Rivers State Government has acquired 45 per cent of Shell Petroleum Development Company’s (SPDC’s) interest in Oil Mining Lease (OML) 11 in Ejama and other communities in Ogoni.
This was disclosed on Monday by the state Governor, Nyesom Wike in a live broadcast titled: “We will continue to advance the state’s interest, security and prosperity of all.”
He said: “I am delighted to inform you that the Rivers State government has fully acquired Shell Petroleum Development Company of Nigeria’s (SPDC’s) 45 per cent interest in Oil Mining Lease (OML) 11 situated in Ejama Ebubu Community in Eleme Local Government Area and the adjoining Ogoni and other communities of Rivers State.”
He said the acquisition followed a High Court order, declaring the state as the purchaser of “the right, title and interest” of Shell Petroleum Development Company of Nigeria Land/Immovable Property.
The order was subsequent upon a suit filed by one Mr. Agbara Isaac Osaro and five others against SPDC, Shell International Petroleum Company Limited Shell International Exploration and Production BV and Government of Rivers State.
Displaying certified true copy of the order, Wike said: “I directed the Rivers State Ministry of Finance Incorporate to make a bid of USD 150,000,000 ($150 million) supported by bank guarantee and cash payment to the Deputy Sheriff in the sum of N1 billion, the later payable to the Judgement Creditors, while the former is escrowed.”
He noted that the acquisition followed last Wednesday’s order by the High Court of Rivers state declaring the state as purchaser of Shell assets sold.
“I have further directed the relevant government agencies to take immediate steps to liaise with any financially capable companies to partner with the Rivers State government to ensure that the said oil field come on stream within 15 months from today (Monday).”
He said the decision was taken with “all sense of responsibility believing that addressing the pains and poverty of our people with resultant security and welfare is the main purpose of governance and nothing less.”
Wike described the move as profound economic investment with profound and enduring positive implications on peace, security, development and prosperity for the oil-bearing communities in the OML 11, the entire state and Nigerian in general.
He said the state was desirous of restarting oil production so that the Federal Government can start reaping from its 55per cent stake in the field, while the state could also be receiving its 13percent derivation funds.
“In line with our commitment to accelerate development, industrial harmony and security, the Rivers State government will graciously concede some portion of its four per cent equity interest to all the oil producing communities within OML 11 to enhance mutual ownership participation and sharing in the benefits of these resources,” the governor said.
He traced the problem of the OML 11 to a major oil spill from SPDC’s Trans Niger High Pressure Crude oil Pipeline at Ejama community, which devastated approximately 255 hectares of arable agricultural land, fishing swamps and rivers in the area.
Noting that SPDC admitted the spill was from its pipeline in 1970, he lamented that the Anglo-Dutch oil giant failed to de-pollute the area, leading to several lawsuits, which the company lost, including a fresh case that commenced in 2011, spanning through four different courts.
Source: The News Guru
