

    According to him, the Afam facility has about 1,000 megawatts of installed capacity which has underperformed due to years of neglect by previous governments.

    “Afam 1 to 5 power plants is currently producing about 100 megawatts which is as a result of failure to maintain the facility over the years.

    “We are here to assess the progress of the work we have been doing in the last 17 to 18 months aimed to get the facility back to its optimum capacity.

    “The Afam 5 plant is currently being rehabilitated in collaboration with General Electric to restore 240 megawatts to the facility.

    “All the turbine and equipment needed for the project are already in the country while the only challenge we are facing is the access road, logistic and few other things that we came to assess.

    “We think that we will add 240 megawatts and another 100 megawatts before December with addition of 276 megawatts in 2018 from Afam power plant alone,” he said.

    Fashola said that President Muhammadu Buhari’s administration inherited debt running into billions owed to companies which supplied gas to power plants in the country.

    He said the Federal Executive Council approved N701 billion in March with focus to settle the debts through a Power Payment Assurance Programme arrangement with gas companies.

    The minister said the federal government was discussing with Shell Petroleum Development Company (SPDC) to separate old debts under the power payment assurance programme initiative that would ensure availability of gas.

    “Now that there is a payment assurance programme we are assuring that every gas that would be supplied to Afam and others would be paid for.

    “General Electric has come in to invest in power while we equally want more investors because there is a lot of gas deposit to tap from,” he said.

    Fashola said that government had engaged the World Bank and other development partners aimed to successful implementation of the Power Sector Recovery Programme.

    He said that the dilapidated Bodo-Bonny road in Rivers was among several road projects that would soon be addressed as soon as budget was signed.

  • Court order Shell, directors to appear before Bayelsa tribunal

    Court order Shell, directors to appear before Bayelsa tribunal

    The State High Court sitting in Yenagoa, Bayelsa State has mandated the Shell Petroleum Development Company (SPDC) to appear before the Physical Planning Tribunal established by the state government.

    SPDC earlier refused to put up an appearance before the tribunal and through its lawyer, Dafe Akpedeye (SAN), obtained an interim order from the state High Court stopping the invitation pending the determination of its application.

    The application challenged the jurisdiction of the tribunal arguing that it had no powers to invite the company.

    The Physical Planning Tribunal was set up in pursuant to the Physical Planning law enacted by the state House of Assembly to deal with issues of town planning, urban and regional planning and payment of levies.

    The state dragged the company to the tribunal following allegations that it violated the law by erecting structures and carrying out some development without requisite permission.

    The state argued that SPDC erred in law by refusing to put an appearance at the tribunal first before challenging its jurisdiction.

    In his ruling, Justice Young Ogola of the state High Court relied on a precedent set by the Court of Appeal which said any party summoned by the court must first appear before raising an objection.

    Ogola upheld the position of the state and compelled the company and its directors to personally appear before the tribunal.

  • JTF arrest 14 vandals in Bayelsa

    Fourteen suspected vandals have been arrested by security agents, while trying to sabotage facilities at a Shell Petroleum Development Company (SPDC) flow station, operated by Saipem Nigeria Limited IB Ogbotobor community, Ekeremor council area of Bayelsa state.

    Disclosing this to journalists in Warri Tuesday, Chairman of Egbema Cluster Development (ECD), Richard Ziware, said the culprits were arrested on the spot where they were trying to sabotage the facility, adding that their suspected ring-lead was not arrested.

    The Nation, however learnt from other sources that the arrested persons were members of a faction in Ogbotobor’s leadership tussle and that the arrested youths might have embarked on the illegal business in protest of alleged bias by the operators company in the community feud.

    Relating the development to journalists Tuesday, Ziware said “some miscreants went to the Saipem Flow Station, owned by Shell, with intent to vandalise facilities and in the process they were cornered and arrested by JTF operatives in the area.

    “Why would the miscreants decide to take laws into their hands in a matter that is before the Bayelsa State High Court, which had advised parties to wait for final court decision? The community leadership tussle is not enough for anybody to invade oil facilities.

    “They were arrested right there at the station. But the factional leader who led the youths to the station was not arrested. He is not the chairman of the community but want to force himself on the oil company to recognize him as chairman”, he said.

    A member of staff of the company who spoke under strict condition of anonymity added, “they don’t have any problem with the community as employment and contract opportunities have been given to the community in line with signed FCO. They forcefully stopped operations in the station hence we called the attention of the security who apprehended them.”

    However, an indigene of the community stated that the youths including the chairman of Agbayama community were protesting the deprivation of employment changes of 109 and 18 sub-contracts made for the communities in a Freedom To Operate agreement between the host communities and SPDC.

    The source asserted: “The agreement between the communities and SPDC covers the AGG Project of one Saipem Construction Company.

    “Since 2014, SPDC has refused to employ persons from the host communities as agreed.

    “The communities have reported the case to the relevant government offices and the Governor through the Office of the Special Adviser to The Governor oil and gas and they have all advised SPDC to follow as agreed also SPDC pointed two individuals that they only obey the directives of the two individuals which led the chairman to go and stop the operation.

    Confirming the arrest of the youths to Vanguard, spokesperson for the Operation Safe Delta, Lt. Col. Olaolu Dauda said: “The youths weren’t arrested in their houses, they were arrested while attempting to invade the flow station and this goes against our mandate as security operatives in the area which is to protect oil and gas facilities in the Niger Delta region.

    “If they (arrested youths) have grievances with the oil companies, they should channel their grievances appropriately to the right authorities rather than taking laws into their hands.”

  • Another pipeline attacked by unknown militants in Warri

    Another pipeline attacked by unknown militants in Warri

    Another crude oil facility, belonging to Shell Petroleum Development Company (SPDC), was reported to have been attacked by suspected insurgents in the early hours of Monday around the Batan area in Warri South-West council area of Delta state.

    The attack, which reportedly created a massive impact on a trunk line around Camp 3 in Batan oil field, was said to have happened at about 12:05am. The Nation gathered crude was still gushing into the surrounding aquatic environment as at the time this report was filed, all efforts of experts to curtail the spill notwithstanding.

    Neither the notorious Niger Delta Avengers (NDA), which had claimed responsibility for most of the attacks in the region, nor any other group had owned yesterday’s development as at the time this report was filed.

    Chairman of Batan community, Dickson Ogugu, when contacted, confirmed the incident while appealing to the militants to halt further hostilities on oil installation in the region especially within the Batan axis.

    When reached for confirmation, the spokesman of the newly constituted military Joint Task Force (JTF), Lieutenant Colonel Olaolu Daudu, said he was going to check and get back with information.

    However, another reliable military source in Warri confirmed there an explosion around the Batan general area, adding “efforts were put in to arrest the perpetrators, but they escaped”.

     

  • Police confirm attack on Shell facility in Imo

    Police confirm attack on Shell facility in Imo

    The police have confirmed an attack on a facility belonging to Shell Petroleum Development Company (SPDC) at Awarra, Ohaji/Egbema Local Government Area of Imo.

    DSP Andrew Enwerem, the Public Relations Officer of police in the state, told the News Agency of Nigeria (NAN), in Owerri that the police received report of the attack in the early hours of Thursday.

    Enwerem could not disclose the extent of damage done to the facility or the group that carried out the attack.

    Mr Precious Okolobo, spokesman for SPDC said “the Trans Niger Pipeline (TNP), which runs through Awara, Imo State at the Assa-Rumuekpe line, has been shut for repairs since June 8, following a leak at Okolo launch, Bonny in Rivers State.

    “We are investigating the reported incident at Awara’’, he said.

    A source in Awarra community told NAN that the incident occurred at about 5.30a.m.

    It said the explosion created huge flame at the site and could not confirm if there was loss of life.
    No group has claimed responsibility for the attack.

  • Killings: Homicide investigators despatched to Rivers

    Killings: Homicide investigators despatched to Rivers

    • As spy Police Officers get new uniform

    Experts in murder case investigation in Nigeria have been dispatched to Rivers state to investigate the various killings in the state.

    Inspector- General of Police (IGP), Solomon Arase disclosed this in Port Harcourt the state capital on Monday.

    Arase was in the state for the formal launch of the new uniform for Supernumerary Police (Spy Police), officers organized by the Shell Petroleum Development Company (SPDC).

    He said the team of investigators from the Force headquarters, Abuja are in the state to take over the investigation into the killings to ensure that the culprits, irrespective of who, were punished in accordance with the law.

    The security Boss condemned the spate of killings in parts of the state and the country in general and described as unacceptable the high rate of killings and illegal arms possessions in the state and country and assured residents and citizens alike of the security agencies’ determination to ensure that hoodlums, (cultists, robbers, kidnappers), among others do not take over the states.

    “It is unacceptable that people should take laws into their hands, this is not a Hordecians state where might is right and I have told the Commissioner of Police, we must go after whoever takes the life of anybody and ensure the person is treated according to the law.

    “Again, the proliferation of firearms in the system is not acceptable not only in Rivers state, but across the length and breadth country, this is also a reflective of the international environment. It is a global thing, but we will make sure that we did not allow a group of criminals to overwhelm the state. I assure the people of this country that we are going to clamp down on them and bring them to book.”

    “For those alleged of masterminding the killings in the state and those on the police invitation lists are being investigated. I have dispatched a team of homicide investigators from Abuja to come and take over the investigation in the state. As you know, when things like this happen there is usually different perspective to it.

    “I have always taken a stand that Police is supposed to be apolitical m and if we are going to be apolitical, we must be professional in our approach in investigating these matters that is why I have deployed the team to take over most of these cases and ensure they are professionally investigated.

    No fewer than 12 persons, including a family of four, were reportedly killed by suspected cultists in Ula-Upata and Edoha Communities of Ahoada East Local Government Area of the state last weekend. The Police confirmed the death of all four persons.

    The bodies of some of the victims were reportedly missing, but their heads were said to have been seen floating in a nearby river.

    The state commissioner of Police, Musa Kimo assured that the criminals would be tracked soon, but assured that normalcy has returned to the communities as security has been beefed up in the area.

    Kimo appealed for release of timely information to the police just as he urged community members to organise community policing vigilante groups to man their communities.