A Review of the Nigerian Energy Industry

Communities shut down of Erhoike Flowstation despite negotiated GMoU – NNPC

NNPC logo31 August 2014, Abuja – The Management of the Nigerian National Petroleum Corporation, NNPC, has confirmed the shut-down of the Erhoike flowstation located within the OML 30 operation area in Delta State which belongs to its upstream subsidiary, the Nigerian Petroleum Development Company, NPDC, by youth from the host communities.

Indigines from the eleven Orogun host communities who had earlier threatened to disrupt the operations of the NPDC in the area if their demands for patronage and community development projects were not met within fourteen days shut down the flowstation.Some of the demands made by the communities included:

·Payment of the arrears of rentals and leases owed by SPDC before and after divestment of the field.

·Remediation of their environment and refrain from further degradation.

·All roads within the communities where NPDC operate should be tarred or constructed.

·5% of oil production should be invested in community development and 25% equity shares ceded to their communities.

·Stable electricity supply and 80% skilled workers, 100% unskilled workers vacancies must be filled by community applicants.

·All contracts below N1Billion must be reserved for indigenous contractors of host communities who must also be given first right of refusal.

·A development plan for host communities with implementation timeline.

·All quick-win project contracts awarded and outstanding contracts to the communities to be paid for with immediate effect.

NNPC, in a statement statement partly said the following:“We, however, wish to state that most of the demands have been addressed by the Global Memorandum of Understanding (GMoU) which has been negotiated with the OML 30 host communities amongst which are the 11 host communities of the Erhoike flowstation. The draft of the GMoU is at the last stage of ratification as NPDC plans to discuss it with the Governor of Delta State after which a date will be fixed for the signing ceremony.

“We also wish to state that a scheduled inspection visit to the communities by the Management of NPDC to verify the complaints about the deplorable state of the roads and identify which of the roads needed immediate intervention was scuttled by the youth in the communities who chased away NPDC officials who went for the inspection.

“On the payment for quick-win community projects, we would like to state that approval has been given to the NPDC to pay contractors who have completed their projects.

“We appeal to the communities to cooperate with us to engender a peaceful environment for business as no meaningful development can be achieved under a rancorous atmosphere”.

NNPC Seeks Greater Collaboration with Army, Police on Asset Security

The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC Dr. Joseph Thlama Dawha has expressed the desire of the Corporation to enhance existing cordial relationship between the NNPC and the Nigerian Army as well as the Nigeria Police Force towards the achievement of efficient protection of vital oil and gas assets.

Speaking during courtesy visits to the Chief of Army Staff Lt. General Kenneth Minimah at the Army Headquarters and the Acting Inspector General of Police , Suleiman Abba at the Force Headquarters, Dr. Dawha expressed gratitude to the Security Chiefs for their role in providing the much needed cover for the smooth operations of the NNPC despite mounting security challenges.

At the Army Headquarters, Dr. Dawha said his visit was meant to renew the existing cordial relationship between the two organisations, stressing that NNPC would continue to collaborate with the Nigerian Army which he said has been providing security support for the Corporation’s assets in the Upstream, Midstream and Downstream Sector.

The GMD lauded the role of the Nigerian Army in the security Joint Task Force (JTF), extolling the performance of the outfit in protecting NNPC assets in Port Harcourt, Benin and Auchi and also in the Chad Basin where one of the corporation’s Strategic Business Units, Integrated Data Services Limited, is currently engaged in Seismic data acquisition activities.

The GMD also noted the role of the Nigerian Army Engineering Corps in clearing and providing security for NNPC Right of Way across the Country.

Dr. Dawha enjoined the Nigerian Army to continue to provide security support in the fight against crude oil theft which he said has had a negative impact on the nation’s resources in recent times.

Welcoming the GMD to the Army Headquarters in Abuja, the Chief of Army Staff, Lt. General Kenneth Minimah expressed satisfaction in the collaborative bond between NNPC and the Nigerian Army saying the two organisations would continue to have common grounds of cooperation for the economic development of Nigeria.

Lt. General Minimah said providing security to national assets including those of NNPC was one of the first lines of duty of the Army assuring the GMD and his team of sustained support.

Lt. General Minimah appreciated the recent interventions from the various tiers of Government in providing appropriate platforms to enhance the Army’s effectiveness in providing security for NNPC assets, adding that the Army would strive to improve on its performance for the development of the country.

Before the visit to the Army Headquarters, the GMD was at the Louis Edet House where he paid tribute to the officers and men of the Nigeria Police Force for their untiring support in providing security to NNPC’s assets and facilities across all sub-sectors.

“We need to deepen and strengthen the close ties between NNPC and the Nigerian Police Force for the socio-economic growth and stability of the country,” the GMD said.

Responding the IGP said the Nigerian Police would continue to accord high priority to the protection of oil and gas facilities across the country.

“I have a new team in place and I assure you we will do whatever we need to do to give you better services in terms in terms of pipeline protection, ‘’ the IGP said.

The NNPC team on the courtesy visits included the Group Executive Director, New Business Directorate, Dr. Attahir Yussuf, GED Corporate Services, Dr. Dan Efebo and the General Manager, Security, Fred Owotorufa

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