SPDC welcomes UNEP report and responds to recommendations

Shell Press Release

10 August 2011

SPDC welcomes UNEP report and responds to recommendations 

SPDC welcomes the UNEP report to the Nigerian government 

The report includes wide ranging recommendations which will require many different sections of Nigerian society working together including the federal and state governments, the oil industry and communities. SPDC is studying these recommendations carefully and is committed to playing its part.

SPDC Managing Director Mutiu Sunmonu said:

“This report makes a valuable contribution towards improving understanding of the issue of oil spills and the environment in Ogoniland and we pledge to work with the government, UNEP and others on the next steps.   I agree completely with the UNEP report that we also need the authorities to take concerted action to curb the illegal activities, in particular oil theft and refining, that are exacerbating so many of the environmental and social issues.  Unless these activities are brought to a halt, any action we take will be of limited impact.”

While SPDC acknowledges that spills are a problem elsewhere in the Niger Delta, Ogoniland poses unique challenges and is not typical of oil and gas operations in Nigeria.  SPDC has not produced oil and gas in Ogoniland since 1993 after withdrawing staff and stopping production in the face of violence and attacks on staff. Since then access to maintain its dormant facilities and respond to oil spills – mainly caused by sabotage and theft -  has been difficult.

Importantly, the report identifies eight emergency measures. SPDC will support the government, UNEP and others in implementing these measures as soon as possible.

The report also makes three recommendations that relate specifically to SPDC. SPDC supports these recommendations and makes the following additional comments:

1.SPDC is already reviewing its remediation practices across the Niger Delta and looking to involve independent international experts in assessing how it can improve. The company is also examining ways to bring third party verification to the oil spill investigation process, bringing further transparency to the assessment of causes and volumes.

2.SPDC is committed to developing an asset integrity management plan for Ogoniland which will require support from communities and from the government given the unique challenges regarding access since 1993. As an illustration of what can be achieved when access is granted, SPDC has modified more than 100 non-producing wells in the area to make them more difficult to tamper with. This was achieved with the cooperation of both local and federal governments and the Ogoni communities.

 

3.SPDC will play its part in working with the regulators and the industry on remedial intervention and target values.