The stakeholder communities of Oil Mining License (OML) 25 in Akuku-Toru Local Government Area of Rivers State and Shell Petroleum Development Company (SPDC) have agreed on the procedures for the re-opening of the oil facility.
As such, the stakeholder communities and Shell will on Monday, July 1, 2019 sign a Memorandum of Understanding (MoU) to be facilitated by the Rivers State Government on their respective responsibilities in the final resolution of the two-year old conflict.
This was the outcome of the meeting, yesterday, between the stakeholder communities of OML 25, SPDC, service commanders and officials of the Rivers State Government on the directive of Governor Nyesom Wike.
To this end, the representative of the Rivers State Governor and Secretary to the Rivers State Government, Dr Tammy Danagogo, has directed the Solicitor-General of the State to draft a memorandum of understanding on the premise of the resolutions reached at the meeting.
He also said that the memorandum of understanding would be signed on Monday, July 1, 2019.
Danagogo outlined the four key resolutions reached during the crucial meeting on the re-opening of OML 25, to include that, “SPDC should pay the agreed funds into an account. The Permanent Secretary, Community Affairs has been mandated to ensure that the funds are transferred to the communities.
“SPDC should be able to pay the available sum latest by Monday. Shell would pay N260million and N75million by Monday.
“The communities should within seven days of signing the resolution, vacate the facility. Also within two weeks, Shell should pay the remaining part of N1.014billion”
The Secretary to the Rivers State Government added that the meeting resolved that SPDC would therefore obtain approval from NAPIMS to pay the money that accrued between 2009 and 2013.
He added that within two weeks of signing the resolution, Rivers State Government will set up a platform for Shell and stakeholder communities to renegotiate the Global Memorandum of Understanding (GMoU).
The General Manager, External Relations of Shell Petroleum Development Company, Mr Igo Weli said the first set of funds to the stakeholder communities will be paid on Monday.
He stressed that the outcome of the financial reconciliations will be paid within two weeks of signing the resolution.
Weli added that SPDC, in line with the resolution of the meeting, would seek the approval of NAPIMs for payment of funds for 2009 and 2013.
The Chairman of Akuku-Toru Local Government Area, Rowland Sekibo said that the meeting initiated by the Rivers State governor has recorded a milestone with agreement on the funds to be paid by SPDC.
Member of the Rivers State House of Assembly representing Akuku-Toru Constituency 1, Major Jack commended the Rivers State Government, SPDC and stakeholder communities for building synergy which will end in the signing of a Memorandum of Understanding on Monday.
Amanyanabo of Opu-Kula, King Hope Opusingi said that the people of the area were happy with the agreement reached at the meeting, especially the reconciliation of the funds to be paid by SPDC.
He said those occupying the flow station were being paid to do so, adding that technically, the flow station has been opened as the occupants of the facility were doing so illegally.
Also speaking, the Amanyanabo of Kula, King Kroma Eleki called for the development of Kula upon the reopening of OML 25, appealing that the developmental challenges of the community should be resolved.
It would be recalled that Rivers State Governor, Chief Nyesom Wike on June 22, 2019, directed the Secretary to the Rivers State Government, Dr Tammy Danagogo, to convene a meeting of all key stakeholders in the presence of security service commanders, for the host communities to outline their grievances to Shell Petroleum Development Company (SPDC) and for the company to address such development concerns.
Earlier during the first meeting, the Rivers State Government reiterated that the Oil Mining License (OML) 25 must be re-opened for operations with the interest of host communities protected by the operating company, Shell Petroleum Development Company (SPDC).
The host communities of OML 25 also stated their developmental concerns, urging SPDC to address them for mutually beneficial relationship with the company to be entrenched.
In a meeting the state government convened between the host communities and SPDC, the representative of Rivers State Governor and Secretary to the State Government, Dr Tammy Danagogo, said that Governor Nyesom Wike remains committed to the protection of host communities’ interest.
He said: “The flow station of that facility must be opened. For that to happen, we think that the interest of the host communities must be protected, so that in future, we don’t have a repeat of what happened.
“That is why it is in the best interest of everybody concerned to state very genuine concerns of what Shell has to do”.
He said that the Rivers State Government was discharging its responsibility of ensuring the peaceful resolution of the issues.
“At the initial stage, we didn’t want to get involved because we felt that the Shell licence was almost terminating. But at this stage, it is clear to everybody that the Federal Government has renewed the licence of Shell for another 20 years. What it means is that for the next 20 years, Shell must be there.
“As a law abiding government, what we will do is to see that Shell does not trample upon the rights of our people. So, now, Shell will listen to our people on what they ought to do”, he said.
He urged the communities to do what is right; assuring that the state government would, on that premise, prevail on Shell to release the Global Memorandum of Understanding (GMoU) funds.
In his remarks, General Manager, External Relations of Shell, Mr Igo Weli said that the SPDC was ready to dialogue with the communities and resolve the issues raised.
Weli said that the existing GMoU has expired, but assured that working with the communities, another GMoU would be worked out for the development of the communities.
“The third one is retaining of fund. The fund for each community is stipulated in the GMoU, and each community will have their community trust, and even though one community has a problem, we can give you your money to go ahead.
“So, once we do it properly, specify how much belongs to each community, have your own community trust, one community will not hold the other communities down. If you have a problem, we localise the problem and sort out the one we can operate. That’s what we have been doing”, Weli added.
He disclosed that there was N960million on ground outstanding from the previous GMoU, saying that the company was ready to invest the funds.
“There is no perfect solution. Once we get 80 per cent of the people to agree, then, let’s do it. We want to operate in a way that all stakeholders will feel recognised. There are rules. Once we agree on the rules, we will move forward. The GMoU will be modified to meet the new realities”, he said.
Also speaking, the Amanyanabo of Kula, King Kroma Eleki alleged that Shell had worked with a section of the kingdom and marginalised others, insisting that some community leaders also created the atmosphere for the marginalisation of the kingdom.
He said that when Shell started operations, it was agreed that 60 per cent of proceeds must go to Kula community and 30 per cent to Belema, but regretted that Shell failed to respect the agreement.
Eleki said though the Federal Government can open the OML 25, Shell should carry out its Corporate Social Responsibility (CSR) diligently to the communities, and also called on the Federal Government to work towards protecting the interest of the host communities.
Amanyanabo of Belema, King Ibinabo Kalaoriye said Belema was the host community, but all the funds meant for the host community were diverted to Kula.
He said that OML 25 was illegally occupied by some persons who connived with another set of soldiers to take over the facility.
Kalaoriye said that going forward; no funds meant for the development of Belema community should be sent to Kula, explaining that despite the challenges, Shell had executed some important projects in the area as a result of the existence of the OML 25.
Also speaking, the Amanyanabo of Opu-Kula, King Hope Opusingi said Shell should come out clean and declare the funds due the communities on the basis of the GMoU.
He said that the meeting should agree on the amount of the funds that Shell should invest and the communities that are entitled to the investment.
The meeting had in attendance the Chairman of Akuku-Toru Local Government Area, Hon Rowland Sekibo, the member representing Akuku-Toru Constituency 1 at the Rivers State House of Assembly, Hon Major Jack and member representing Akuku-Toru Constituency 2 at the Rivers State House of Assembly, Hon Opuende Lolo, and the community development committees of the stakeholder communities of OML 25.