Reps summon 14 CEOs of International Oil Companies

The House of Representatives on Tuesday summoned Managing Directors/Chief Executive Officers of 14 major oil companies operating in Nigeria in the bid to avert breakdown of law and order in the oil-producing communities in Delta, Abia, Imo, Bayelsa, Rivers among others.

Chairman, House Committee on Treaties, Protocols and Agreements, Hon. Nicholas Ossai issued the directive at the investigative hearing into various petitions initiated by the oil companies held at the instance of Joint Committee on Treaties, Protocols & Agreements and Petroleum Resources (Upstream).

They are Managing Directors of South Atlantic Petroleum Nigeria Limited, Shoreline Petroleum Limited, Conoil Nigeria Limited and Energy Nigeria Limited, Niger Delta Company, MD Western, Orion Oil, Lee Engineering Limited, Aiteo, NSPDC, New Cross Oil, Sterling Oil Global Limited, Ran Ocean Oil, Eroton and Seplat Oil.

While frowning at the failure of the concerned authorities to honour the invitations sent by the Committee, Hon. Ossai observed that: “They have disrespected the House of Representatives by not appearing even last week and this week. And this Committee will not fail to deal with the issue squarely.”

The petitioners led by traditional rulers drawn from the affected communities solicited for the Committee’s intervention on the alleged flagrant disregard for the Memorandum of Understanding MOUs signed by the IOCS and host communities.More in Home

The community leaders also accused that both past and present Managing Directors and top managers of the major IOCs including Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC), Chevron Nigeria Limited CNL and Exxon-Mobil Nigeria Limited and other IOCs of fraud in the implementation of MoUs, adding that they had shown disregard for honouring agreements.

At the hearing, representatives of Okiama and Fierebagha communities of Bayelsa State, Mr Ogiri Samuel, and those of Ohaji and Ugwuta communities of Imo State, Mr Isidore Nwabali, said that no form of community development project including roads, potable water and healthcare services had been implemented by these IOCs in their areas.

However, representative and General Manager, Public Affairs of the Nigeria Ship Oil Company NAOC, Callista Azuogu, has refuted the allegations by the oil host communities saying that it had entered into and implemented 115 MOUs in those areas.

Speaking on behalf of 12 communities known as Etche 2 cluster in Rivers State, Mr Okere, alleged that SPDC has been operating in the community since the 1950s with no projects on the ground for the benefits of the people.

He said that the company imposed the Global Memorandum of Understanding, GMoU it signed with them, lamenting that they defaulted in many areas of its provisions.

“They prepared and lord it on the community. If you refuse, they rather shut down the clusters. We need to apply to get this document.

“For a cluster of 9 with 69 oil communities, N110 million is shared amongst the communities, when you put all these, you know what is accruable is minimal,” he said.

On his part, Hon. Isdor Nwabagbara who spoke on behalf of Ohaji Egbema and Uguta in Imo State argued that SPDC refused to sign an MoU with them.

“I am shocked to hear that there is anything called MoU, since Shell came in 1973, no single project has done by Shell in Ohaji,” he said.

While expressing concern over the development, Hon. Ossai stressed the need for all the oil companies operating in the region to engage the communities with the view to engender peace in the area.

While speaking on the plight of the people of Okioma community from Southern Ijaw Local Government, Pastor Igiri Samuel accused Agip of failing developmental project despite signing an agreement with the community.

He said: “The last MoU was signed in 2009. No other projects. Only intervention projects, an extension of light. In term of employment, it is zero. From 1989 till date, nobody has been employed.”

On his part, Chief Isaiah Young Dede from Nembe Kingdom of Bayelsa State also decried the action of AGIP.

“There are 123 oil wells located in our area. Agip only signed one document and has not been implemented it,” he said.

Speaking earlier, Agip’s General Manager, Public Affairs explained that the company enjoyed a cordial relationship with its host communities.

He said: “We have 300 host communities both transit and host. They have access to power: in Imo Bayelsa, Delta.

“We supply power from our flow stations free of charge to the communities. They have access to water. We ensure that we live together. Before now, we had no fence because we believe that communities cannot attack us.

“On the areas of employment and empowerment, most of our projects are done by the communities, most of our employees are from the Niger Delta,” he informed the Committee.

While giving the position of Chevron, the company represented the General Manager, Policy, Government/Public Affairs, Mr Esimaje Brikin stated that they involved the communities through the GMoU to determine their needs, the communities said there were issues of unemployment and funding.

He, however, noted that the oil company had an opportunity for an internship but did not extend it to host communities, adding that there were also denied supply even tissue papers.

While reacting to the position of Exxon Mobil, Elder Jones Mkpa, who spoke on behalf of Okorutit village in Ibeno Local Government Area of Akwa Ibom threatened that: “Our youths will block the road and the organization will call in soldiers. There are no community projects and there is agitation every time by the youths. No peace in the community.”

However, there was a mild protest by the host community during the presentation of the Managing Director of Total Exploration Oil Company, Mr Energia Leslie, who explained that the Company always carried their host communities along in the implementation of its agreement.

In a swift reaction to his presentation, representatives of Eleogu community alleged that the oil company refused to implement the proposed scholarship scheme stipulated in the agreement.

While ruling, Hon. Ossai directed management team of 14 oil companies to appear before the Committee next week Tuesday to give details of the agreement they have with their host communities.

source: trubuneonline

NIPCO MD explains why CNG investment in Nigeria is low

Inappropriate pricing, paucity of infrastructure and non-existence of a regulating agency are partly responsible for investment deficit challenging the Nigeria’s Compressed Natural Gas (CNG) industry.

Sanjay Teotia, Managing Director, NIPCO Gas limited, who declared this during a media tour of some of NIPCO’s facilities in parts of Benin City, the Edo State capital, noted that the development of CNG, which is also being used to fuel vehicles for profitability and environmental friendliness is also being hampered by lack of accessibility to land.

He expressed regret that with the enormous gas reserves in the country, the potentials in the sector have not being fully utilised to the benefit of Nigerians.

Nigeria, Teotia said, would continue to miss the gains of the deposit of such gas reserves if the challenges were not resolved.

He, however, commended the Federal Government’s National Gas Expansion Programme Committee, which was recently inaugurated by the Minister of State for Petroleum Resources, Chief Timpre Silva, and Chaired by Engineer Mohammed Ibrahim to steer the gas sector for optimal performance.

The setting up of the committee, the Nipco Gas Ltd MD said, was very apt and a clear indication of the genuine resolve of the present administration resolve to tackle challenges that bedevil the sector and to pave the way for better utilisation of the nation’s massive gas resources in the overall interest of stakeholders .

According to him, the company, which got its license to operate in 2007, have seven gas stations in Benin alone, with other stations in Lagos and Delta States adding that NIPCO has laid 51km gas pipeline in Benin to distribute CNG to the seven stations in the city.

He said: “Currently, we have converted no fewer than 5000 vehicles from PMS/Diesel to CNG, and now distribute the product to few eatery in the city. We have the capacity to dispense 500 Standard Cubic Meter (SCM) and also dispense to no fewer than 20,000 vehicles here.

“The sector has the potential to provide numerous job opportunities and create a lot of economy potentials for the country once the government provides the necessary frame work to enhance its growth.

“For once, these must be appropriate pricing of gas to allow for affordability and the issue of land must be addressed as well. States government can encourage investment in the sector by giving land at a reduced rate,” he said.

Some of the motorist who spoke with newsmen during the tour expressed delight on the over 40% saving they make using gas as auto fuel compared to using white petrol

They, however, appealed to the company to replicate the establishment of more CNG across the city and neighbouring states to improve access to the product.

Source: Independent via EMR

04-03-2020

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