Tony John, Port Harcourt
Rivers State Governor, Nyesom Wike, has directed all parties in the dispute relating to Oil Mining License (OML) 25 to within seven days, resolve all contending issues and reopen the oil facility.
Governor Wike also directed the Secretary to the Rivers State Government, Dr. Tammy Danagogo, to convene a meeting of all key stakeholders in the presence of Security Service Commanders, for the host communities to outline their grievances to Shell Petroleum Development Company (SPDC) and for the company to address such development concerns.
Governor Wike spoke yesterday, at a meeting with the management of the SPDC, Belemaoil Limited, host community leaders and security service commanders at the Government House, Port Harcourt.
Traditional rulers, elected leaders, youth leaders and chairmen of community development committees (CDC), from Kula, Belema, Offoin-Ama, Opu-Kula and Ibiame of Akuku-Toru Local Government Area, attended the meeting.
Addressing the meeting, Governor Wike said he called the meeting because the closure of OML 25 was negatively affecting federal, state and local government funds.
Governor Wike said he has no hand in the drilling of oil or the issuance of licenses, but he is committed to peace and security in communities for the development of the state.
Speaking at the meeting, Managing Director of Shell Petroleum Development Company, SPDC, Mr. Osagie Okunbor, said that the company operates the OML 25, with the operating license renewed by the federal government for another 20 years.
He said: “We operated in a cordial environment until 10th August, 2017, when some community people entered the facility. The information that was given to us was that they were unhappy over issues of social amenities and employment. We listened and we were keen to address these issues.
“But, at some point, another element entered the equation, which was that we should relinquish and hand over to Belema Oil, that is from the community”. The Managing Director of Shell said that the company has since paid all necessary fees for the renewed OML 25 in October, 2018.
He welcome the intervention of the state governor, noting that Shell was prepared to address the social amenities, empowerment and other issues raised by the host communities.
In his remarks at the meeting, acting Managing Director of Belema Oil, Mr Mufa Welch, denied the involvement of the company in the closure of OML 25, but stated that the host communities prefer Belema Oil to take over.
He, however, admitted that SPDC are the licenced operators of OML 25, describing Belema Oil as stakeholders with over seven percent share.
Chairman of Akuku-Toru Local Government Area, Mr Rowland Sekibo, said Belema Oil management created the impression that they bought the OML 25 from Shell Petroleum Development Company, but the company refused to transfer the operational right.
He said that a meeting with stakeholders at NNPC Abuja, it was discovered that the license of OML 25 was still under the ownership of Shell.
He said, though the owner of Belema Oil is from the area, it was illegal to shutdown the oil production facility in order to arm-twist the system to sell it to Belema Oil.
He further said such action would negatively affect other Rivers businessmen with oil operating licenses in other states.