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Shell Pipeline Fire Devastates Ogoni Communities

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Three Ogoni communities of Bera, B-Dere and Bodo West in Gokana Local Government Area of Rivers State have again suffered severe devastation from fire triggered on the Trans Niger Pipeline of Shell Petroleum Development Company (SPDC).

As a result of the inferno, Shell had quickly moved in to stop feeding the affected pipeline with crude oil from neighbouring fields in order to halt the fire and the devastating spill.

Shell has also mobilized its emergency response team, including fire fighting experts, to quell the inferno and assess the extent of destruction and damage to the ecosystem and the environment.

The Tide learnt that the affected communities have had a long history of devastating fires and oil spills as they harbour a litany of Shell pipelines and manifolds, which convey crude oil from flowstations around Ogonuiland as well as those located in other oil fields in Rivers and Abia States to Bonny Export Terminal.

It was gathered that since the shut down of Shell operations in Ogoni more than 15 years ago, all crude oil passing through the pipelines to Bonny Export Terminal have come from other fields and flowstations outside Ogoni.

But because of the restriction of Shell staff from the area, The Tide checks revealed that most of the installations and facilities have remained unattended to for years, making them vulnerable and susceptible to pressures from huge crude flows and surges.

Meanwhile, a joint investigation team, consisting of Shell, Department of Petroleum Resources (DPR), Ministry of Environment, Gokana Local Government Council, security agencies, and community representatives has been mobilized to the area to ascertain the cause of the inferno, and recommend appropriate strategies to check any future occurrence. 

Shell’s spokesman, Precious Okolobo told The Tide in a telephone interview, that investigation to unravel the cause of the fire was ongoing, and admitted that there were leakages on the affected pipeline.

Okolobo noted that in the course of the exercise, proper clean up of the impacted site will be done to remediate and restore the environment.

 When The Tide visited the affected area, thick smoke was still seen billowing at the spill site while farmland, economic crops, including natural streams were devastated, compounding previous damages done in the area by past spills.

Soldiers were also seen at strategic points, trying to bring the situation under control, and prevent the breakdown of law and order.

 

Beemene Taneh

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Oil & Energy

DAPPMAN Raises Concern Over FG’s New Tax Regime

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The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed concern over the new 0.5 per cent tax on gross turnover of the petroleum marketing firms proposed by the Federal Government.
Executive Secretary, DAPPMAN, Mr Olufemi Adewole, said at the maiden edition of the Platforms Africa Continental Forum in Lagos, that the tax would put many firms out of business.
Adewole said there were indications that fuel distribution crisis may soon hit the country, if the government implemented the new tax regime.
He was emphatic that more than half of the fuel marketing firms in Nigeria would close down, if the tax burden was slammed on them.
According to him, the imminent closure of businesses poses threat to the smooth distribution of petroleum products across the country.
“The petroleum marketing firms’ trading margin is too small that they cannot pay such amount sustainably.
“Petroleum marketers operate a very low margin but the turnover is very huge. Unfortunately the margin does not correspond with the turnover,” said Adewole.
He added that the margins they made when fuel sold at N40 per litre was the same when the price rose to N160 per litre and N200 per litre respectively.
According to him, “The Finance Act 2020 says the marketers have to pay 0.5 per cent from their gross turnover by the end of this year.
“It is unimaginable that probably half of the petroleum marketing firms existing now may go under, if the new tax regime is implemented.
“Except the regulator which is Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approves a new margin for the marketers.”
He said the association had called on government to give petroleum marketers access to foreign exchange at the official Central Bank of Nigeria (CBN) rate to enhance the supply and distribution of Premium Motor Spirit (PMS) across the nation this yuletide season.
According to DAPPMAN, shortage of foreign exchange (forex) coupled with several unauthorised levies, bad roads are among the factors making fuel importation and distribution burdensome for members.
The Tide source reports that the fuel marketers recently bemoaned the acute scarcity of forex in the official market, which is currently threatening the importation, distribution and impacting deeply on prices of petroleum products across the country.

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Niger Wants NNPCL To Establish Truck Transit Parks

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Niger State Government has urged the Nigerian National Petroleum Company Ltd. (NNPCL) to establish truck transit parks in some strategic parts of the state to reduce traffic on highways.
The government identified towns such as Tafa, Suleja, Mokwa, Bida, Tegina, Lambata and Minna as major areas to be given attention in that regard.
The Permanent Secretary in the Ministry of Mineral Resources in Niger State, Alhaji Abubakar Idris, made the call during the meeting of National Council on Hydrocarbons organised by the Ministry of Petroleum Resources in collaboration with the State Government.
According to him, the establishment of the parks in the identified areas will reduce traffic on highways and generate revenue for the state and country at large.
In the meeting entitled: “Roadmap and Strategic Option towards achieving energy transition in Nigeria”, Idris presented a memorandum from the State Government to the council on the need for the establishment of the transit parks.
He explained that it would also create a partnership between the state and federal government to reduce the negative effects of heavy road traffic on highways.
He explained further that the trucking industry was indispensable to the Nigerian economy as “truckers are responsible for delivering fuel from depots to filling stations where they are dispensed.
“For these reasons, funds need to be released to build truck parks for ease of operations”, he said.
He also called for the establishment of a frontier basin development commission with its headquarters in Niger State.
According to him, the establishment of the commission will expedite the effective implementation of Petroleum Host Community Trust Fund and frontier basin exploration fund as captured in the Petroleum Industry Act 2021 with headquarters in Niger.
He said Nigeria’s frontier basins consist of Anambra basin, the lower, middle and upper Benue trough, the South eastern sector of the Chad basin, the Mid-Niger (Bida) basin and Sokoto basin.
According to him, the basins would be better positioned for the opportunities in the hydrocarbons natural gas, oil and other minerals.
He noted that the establishment of frontier basin development commission would offer greater opportunities to actualise the state dream of oil and gas economic value-chain and industrialisation in Nigerian frontier basins.

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Motorists Groan Over Fuel Scarcity

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Long queues resurfaced in Lagos as motorists spent hours at filling stations to buy Premium Motor Spirit (PMS), popularly known as petrol.
The situation was worse on Ikorodu Road, Maryland, Ikeja, Anthony, Bariga, Ilupeju and Gbagada areas as motorists were agitated for spending hours on queues.
The Tide source reports that the development left commuters stranded with gridlocks in major areas of Lagos as motorists queued to buy the product.
The source also reports that only filling stations owned by Major Oil Marketers Association of Nigeria (MOMAN) had petrol and sell at the regulated price of N170 per litre.
Some stations owned by Independent Petroleum Marketers Association of Nigeria (IPMAN) sell between N200 and N210 respectively.
A motorist, who identified himself as Mr Foluso Saliu, told the source that he had been on the queue since 6.30 a.m. hoping to get fuel and return to work.
He said government should find a lasting solution to petrol supply in Lagos to avoid panic-buying.
“Scarcity has been frequent during the ember months and l hope it will be addressed,” he said.
Another motorist, Mr Julius Albert, urged filling stations to avoid selling petrol in jerry cans to allow vehicles to buy on time.
Albert appealed to the government to fully deregulate the downstream sector of the petroleum industry if that was the solution to availability of petrol without stress.
According to him, the product seems to be available in some filling stations but they choose to hoard it and sell at higher prices.
Queues were seen at Mobil, NNPC, Conoil, Oando and Nipco filling stations on Ikorodu Road.
Also, queues were cited at TotalEnergies, TMAAC on Bank Anthony Road and Conoil, opposite LASUTH.

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