Oil Firms Still The News

Leadership

19 December 2011

Oil Firms Still The News

AKANIMO SAMSON

In the South-South axis of the Niger Delta, transnational oil and gas corporations operating in the geo-political zone, are virtually at the centre of issues that gave rise to conflict in the communities. Last week in Rivers State, they came under the hammer of Governor Chibuike Amaechi. The governor does not appeared to be tired of hitting at them over the protracted socio-economic and environmental crises in the volatile oil region.

Governor Amaechi says the oil and gas corporations are largely responsible for the perennial uprisings in the area. During his re-election campaigns, he had claimed that the oil and gas firms’ lack of interest in investing in the region, was affecting the economic growth of the region and as such, stokes the fire of the people in the oil-bearing communities.

The Chairman of the Governors’ Forum is still at the oil majors as he did while speaking at a one-day meeting of the Forum of Niger Delta Bishops of the Catholic Church in Port Harcourt, the state capital, before the April elections. The Ogoni people in particular, are holding the Anglo-Dutch super oil and gas major, Shell, responsible for the ‘’environmental genocide’’ in their area.

Amaechi’s media handlers insisted last week that their still stands by his indictment of the oil companies.

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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.