The Nation Newspaper

Tag: SPDC

  • Bonga project’ll enhance exploration, say oil chiefs

    Exploration will be enhanced, if Shell Petroleum Development Corporation (SPDC) fulfils its promise to get Bonga South West Project ready this year, stakeholders have said.

    The Chief Executive officer, ARCON Petroleum Limited, Doyin Adeyinka, the Marketing Director, Olive Crest Resources Service Limited, Dr Alex Orewa, and Vice President, Nigeria-Gabon Shell Upstream International, Markus Droll, said the project would provide opportunities to the industry and the economy.

    Adeyinka described the Bonga South West Project as a world-class facility, capable of boosting exploration. He said the project is an extension of Shell’s exploration activities, adding that completing it this year would help in increasing deep offshore programmes.

    He said: ‘’Though I do not know the quality of the project, it is bound to galvanise exploration and production initiatives in the industry in general, and the economy in particular. Bonga project itself is a big one, and can be extended to any area provided there is oil there to improve activities at the deep-side level of petroleum exploration. ‘’

    Orewa said the International Oil Companies (IOCs) are still interested in investing in Nigeria, as evident by the decision of Shell to expand its Bonga oil project.

    IOCs, Orewa said, were only divesting from on-shore projects and not deep off-shore activities where they hope to maximally improve their fortunes.

    He said: “By completing Bonga Southwest Project by 2014 end, Shell would have more access to export its product. This would depend on whether the product is for export, or not. This is a demonstration of the fact that Shell wants to continue to invest in Nigeria, despite the challenges facing the industry.

    ‘’ The oil majors are not yet done with Nigeria in terms of exploring investmentopportunities, galvanising them to expand the production base and other indices that would spur growth. They want the Petroleum Industry Bill (PIB) to be passed to know the next line of action. PIB will help them in knowing the rules of the game and how best they can apply the rules for growth. Through BIP, the foreign-owned oil firms would know what and how to meet the needs of the oil producing communities and other issues.’’

    Droll said the company will continue drilling projects on the Original Bonga FPSO, adding that Bonga South West Project is a new addition. Droll said the initiative would generate returns for the partners and the government in the long run.

    He said the Bonga initiative is of immense value to the company, industry and the country, arguing the firm ‘s desire to contribute to oil exploration in countries where it has major presence.

  • Group demands $10b compensation from Shell

    Group demands $10b compensation from Shell

    Etche People’s Liberation Congress (EPLC), a socio-political organisation in Etche Local Government Area of Rivers State, has demanded a compensation of $10 billion from Shell Petroleum Development Company (SPDC), over environmental pollution and degradation.

    The group, which claimed to be the mouthpiece of Etche ethnic nationality, said it had the backing of chiefs and elders in the area.

    In a protest yesterday at Umuchem, one of the deserted host communities where SPDC was accused of genocide, it vowed to end the oil company’s operation if it failed to negotiate.

    EPLC leader, Comrade Japhet Ogbueri said despite operating for 30 years, SPDC had not done a project in the community.

    He said the area lacked electricity, roads, potable water and other amenities.

     

    Ogbueri said: “Before this protest, EPLC sent a letter of 90 days ultimatum to the SPDC. If at the expiration of the ultimatum, Shell fails to provide an avenue for negotiation, we will shut down their operation.

    “For destroying our environment with oil spill and the genocide committed at Umuchem, where thousands of lives were wasted and property destroyed, we demand a clean up of our environment and compensation of $10 billion to the host community.”

    When our reporter called the SPDC spokesman, Joe Ollor, he said he was at a meeting and promised to call him back. But he did not at press time.

     

  • Shell begins health insurance scheme for Bayelsa community

    Shell Petroleum Development Company (SPDC) has commenced a comprehensive health insurance scheme to make health care accessible for the people of Nembe community, Bayelsa State.

    The initiative was inaugurated on Friday in collaboration with the Nembe Community Development Foundation (NCDF).

    Prior to the scheme, the company spent over N170m to upgrade the Nembe General Hospital.

    Managing Director, Shell, Mr. Mutiu Sumonu, who was represented by the SPDC’s Regional Community Health Manager, Mr. Babatunde Fakunle, said it was a health financing model that provided quality, accessible and affordable health care to communities.

    He said: “The Community Health Insurance Scheme eliminates the high

    out-of-pocket medical expenses which is a primary deterrent to seeking

    health care.

    “The inauguration of the Nembe CHIS today is a result of the successful pilot community health insurance scheme that was initiated in March 2010 at Obio Cottage Hospital, Port-Harcourt. This scheme is driven through the Global Memorandum of Understanding.”

    He said that the general hospital had undergone a major facelift while the SPDC had also undertaken the training of hospital personnel in readiness for the insurance scheme.

    “We are proud to celebrate with the great people of Nembe on the inauguration of the NCHIS and the renovation of the general hospital.

    “I believe these investments will bring affordable health care services to the participating communities and improve the standard of living,” Sumonu said.

     

     

     

    Commissioner for Health, Bayelsa, Mr. Anuperere Awoli, said the scheme was instituted to make health care affordable for the people.

    He also urged the communities to patronise the hospital by taking advantage of the insurance scheme.

     

    In his remarks, Chairman, NCDF, Chief Young Dede, said the scheme would help to eliminate common diseases and ailments detected in the area such as typhoid fever, toothache, general body pains, arthritis, cancer, among others.

     

    He said the scheme received wide support, stressing that the development encouraged SPDC to appoint health management officials.

     

    According to him, more than 6,000 would-be beneficiaries had registered for the insurance scheme.

     

    “The premium expected to be paid by an individual to access the scheme is N7,500 but this has been heavily subsidized by the NCDF to the tune of N6,000 leaving the sum of N1,500 to be paid per year by beneficiaries,” he said.

  • Shell, communities disagree on compensation

    Shell, communities disagree on compensation

    Controversy has continued to trail the compensation agreement between the Shell Petroleum Development Company (SPDC) and some oil ravaged communities in the Niger Delta.

    Shell, through its spokesman, Precious Okolobo, said it would only pay lawful compensation to communities affected by oil spillage in Rivers State. The company would be fair in paying damages to communities that have suffered environmental degradation as a result of oil spillage, he said.

    He said the company has not been able to provide compensation to members of the Bodo community because the matter is in court.

    “Be informed that Bodo oil spill is the subject of court suits in Nigeria and the United Kingdom, and as much as SPDC desires to pay fair and lawful compensation, we can only begin to do so when the court proceedings are over.”

    But the affected communities, Bodo, K dere, Goi and Kpor have decried the attitude of Shell towards paying compensation to them, claiming that the company is playing politics with their future.

    The Director of Programmes, Centre for Environment and Human Rights, Steven Obodoekwe, who is from Bodo, said litigations would not have arisen if Shell had conformed to the rules that people who suffer from oil pollution, among other hazards, must be paid compensation as early as possible.

    He said the communities resorted to legal action because Shell reneged on its promise to adequately compensate them, noting that Shell’s refusal to pay compensation was part of its agenda to continue to deny the oil communities of their entitlements.

    ‘‘Some of the communities are not aware of the moves to compensate them. The Bodo case is back in a London court because Shell was planning to pay the community a meagre amount of money. Shell is fund of blaming oil spillage among other untoward practices in the region on saboteurs because it wants to evade its responsibility of paying for damages,’’ he said.

    Also, the President, Movement for the Emancipation of Ogoni People (Mosop), Legbosi Pyagbara said the communities and Shell were unable to reach agreement on the issue of compensation.

    Mosop said the communities have asked for a review of the compensation scheme, following the decision of Shell to pay them a meagre amount of money.

    ‘’Shell has accepted liability as regards Bodo community a few years ago. Up till now, the company has not paid the community. Some communities have filed a case against Shell in Netherlands because they are unable to receive compensation. The communities have realised that they cannot achieve anything with the money Shell is planning to pay them.

    ‘’For instance, when a man whose land was destroyed was offered between N100,000 and N200,000, what is he going to do with the money. In real terms, what Shell offered is below the value of the crops that were destroyed by oil,’’ Mosop stated.

  • Firms urged to invest in structures

    Firms urged to invest in structures

    Managing Director of Shell Petroleum Development Company of Nigeria Limited (SPDC), Mutiu Sunmonu, yesterday urged Nigerian companies to invest in the development of world-class processes and structures to match those available elsewhere in the world.

    He said the Nigerian content was achievable, stressing that the Anglo/Dutch oil giant had a long-term and continuing commitment to Nigeria, its people and the economy.

    Sunmonu spoke in Port Harcourt, the Rivers State capital, at the 3rd Nigerian Content Day/Exhibition, hosted by Shell Companies in Nigeria.

    The event had as theme: “Showcasing Nigeria Manufacturing Capacity in Products, Materials, Goods, Equipment, Materials and Services in the Oil and Gas Industry.”

    Sunmonu said Shell was committed to complying with the provisions of the Nigerian Oil and Gas Industry Content Development Act.

    Represented by the oil firm’s General Manager, Sustainable Development and Community Relations, Nedo Osayande, Sunmonu said the Nigerian content support had been a success story.

    Sunmonu said: “We need to recognise that local content is not to reduce quality of manufactured items in the sector, but to domesticate the production of goods and services that could compete favourably with those produced anywhere in the world, in terms of quality standard and prices.

    “Some industry analysts have argued that the lack of awareness of available locally manufactured goods and services is a contributing factor to the low utilisation of Nigerian goods and services in the industry.

  • Shell declares force majeure on Bonny Light

    • 150,000 bpd shut in

    Shell Petroleum Development Company (SPDC) has declared force majeure on Bonny Light exports and gas supply to Nigeria Liquefied Natural Gas Limited (NLNG).

    The force majeure, which took effect yesterday, is as a result of shut down of the Trans Niger Pipeline (TNP), for repair of new crude oil theft leaks at Bodo West and Oloma, Shell’s spokesman Precious Okolobo said in a statement to The Nation.

    He said some 150,000 barrels of oil and 500 million standard cubic feet of gas per day are deferred.

    “The TNP has been repeatedly targeted and closed down five times since early July due to multiple leaks from crude theft connections.

    “SPDC is working to repair and reopen the line as soon as possible,” the company said.

  • Activists seek clean-up of Ogoni by SPDC

    The United Nations Environment Programme’s (UNEP’s) assessment of Ogoniland and the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) have called on the Federal Government to compel Shell Petroleum Development Company (SPDC) to clean up its mess in Ogoniland.

    In a statement, they said it was unacceptable that two years after the assessment, the Federal Government, has not impressed it on Shell to take responsibility for its action.

    UNEP’s findings released earlier in the month, showed hydrocarbon pollution in surface water in the creeks of Ogoniland, and up to eight centimetres in groundwater supplying drinking wells.

    Soils were found to have been polluted with hydrocarbons of up to five metres depth in 49 observed sites; benzene, a known cancer-causing chemical, was found in drinking water at a level 900 times above the World Health Organisation (WHO) acceptable levels.

    ERA/FoEN Executive Director Godwin Ojo said: “The issues in the UNEP report are about the devastation of the ecosystems, waterbodies, livelihoods, and how Shell’s oil extraction activities have impoverished the Ogonis, and sentencing them to slow deaths.

    “Sadly, the Nigerian government and Shell are still promoting cosmetic approaches to the remediation measures recommended by UNEP. These measures seem clearly focused on guaranteeing Shell does not take responsibility for its mess in Ogoniland. Shell, clean up your mess because a day of reckoning is at hand.”

    Ojo desinbed as “hasty”, the setting up of a Hydrocarbon Pollution Restoration Project (HYPREP), saying it did not address the key demands the report recommended on the eve of the first anniversary, last year. This, he said, lent credence to the belief between Ogonis and the environment community that government is trying to divert attention from the real issues.

    “Sadly, the government has taken side with Shell rather than with the people and the protection of the environment. We are unequivocal that the HYPREP and on-going illegal activities by Shell in Ogoniland do not in any way represent the UNEP recommendations.

    “HYPREP should either be scrapped or made a unit in the National Oil Spills Detection and Remediation Agency (NOSDRA) which should be statutorily responsible for the clean-up of Ogoniland, rather than the administrative status of HYPREP under the control of the Minister for Petroleum,” he said.

    Ojo listed the group’s demands to include the release of the $1 billion Ogoni Environmental Restoration Fund by the Federal Government and Shell, with NOSDRA as the supervising agency for its deployment and use.

    Shell, he said, should start the decommissioning of its abandoned facilities in Ogoniland, embark on the clean up of all impacted sites to ensure remediation, restoration and compensation.

    The bodies insisted on the immediate setting up of a $100 billion Niger Delta Restoration Fund for the clean-up of the Niger Delta impacted by oil activities.

  • Shell promises $5m jetty for pipe mill

    Shell Petroleum Development Company (SPDC) will build a jetty worth $5 million in support of the pilot pipe mill being promoted by the Nigerian Content Development and Monitoring Board (NCDMB).

    The Executive Secretary of NCDMB, Mr Ernest Nwapa, stated this when he received members of the Senate Committee on Petroleum Resources (Upstream) who went on oversight visit to the Board in Yenagoa, Bayelsa State.

    The jetty would be used for shipping raw materials and finished products from the 250 metric tonne pipe mill being located in the same precincts with the Shell Gbaran Ubie’s gas plant and the National Integrated Power Plants (NIPPs).

    He said the pipe mill would create over 1,000 direct jobs and several thousand indirect jobs for Nigerians as well as provide an invaluable platform for training Nigerians. He said the mill will also supply pipes for the over 2,000 kilometres of new gas pipelines to be laid in the gas master plan, replacement of aged existing pipes, as well as supply pipes for the numerous fertiliser, LPG and gas-to-power projects planned for the next few years.

    Nwapa reassured the Senate Committee, led by its Chairman, Senator Emmanuel Paulker, that the Board was focusing on developing local capacity which will ensure that industry jobs are executed in-country and employment is created for qualified Nigerians.

    He stressed that the existence of local capacity and manufacturing of components of industry equipment was a sure way to grow the Nigerian Content, generate employment and reduce dependence on importation for industry operations.

    Other initiatives of the Board, according to him, includes the on-going plan by the Board to establish the Nigeria Oil and Gas Industrial Parks in proximity to the oil fields to spur Small and Medium Enterprises (SMEs) to grow their capability in manufacturing through partnerships with multi-nationals and original equipmentmanufacturers (OEMs).

    “We intend to use the industrial park model to establish physical infrastructure and create enabling environment for low-cost manufacturing of equipment components, with a view to maximise utilisation of Nigerian made goods in the oil and gas industry; and to integrate community entrepreneurs into oil and gas value chain,” he said.

    In his remarks, Paulker reminded the Board that it has an important role to play in the development of the economy, especially in increasing the participation of Nigerians in the oil and gas industry and developing indigenous capacity.

  • SPDC frets over rising crude oil theft spills

    SPDC frets over rising crude oil theft spills

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) operated Joint Venture recorded eight crude oil theft and sabotage related spill incidents in Adibawa field in Eastern Niger Delta between January and June this year.

    The Corporate Media Relations Manager, Tony Okonedo, in a statement, said nearly 500 barrels of oil were spilled into the environment from these incidents. The Adibawa field straddles Biseni, Edagberi and Ikarama communities, and majority of the spills were caused when unknown persons inflicted extensive hacksaw cuts on pipelines. A joint team comprising regulators, government ministries, SPDC and communities investigated each of the spills and confirmed their findings in signed-off reports, he said.

     

  • Shell probes Trans Niger pipeline fire

    A joint team has investigated the cause of the June 19 explosion and fire on the 28″ Trans Niger Pipeline (TNP), which led to the facility’s shutdown by the Shell Petroleum Development Company (SPDC). The shutdown resulted in the deferment of 150,000 barrels per day.

    According to Shell, the team comprised regulators, including the Ministry of Environment, community members, SPDC and independent observers.

    Shell said: “The TNP had previously been targeted by crude thieves and shut down several times to take out crude theft points. To ensure that the facility continued to meet operating standards, SPDC deployed a team to Bodo West on May 22, 2013 to remove and repair crude oil theft connections on both the 24 and 28-inch sections of the TNP.

    “The repair team’s presence and mandate to remove crude theft points were made known to the community, which granted them access. No sectional replacement work was underway. One operations support barge, one environmental barge and two tug boats were the only authorised vessels at the Bodo West worksite. Environmental barges are typically used to store and transport recovered oil.

    The Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Mutiu Sunmonu, said: “Unfortunately, crude thieves continued to operate at night even as the repair team worked to remove illegal connections during the day, such that, on the day of the incident on June 19, two unauthorised Cotonou boats were reportedly present at the time of the initial explosion and fire. The established operations routine at any repair site comprises a team of SPDC staff, contractors and regulators who only work during daylight hours and leave the site at the end of each day. This means that no SPDC authorised people could have been on the ground at the time of the incident.

    “Having shutdown and isolated the pipeline, but with oil continuing to flow from the pipeline under gravity to the low point on the TNP, the only other practicable option in the circumstance was to allow the fire burn out naturally. To prematurely extinguish the fire without functioning containment equipment on site could have resulted in further environmental damage. We continued to monitor the fire while also mobilising replacement oil spill containment and response equipment to site. With the fire out, a residual leak was observed at the site contained within the crater caused by the initial incident. We are currently mobilising crews to evacuate the pit, access the leak point prior to the joint investigation visit and complete repair.”

    On the reported arrest of some employees of SPDC’s contractors and sub-contractors on suspicion of involvement in crude theft activities, Mr. Sunmonu said: “We appeal that the arrested suspects be treated in line with the principle of presumption of innocence until proven guilty, and hope for a speedy and transparent dispensation of justice for anyone found to have violated the laws of the land.

    “We are committed to operating transparently, which is why we have invited the National Coalition on Gas Flaring and Oil Spill in the Niger Delta (NACGOND) to join the investigating team as independent observers.

    “We will continue to run our operations as safely as is possible and in accordance with both industry regulations and Nigerian laws.”