Oil & Energy

Ogoni Clean-Up: Myth Or Reality

Published

6 years ago

October 30, 2017

Despair hangs over the entire Ogoni land like a plague, as the people hope against hope over the implementation of the United Nations Environment Programme (UNEP) recommendations on the remediation of the battered Ogoni environment.
Like most oil producing communities in the Niger Delta, Ogoni bears the brunt of environmental pollution accruing from decades of oil exploration and exploitation in the area.
The hitherto docile population was however roused up through the activities of the Movement for the Survival of Ogoni People (MOSOP) led by the late environmental activist, Ken Saro Wiwa in the early 90s to confront the Royal Dutch oil giant, Shell Petroleum Development Company (SPDC) to account for its operations and activities in the area.
MOSOP specifically demanded that Shell should pay reparations to the Ogoni people for the resources carted away from their land, restore the natural environment or quit.
Shell did not heed to the Ogoni demand, rather the entire Ogoni land was thrown into crisis that led to the decimation of the elitist population of Ogoni.
Pundits referred to the carnage in Ogoni land as a “punitive doze of brutality” over the effrontery of the people to confront their formidable foes; Shell and the military junta.
According to analysts, the military unslaught in Ogoni land was intended to serve as a deterrent to other oil bearing communities in the Niger Delta who may want to raise their head against the powers that be.
In the face of persecution, the Ogonis remained undaunted in spirit and perhaps became the epitome of ethnic minority rights consciousness in Nigeria. The Ogoni crisis attracted global attention and the United Nations rappateurs came to Ogoni for an independent impact assessment on the environment with recommendations now known as UNEP report.
In apparent response to the recommendations of the United Nations Environment Programme (UNEP) report, the Federal Government last year flagged – off the clean up exercise of the Ogoni environment.
The official flag off of the clean up exercise, which was done by the Vice President of Nigeria, Yemi Osinbajo received commendations from various stakeholders.
The peasant   population of Ogoni who are the major victims of environmental pollution kept faith with the decision of the Federal Government to clean up the environment and restore their natural sense of existence.
As predominant farmers and fishermen, they were hopeful that life will bounce back through the clean up exercise. But that hope remains elusive as nothing has been done in terms of the palliative measures which are part of the UNEP recommendations to alleviate the plight of the people or the actual clean- up exercise.
The people still continue to drink contaminated water and live on bare subsistence with their means of livelihood destroyed.
A youth – based pressure group in Ogoni land, the Ogoni Youth Federation, believes that the delay in the implementation of the Ogoni environmental clean-up is a deliberate political girnmick designed to frustrate the Ogoni people.
National Coordinator of the body, Comrade Legborsi Yaamabana, who spoke with The Tide in an interview in Port Harcourt, recently, accused Shell and the Federal Government of insincerity in the Ogoni clean-up exercise.
He said both Shell and the Federal Government see Ogoni as intractable given the guts with which they revolted against their over bearing tendencies.
“It is obvious that both Shell and the Federal Government are prancing with the sensitivities of the Ogoni people. Their antics show that they are not committed to the restoration of the Ogoni environment, there is no reason why Ogoni communities will still be drinking benzene as water.
The average Ogoni person domiciled in Ogoni land is prone to cancer and other diseases. Shell is more interested in resuming oil exploration activities in Ogoni than cleaning the environment they polluted”.
Comrade Yamaabana said the Ogoni Youth Federation would soon mobilize its rank and file to stage a peaceful protest at Shell Residential Area in Port Harcourt, for the company to provide portable drinking water to Ogoni communities.
He called on the company to also carry out a medical tour of Ogoni communities and provide medical treatment to the people who are vulnerable to different types of environmental infected   diseases.
The youth activist also vowed that the group would resist any attempt by Shell to resume oil exploration in Ogoni.
Recently the Ogoni Youth federation also summoned major stakeholders of Ogoni to a round   table discussion on the Ogoni clean-up at Londa Hotel in Port Harcourt.
In attendance at the meeting were the President of the Movement for the Survival of Ogoni People (MOSOP), Comrade Legborsi Pyagbara, the President of KAGOTE, a Pan Ogoni socio-cultural organisation, Dr Peter Medee, elder statesman, Senator Gbene Cyrus Nunie among several others.
The Coordinator of the Hydro Carbon Pollution and Remediation Project, Dr Marvin Dekil was however absent at the meeting.
Issues raised at the round-table discussion included outright demands by the Ogoni youth over the clean-up exercise, especially on the remittal and management of funds by key stakeholders in the projects.
MOSOP President, Legborsi Pyagbara explained that the clean-up exercise was on course, but expressed regret over the indifference on the part of the Federal Government in the disbursement of fund for the project.
“It is a thing of regret that the clean-up exercise in Ogoni is still at a point of stagnation after official flag- off by the Federal Government, we expect full commitment on the part of Federal Government and Shell in the executions of the project”.
On the allegations of mismanagement of fund, the MOSOP president, who is a member of the Governing Council of   HYPREP and Board of trustees of UNEP, said the $10 million so far released for the project was intact, adding that lack of disbursement of fund was stunting the project. In his remark, the President of KAGOTE, Dr Peter Medee also corroborated the MOSOP president, stating that the $10 million was intact.
Medee, who is also a member of the Governing Council of HYPREP, said vigilance was exerted on the management of the fund, as no single signatory would withdraw any money for any purpose without the consent of the board. He said: “I am an Ogoni, and I represent the interest of Ogoni, we will not tolerate any compromise against the people on the clean up exercise”.
He however called on Shell and the Federal Government to expedite action on the clean-up exercise by providing the necessary fund for the project.
On her part, the Rivers State Commissioner for Environment, Prof Roseline Konya said the clean-up exercise was still undergoing some planning stages at the moment, but called on Shell and the Federal Government to expedite action on the project by providing the necessary funds.
Konya, who is also a member of the Governing Council of HYPREP said 100% restoration of Ogoni environment was not possible due to the colossal damage but expressed hope in the remediation process which she said was a huge project to the tune of $1 billion.
In the interim, she said: “the Ogoni people have suffered so much and should be able to leverage on some social incentives especially good water supply among other palliative economic provisions while the project goes on”.
Musing over the clean up exercise, an activist, Comrade Lekia Christian said the high hope raised by the flag-off of the Ogoni clean-up has been dashed as the system has caved into the endemic pitfalls that are characteristic of the Nigerian system”.
He said a rebound can be sustained in the clean-up exercise when the key stakeholders demonstrate sincerity of purpose beyond sloganisation of the project.
Effort to speak with the coordinator of HYPREP, Marvin Deekii was abortive as he did not respond to his calls.

Taneh Beemene

Oil & Energy

NSCDC’s Anti-Vandal Squad Uncovers Artisanal Refinery In Rivers Community

Published

5 days ago

April 15, 2024

The Tide

The Anti-Vandal Squad of the Nigeria Security and Civil Defence Corps (NSCDC), Rivers State Command, has uncovered yet another local refinery situated at Adobi-Akwa settlement in Etche Local Government Area of Rivers State.
The State Commandant, Basil Igwebueze, disclosed this while speaking to journalists shortly after the tour of the Illegal site.
Represented by the Head, Anti-Vandal Squad, CSC Peters Ibiso, Igwebueze said the squad made the discovery following a tipp off, expressing regret that no arrest was made as the boys fled the site upon sighting the squad.
The cammandant’s representative took the newsmen across a tick forest of about 6-7 kilometers from the main town.
The team sighted where the pipeline vandals tapped into the Well Head of yet to be ascertained multinational company, connected their galvanised pipes to several cooking pots, heat up the crude to produce Automotive Gas Oil (AGO).
In his words, “Upon receiving a tip-off, the Anti-Vandal operatives swung into action to uncover this illegal oil bunkering site. They were in this forest for two days having cordoned the area, unfortunately, the perpetrators upon sighting our men took to their heels, but investigation is still ongoing to effect the arrests of such defiant elements”.
The Anti-Vandal Unit Head further narrated the operation techniques of the operators of local illegal refineries from the point of extraction of crude through vandalism of oil pipelines to cooking in various ovens where the content is subjected to high temperature and transmitted through pipes to reservoirs for storage and onward trans- loading to buyers.
While insisting that the command would not relent in the fight against illegal dealings in petroleum products, he urged the public to have more trust in the NSCDC by providing actionable intelligence that would enhance possible arrest of economic saboteurs in the State.
“Our commitment to continuously work in tandem with the prosecutorial mandate of the corps in order to rid the State of economic saboteurs remains unchanged. We value our informants and most especially the intelligence driven tip-off received from time to time.
“It is also our duty to ensure that our source of information are not disclosed so as to protect our informants. It is therefore our delight that the public will continue to have confidence and trust in us as we together protect the nation’s critical national assets and infrastructure from dare devil vandals”, he stated.

By: Lady Godknows Ogbulu

Oil & Energy

Oil Fund Withdrawals Suggest Extended Price Rally

Published

5 days ago

April 15, 2024

The Tide

The world’s largest crude oil exchange-traded fund has bled over $2 billion in less than a year. And it i
s not due to investors finding greener pastures elsewhere with other ETFs; it is the siren call of soaring prices that is prompting this mass exodus.
The WisdomTree Brent Crude Oil exchange-traded commodity had assets under management of some $2.5 billion last summer, according to Bloomberg. Now, the publication reports, this is down to $396 million, with withdrawals accelerating over the past few days.
In that, withdrawals seem to be following price trends. Brent earlier this month topped $90 per barrel and, after a short pause earlier this week, is back above that threshold again following the latest Israeli strike on the Gaza Strip amid reports about a possible ceasefire.
While it is true that prices are currently driven higher mainly by geopolitical events, fundamentals are also at play. A growing number of forecasters are updating their predictions for benchmarks this year on expectations of resilient demand and increasingly tighter supply. And investors are following the trend.
Even those who have not sold their ETF holdings in order to invest more directly in the rally are benefitting. That same WisdomTree Brent Crude Oil ETC generated returns of over 13 percent during the first quarter of the year as opposed to an average 8.8% gain in the S&P 500.
The WisdomTree exchange-traded commodity became the world’s largest oil fund at the beginning of last year. The fund saw inflows of over $1 billion, which poured in as the deflation in oil prices that had begun in late 2022 extended into the new year. Now, the trend has reversed and it has reversed strongly.
The WisdomTree Brent Crude Oil ETC is not the only fund seeing outflows. The U.S. Oil Fund, which used to be the world’s biggest oil fund before the WisdomTree inflows last year and is now the world’s biggest oil fund once again, also saw a flurry of investor exits as benchmarks climbed higher.
According to Bloomberg, the fund’s assets under management currently stand at $1.3 billion, down from some $5 billion during the pandemic.
In further evidence that oil makes money, the Middle East is about to become the only region in the world with three trillion-dollar sovereign wealth funds. The Abu Dhabi Investment Authority is worth $993 billion, Bloomberg reported in March, while the Saudi Public Investment Fund and the Kuwait Investment Authority are breathing down its neck.
Meanwhile, investment in transition-related stocks is on the decline, according to data reported by Reuters. The S&P Global Clean Energy Index is down by 10% since the start of the year. In comparison, the S&P 500 Energy Index, which comprises Big Oil names, has gained 16.3%.
The data shows that investors are growing wary of all the promises made by transition advocates as evidence mounts that these were not based on due diligence. Wind and solar stocks suffered a crash last year when this first became clear.
Now, we are witnessing a continued awakening among investors to the challenges and the realistic potential of transition technology and alternative energy sources.
“With conventional energy having its own bull run, I think the alternative funds will struggle for the foreseeable future, and we shall see what the election brings”, the Managing Director of capital markets at Phoenix Capital Group Holdings told Reuters.
The comment summarizes the challenging situation for alternative energy investment and highlights the rebound of interest in oil and gas, much to the chagrin of decision-makers on both sides of the Atlantic.
In both Europe and the U.S., things can get even worse for the transition after the respective elections—in June for European Parliament and in November for U.S. President. It will certainly be an interesting year in energy.
Slav writes for oilprice.

By: Irina Slav

Oil & Energy

CNG Initiative: FG Targets 25,000 Jobs, $2.5bn Investment

Published

5 days ago

April 15, 2024

The Tide

The Programme Director and Chief Executive, Presidential Compressed Natural Gas Initiatives, Michael Oluwagbemi, has announced the Federal Government’s plan to target over 25,000 jobs and $2.5 billion worth of investment by 2027.
Oluwagbemi made this known during the Presidential CNG stakeholders’ engagement workshop held at BOVAS Auto-Gas Filling Stations, Ajibode Bus-Stop, in Ibadan, Oyo State capital, at the weekend.
He stated that the initiative, which was part of palliative measures to ease the burden of the removal of fuel subsidy, would attract enormous investment and job creation as well as impact positively on the lives of Nigerians.
Meanwhile, he called on Nigerians to embrace the new initiatives by the Federal Government as part of palliatives to cushion the effect of the removal of fuel subsidy in the country.
“On October 1, 2023, when the President gave his speech, he announced that the Presidential CNG initiatives are going to be rolled out as part of palliatives on the removal of fuel subsidy.
“One of our major concerns is to make sure that the transition for the transportation sector is a cheaper, safer, and more reliable source of energy.
“In the coming weeks, we are going to be announcing the conversion incentives programme which will enable Nigerians currently using PMS and Diesel fuel vehicles to be able to convert their vehicles at designated places across the country at a discounted price based on certain pre-qualification under the palliative programme of the Federal Government”, he said.
On the value chain of the initiative, Oluwagbemi explained that the Federal Ministry of Finance is acquiring tricycles and buses that would be assembled and manufactured in Nigeria, with more than five automobile firms being activated.
“The value chain of the programme starts with every one of us. From the point of converting your vehicle, you have created the demand for natural gas.
“If your vehicle is converted by technicians and refuelled by autogas workshops across the country, then you are creating jobs for civil engineers and technicians. You’re creating jobs for the upstream in terms of upstream activities associated with oil and gas.
“And in line with the programme, the Federal Ministry of Finance is acquiring a number of tricycles and buses that will be assembled and manufactured in Nigeria. More than five of our automobile firms have been activated. So, you can see that in terms of job creation, the opportunities for Nigerians are enormous.
“The President has said we need to convert one million vehicles by 2027. We need 1,000 conversion shops and we need over 3,000 filing stations just like this. You can imagine the level of investment required for this.
“In order to sustain one million vehicle conversions by 2027, we need 25,000 technicians. So, the job creation potential is an opportunity for job creation in addition to our gross domestic product, $2.5 billion worth of investment to be mobilised in the next four years and of course more than $25 billion added to our GDP”, he said.
Oluwagbemi further called on Nigerians to embrace the new initiatives by the Federal Government as part of palliatives to cushion the effect of the removal of fuel subsidy in the country.
The representative of BOVAS Filling Station, a private investor in the Presidential CNG Initiatives, Temitope Samson, said, “We have worked with the regulators, we are also working with the Presidential Initiatives on CNG to make sure that standard safety is adhered to. We have also worked with the Standard Organisation of Nigeria to ensure that we have a standard accepted internationally.
“Our role is to ensure that there is availability of CNG across the nation, and to also ensure we have enough kits and tanks that are converted for people to use as many as possible, and to ensure safety and to train others so that anywhere they get to, they have very safe conversion”.
Recall that last year, President Bola Tinubu approved the Presidential Compressed Natural Gas initiative(PCNG-i)
This initiative aims to not only introduce more than 11,500 new CNG-enabled vehicles and provide 55,000 CNG conversion kits for existing vehicles that depend on Premium Motor Spirit but also promote local manufacturing, assembly, and job creation.