Oil & Energy

SNEPCo Suspends Relocation As Wike Wades In …To Meet Shell, NPA To Stave Off Unrest

Published

7 years ago

September 17, 2018

To forestall a breakdown of law and order, the Amanyanabo of Okochiri in Okrika Local Government Area, King Ateke Tom and the Rivers State Director of the Department of State Service (DSS), have prevailed on thousands of youths under the aegis of Rivers State Youth Federation (RSYF) to shelve their planned protest while also prevailing on the management of Shell Nigeria Exploration and Production Company (SNEPCo) to suspend the phased relocation of the Supply Base of the company at Onne to Lagos.
Both mediators secured the armistice, following their swift intervention to prevent a complete shutdown of business activities at the Oil and Gas Free Zone, Onne, in Eleme Local Government Area, last Wednesday, over the move by the Shell subsidiary to relocate its Supply Base out of Rivers State, a move the youths vehemently kick against.
Sources at the meeting told The Tide that both the DSS and the Rivers State Government were concerned about the long term security implications for the state should SNEPCo’s relocation to Lagos be implemented.
Sequel to the resolution, the Rivers State Governor, Chief Nyesom Wike, will next week meet with the top management of Shell Petroleum Development Company of Nigeria, Nigerian Ports Authority (NPA), Oil and Gas Free Zones Authority (OGFZA) and other relevant stakeholders over the planned relocation of the Supply Base of SNEPCo from Onne to Lagos.
It would be recalled that thousands of youths and women groups in Rivers State have staged peaceful protests to express their displeasure over the planned relocation of the SNEPCo Supply Base from Onne due to its adverse economic and security implications on the state and the entire Niger Delta region.
Last Wednesday, the director of DSS in Rivers State and King Ateke Tom had intervened in what would have been a stand-off between thousands of Rivers youths and the Shell subsidiary, and negotiated a deal to give the state government time to find an amicable solution to the impasse.
Speaking shortly after the meeting, President, Rivers State Youth Federation, Comrade Saviour Patrick, said the Amanyanabo of Okochiri and the DSS director have promised to work with other stakeholders to address the concerns of the youth, adding that they were going to wait for the outcome of the dialogue with the state governor.
Another source from the meeting said, “The youths are upset although the DSS director told them there was not much they could do, but he is worried that the situation does not degenerate into renewed militant activities in the state.”
The source added that this would not be the first time Shell had attempted to relocate its business from Rivers State, hinting that Shell’s decision was likely more political than commercial.
In August, more than 1,000 youths under the aegis of the Onne Youths Council (OYC) staged a peaceful protest at the SNEPCo Supply Base, asking the company to rescind its decision to relocate the base from the Onne Oil and Gas Free Zone to Lagos port.
The President of OYC, Comrade Philip John Tenwa, who led the peaceful protest, said the planned relocation would lead to the loss of more than 5,000 direct and indirect jobs.
The Tide gathered that SNEPCo workers have also kicked against the company’s plan to move the Supply Base from Onne to Lagos.
The workers, in a statement made available to newsmen on August 2, 2018, described the planned relocation as “hurried and ill-advised and against the interest of the Niger Delta region”.
The statement signed by one Edward Otaru reads: “We, the affected operations staff and expatriates of SNEPCO wish to bring the attention of the Federal Government and well-meaning Nigerians of a plan by the management of our company to forcefully relocate our operations from Onne, Port Harcourt to Lagos.
“The hushed, hurried but forceful relocation order emanated under a strange and suspicious condition, as it was neither discussed with the staff nor backed by any justifiable reasons.
“We decided to bring this hurried relocation order to the notice of the government and the general public because of its implication on our families and friends who might suffer unnecessary dislocation and also its implication on the Niger Delta region.”
The workers called on the Federal Government to halt the planned movement in the interest of jobs and development of the Niger Delta region.
The Paramount Ruler of Onne Community, King John Dennis Osaronu, also called on SNEPCo to rescind its planned relocation, saying that the community has hosted the company for more than 20 years without any disagreements.
In a reaction to the Onne youths protest, spokesperson for Shell Nigeria Exploration and Production Company (SNEPCo) said, “Shell Nigeria Exploration and Production Company (SNEPCo) has no intention of shutting down the Logistics Supply Base in Onne, Port Harcourt.
“The base will continue to be utilised by The Shell Petroleum Development Company of Nigeria Limited (SPDC), operator of the SPDC Joint Venture for SPDC Joint Venture operations.
“SNEPCO’s operations are in the Bonga field 120 kilometres off Nigerian coast in the Gulf of Guinea and our operations staff and contractors work offshore in Bonga.”

Susan Serekara-Nwikhana

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

22 hours ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

22 hours ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

22 hours ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”