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Home » News » Crisis Looms In Niger Delta As Group Calls For A Halt To Divestment By Shell, ExxonMobil, Agip

Crisis Looms In Niger Delta As Group Calls For A Halt To Divestment By Shell, ExxonMobil, Agip

Gives NURC Seven Days Ultimatum To Meet Demands

May 16, 2024
in News
Reading Time: 3 mins read
images 3 Crisis Looms In Niger Delta As Group Calls For A Halt To Divestment By Shell, ExxonMobil, Agip

 

 

By Anietie Akpan

Fresh crisis Looms in the oil rich Niger Delta region as the Niger Delta Activists Forum (NDAF) has called for a halt to the divestment process  of oil and gas assets belonging to Shell Petroleum Development Company (SPDC), ExxonMobil Nigeria Limited and Nigeria Agip Oil Company (NAOC).

 

In view of this the NDAF said there is urgent need to hold public hearings and dialogue to assess, evaluate, ascertain and factor in host communities concern to to avoid crisis against the new operations.

 

Failing to do this, the Forum in a letter to the  Chief Executive Officer, Nigeria Upstream Regulatory Commission (NURC) on Thursday signed by its National President and Convener, Comrade Success Jack and seven others warned that, “if in the next seven days from now, the Nigeria Upstream Regulatory Commission under your leadership does not come public with announcement on their resolution and dates for this engagements, we would be left with no option but to mobilize 10,000 Host Community dwellers to shut down the NURC headquarters and remain there until our demands are met”.

 

The letter reads, “We have elected to write you this letter in view of the current divestment process undertaken by Shell Petroleum Development Company(SPDC) of their onshore assets to the Renaissance Group, ExxonMobil Nigeria Unlimited to Seplat Energy and that of the Nigeria Agip Oil Company(NAOC) to Oando and the pains/chaos it promises to generate, instil, perpetuate and exacerbate within Oil and Gas Host Communities.

 

There are burning and very inciting issues ranging from claims, spillages, outstanding GMoUs, right of ways, legacy projects and Community local content concerns under the Petroleum Industry Act (PIA), that are unattended.

 

We believe that for a proper divestment to happen, transparency and stakeholders inclusion is necessary, without which operational peace for the new owners, within these Communities domain cannot be guaranteed.

 

Host Communities are supposed to be the chief stakeholders whose views, opinions and positions are to be factored.

 

The above is necessary because it is the Host Communities, that holds the true inventory of not only the assets but also liabilities of the divesting Companies especially pertaining to claims, damages, pre- and post PIA infractions etc.

 

There are hundreds of Host Communities with outright violations on properties and environment ( water bodies, land, crops and air) well registered with authorities within our constituent states.

 

But defiantly, these multinationals have oppressively remained elusive or adamant about it, believing themselves to be untouchable.

 

We fear that, Shell Petroleum Development Company (SPDC), ExxonMobil Nigeria Unlimited and Nigeria Agip Oil Company(NAOC) will not translate or factor in their outstanding liabilities arising from their upaid claims and damages etc to the new operators, as doing so will greatly reduce the proper valuation of their asset.

 

The above trajectory taken by these multinationals is a perfect recipe for anarchy, unrest and chaos because Host Communities have decided not to let in, the new owners/operators of these Oil and Gas assets within our ancestral lands.

 

If these actions by the Companies are allowed to snowball into full blown anarchy, then crude Oil production will be affected, stalling national budget and planning. This is definitely not our ultimate desire, that’s why we are crying out.

 

We are asking for these Public dialogue/consultations directly with Host Communities to be held in Rivers State, Bayelsa State, Delta State etc to help the Host Communities come live with their complaints, documentary evidences etc in a bid to resolving these issues and at  least directly put the new operators on full notice and extract their full commitment to inherit these liabilities.

 

The public dialogue/consultations in our opinion will minimize cost on Host Communities and give all stakeholders the chance at fair hearing before the Final Investment Decision (FID) is executed”.

 

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