News
FG Loses $560m As Shell Shuts Pipeline
There are indications that the Federal Government may lose well over $560million following Shell Petroleum Development Company’s suspension of production of 800million barrels of crude oil through its Trans Ramos Pipeline (TRP), which remains shut.
The Tide learnt that SPDC produces about 600, 000 barrels per day in the Niger Delta.
The TRP that has capacity to deliver about 100 barrels per day, bpd to Trans Forcados Pipeline was shut in May, 2018, because of leakage at different points.
Investigations show that the pipeline has not been re-opened after over three months of shutdown.
At the current price of $70 per barrel in the international market, the suspended output amounts to $560million.
Meanwhile, the company has embarked on clean up targeted at recovering the spilled oil from the environment.
A statement at the weekend said, “The Shell Petroleum Development Company of Nigeria Limited (SPDC), has recovered over 95 per cent of spilled oil from the recent spill incidents on sections of the Trans Ramos Pipeline (TRP) in Aghoro community, Bayelsa State, and in Odimodi community in Delta State.
“The pipeline, which has remained shut-in since the incidents, supplies crude to the SPDC Joint Venture-owned Forcados Oil Terminal in western Niger Delta for export.”
It stated: “A spokesperson for SPDC acknowledged the spills as very regrettable, adding that in line with the standard operating procedures of SPDC, the TRP was shut down immediately the incidents were reported and the Oil Spill Response and the Emergency Response teams were activated to manage the incidents and prevent further spillage.
“As soon as clean-up and site assessment are completed, we are committed to starting the immediate remediation of the impacted areas in Aghoro and Odimodi.”
It added: “Details of the cause and impact of the spills will be captured in the Joint Investigation Visits (JIV) reports, which will be released after sign-off by all parties.
“The JIV is a multi-party exercise involving the regulators, the community, representatives of the state government, security agencies, and representatives of SPDC. The outcome is then signed off by the stakeholders to authenticate the findings.”
The company also stated in its latest report that: “The Shell Petroleum Development Company of Nigeria Limited (SPDC), as operator of SPDC Joint Venture (SPDC-JV) facilities is committed to operating SPDC-JV facilities in a responsible manner with due regard for the environment. When spills occur from SPDC-JV facilities in the Niger Delta we respond as quickly as possible, no matter what their cause.
“Oil spills due to crude oil theft and sabotage of facilities, as well as illegal refining cause the most environmental damage from oil and gas operations in the Niger Delta. Irrespective of cause, the SPDC JV cleans up and remediates areas affected by spills originating from its facilities.
“A key priority for Shell is to achieve the goal of no spills from its operations. No spill is acceptable and we work hard to prevent them. Regrettably, in addition to spills caused by criminal activity there were nine operational spills of more than 100kg in volume from Shell companies in Nigeria facilities during 2017. This number is one more than the eight spills in 2016.
“SPDC has publicly reported oil spill statistics annually since 1995 in the Shell sustainability report and this website further enhances transparency on spills in Nigeria from SPDC-JV facilities. It tracks the progress of our spill response from when we learn about the leak to when clean-up is completed and certified by regulators.”
It added: “When a leak is identified, production is suspended and efforts made to contain any spilled oil. We regularly test our emergency spill response procedures and capability to ensure staff and contractors can respond rapidly to an incident. In line with government regulations, a JIV team visits the spill site to establish the cause and volume of oil spilled. The team comprises representatives of SPDC, regulators, government security agencies, state governments and communities sometimes with local NGOs as observers.
“The SPDC-JV cleans and remediates the area impacted by spills from its facilities, irrespective of cause. In the case of operational spills, it also pays compensation to people and communities impacted by the spill. Once clean-up and remediation are completed, the work is inspected, and if satisfactory, approved and certified by Federal Government of Nigeria regulator National Oil Spill Detection and Response Agency (NOSDRA).”
President Bola Tinubu is expected to inaugurate four legacy projects, including a state-owned gas turbine, during a one-day state visit to Bayelsa State, today.
To this effect, the Bayelsa State Government has declared Friday (today) a work-free day, and ordered the closure of markets ahead of the President’s visit.
The state Commissioner for Information, Orientation and Strategy, Ebiuwou Koku-Obiyai, disclosed this yesterday in Yenagoa, the state capital.
She said, “As we all know that the state is ready and we are ready as a people to receive the father of the nation, our father and leader in the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria, President Bola Ahmed Tinubu, GCFR, who will be in the state on a one-day visit to inaugurate four legacy projects.
“In view of this, the state government has declared tomorrow, Friday, April 10, 2026, a work-free day to enable workers and other residents of the State to participate in the programmes lined up for the one-day official visit to Bayelsa State.”
According to her, Tinubu is expected to inaugurate key projects during the visit, including a state-owned gas turbine at Opolo-Elebele, a 60-kilometre dual carriageway from Onopa to the LNG axis, and a 630-metre bridge linking Angiama to Oporoma in Southern Ijaw Local Government Area.
Koku-Obiyai urged residents, including traders, to comply with the directive and turn out to welcome the President.
The government said the measures were part of efforts to ensure a smooth and successful visit.
The Tide reports that Bayelsa is the third state President Tinubu will visit for project commissioning in the last one week.
The President was in Ogun State last Saturday to commission the Gateway International Agro-Cargo Airport, Iperu, together with the state’s new airline, Gateway Airline, and its two newly acquired aircraft.
He also inaugurated logistics and trade infrastructure, and launched the Nigeria Customs Service’s N73bn hub that has a residential barracks, training college, warehouse and hospital.
The president also launched mobility, security and agriculture assets, including 1,000 electric motorcycles (EV bikes), and 80 units of security vehicles.
Tinubu was also in Lagos on Wednesday on a two-day state visit to commission key legacy projects of the Governor Babajide Sanwo-Olu administration.
Though represented by the Senate President, Senator Godswill Akpabio, the president inaugurated the newly constructed Ojota-Opebi Link Bridge, Lagos State Geographic Information Service (LAGIS) building, and Lagos Multi-Agency Building in Alausa.
Other notable projects commissioned by the President were Lagos Fresh Food Hub in Abijo, Ajah, Tolu Schools Complex in Ajegunle, and Maracana Stadium, comprising 19 mini-football pitches, built side-by-side in Ajegunle.
The Rivers State Government has called for stronger collaboration with horticulturists as part of renewed efforts to restore the aesthetic appeal and environmental quality of Port Harcourt, in line with its urban renewal agenda.
The Commissioner for Urban Development, Sir Amairagha Edward Hart, made the call during an interactive session with private horticulturists and flower dealers at his office in Port Harcourt, recently.
He said the present administration remains committed to reviving the famed Garden City status of the state capital through deliberate policies and strategic partnerships, noting that professionals in horticulture have a key role to play in achieving that vision.
The Commissioner stressed that the state government is placing high premium on environmental sustainability, beautification of public spaces, and the creation of a serene urban atmosphere that reflects global best practices.
The Commissioner urged horticulturists to align their operations with government’s urban development guidelines, adding that their expertise and experience are essential in transforming Port Harcourt into a model city.
According to him, the collaboration will not only enhance the city’s visual appeal but also contribute to improved environmental health and economic opportunities for practitioners in the sector.
He, however, cautioned against practices that undermine urban order, particularly the obstruction of walkways and indiscriminate occupation of public spaces meant for other uses.
Hart emphasized that while the government encourages business growth, such activities must be carried out in a manner that supports urban planning objectives and promotes public convenience.
In a move to further support the sector, he disclosed plans by the Ministry to establish a dedicated “Flower Village” that will serve as a central hub for horticulturists and flower dealers across the state capital.
He explained that the proposed initiative is aimed at restoring sanity to the use of walkways and road corridors, while also creating a structured environment that will enhance business operations and boost revenue generation.
Responding on behalf of the practitioners, Evang. Caroline Nabo highlighted some of the challenges faced by horticulturists, including theft of plants and materials by scavengers and scrap metal dealers.
She appealed to the state government for intervention to safeguard their investments, even as she and other stakeholders commended the Ministry’s proactive steps and pledged their support towards the successful greening and beautification of Port Harcourt.
King Onunwor
The Trade Union Congress of Nigeria (TUC ) has called on the Federal Government to deploy excess crude oil revenue to subsidise local refineries as a way of cushioning the impact of rising fuel prices on Nigerians.
President of the Congress, Festus Osifo, who made the call during a press briefing in Abuja, yesterday, warned that the price of Premium Motor Spirit could climb to as high as N2,000 per litre if urgent measures are not taken.
Osifo said the persistent increase in the pump price of petrol, driven by global crude oil price volatility and exchange rate challenges, has worsened the economic hardship faced by Nigerian workers.
The TUC leader attributed the surge partly to international developments, including tensions involving the United States, Israel and Iran, which have affected global oil supply dynamics.
Osifo also linked the rising cost of petrol to the depreciation of the naira, warning that the continued weakening of the currency is compounding inflationary pressures and reducing the real value of workers’ earnings.
To address the situation, the TUC president proposed that the government should utilise excess revenue generated when crude oil prices exceed the budget benchmark to support local refining.
He explained that with the 2024 budget benchmarked at $64.85 per barrel, any price above that threshold results in additional revenue shared by the three tiers of government, adding that at least 60 per cent of such excess funds should be channelled into subsidising crude supplied to domestic refineries, including the Dangote Refinery and other modular refineries.
He also urged authorities to take deliberate steps to stabilise the currency, noting that exchange rate stability would significantly reduce the cost of imported energy and other goods.
The TUC said it would formally communicate its proposals to the Federal Government, including the Presidency, with a view to ensuring the prompt implementation of measures to ease the hardship facing Nigerians.
He said, “Today, the cost of petrol is heading towards N2,000 per litre, depending on the part of the country that you are in. It has deeply affected the purchasing power of the salaries that we earn as Nigerian workers.
“Let the government take that excess fund that was never budgeted for, take at least 60 per cent of it, and use it to subsidise the crude being supplied to Dangote Refinery.
“The same should be done for Dangote Refinery and all modular refineries, where crude is supplied to them at that subsidised rate.
“Take the difference from the excess crude revenue, take about 60 per cent of it, and use it to subsidise the price at which crude is supplied to the refinery.
“When you subsidise crude, it cannot be abused because you are subsidising production directly. When that is done, we are going to see an immediate reduction in the price of petroleum products.”
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