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Shell Cleans-Up, Remediates 2,000 Spill Sites

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As the United States, and indeed, the world grapples with more than three-month old continuous crude oil slick from the British Petroleum Plc’s Deepwater Horizon rig that has created the worst environmental disaster in history in the Gulf of Mexico, the Shell Petroluem Development Company of Nigeria (SPDC)says it has completed the clean up and remediation of 2,000 oil spill sites in the Niger Delta between 1999 and last month.

This translates to around 173.9 spill sites a year across SPDC-operated fields in the Niger Delta.

Head, Remediation, SPDC-East, Augustine Igbuku, who disclosed this during a special media session in Port Harcourt, last Thursday, said that the company would soon complete clean up and remediation operations on the backlog  of 250 crude spill sites  in the area.

Igbuku, however, regretted that even as Shell was making frantic and proactive effort to clean up and restore impacted environments to their natural state, deafening challenges arising from intermittent sabotage of crude facilities, hot tapping, and activities of illegal refineries as well as denial of access to spill sites have impeded progress on the remediation process.

He noted that these illegal operations have triggered about 200 new spills every year in the past few years.

Igbuku explained that it takes SPDC about a year to clean-up and remediate a major spill site usually caused by sabotage activities and between 3 to 5 months to clean-up and remediate a minor spill site occasionally triggered by operational failure.

Shell said that more than 70 per cent of all oil spilled from its facilities between 2005 and 2009 were caused by thieves who drill into pipelines or upon up wellheads to steal crude oil and natural gas liquids, and attributed the rest to operational failures.

The Tide recalls that the total number of spills in 2009 was 132, against the average of 175 spills per year between 2005 and 2009.

Of the 2009 figure, crude thieves spilled about 103,000 barrels from SPDC facilities in 95 incidents, which represents an average of one spill every four days, and some 98 per cent of total volume of oil spilled last year.

In contrast, operational failures such as corroded pipelines, equipment failure and human error resulted in the spillage of 2,300 barrels in 37 incidents.

However, of the total 105,300 barrels spilled from both sabotage activities and operational failures in 2009, more than 72,000 barrels were recovered in clean-up operations across the region, especially in Rivers, Bayelsa and Delta States, respectively.

The Tide investigations show that Shell remediated and certified 143 spill sites in 2009, and replaced 318 kilometres of pipelines and flow lines.

A further 439 sites are at various stages of remediation while work on six pre-2005 spill sites remains in linbo due essentially to access difficulties and community issues.

Available statistics show that in 2005, sabotage spills numbered about 115, with operational failures accounting for some 60 incidents, which resulted in around 17, 000 and 800 barrels spilled, respectively.

In 2006, about 125 sabotage incidents occurred, with some 40 operational spills, which recorded around 10,000 barrels apiece, while 2007 recorded nearly 200 sabotage and 50 operational spill incidents, accounting for 20,000 and 16,000 barrels spilled, respectively.

However, in 2008, around 120 spill incidents were recorded against some 45 operational spills, which spewed about 48,000 and 50,000 barrels, respectively, into the environment.

 

Nelson Chukwudi

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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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.
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NLC Faults FG’s 3trn Dept Payment To GenCos

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

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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,”
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