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  • Shell’s Bonga Northwest production hits 60,000bopd

    Shell’s Bonga Northwest production hits 60,000bopd

    In its first anniversary, Bonga Northwest, operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo), has returned a good report card: It reached daily production of 60,000 barrels of oil.

    An excited General Manager, Deepwater Projects, Jerry Jackson, said this was a product of teamwork, adding that the production was a milestone for Bonga Northwest.

    Shell’s Deepwater Project and Technology team officials handed over the Bonga Northwest assets to the Offshore Asset team in March in Lagos.

    On the accomplishment, Jackson said: “Bonga Northwest demonstrates what can be achieved when people work together effectively. Every single team collaborated to enable the SNEPCo organisation deliver on this project in a very challenging environment. Bonga Northwest is showcased by the Shell Production Academy as a ‘Best-in-Class’ project in terms of execution.”

    According to the latest Shell World, a Shell Company’s publication, “Bonga Northwest is a six-well tied in to the main Bonga Floating Production, Storage and Offloading (FPSO) vessel. It produced its first oil on August 5, last year, and all the six wells have been hooked up and are producing an average of 50,000 – 60,000 barrels  daily.

    “In addition to being executed successfully, safely and within budget, Bonga Northwest also met its primary objectives.”

    Jackson also said the team executed the projects that resulted in the huge success because they wanted to fill the tank. He noted that some projects were successful, after some months, they are not able to fill the tanks for various reasons so that at the end of the day, one really doesn’t have a ‘successful’ project.

    Stressing the team spirit shared by the Deepwater Project and Technology team, and other colleagues from Well Engineering and Development, the former Bonga Northwest Project Manager, Joey Uyanwune said: “We had an integrated team. We worked together with a common purpose and focus to deliver this project.’’

    The Head, Deepwater Projects Operations Readiness/Excellence, Obinna Mbonu, said: “Not all projects achieved this milestone and in record time like Bonga Northwest project has done. It is a demonstration of due diligence and excellent collaboration by both teams.”

    The Bonga General Manager, Offshore Assets, Effy Okon and Operations Manager, Theo Ekiyor-Etimi, said the teams learnt many lessons, adding that they expected those learnings to be replicated in future projects.

    The Bonga project is located in oil mining lease (OML) 118 and about 75 miles offshore Nigeria. It is the country’s first deepwater development asset and in water depths of over 1,000 metres.

    It started production in 2005.  So far, it has produced over 500 million barrels of oil.

  • Ilaje coastal communities seek compensation from Shell

    The Ilaje communities in Ondo State have urged Shell Nigeria Exploration and Production Company, (SNEPCO), to compensate them for the Bonga oil Spill of 2011. They said SNEPCo and the communities reached an agreement for compensation but Shell has not fulfilled its promise.

    The General Secretary of Abereke Communities and field coordinator, Communities Environmental Protection Committee of Ilaje land (CEPCOM), Prince Taiwo Aiyedatiwa said despite the fact that Ilaje coastal communities of Ondo State are host communities to SNEPCo’s Bonga oil facility, which is offshore Ilaje Local Government of Ondo State, Shell has not been carrying out its corporate social responsibilities to the communities.

    He said: “In January 2014, we were aware that SNEPCO called about 88 coastal communities in Delta and Bayelsa States to stakeholders’ forum in Abuja through the house of representative committee on environment in which the Minister of Environment, National Oil Spill Detection and Response Agency (NOSDRA), Department of Petroleum Resources (DPR), Nigerian Maritime Administration and Safety Agency (NIMASA) and other regulatory bodies were in attendance, and Shell agreed to compensate the communities.

    “But to our surprise, Ilaje local Government of Ondo State that plays host to SNEPCO, and also affected by the oil spill was left out. We have written several letters to the company, regulatory bodies and Presidency since the occurrence of the oil spill but our communities have not been invited by Shell. The oil spill affected five coastal states in the Niger Delta including Akwa-Ibom, Bayelsa, Delta, Ondo and Rivers.”

    He appealed to Shell and the Federal Government as well as the spill committees to prevail on SNEPCO to call a stakeholders forum and invite the Ilaje coastal communities that were badly affected by the oil spill and compensate them, clean up and remediate the environment to restore aquatic lives. “We had planned to take legal action but were stopped by the traditional head of Abereke communities, Oloja Darosha Oladayo Mesagan. He advised us not to do so now, but the continued failure of SNEPCo to address our issue, will compel us to take action,” he added.

    NOSDRA’s director-general, Sir Peter Idabor had in a letter to Shell said the agency imposed a sanction on the company for pollution and damage to natural resources and means of livelihood of the affected communities. The Agency had recently threatened to sanction SNEPCo for failing to pay the $3.6 billion fine.

    He said: “Despite the fact that the incident was caused by equipment failure and the admission by the then Managing Director that 40,000 barrels of crude oil spilled into the Atlantic Ocean, no attempt was made by the oil company to provide relief materials for the shoreline fishing communities with respect to the acute and chronic impact of the crude oil on the environment.”

    NOSDRA directed SNEPCo to pay the sum of $3,600,191,206.00 or its Naira equivalent as compensation and administrative costs for failure to effect clean up on the impacted site within the stipulated period, as provided in the agency’s Act and Regulations.”

    Shell declined to comment on the issue when contacted by The Nation.

  • Shell: we lost over $50m to oil thieves, vandals in 2014

    Shell Petroleum Development Company (SPDC) has said it lost over 110,000 barrels of crude oil, estimated at $5 million in 2014, to oil thieves and pipelines vandals.

    SPDC gave the statistics yesterday at a seminar for reporters in Warri, Delta State.

    The company put its daily crude oil loss to oil theft and pipelines vandalism at 37,000 barrels.

    Its General Manager, External Relations, Igo Weli, decried the negative impact that criminal activities had caused the nation’s economy, the environment of oil bearing communities and SPDC’s business in the country.

    Weli said environmental pollution was caused mainly by vandals who burst oil pipes to steal its crude for illegal refinery or sales.

    He said: “An average of 110,000 boe/d (barrels of crude oil per day) was deferred in 2014 due to pipelines interference and other illegal activities.

    “An average of 37,000 barrels crude oil is stolen daily from SPDC JV facilities.”

    Weli recalled that from 2010 to 2014, over 92 per cent of the oil spills from SPDC facilities were caused by thieves and other saboteurs.

    The SPDC spokesman said this posed serious threats to the fresh water and marine environments in Niger Delta because those living in the coastal area could no longer fish or drink the water.

    He said: “It affects surface resources and wide-range of surfaces. Spilled oil can harm the environment in several ways, including damages that directly impact the environment.”

    Weli decried the encroachment of pipelines’ right of way by host communities.

    According to him, it has become a common trend for people to build around locations visibly marked as pipelines’ right of way without recourse.

    The SPDC spokesman blamed the situation on the non-compliance with the Survey Coordination Act of 1962 and a lack of awareness on the implication of living near areas marked as pipelines’ right of way.

    He said: “Ccommercial activities along the right of way (of oil pipelines) are common in urban cities and it should be discouraged.”

    Weli said SPDC would stop incessant oil theft and vandalism of its oil facilities.

     

  • Shell: we lost over $50m to oil thieves, vandals in 2014

    Shell: we lost over $50m to oil thieves, vandals in 2014

    Shell Petroleum Development Company (SPDC) has said it lost over 110,000 barrels of crude oil, estimated at $5 million in 2014, to oil thieves and pipelines vandals.

    SPDC gave the statistics yesterday at a seminar for reporters in Warri, Delta State.

    The company put its daily crude oil loss to oil theft and pipelines vandalism at 37,000 barrels.

    Its General Manager, External Relations, Igo Weli, decried the negative impact that criminal activities had caused the nation’s economy, the environment of oil bearing communities and SPDC’s business in the country.

    Weli said environmental pollution was caused mainly by vandals who burst oil pipes to steal its crude for illegal refinery or sales.

    He said: “An average of 110,000 boe/d (barrels of crude oil per day) was deferred in 2014 due to pipelines interference and other illegal activities.

    “An average of 37,000 barrels crude oil is stolen daily from SPDC JV facilities.”

    Weli recalled that from 2010 to 2014, over 92 per cent of the oil spills from SPDC facilities were caused by thieves and other saboteurs.

    The SPDC spokesman said this posed serious threats to the fresh water and marine environments in Niger Delta because those living in the coastal area could no longer fish or drink the water.

    He said: “It affects surface resources and wide-range of surfaces. Spilled oil can harm the environment in several ways, including damages that directly impact the environment.”

    Weli decried the encroachment of pipelines’ right of way by host communities.

    According to him, it has become a common trend for people to build around locations visibly marked as pipelines’ right of way without recourse.

    The SPDC spokesman blamed the situation on the non-compliance with the Survey Coordination Act of 1962 and a lack of awareness on the implication of living near areas marked as pipelines’ right of way.

    He said: “Ccommercial activities along the right of way (of oil pipelines) are common in urban cities and it should be discouraged.”

  • Oil theft: Shell loses 37,000bpd

    Oil theft: Shell loses 37,000bpd

    Shell Petroleum Development Company (SPDC) loses an average of 37,000 barrels of crude oil per day (bpd)  from its Joint Venture facilities in the Niger Delta to oil thieves.

    Its Head, Right of Way Management (RoW), Mr. Afohron Sekobe, who spoke in Yenagoa, Bayelsa State, yesterday  at a seminar for select media executives with the theme Effects of Pipeline Vandalism, Crude Oil theft and Encroachment Issues  lamented that  oil theft, equipment failure, sabotage, pipeline vandalism and illegal refining as the main sources of pollution in the region.

    But he said investigation revealed that sabotage and criminal breach of oil facilities accounted for over 75 per cent of spill incidents from SPDC JV pipelines last year alone.

    Giving details of how oil thieves operate in the region, he explained that  over 92 per cent of oil volume spilled from SPDC facilities  between 2010 and last year was caused by activities of oil thieves.

    He said breach of pipeline security and other illegal activities such as stealing of well head equipment caused the deferment of additional  110,000 bpd.

  • Shell: Insecurity, others inhibiting gas flare out

    Insecurity, inadequate funding and lack of commitment from joint venture (JV) partners stalling the plan to end gas flaring in Nigeria, Shell Petroleum Development Company Limited (SPDC) has said.

    The firm in its latest journal, Shell in Nigeria, stated that since 2000, it has worked with the Federal Government to end the flaring of associated gas but that security and funding, among others, have been hindering that goal. To acheive this goal, the problems must be addressed, it added.

    Shell said: “Further progress in ending continuous gas flaring will be heavily dependent on the security situation. Sustained commitment from all JV partners is also crucial. Funding challenges have resulted in delays to tow major associated gas gathering projects that were expected to deliver an additional 35 per cent reduction in flared gas by 2014-15.”

    It said in many oil fields, gas is produced with crude oil when it is brought to the surface. It recalled that  SPDC’s first production in the 1950s and 1960s, had little demand or market for associated gas. Consequently, the majority of it was burned off – a process called flaring. But in recent years, demand for gas in Nigeria and other countries has grown while the technology to harness, liquefy and export gas has come of age.

    It  however, said since 2000, all new Shell JV facilities have been designed to include no continuous flaring of associated gas. It noted that in parallel, a multi-year programme was implemented to install equipment for capturing associated gas from older facilities. As a result, flaring volume from its JV facilities was reduced by 75 per cent between 2002 and 2013 and flaring intensity by about 60 per cent over the same period, but due to increase in production last year, volume and intensity of flared gas increased, it stated.

    “Increased levels of oil production in 2014, combined with delays to new projects coming on stream, meant that volumes of flared gas increased by 12 per cent over the year and flaring intensity by nine per cent. The increased frequency of pipeline sabotage over the last two years has resulted in numerous unplanned production shutdowns. These in turn have impacted the performance of gas processing systems, which operate more efficiently with uninterrupted production, and has constrained our progress on reducing flaring intensity,” it added.

    Shell said despite the challenges, the overall trend in flares reduction is positive and it continues to invest in major gas gathering projects that will drive further reduction.

    The company noted that it monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulation.

     

  • UNEP report: why implementation is stalled, by Shell

    UNEP report: why implementation is stalled, by Shell

    Three years on,  the report of the United Nations Environmental Programme (UNEP) on assessment of the environment and public health impact of oil contamination in Ogoniland in Rivers State and the options for remediation, is yet to be implemented.

    This followed stakeholders’ non-compliance with the project.

    The independent assessment by UNEP was conducted at the request of the Federal Government to create a sustainable remediation of the polluted area and stem militancy in the region. But since release of the report in August 2011, much has not been done to implement its recommendations.

    But the General Manager, External Relations, Shell Petroleum Development Company (SPDC), Igo Weli, told reporters in Lagos that the UNEP report implementation was paramount to the company.

    He regretted that other stakeholders were not working on the responsibilities assigned to them.

    The Report recommended  76 actions, with the Federal Government getting 50, Shell 22 and the community four.

    Weli noted that the most important of all the actions are those assigned to the community, including the taking of a proactive stand against oil theft and illegal refining to stop spills and environment degradation and allowing access to clean-up spills.

    There had been no progress on the actions, he said, adding that the implementation of the recommendations would make no sense or achieve any result with continued spills and illegal refining.

    Weli said: “Oil production in Ogoni by SPDC was stopped abruptly in 1993, due to access denial. Facilities were vandalised, accompanied by fires and oil spills. Oil theft and illegal oil refining have, in addition, led to significant environmental impact. But SPDC is committed to remediating the environment, if only the community will cooperate. It makes no sense to clean up while fresh spills and illegal refining continue unabated.”

    He said 22 actions were recommended in the report for the operators to carry out.

    These include reviewing the procedures for clean-up and remediation, developing asset integrity management and decommissioning plans for Ogoniland and contributing to an Ogoni clean-up fund established by government.

    Weli said 16 actions had been completed, five were ongoing, such as relocation of right of way (RoW) encroachers, among others.

  • Shell: Insecurity, others inhibiting gas flare out

    Shell: Insecurity, others inhibiting gas flare out

    Insecurity, inadequate funding and lack of commitment from joint venture (JV) partners stalling the plan to end gas flaring in Nigeria, Shell Petroleum Development Company Limited (SPDC) has said.

    The firm in its latest journal, Shell in Nigeria, stated that since 2000, it has worked with the Federal Government to end the flaring of associated gas but that security and funding, among others, have been hindering that goal. To acheive this goal, the problems must be addressed, it added.

    Shell said: “Further progress in ending continuous gas flaring will be heavily dependent on the security situation. Sustained commitment from all JV partners is also crucial. Funding challenges have resulted in delays to tow major associated gas gathering projects that were expected to deliver an additional 35 per cent reduction in flared gas by 2014-15.”

    It said in many oil fields, gas is produced with crude oil when it is brought to the surface. It recalled that  SPDC’s first production in the 1950s and 1960s, had little demand or market for associated gas. Consequently, the majority of it was burned off – a process called flaring. But in recent years, demand for gas in Nigeria and other countries has grown while the technology to harness, liquefy and export gas has come of age.

    It  however, said since 2000, all new Shell JV facilities have been designed to include no continuous flaring of associated gas. It noted that in parallel, a multi-year programme was implemented to install equipment for capturing associated gas from older facilities. As a result, flaring volume from its JV facilities was reduced by 75 per cent between 2002 and 2013 and flaring intensity by about 60 per cent over the same period, but due to increase in production last year, volume and intensity of flared gas increased, it stated.

    “Increased levels of oil production in 2014, combined with delays to new projects coming on stream, meant that volumes of flared gas increased by 12 per cent over the year and flaring intensity by nine per cent. The increased frequency of pipeline sabotage over the last two years has resulted in numerous unplanned production shutdowns. These in turn have impacted the performance of gas processing systems, which operate more efficiently with uninterrupted production, and has constrained our progress on reducing flaring intensity,” it added.

    Shell said despite the challenges, the overall trend in flares reduction is positive and it continues to invest in major gas gathering projects that will drive further reduction.

    The company noted that it monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulation.

    “SPDC monitoring data shows that air quality around our flare sites complies with these standards barring occasional operational issues (such as when gas needs to be flared for safety reasons). These standards are equivalent to international air quality standards followed in the European Union, United States and those set by the World Health Organisation (WHO).

    “SPDC recognises the importance of addressing local communities’ perceptions and concerns about flaring, in addition to complying with regulations. For this reason, consultation with community and civil society representatives is an integral part of the environmental impact assessments (EIAs) conducted for all major projects,” it added.

  • Shell scholarship for 60 Southsouth indigent pupils

    THE Anglo-Dutch multi-national, Shell Petroleum Development Company (SPDC), Nigeria Limited has offered 60 pupils from public primary schools in the Southsouth zone admission into four top private boarding secondary schools in Port Harcourt, the Rivers state capital under her Cradle-to-Career (C 2 C), scholarship scheme.

    The scheme is designed for gifted children from indigent background under Shell joint partnership with NNPC/TEPN/Agip Oil Company, but operated by Shell.

    The 60 beneficiaries from Rivers, Delta and Bayelsa states are the sixth batch since the programme began in 2009 – bringing to 350 the total number of children reached so far.

    Presenting his address at the award/closing ceremony of the 2015 orientation camp held for the new inductees in Port Harcourt on Monday, the country chair, Shell Companies in Nigeria, Okunbor Osagie said the initiative offers the pupils opportunity to enjoy quality education at no cost to their families.

    Represented by General Manager, External Relation Shell, Igo Weli, he added that the pupils passed through rigorous selection process and competitive examinations before selected from among over 400 applicants.

    “These are 60 gifted young people, who probably would not have had the opportunity to access the kind of quality secondary education that they will get through this programme,” he said.

    He said the two-week orientation programme was to introduce them to academics, character and psychological training “to integrate them into their new learning environment.”

    He expressed optimism that the scheme would help develop a sound human resource base for development in Nigeria.

    The pupils would be posted to Archdeacon Brown Education Centre (ABEC), Brookstone Secondary School, Bloombreed High School and Jephthah Comprehensive College.

    Responding to the gesture, the Permanent Secretary, Rivers state Ministry of Education, Minaebi Micheal-West; lauded the efforts and contribution of Shell in education development in the region.

    He saId: “We admit that education sector is capital intensive, however, the state government has made a law that made education free and compulsory that any parent who does not send a child to school at least at the UBE level can be charged to court, but education in the state is free up to secondary school level.

    “The difficulty the government faces in running free education make us to appreciate the private sector and companies like SPDC, who have keyed into this sector because it is a burden that the government alone cannot carry. The involvement of SHELL to education service delivery is heart-warming and commendable.”

     

  • Shell to train 150 Niger Delta youths

    Shell Petroleum Development Company of Nigeria Limited (SPDC) operated Joint Venture, said 150 youths from the Niger Delta are to benefit from its 2015 LiveWIRE programme, bringing the total number of beneficiaries to over 6,000 since the launch of the programme in 2003.

    LiveWIRE is a flagship youth enterprise development programme which provides access to training, business development services and start-up capital.

    “LiveWIRE presents a good opportunity for bright young people to bring their ideas to fruition,” said SPDC’s General Manager External Relations, Igo Weli. “We are pleased to see the youths transform to employers of labour after going through intensive business training that is reinforced with theoretical and practical sessions.”

    The two-week training slated for September will be held for the selected youths in Rivers, Delta and Bayelsa states. Media Relations Manager of Shell, Mr. Precious Okolobo, said in a statement that the programme is open to university and polytechnic graduates with innovative business ideas from the three states.

    The curriculum includes business planning and management and post start-up mentoring, incubation and market linkages. Successful candidates will be linked to third parties such as Non Governmental Organisations (NGOs), banks, and allied financial institutions and provided a volunteer mentoring programme.

    Okolobo said in 2014, the Livewire scheme was broadened to include a specific focus on people with physical impairments. Some 180 physically challenged people had already benefited from training and grants.  Shell Companies in Nigeria work with government, communities and civil society to implement programmes that have a lasting impact on lives in the Niger Delta and beyond. “Social investment activities are focused in particular on community and enterprise development, education and health,” he added.