Oil & Energy
‘Oil Price Drop, Huge Challenge To Shell’s Operations’
Chairman, Tarakiri Cluster Development Board, Dr Jude Ebibokefie (left) in a chat with General Manager, SDCR, Shell Petroleum Development Company of Nig Ltd., Mr Nedo Osayande (right) during the commissioning of Agbidiama Landing Craft, at SPDC Marine Base, Kidney Island, Port Harcourt. Photo:Egberi A. Sampson
The fall in oil price at
the global market has become a new phenomenon which is posing serious challenges to the operations of the Anglo-Dutch oil giant, Shell.
The former Managing Director and Country Chair of the Shell Petroleum Development Company of Nigeria (SPDC), Mr Mutiu Sunmonu gave this hint in Port Harcourt Friday at a send forth ceremony organised on his behalf by the company.
Sunmonu noted that the best approach was for the company to take steps and devise strategies to cut cost especially on its long term plans.
He regretted that the new economic downturn occasioned by oil price fall in the global market directly impact on the activities of oil firms including SPDC and stressed that with steps that would adjust the company’s programmes, it would overcome the challenges.
The occasion, which also marked a welcoming ceremony of the new Managing Director and Country Chair of the Company, Mr Osagie Okunbor, Mutiu maintained that the problem of oil theft and its negative implications were part of the major challenges faced by Shell for years.
He said oil theft devastated the operations of the company and at other times forced SPDC to shut down operations thereby incurring great losses.
He particularly called on stakeholders in the sector not to relent in the spirited fight against oil theft.
Sunmonu commended the staff for the high co-operation given to him and solicited for adequate support to the new managing director to enable him succeed.
Chris Oluoh
As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.
It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.
“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.
“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.
“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.
AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.
The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.
“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.
“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.
Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.
“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.
Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.
“This represents one of the most troubling cases of economic sabotage our nation has ever faced.
“We have made far-reaching recommendations to end this long-standing menace.
“There is need for strict enforcement of international crude oil measurement standards at all production and export points.
He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.
The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.
He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.
“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.
“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.