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Total’s Divestment From Rivers: Matters Arising

Published

6 years ago

August 30, 2019

The vigilance of a federal lawmaker representing Degema, Bonny Federal Constituency, Honourable Farah Dagogo has put the multinational oil company, Total Group on the block over its planned divestment from the Rivers State. The company’s agenda commenced with the shifting of its oil servicing companies from the Egina offshore field in Onne, Rivers State to LADOL Yard in Lagos State. The significance of the planned shift of services from Rivers State to Lagos remains a tacit gesture of divestment by Total Group and is underscored by the fact that Egina field produces at peak performance, about 200,000 barrels of oil daily, making it a major facility.
LADOL is an acronym for Lagos Deep Offshore Logistics Base, located at the entry point to Lagos harbour and accessed by 200-metre quay which is to be expanded to 1000 metres. It is a logistics and supply chain centre which was established in the year 2000 as part of the Lagos Special Economic Zone and serves as one stop service shop for multinational industrial and oil and gas operations. The irony here is that LADOL was established in Lagos with no drop of crude oil while the Niger Delta region which is the source of the resource has been left bereft of such facility.
Alerting the nation over this development, Honourable Dagogo highlighted its dangerous implications for escalating the level of unemployment with loss of jobs for the employable youth of the Niger Delta region. The loss of jobs will invariably lead to escalation of unrest and its unpalatable consequences. To accentuate his case, Honourable Farah Dagogo plans to present a motion on the matter during plenary of the House of Representatives after the institution’s resumption from its ongoing recess. The motion is intended to compel the multinational oil companies in the region to be more domesticated in their operational bases including moving their operational headquarters to the area. By his intervention, Honourable Dagogo is lending his voice to a growing lobby of advocacy aimed at compelling the corporate oil companies to relocate their headquarters to the Niger Delta region. In the same vein calls on relevant stake holders to join the advocacy for the firms to do the needful.
The divestment agenda of Total Group therefore comes against the backdrop of the aforementioned stringent calls on multinational oil companies operating in the country’s Niger Delta region to increase their presence, through establishing their downstream operations such as services delivery activities in the region. By such activities, they were expected to create jobs for locals around their operational bases and thereby vitiate the incentive for restiveness among such people.
It is easily recalled that among the factors that have bedevilled oil and gas exploration and production in the region is the perception of the oil companies as mere agents of mindless exploitation of the resources of the region without commensurate concern and commitment to the often deleterious consequences of the activities. Given the highly automated processes in the oil and gas sector, operators virtually garner the resources with minimal direct physical presence at the operational sites. This situation has isolated the critical decision makers in the industry from direct contact with the harshest state of affairs in the actual operational zones leaving much of the victims of hazards from hazardous activities unattended to.
Just as well, the absence of the strategic leaders of the oil firms is often exploited to violate extant laws and regulations governing operational expedients aimed at facilitating environmental soundness. The advocacy for encouraging the designated oil is to enhance their direct contact with consequences of their operations on a real time basis, as well as facilitate closer interface with their host communities. And as experience has shown in several instances, it is actually in the best interest of the firms to be as close as possible to their operational bases and host communities.
It is significant that while a company like Total Group is sneaking its service operations out of Rivers State to Lagos, another younger oil company, Belema Oil Producing Limited is demonstrating a higher sense of responsibility and sensitivity to the aspirations of its host communities by identifying with the core concerns of the latter. For instance, Belemaoil has apart from investing commendably in its host communities, recently splashed scores of scholarship awards to deserving beneficiaries from its host communities.
It is with this context that the alert by Honourable Dagogo remains commendable and qualifies to be seen in its fuller panoply as a wake-up call for the establishment of world class maritime as well as oil and gas facilities of the class of LADOL, within the Niger Delta region, for the purpose of trapping the jobs that are ferried out to Lagos and possibly abroad. It is also in such a respect that the various statutory interventionist agencies lie the Ministry of Niger Delta Affairs, the Niger Delta Development Commission (NDDC) should go beyond the traditional handout class programmes and projects and aspire to develop long term turnkey facilities that will redefine life and business in the area. By partnering with well-disposed public and private sector interests both at home and abroad, the NDDC can stimulate the development of key economic facilities that will predispose the Rivers State in particular and the rest of the Niger Delta region a bigger role in the maritime based blue economy, which is their natural due.
This is why the divestment moves by Total Group and any other multinational from the Rivers State remains a business challenge that needs to be addressed. Honourable Farah Dagogo’s take is therefore on course.

Featured

Fubara Redeploys Green As Commissioner For Justice

Published

3 days ago

December 30, 2025

The Tide

The Governor of Rivers State, Sir Siminalayi Fubara, has approved a minor cabinet reshuffle in the State Executive Council.

Under the new disposition, Barrister Christopher Green, who until now served as Commissioner for Sports, has been redeployed to the Ministry of Justice as the Honourable Attorney General and Commissioner for Justice.

This is contained in an official statement signed by Dr. Honour Sirawoo, Permanent Secretary, Ministry of Information and Communications.

According to the statement, Barrister Green will also continue to coordinate the activities of the Ministry of Sports pending the appointment of a substantive Commissioner to oversee the ministry.

The redeployment, which takes immediate effect, was approved at the last State Executive Council meeting for the year 2025, underscoring the Governor’s commitment to strengthening governance, ensuring continuity in service delivery, and optimising the performance of key ministries within the state.

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Fubara Restates Commitment To Peace, Development …Commissions 10.7km Egbeda–Omerelu Road

Published

3 weeks ago

December 12, 2025

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.

The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.

Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.

He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.

Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.

“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.

He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.

“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.

Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.

Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.

He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.

He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.

In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.

He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.

Featured

Oil & Gas: Rivers Remains The Best Investment Destination – Fubara

Published

1 month ago

December 1, 2025

The Tide

Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.

Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.

The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.

Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.

“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.

“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.

“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.

“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?

Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.

Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”

The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.

“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.

“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.