A Review of the Nigerian Energy Industry

SPDC flays Bayelsa communities protest

The Anglo-Dutch oil giant, Shell Petroleum Development Company weekend flayed protest by Bayelsa communities saying it had between 2006 -2010 disbursed a total of N535m to the Kolo Creek Cluster Development Board for the implementation of projects in line with the GMoU it entered into with the communities.

The oil major disclosure is coming on the heels Thursday peaceful protest staged by four of its host communities namely Imiringi, Elebele, Otuasega and Orumawhich natives laid siege to Kolo Creek Logistics base in the Ogbia Local Government Area of Bayelsa State.

But in a statement issued yesterday and made available to Saturday Vanguard in Yenagoa the SPDC Spokesman, Mr. Precious Okolobo said contrary to the claim of the protesters the company through its Kolo Creek field logistics base had been supplying electricity to Elebele, Imiringi and Otuasega communities in line with an agreement reached in 1999.

He however blamed the inability of the company to meet entire need of the communities which had recently expanded beyond the installed capacity.

According to him, the company had expended a total of N535m to the Kolo Creek Cluster Development Board which was inaugurated in 2007.

The statement issued by the SPDC reads, “The Kolo Creek Cluster Development Board was inaugurated in 2007 as part of the GMoU agreed for execution of the Gbaran-Ubie Integrated Oil and Gas Project. A total of N535mn was disbursed to the Board between 2006 – 2010 for the implementation of projects, including civic centres, accommodation quarters for teachers and youth corps members, drainage systems, internal roads, electricity hook-up and guest houses.”

On Electricity it said, “SPDC’s Kolo Creek field logistics base has been supplying electricity to Elebele, Imiringi and Otuasega communities in line with an agreement reached in 1999. However, these communities have since expanded and the demand for power has exceeded the installed capacity.

“As an alternative, SPDC facilitated the hook-up of the communities to the Bayelsa Electricity Supply Board (BESB) grid, and also supplies gas to the BESB gas turbine at Imiringi. The communities have been enjoying stable power from the facility, but it is understood that the plant is currently undergoing major refurbishment.”

On the New GMoU, the company said, “With the completion of Gbaran-Ubie project, communities are being migrated from project GMoU to regular GMoU, and financial allocation to them is now based on production operations and facilities located within the area. We are continuing to engage clusters on the new system. SPDC will continue to work with Kolo Creek communities on implementation of projects in the area.”

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