Amidst lingering stand-off between a multinational oil company, Shell Petroleum Development Company (SPDC), and some host communities in Delta and Bayelsa states over payment of surface rents for its operations, Nigeria may lose over 200, 000 barrels per day in crude oil production output.
Reports indicated that already, youths of Ojobo Federated Communities in Burutu Local Government Area of Delta State, and Ogbotobo in Ekeremor Local Government Area of Bayelsa State, are gathering others from the neighbouring communities to shutdown Benisede, Ogbotobo, Opukusu and Tunu flow stations operated by Shell.
It was learnt that the four flow stations produce an average of 200, 000 barrels of crude oil per day, and a closure of the facilities will significantly diminish the recent surge of about 7.7 percent recorded in Nigeria’s crude oil production in December 2023 which rose to1.4 million barrels per day, with its attendant effect on the 2024 budget oil production output benchmark of 1.78 million barrels per day.
Youths of the aggrieved communities said an intensive mobilisation was ongoing to shutdown the flow stations until the Federal Government took necessary measures towards compelling Shell to pay surface rents to the affected communities.
In a statement yesterday jointly signed by Atimapre Tesufa, the president of Ojobo Federated Communities, Julius Pabor, and Laye Kalu, both coordinators, the youths said they were taking their destiny in their hands to avoid a repeat of the fate that befell Oloibiri, a community in Bayelsa State where oil was first discovered in Nigeria.
The statement read: “We will close down the flow stations because Shell has taken us for granted for too long, since 1972. We are challenging Shell to point to a single development or anything they had done for the people of Ojobo, Ogbotobo or neighboring communities in the 52 years of its operations in our land that has destroyed all our alternative sources of our livelihood.
“For all portions of Ojobo Federated Communities land measuring approximately 1, 500 hectares and 579.28 hectares at Beniseide and Oil Fields in which Shell operates her OML36 and OML oil wells among other facilities, Shell had only paid nine shillings, less than one dollar at the time it commenced operations and now claimed it is reasonable and adequate for the people.
“What Shell promised our fathers 52 years ago are the same things we are still pleading with Shell to provide for the communities until today. The laws of Nigeria concerning land rent must be respected. Otherwise, our flow stations henceforth won’t form part of Shell’s assets. Enough is enough. The SPDC’s deployment of double standards and taking advantage of the locals must stop now. The SPDC has the same entry documents to most of the communities in Delta and Bayelsa, paying some communities while others are shortchanged by paying little, and in the case of Ojobo, it’s nothing.”
The aggrieved youths recalled several futile efforts made by the communities to ensure that Shell paid the statutory surface rents, citing correspondences to the oil company by their legal representatives which yielded no positive result.
An Effurun, Delta State-based law firm, Roland A. Akpe and Co, had in October 23, 2023, written a letter on behalf of the communities to the managing director of SPDC, requesting “payment of surface rents for 50 years for each of the Beniseide and Osuopele oil field to the Ojobo Federated Communities for loss of use of the expanses of land by way of loss of fishing rights, farming rights, hunting rights, etc.”
However, in a letter dated November 17, 2023, referenced, SPDC-2023-11-00000069, Shell said it had made a one-time all-inclusive compensation for the loss of use of surface and other rights for the various parcels of land in question.
“Consequent upon the said payment, the land ceased to attract any further compensation from SPDC.
“The SPDC, therefore, does not owe your client or any person any form of compensation or rent in respect of the said parcels of land and cannot accede to your demand,” the letter signed by Trevor Akpomughe, Corporate Lands Manager, Corporate Relations Nigeria, SPDC, read.
Meanwhile, ahead of the shutdown of the four flow stations, the aggrieved communities have petitioned the Federal Government, saying SPDC’s stance was capable of igniting dire consequences.
A letter addressed to the Minister of Petroleum Resources (Oil) dated January 15, 2024, which was written on behalf of the communities by their counsel, Roland A. Ekpe & Co, read in part: “The SPDC’s stance is totally inimical to the attainment of President Bola Tinubu’s objective of increasing oil production to 2.6million barrels per day. The SPDC’s conduct is capable of provoking unwarranted disruptions of production in and around our client’s Federated Communities housing the SPDC’s installations and properties.
“There is a limit to which our clients can rein in the youths, hence, this passionate plea of our clients to the Hon. Minister of Petroleum Resources (Oil)…If the youths should carry out their threats, our clients cannot be held responsible for their actions.”