– Insists Belemaoil must manage facility
Mkpoikana Udoma
Port Harcourt — Communities in Kula Kingdom, Akuku Toru LGA of Rivers State have warned that the OML 25 will remain shut until the new operator, Renaissance Africa Energy Company Ltd, addresses longstanding grievances and fulfills existing agreements originally reached with the Shell Petroleum Development Company, SPDC, the former operator.
Briefing newsmen in Port Harcourt, Chief Anabs Sara-Igbe, spokesperson for the OML 25 host communities and the Kula Kingdom, expressed shock over Shell’s handover of its assets to Renaissance without prior consultation with the host communities.
“We are surprised that Shell was handing over to another company without informing us. It is not only OML 25; they also took over other facilities. We just had a meeting and were told that another company has taken over. This is unacceptable.”
OML 25, with a production capacity of 45,000 barrels of crude oil per day, has remained shut since 2017, following prolonged disputes between the host communities, Shell, and other stakeholders. The community is demanding a return to the negotiation table before any resumption of operations.
“OML 25 will still remain as it is until Renaissance comes to us, discusses with us, and gives us assurances—or does things that will encourage us,” Sara-Igbe said.
Among the key conditions set by the Kula Kingdom is that Belemaoil, an indigenous company founded by a native of the area, must manage and operate the OML 25 asset, as was earlier agreed between the community, NNPCL, and Shell.
“Our son, Belemaoil, must manage, maintain and operate OML 25 for them. We are not saying he must take over from them, but he must manage the facilities on their behalf as agreed,” he insisted.
Sara-Igbe also accused Shell of failing the Kula people throughout its decades-long operation in the area, citing environmental degradation, lack of development, and unfulfilled promises.
“Shell came to our territory as far back as 1959. The first lifting of crude oil was done in 1972, and till today, we have not seen any significant improvement. They refused to employ our youths and they have left. They destroyed our environment and our occupation of fishing and farming.”
He said the communities had tabled all these liabilities before Renaissance and received a commitment for further discussions.
“They said they will liaise with the Federal Government to address the issues. They have not been categorical on whether they will carry out the liabilities, but we assured them that if they do, we will work with them,” he added.
On the issue of the Global Memorandum of Understanding, GMoU funds allegedly withheld by Shell, Sara-Igbe disclosed that Renaissance claimed it had commenced payment. “We will cross-check to know if they have paid,” he said.
The communities are also calling on the Ministry of Petroleum Resources and NNPCL to hold Shell accountable for the environmental damage done over the years and ensure full remediation is carried out.
“We want the Ministry and NNPCL to hold Shell responsible. Let them come and clean up. If they refuse to engage us, then we will not cooperate,” Sara-Igbe stated.
He warned that despite the economic potential of the facility, reopening will not happen until meaningful dialogue takes place.
“We are not happy that the facility is shut down. But if Renaissance wants to benefit from this, they should quickly come and make peace with the community. We want that place to be open, but we must agree on these terms,” he said.
On September 17th 2019, the Federal Government intervened to resolve the over 34-months shutdown of OML25 by the host communities, who had protested against neglect and underdevelopment by SPDC.
The intervention, led by then Minister of State for Petroleum Resources, Chief Timipre Sylva, and the Group Chief Executive Officer of NNPC, Mele Kyari, resulted in the removal of traditional injunctions at the Belema Flow Station and Gas Plant, and the hoisting of flags to usher in a new beginning.
Although the communities quit picketing Shell’s flow station in 2019, operations have yet to resume in OML25 till date, resulting in the loss of 45,000 barrels of crude oil per day; a significant economic loss for the federal government, the state government, and the local communities.
