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Tag: SPDC

  • JTF arrests eight for SPDC pipeline fire

    JTF arrests eight for SPDC pipeline fire

    The Joint Task Force (JTF), ‘Operation Pulo Shield’, has arrested eight suspects in connection with last Wednesday’s fire at the Trans Niger Pipeline of Shell Petroleum Development Company (SPDC) in Gokana Local Government Area of Rivers State.

    The fire has led to the shutdown of about 150,000 barrels of crude oil per day, following the closure of the 24″ and 28″ TNP.

    It was gathered that the Federal Government and the Joint Venture partners have lost about $75 million (N1.18 billion) as at yesterday evening.

    SPDC blamed the incident on activities of illegal bunkering rings, although environmentalists said Shell’s contractors are using the fire to incinerate crude oil spill.

    JTF Media Coordinator Lt-Col Onyema Nwachukwu said the suspects were arrested on the scene of the fire by operatives of 142 Battalion attached to the JTF’s Sector 2.

    He said: “The troops who sighted the fire at about 1.30am on Wednesday mobilised to the scene where they found the suspects in two tug boats.

    “During the interrogation, they claimed to be employees of Steve Integrated Technical Service and Sege Marine hired by Shell to fix broken pipelines in Bodo.”

    The JTF spokesperson added that the suspects were facing preliminary interrogations at the Sector 2 headquarters in Port Harcourt before they would be handed over to prosecuting agencies.

    Independent investigations showed that the suspects’ claims that they were hired to clean up crude oil spill in the area have brought a new dimension to the issue.

    It was gathered that environmental activists are compiling documents to back up their claims.

    “If it is true that the suspects are staff of companies employed for remediation of the spill site, it merely confirms what we have suspected all the while that there is more to it. We are already asking questions: ‘are they paid to incinerate the crude in order to wipe away traces of spill?’” a source said.

    Crude oil spills in the Ogoni area of Rivers State is a major cause of tension between the management of Shell and the host communities.

    Shell’s Managing Director Mutiu Sunmonu blamed the fire on crude oil spill.

    He said: “This is another sad reminder of the tragic consequences of crude oil theft. Unknown persons continued to reconnect illegal bunkering hoses at Bodo West even as our pipeline teams were removing crude theft points.

    “It was, therefore, not surprising that the fire occurred from the continuing illegal bunkering even as a previous crude oil theft point was being repaired by the team.

    “So far, there is practically no spill from this event as the oil is burning off. What is visible in the water is from an earlier oil spill which was also as a result of oil theft. The explosion also triggered a fire on a nearby barge,” he stated.

  • Oil theft in Niger Delta abating, says Shell chief

    Oil theft in the Niger Delta region is abating, the Managing Director of Shell Petroleum Development Company Limited (SPDC) and Country Chair of Shell Companies Nigeria, Mutiu Sunmonu, has said.

    Mutiu, who said this to reporters during the Offshore Technology conference, however, didn’t give figures or percentage level of decrease in the volume of crude being stolen or saved. The Shell chief said he was unable to determine the amount of stolen crude because of the ongoing repairs of the Nembe Creek Trunk Line (NCTL).

    He confirmed that the security agents are assisting Shell in the provision of security the company and staff.

    He said: “If you have been following my statements in the media, certainly oil theft was on the increase a few months ago, but I can also tell you that I have also seen increased attention by the government security agencies, the joint task force (JTF), and the Navy. They are really moving in to stem the tide. I wouldn’t say I’m happy but at least I can see improvement in responsiveness of government security agencies to the menace.

    “I think the joint security team is getting more effective. We are having almost a daily discussion with them and they do give us good report on their efforts so far. I have been in the discussions with the chief of naval staff and chief of army staff and they have all given their commitment to work with the oil companies to stem the tide and we are seeing progress, but like I tell you, this is a very big operation. So, I’m not expecting solution overnight, but what I’m expecting is that the government’s security agencies will really keep at what they are doing now. If they keep at it for a while, I’m sure we will begin to see a significant reduction.

    “Unless you are in the creek, you may not be able to appreciate what the government’s security agencies are doing, because there is hardly any day that they are not foiling attempts, arresting vessels and destroying illegal refineries.

    “For instance, in a place such as Bodo, in a week or two weeks ago, they foiled over 30 different attempts by crude oil thieves wanting to add additional tapping points to our line. So, we see all these successes everyday, but I will be able to say the number of barrels reduction in stolen crude when our Nembe Creek Trunk Line is up, but right now that line has been down and we are removing the bunkering points. Once the bunkering points are removed, and the line is up and running, we will then be in a position to judge how much oil we are still losing, but right now whatever figure I give you will be artificial.”

    Sunmonu also said the increasing declaration of force majeure by Shell may continue until the company substantially recovers from frequent attacks of its facilities. “You need to see this kind of force majeure for some time until we fully recover because even with all the efforts that the government’s security agencies are putting in, there are some steps that we need to take together jointly in order to make sure that the effect are not continuing.

    “The force majeure you have seen us declare is for us to remove some of the very bad bunkering points that have been put on the line because if don’t remove those bunkering points even if you have the entire Nigerian Army in the creek, you will still continue to see crude being stolen. So, our initial attempt is to remove those bunkering points to complement what the security agencies are doing.

    There has been a recent upsurge in crude theft on the NCTL, resulting in frequent production shutdown and massive oil spills blighting the environment of the host communities.

    Shell said between February 22 and 25, 12 flow stations were shut by safety systems three times due to oil theft. The oils giant loses about 80,000 barrels of oil daily to oil theft.

  • Communities to picket Shell at expiration of ultimatum

    The people of the host communities of the Estuary of Amatu (EA) field of the Shell Petroleum Development Company of Nigeria Limited (SPDC) have given the oil firm a seven-day ultimatum to address all the outstanding issues or risk full picket.

    The EA field, in Ekeremor and Southern Ijaw Local Government Areas of Bayelsa State, produces 120,000 barrels of crude oil per day, with the people complaining of marginalisation and lack of empowerment, while suffering in the midst of plenty.

    While addressing a news conference yesterday in Port Harcourt, under the umbrella of EA Field 12 Host Communities Traditional Rulers Assembly and EA 12 Host Communities’ Forum, the aggrieved people said there was no going back on their decision.

    At the news conference were the Amananawei of Letugbene, King Stephen Tume, his counterpart of Orobiri, King Ajuju Jacob, with both communities in Ekeremor LGA, the Coordinator, EA Chairmen Forum, Amamogiran Francis and an opinion leader, Simon Franklin.

    The group vowed to picket the EA offshore field on Monday, stressing that it was a collective decision of the chiefs, elders, women and youths of the 12 host communities.

    In the five-page text which read in part, the aggrieved people said “We successfully landed the advance contingent of about 150 natives of our communities in the EA offshore platform around 12 noon on Monday, May 6, 2013 and stayed in the facility peacefully for as long as we had so planned, as an indicative warning picket and voluntarily withdrew from the facility.

    “This is the last show of our determination to risk the grave consequences the full picket action shall behold for both the company and our people, if SPDC does not shown honest commitment to dialogue to resolve all outstanding issues in the next seven days, as our next occupation will be indefinite and to ensure total shut down of the facility.”

  • Reps bicker over N59tr oil deal

    Reps bicker over N59tr oil deal

    Bickering over which Committee will investigate the alleged N59 trillion oil deal involving the Minister of Petroleum Resources, Diezani Alison-Madueke, the Shell Petroleum Development Company (SPDC) and others, nearly truncated the House of Representatives’decision to continue with the probe.

    The intervention of the presiding officer, Deputy Speaker Emeka Ihedioha, who stamped his authority saved the day after Robinson Uwak (PDP, Akwa Ibom) had raised objection over the resolution of the motion that the investigation be undertaken by the House Committee on Petroleum Resources (Upstream).

    Victor Ogene (APGA, Anambra), who moved the motion, had urged the House to constitute an Ad-hoc Committee to investigate the alleged shady deal involving the farm-out or allocation of Oil Mining Leases (OMLs) 4, 26, 30, 34, 38, 41 and 42; and to report to the House in four weeks.

    But before the conclusion of his argument, Uwak raised a point of order, citing a section of the House rule that empowers House Committee on Petroleum Resources (Upstream) to investigate such matters.

    The presiding officer noted Uwak’s point, but when he was about to rule in the motion, Uwak protested for the second time that his observation has not been ruled on.

    Another member immediately raised a point of order citing another House rule that forbids members making comments more than once on the same subject.

    When it became obvious that the proceeding might be jeopardised, the Deputy Speaker exercised his authority and ruled Uwak out of order after, which the majority of the lawmakers voted in support of the motion.

    In his argument, Ogene observed that representatives of oil producing ethnic nationalities in Delta State protested the alleged fraudulent allocations of some marginal oil fields at the premises of the National Assembly on Thursday, April 25, 2013.

    He said: “The protesters complained of the secret and arbitrary farm-out of the Oil Mining Leases (OMLs) 4, 26, 30, 34, 38, 41 and 42 to both Atlantic Energy Drilling Concept Limited and Septa Energy Limited, without regard to the law and due process.

    “We are, however, aware that the Minister of Petroleum Resources, Shell Petroleum Development Company (SPDC) Limited, compromised officials of the Ministry of Petroleum Resources and the Nigerian Petroleum Development (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), which were allegedly accused of impropriety, abuse of due process and fraud in the transactions leading to the farm out of the said oil blocks.

    “In addition, it was also alleged that a colossal sum of $380 billion or about N59 trillion and $15.72 trillion worth of gas asset were at stake in the shady deal.

    “It was alleged that there was a deliberate exclusion of indigenous operators from exercising their rights of first consideration or refusal in the deal in violation of sections 3(1), (2) and 5 of the Nigerian Oil and Gas Industry Content Act (No 2), 2010, which action obviated the need for an open and competitive bidding in favour of Atlantic Energy Drilling Concept Limited, which neither tendered nor bidded for the blocks allocated to it.

  • Ogun, Shell collaborate on maternal child health

    The Ogun State government and Shell Petroleum Development Company (SPDC) are collaborating to reduce maternal mortality and child deaths through an initiative called, ‘Araya’ project.

    The Commissioner for Health, Dr. Olaokun Soyinka said the focus of the initative for now is to improve maternal and child health, to reduce the prevalence of maternal mortality and child death rate.

    He spoke at a stakeholder’s meeting on the ‘Araya’ project with officials of benefitting local governments, executive of communities and representatives of Shell Petroleum Development Company (SPDC) in Abeokuta.

    ‘Araya’ is an initiative of the state government on effective primary health care services being supported by SDPC. Ownership and control of the project is expected to be transformed to members of benefitting communities for its sustenance.

    The Commissioner said the project is about giving power to the people for better health care services to fast track the attainment of Millemum Development Goals (MDGs) and strengthening health system for sustainable health care development”.

    Dr. Soyinka said the pilot scheme of the project would cover six health facilities in Ado/odo-Ota, Sagamu, Yewa-North and Obafemi/Owode local government areas.

    Shell’s Clinical Health Adviser on Community Health of the Dr. Olayinka Mosuro said partnership was part of its Corporate Social Responsibilities (CRS) and a passion to boost the health status of the people, especially women and children.

    Dr Mosuro said: “There is need to provide high impact intervention in the health system of Ogun State to make its efficient health care delivery a reality by strengthening it from the primary level.”

  • PIB, uncertainties delay Shell’s deepwater investment – Sunmonu

    PIB, uncertainties delay Shell’s deepwater investment – Sunmonu

    The delay in the passage of the Petroleum Industry Bill (PIB) and other uncertainties are holding back Shell Petroleum Development Company’s (SPDC) planned investment of about 30 billion dollars in two offshore deep water projects in Nigeria.

    The News Agency of Nigeria reports that the Managing Director of the SPDC, Mr. Mutiu Sunmonu, made the announcement on Wednesday in Abuja at the ongoing 13th Nigeria Oil and Gas (NOG-13) Conference.

    Sunmonu, who did not mention the projects when he spoke on “Strategies to Move Nigeria’s Oil and Gas Sector Forward”, noted that “SPDC will rather wait for stable and right conditions before it will commit finances to the projects.”

    He said it was regrettable that the country was losing huge revenues and investments, due to oil theft and bunkering because of the uncertainties and the delay in the passage of the PIB.

    He added that: “perhaps Nigeria’s oil and gas industry is slipping into the era when it took Mexico about 50 years to recover from such challenges in its oil industry.

    “I recall the Mexican story where it took the country 50 years to recover from the loss in its oil production and my worry is that we are slipping towards that.

    “If we produce a modest allowance of three million barrels per day and just assume a modest decline rate of 10 per cent that leaves us with 2.7 million barrels per day.

    “What this means is that for us to maintain that level of three million barrels per day, we must produce additional 300,000 barrels per day and that means that we need at least two deep water projects every year.

    “If you look at our onshore today, it is nowhere near the capacity we want it to be.

    “Most of what we have today come from our deep offshore operations but there are a lot more we can get out of onshore but that is where we have serious financing challenges.”

  • Shell awards contracts to Nigerian firms

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) has awarded maturation studies services contracts to four Nigerian firms, which would help them, build their capacity in that key aspect of the oil and gas industry.

    These pioneer contracts, according to the Corporate Media Relations Manager, Tony Okonedo, would enable the four companies – Laser Engineering and Consultancy Nigeria Limited, Ankorpointe Nigeria Limited, Integrated Data Services Limited, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and Nubian Nigeria Limited to conduct front-end subsurface maturation studies in SPDC’s onshore eastern operations for over two-years.

    Maturation studies involve evaluation of subsurface data to build a picture of the hydrocarbon reservoirs and are vital to determining major oil and gas development plans.

    In the past, there was a tendency to conduct some maturation studies overseas as a way of meeting planned targets. However, in line with Nigerian Content Development objectives, SPDC is working to domesticate these studies, thereby empowering Nigerian companies to acquire the necessary expertise while also significantly providing jobs in-country and reducing costs.

    SPDC’s Manager, Geosolutions, Nedo Osayande, representing General Manager, Development, Bayo Ojulari said at the contract signing ceremony in Port Harcourt: “It has been a long journey; we liaised with the contractors on the conduct of subsurface studies, understanding their challenges and working to resolve them to a point where they can now render the required services. This is a top moment for Nigerian contractors in the oil and gas sector, and the four pioneers must seize this opportunity and prove that the investment in time and resources has been worthwhile.”

    The managing directors of the four companies signed on behalf their organisations, thanking SPDC for the opportunity and promising to execute the contracts efficiently.

    In 2011, SPDC also inspired in-country manufacture of carbon steel pipes when it awarded a $37 million contract to SCC Nigeria Limited, a move that led to the establishment of the first line pipe manufacturing facility in Nigeria.

    Meanwhile, Shell companies in Nigeria have been given an award as the “Most Local Content Friendly International Oil Company” at the 10th anniversary celebration of the Nigerian Chamber of Shipping in Lagos. The award is in recognition of their “constant drive to source maritime materials and equipment within Nigeria, and giving priority consideration to Nigerian companies in evaluation of bids for maritime contracts.”

    General Manager, Nigerian Content, SPDC, Igo Weli, said: “We are grateful for the award which is further confirmation of the leadership role of Shell companies in Nigeria in NCD development.”

    Shell companies in Nigeria have won three awards this year in recognition of their local content performance.

  • Shell supports flood victims with $1m

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) said it has donated $1 million to support flood displaced persons in 24 states.

    The company’s Corporate Media Relations Manager, Tony Okonedo, said the cash was part of the oil giant’s support programme to the International Federation of the Red Cross and Red Crescent, in conjunction with the Nigerian Red Cross Society, towards effective post flood disaster relief operations in the country.

    The support will be enhanced by funds collected through employee donation programme, in which the company will match contributions by its staff.

    The SPDC’s Managing Director and Country Chair for Shell Companies in Nigeria, Mutiu Sunmonu, said: “We are deeply touched by the stories and images of the hardship the floods have brought upon our brothers and sisters in many parts of the country and our thoughts and prayers are with all affected persons at this most difficult time. I’m also happy that staff are voluntarily contributing to the employee donation programme we launched for the flood victims.”

    The planned support operations with the Red Cross, according to the company, would cover areas including relief management, camp coordination and management, water, sanitation and hygiene promotion, healthcare, especially maternal and child health, emergency shelter, livelihood support and early recovery, family reunification, psychosocial support and risk reduction. These will form part of the immediate and medium term activities to be embarked upon in order to ease the hardship suffered by the flood affected persons and manage their return to normal life, it added.

    Commenting on the support from SPDC, Secretary-General of the Nigerian Red Cross, Bello Hamman Diram said: “The Nigerian Red Cross Society welcomes the response and cooperation from Shell to our plan of action for the 2012 floods operation. It will certainly go a long way towards helping us meet our obligations to affected persons, volunteers and our staff, as well as to respond quickly and adequately to this emergency. We enjoin other well meaning individuals and corporate bodies to do likewise.”

    Prior to the Red Cross support initiative, SPDC had complemented the work of the authorities by providing helicopter flights, geomatics expertise, satellite imagery and maps of affected areas to aid proper relief operations planning and execution, it added.