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Tag: shell

  • Verdict in Ogoni, Shell case soon

    London court may deliver judgment on the multi-million dollar compensation suit involving Shell and Bodo Communities in Rivers State before December, Bodo Chairman, Council of Chiefs, Mene Slyvester Kogbara, has said.

    Kogbara told The Nation that the Head, Leigh Day & Co (a UK-based Solicitors for the communities), Martyn Day, visited Nigeria last week to brief the communities on the matter, three years after it was filed in the London court.

    Kogbara quoted Day as saying the judgment would determine the exploration of crude oil in the Niger Delta region, its effects on the host communities and the responsibilities of oil firms to the people of the area.

    “While we are not trying to speculate on the outcome of the judgment, we believe that the judgment would determine a lot of things for stakeholders in the industry,” Day was quoted as saying.

    Kogbara said the visit by the Leigh Day & Co chief had doused the tension among residents, adding that they were happy the judgment was coming.

    According to him, the visit has eased off pressures on the Council of Chiefs which was accused of not fast-tracking the case.

    “The visit has reduced pressure on the Council of Chiefs accused of not doing anything on the matter. Everybody is waiting for the judgement. We expect the court to be fair on the issue. Once there is a fair hearing, victory is assured,” he added.

    However, Shell’s spokesman, Precious Okolobo, said it would amount to prejudice to speak on a case in which the plaintiffs and defendants were awaiting judgment.

    Shell had accepted responsibility for the two oil spills in 2008 that polluted the waterways of the fishing communities.  It said the volume spilt and the number of those who lost their livelihoods is exaggerated.

    The battle for compensation begun six years ago when the communities discovered that oil spills from exploration has affected their land. The spill from Shell oil wells has ravaged many areas in the Niger Delta region.The region has been plagued by many  problems, including sabotage, kidnappings of oil workers for ransom, crude theft, pipeline vandalism, armed rebellion, and conflicts between communities over clean-up contracts or compensation deals.

  • Ogoni community seeks speedy trial of case against Shell

    Ogoni community seeks speedy trial of case against Shell

    Three years after suing Shell in  a London Court for oil spillage, the  Bodo community in Ogoniland in  Rivers State, is seeking speedy hearing of the case. The community has asked its chiefs and London solicitors – Leigh Day & Co – to fast-track the hearing of the case.

    The Chairman of the Council of Chiefs, Mene Slyvester Kogbara, told The Nation that the over 15,000 villagers wanted the matter tried speedily. He listed the group to include farmers, fishermen, artisans and traders.

    The council, he said, also demanded from the lawyers why the case is delayed and what should be done to fast-track the hearing.

    He said: “The community is worried about the delay hence the pressures from different angles to  ensure that the case is fast-tracked.  The pressure is coming from  the Council of Chiefs and the community. Meetings have been held to get the right support on the issue. Our solicitors have promised to fly to Nigeria in the next two weeks to give us the updates vis-a-vis efforts being made to speed up the hearing of the case.‘’

    Mene said the community  believes that  the court would favour it.

    ‘’We are not contemplating failure at the London Court where Leigh Day & Co has been standing as our Solicitors since the case started a few years ago. The last thing on our mind is defeat at the court. We have enough evidence that the oil spills have ravaged our land  and affected socio-economic activities. Shell has accepted responsibility for over two oil spills in 2008 that polluted the waterways of the fishing communities, even though it is  insisting that the volume spilt and the number of those who lost their livelihoods as a result is exaggerated.

    “Though the case has suffered delay, the victory is sure because the court has promised to be fair to all the parties concerned on the issue. Once there is a fair hearing and presentation in a court, victory is assured. Part of the demands is that Shell should come and clean the land since the communities are running short of food supply.’’

    Mene said the community would not disclose the amount of compensation expected from Shell in line with the advice of their lawyers.

    He said other community affected by the oil spills are Bomu, Gbe, K& B, Dere,  and Kpor Gol.

    ‘’For technical reasons, we have agreed individually and collectively not to disclose the worth of the compensation expected on the issue of spillage and its attendant destruction to the environment,‘’ he added.

    Efforts to get Shell’s spokesman, Precious Okolobo,  to speak on the issue proved abortive. Text messages and calls made to him were not replied.

    The battle for compensation began six years ago when the community discovered that  spills  from oil exploration  have affected their land. The spills from Shell wells have ravaged many areas in the Niger Delta. The region has been hit by problems, including sabotage, kidnappings of oil workers, theft of crude, and conflicts between communities over clean-up contracts or compensation deals.

  • Shell inaugurates centre at UNN

    Shell Petroleum Development Company (SPDC) has inaugurated a $3 million centre for the study, management and control of environmental issues at the Enugu campus of the University of Nigeria, Nsukka (UNN).

    The Country Chairman of SPDC in Nigeria, Mr. Mutiu Sunmonu, represented by the General Manager, Sustainable Development & Community Relations, Mr. Nedo Osanyande, inaugurated the centre, whose construction began in 2010, with the donation of $1 million by SPDC.

    UNN’s Vice Chancellor Prof Bartho Okolo said the building was an example of Public Private Partnership (PPP), targeted at complementing the efforts of the Federal Government in developing infrastructure in tertiary institutions.

  • ‘Shell’s divestment plans make strategic sense’

    Deutsche Bank has said it makes ‘strategic sense’ for Shell to sell off assets in the United Kingdom (UK) and Nigeria, though its analysis doesn’t suggest they would be big money deals.

    According to Oil & Gas Wrap, the German bank said in a note to investors that the noise around potential divestments is building and it is becoming clearer which assets will go under the hammer.

    Deutsche Bank’s analyst, Lucas Herrmann said: “Quite aside from the need to raise cash, that Shell should be looking to scale back its position in often troublesome (Nigeria) and mature territories (UK) makes strategic sense.

    “Pushing into the assets available for sale, however, and what seems apparent is that the positions offered are relatively modest in value.”

    In the North Sea, according to Deutsche Bank, Shell is likely to be selling the Anasuria floating production storage and offloading (FPSO) unit and interests in the Nelson area and Sean gas field; together these assets yielded 19,000 barrels of oil equivalent per day last year.

    Meanwhile, in Nigeria, it says four licences are available for sale yielding around 26,000 barrels per day and would have a value of around $500 million.

    The analyst adds: “All told, our view is that come completion, the complexion of Shell’s forward portfolio will be marginally improved with the action itself of decided value to sentiment. Big money proceeds are not, however, likely to be forthcoming – from these divestments at least.”

     

  • Atlantic Aviation commences flights operation for Shell Nigeria

    New helicopter-services operator, Atlantic Aviation, supported by one of the world’s leading providers of high-quality transportation to offshore oil and gas producers, has begun commercial flights of Augusta Westland 139 (AW139) helicopters from Lagos.

    Atlantic Aviation, a Nigerian company owned by Jagal Group, with technical service support from CHC Helicopter, started crew-rotation flights for Shell from the Murtala Muhammed International Airport to the Deepwater Discovery drill ship. On its maiden commercial flight, Atlantic Aviation transported nine Transocean employees to the waters around the Shell Bonga concession.

    The Deepwater Discovery is a fast drilling ship that is boring some 80 holes in a relatively short amount of time in the Gulf of Guinea.

    Shaf Syed, Regional Director, Atlantic Aviation, said the first flights were significant: “These flights are only the first of what we expect would be many years of helping oil and gas operators to go further, do more and come home safely in Nigeria, one of the world’s fastest growing regions for this industry.

    “Today represents a culmination of several months of planning and hard work from many people to establish and demonstrate Atlantic Aviation. In line with the governments’ strategic agenda on investment, job creation and Nigerian content development, Atlantic Aviation is investing in delivering to Nigeria world-class standards through quality and excellence.

    Shaf said that with technical service support from CHC for training, flight and engineering standards, Atlantic Aviation will become “the leading helicopter operator in the market.

    “Customers will feel reassured by the depth of experience and expertise that we bring to this sector in Nigeria,” he said.

    The twin-engine, medium-sized AW139 helicopter is well-suited to current and future requirements of Nigerian offshore drilling, having the range and capability to operate into the deep water and frontier drilling ultra-deep water fields.

    Thelicopter that meets all the latest offshore safety requirements whilst bringing enhanced customer comfort to the offshore traveller.

  • Shell cites insecurity for loss in earnings, production

    Shell cites insecurity for loss in earnings, production

    Oil giant Shell Petroleum Development Company (SPDC) has explained that it suffered a loss last year because of insecurity in the Nigeria Delta.

    In its 2013 report, the Royal Dutch firm claimed that its upstream earnings and oil production as well as liquefied natural gas (LNG) equity sales volumes dropped following the worsening operating environment in Nigeria. It said production dropped in 2013 to 3,199,000 barrels equivalent per day (boe/d) from 3,262,000 (boe/d) in 2012.

    It said: “Compared with 2012, upstream earnings excluding identified items reflected higher exploration expenses, increased operating expenses, higher depreciation as well as lower liquids and LNG realisations. Earnings were also impacted by the deteriorated operating environment in Nigeria and the impact of the weakening Australian dollar on a deferred tax liability. This was partly offset by the contribution of Pearl gas-to-liquid (GTL), and higher gas realisations in the Americas.

    “Global liquids realisations were six per cent lower than in 2012. In Canada, synthetic crude oil realisations were seven per cent higher than in 2012. Global natural gas realisations were six per cent higher than in 2012, with a 27 per cent increase in the Americas and a three per cent increase outside the Americas.”

    Thefirm added: “2013 production was 3,199,000 barrels of oil equivalent per day (boe/d) compared with 3,262,000 (boe/d) in 2012. Liquids production was down six per cent and natural gas production increased by two per cent compared with 2012. The deteriorated operating environment in Nigeria impacted production volumes by some 50 thousand boe/d compared with 2012.

    “Excluding the impact of divestments, production sharing contract (PSC) price effects and the deteriorated operating environment in Nigeria, production volumes in 2013 were in line with 2012. Production volumes were impacted by higher maintenance and asset replacement activities.

    “New field start-ups and the continuing ramp-up of existing fields, in particular Pearl GTL in Qatar, contributed some 170 thousand boe/d to production in 2013.

    “Equity LNG sales volumes of 19.64 million tonnes were three per cent lower than in 2012, mainly reflecting lower volumes from Nigeria LNG due to reduced feedgas supply as a result of the deteriorated operating environment in Nigeria. Excluding the impact of the challenging operating environment in Nigeria, equity LNG sales volumes were in line with 2012”

    According to the report, the full year upstream earnings excluding identified items were $15,117 million compared with $20,107 million in 2012 reflecting a decline of $4,990 million. Identified items were a net charge of $2,479 million, compared with a net gain of $2,137 million in 2012, it added.

    The report showed that upstream earnings excluding identified items were $2,477 million compared with $4,401 million a year ago. Identified items were a net charge of $631 million, compared with a net gain of $1,801 million in the fourth quarter 2012.

     

  • Reps summon minister, Shell over Bonga oil spill

    … DPR, NIMASA, NOSDRA to meet lawmakers

    The House of Representatives has summoned the Minister of Environment, the National Oil Spill Detection and Response Agency (NOSDRA) and Shell Petroleum Development Company (SPDC) over compensation issues following the December 20, 2011 Bonga oil spill.

    The Department of Petroleum Resources (DPR) and the Nigerian Maritime Administration and Safety Agency (NIMASA) were also invited among others.

    The minister and others were expected to explain the effects of chemical dispersants used by Shell to disperse the said oil spillage on the sea.

    What is due to the communities as compensation would also be discussed.

    The affected communities alleged that the dispersant led to disruption of their fishing activities and other sources of livelihood, saying the oil company has not been forthcoming.

    The communities are spread between Warri North, Warri South West and Burutu Local Government Councils of Delta State as well as Ekeremor, Southern Ijaw and Brass Local Government Councils of Bayelsa State.

     

  • Shell, Diamond Bank, others float $30m fund for SMEs

    Shell, Diamond Bank, others float $30m fund for SMEs

    Shell Petroleum Development Company, Diamond Bank Plc and GroFin of South Africa have partnered to float a $30m fund branded ASPIRE NIGERIA to serve as a catalyst for the development and growth of Nigerian Small and Medium Enterprises (SMEs).

    All agreements establishing the fund under a Private Trust have just been signed.

    The fund – ASPIRE NIGERIA – is expected to enhance the operations of indigenous small and medium enterprises through the provision of much needed business development assistance and appropriate finance.

    The objective of the pilot scheme is two folds, and characterises the business vision of its co-promoters.

    In the first instance, it would demonstrate their interest in contributing to the development of SMEs as a means of enhancing wealth creation in the economy; and secondly, the unique approach of the business model introduced by GroFin ensures that SMEs are not just given funds, but also business development assistance.

    ASPIRE NIGERIA is an innovative and important step towards creating sustainable growth of the Nigerian SME sector. Historically, businesses in this sector have not only lacked access to capital, but also skill development. This combination has limited their ability to grow and achieve their potential.

    By integrating the provision of business development assistance and appropriate finance, ASPIRE NIGERIA will support the growth and expansion of SMEs in all sectors of the Nigerian economy.

    It is important to note that the ASPIRE NIGERIA Fund is a joint step in a deliberate effort to address the funding and developmental problems of small and medium scale Nigerian entrepreneurs.

    The Fund will enable credible SME operators to access medium-term, competitively priced financing and business development assistance, ranging between N6 million and N125 million and would hopefully enable them to achieve their growth aspirations.

    Preference will be given to Nigerian enterprises that have limited capability for meeting collateral requirements, and who typically employ fewer than 50 employees, with an annual turnover not exceeding N600 million or gross assets not exceeding N400 million.

    This new and unique service envisioned by ASPIRE NIGERIA would thus help to overcome the barriers faced during start-up and early stage growth of enterprises.

    GroFin, an African specialist business developer and financier, has established GroFin Nigeria to manage the fund on behalf of the Trustees.

    Grofin Nigeria\’s service delivery is based on an innovative business model, which was jointly developed by GroFin and the Shell Foundation, and has been implemented successfully in other African countries. It has the potential for unlocking the entrepreneurial talent in Nigeria and would also help to address the many challenges faced by SME operators in the country.

    Economic development across Africa requires a focus on assisting local enterprises with the potential for growth and expansion. Many enterprises, however, lack the business skills, collateral and documented trading history necessary to access local finance for their start-up / early growth. The Aspire Fund model will address this challenge.

    Shell Foundation (SF), SPDC, and Diamond Bank have different but complementary reasons for supporting this project. For Shell Foundation, the project represents a unique opportunity to pursue its current global strategy of assisting SMEs. For SPDC, the project is part of its continuous efforts to demonstrate commitment to the development of the Nigerian economy and support government initiative to develop SMEs in particular. By providing local entrepreneurs with access to medium-term, competitively-priced credit, SPDC expects the project to act as a force in the development of the local enterprise sector, thereby generate wealth, employment, economic growth and social development.

    For Diamond Bank, it is an opportunity to give back to the community and also apply the expected five per cent of its\’ annual profit to the growth and development of the SMEs in the country.

    The fund will be made up of the following respective contributions:- Shell – US$10 million; Diamond Bank, – US$20 million; and GroFin – US$0.6 million

  • Shell denies burying crude oil in Delta community

    The Shell Petroleum Development Company (SPDC) says it has completely restored the scene of a crude oil burial site in Odimodi, Burutu Local Government Area of Delta State.

    The company was reacting to Niger Delta Report’s story on the ‘Crude Oil Grave’ published in the Friday, December 6, edition, in which the people of Boutubo community in Odimodi accused the company of trying to obliterate evidence of crude oil spill by burying it.

    Responding to our inquiry on the report, SPDC’s spokesperson, Joseph Obari said available records show that SPDC received report of an oil spill on September 15, 2011.

    He said: “A Joint Investigation Team made up of industry regulators, SPDC and the community visited the site on October 24, 2011 and established that the oil that was reported as a spill was from a pit in which unknown persons buried crude oil in the past at Odimodi.”

    He said in keeping with SPDC’s environmental policy to clean up every spill no matter the cause, proper clean up and remediation of the site was concluded on March 22, 2012.

    “This was attested to by a community leader. The National Oil Spill Detection and Response Agency (NOSDRA) and Delta State Ministry of Environment certified the restoration of the site on May 3, 2012,” he added.

    Obari also debunked allegations by the community leaders, who accused SPDC of trying to avoid compensation payment for the spill. He said since the incident was caused by an external inference with its facility, Shell does not pay compensation.

    The SPDC spokesperson clarified that “This type of pollution does not attract compensation, since it was caused by a third party.”

    He said, “It is not true that the resurging oil reported at the site was buried at the instance of SPDC. The JIV report signed off by all parties confirmed that it was the act of unknown persons.

    “Remediation is the restoration of the contaminated site to as close as possible to its natural state. It is preceded by the recovery of oil and cleanup of the environment,” stated.

    Nevertheless, our independent investigation revealed that the controversy may be far from over as the ‘impacted community’ is unrelenting in its quest to have the lead agency in crude oil spill (NOSDRA) reopen the matter.

    The community leaders, in one of several petitions to NOSDRA wanted to ascertain if the company acted above board.

    Its solicitor, Larry Ovwromoh and Association, wants NOSDRA to verify if the contractor employed Shell to clean up the impacted area is qualified and competent as specified in the NOSDRA act.

     

  • Shell renovates Old Peoples Home

    Shell renovates Old Peoples Home

    Shell Nigeria Exploration and Production Company (SNEPCo) has renovated the Old Peoples Home in Yaba, Lagos Mainland.

    The company executed the project alongside its partners under the Nigerian National Petroleum Corporation (NNPC) Joint Venture scheme.

    Its managing Director, Chike Onyejekwe, said efforts are ongoing to provide an alternative source of electricity for the home.

    Onyejekwe said the company has built 28 Information and Communication Technology (ICT) centres in various secondary schools across the country.

    He said: “The company is pleased to identify with children with special needs and senior citizens as part of its social investments portfolio, which cuts across health, education and social services.’’

    Onyejekwe said the company is working with the Health- Straightening System (HSS) in hospitals at Anambra, Ogun and Niger states to improve service delivery, manpower, financial management and infrastructure.

    A Director of Social Welfare in the Lagos State Department of Youth and Social Development, Mr. Musbau Abdullahi, urged corporate organisations to emulate the gesture.