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SPDC Links Major Spills To Sabotage

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The Shell Petroleum Development Company of Nigeria has insisted that it does not make any business sense for any hydrocarbons exploration and production company to deliberately spill crude oil into the environment in a competition-ridden industry.

Instead, Shell would spend all available resources and deploy the most modern technology to capture, process, pump and store for export, the minutest drop of crude oil and natural gas liquids in order to make maximum return on investments.

 Raymond Asukwo, head, pipelines, SPDC-East, who said this during a special media session in Port Harcourt last Thursday, stressed that the clarification became necessary following certain insinuations that oil majors operating in the Niger Delta, including Shell, were in the habit of spilling oil, and not making efforts to clean-up and remediate impacted sites.

Asukwo, noted instead, that the activities of pipeline vandals, crude thieves and operators of illegal refineries, have unleashed more devastating damage to the region’s environment.

He explained that more than 70 per cent of all spill incidents and 98 per cent of total volume of oil spilled yearly are associated with illegal activities of mostly armed gangs, who depend on crude and pipeline theft to eke out a living or deliberately attack oil facilities as a means of expressing their angst over sustained neglect of the region by the government.

Asukwo, particularly fingered Bomu and Soku oil fields in Rivers State as worst areas where criminal gangs have created oil blocks, built manifolds and refineries for themselves using most crude and unsafe means to siphon oil into barges, vessels, tankers, and sometimes, train coaches in exchange for cheap money and arms from ready buyers.

The Shell pipelines expert stated that the activities of operators of illegal refineries, oil bunkerers, and facilities vandals now threaten the United Nations Environment Programme (UNEP) study team’s efforts in Ogoniland as illegal refineries and oil facilities’ sabotage have become more frequent  features, especially in the Bomu, Bodo, Kpor, K-Dere axis of Gokana.

A 40-minute overfly of Bomu field in Ogoni by The Tide, United States-based Cable News Network (CNN), and Bloomberg News spotted no fewer than 20 islands or blocks harbouring  more  than 200 illegal refineries, numerous illegal connections to crude facilities and deserted oil bunkering points, with resultant smokes billowing at intervals, and the crude thieves scampering for cover on sighting the helicopter.

The team also saw, with utter trepidation, kilometers of stretch of streams and rivers which empty into Bonny river, heavily polluted with crude formations and slicks, while the green vegetation has been completely eliminated in very large, hitherto,  mangrove forests and wetlands.

Asukwo had explained that SPDC has some of the best oil spills management systems in the world, including Pipeline Integrity Management System (PIMS), Pipeline Intelligence Pigging System (PIPS), Oil Spills Response Management System (OSRMS), Oil Spills Contingency Plan (OSCP), as well as Communities And Shell Together (CAST), which manages pipeline stakeholder issues such as surveillance and security.

He said the application of the above plans ensures that weak and faulty pipelines, valves, among others, are detected and replaced to maintain production capacity, saying that only unserious business concern would allow its critical and essential facilities to fail, and consequently loose revenue.

According to him, deferments arising from crude shut-in as a result of operational failure or sabotage on its facilities and huge costs of repairs were business challenges Shell would want to avoid but pointed out that the socio-economic conditions have forced the company to operate under tight situations. 

 

Nelson Chukwudi

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Oil & Energy

Civil Society Demands Accountability over N60Billion AKS Oil Producing Communities

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A civil society organisation, the Centre for Human Rights and Accountability Network, (CHRAN) has demanded full disclosure of how over ?60bn allocated to oil-producing communities in Akwa Ibom State has been managed since the inauguration of the Host Community Development Trust in 2024.
The group also threatened to deploy legal measures against trustees who fail to account for projects and other interventions funded from the oil host community development allocations.
In a Statement signed by the Group State Director, Otuekong Franklin Isong, and Secretary, Research and Documentation, Comrade Etimbuk Ekpenyong, the organisation’s demand was prompted by complaints from residents who questioned the level of development in their communities despite the substantial funds accruing to the trust.
According to the statement, Its demand also followed a verification exercise conducted by it’s investigation Team into the activities of the EMOIMEE Host Community Development Trust, which covers seven oil and gas-producing local government areas in the state.
The affected councils in the statement are Eket, Mbo, Onna, Ikot Abasi, Mkpat Enin, Esit Eket and Eastern Obolo.
The statement said, during the CHRAN verification exercise, only the Eastern Obolo Board of Trustees had so far provided satisfactory responses to its requests for information made under the Freedom of Information Act.
The organisation said the failure of other trustees to disclose information had heightened concerns over the transparency and accountability in the management of funds intended for communities affected by oil exploration and production.
The group said it formally wrote to trustees representing Eastern Obolo, Esit Eket, Ikot Abasi, Onna and Mbo on May 25, 2026, requesting details of projects executed, locations, contractors, scholarships and beneficiaries, as well as other interventions financed by the trust.
According to CHRAN, the Eastern Obolo trustees, Rt. Hon. Uduyork J. Aboh and Mrs Lily Evans John, responded with documents detailing 29 projects executed in the local government area and scholarships awarded to 2,000 beneficiaries.
The organisation said it independently fact-checked the information supplied by the Eastern Obolo trustees and found it accurate.
CHRAN commended the trustees for responding to its request, describing the disclosure as an example of the transparency expected from institutions managing public-interest funds.
The organisation, however, said four other trustees had yet to respond to its requests.
Those named were Hon. E. Justus Ntuk of Ikot Abasi, Hon. Bassey Dan-Abia Jnr of Esit Eket, Engr. Clinton Akpan of Onna and Dr Asuquo Edet Inuikim of Mbo.
CHRAN urged the trustees to immediately disclose details of how the funds allocated to their respective host communities had been utilised.
It said failure to provide the requested information would leave it with no option but to pursue available legal avenues to compel disclosure.
On Legal battle over Eket fund, the Human Right Group said its accountability campaign had already resulted in legal action involving the Eket representative.
According to the group, it was earlier written separately to the trustees representing Mkpat Enin and Eket.
While the Mkpat Enin representative responded, CHRAN said the Eket trustee failed to provide the requested information.
The organisation said this led it to institute Suit No. FHC/CS/10/2026, which is currently pending before the Federal High Court.
The Group stressed that its demand was not aimed at witch-hunting the trustees but at ensuring that communities receive the benefits intended under the Petroleum Industry Act.
The group said the EMOIMEE trust was established in pursuant to the Petroleum Industry Act, 2021, with Mobil Producing Nigeria limited as the settler and the Nigerian Upstream Regulatory Commission as regulator.
It said the trust was incorporated under the Companies and Allied Matters Act on July 5, 2023, and formally inaugurated on July 18, 2024.
The organisation alleged that the trust had received over ?60bn from the NNPC/MPN Joint Venture since inception, making transparency in the utilisation of the funds particularly important.
CHRAN said the funds were intended to address developmental challenges in communities hosting oil and gas operations and to improve the quality of life of residents.
It therefore urged all trustees to make their records available for public scrutiny.
“Public accountability is not optional for a statutory trust managing funds meant for the collective benefit of host communities; it is a legal and moral obligation,” the organisation said.
The Human Rights Group further warned that it would explore all lawful measures available to compel trustees who refuse to provide the requested information to disclose how the funds had been spent.
The Group called on residents of the affected communities to remain vigilant and demand accountability for projects, scholarships and other interventions funded from the host community development allocations.
The organisation said the response from Eastern Obolo demonstrated that transparency was possible and should become the standard across all the host communities.
Enoch Epelle
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NCDMB, BOI Unveil $100m Nigerian Content Equity Fund  …Set To Invest $5m In Oil Firms

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The Nigerian Content Development and Monitoring Board (NCDMB), and the Bank of Industry (BOI), Friday in Lagos inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF).
The NCEF according to the Directorate of Corporate Communications of the Board is a groundbreaking $100 million financing product designed to avail long-term financing to service companies and provide access to funds in exchange for equity rather than the traditional debt instruments.
In his remarks at the inauguration ceremony of the Committee, Executive Secretary of the NCDMB, Engr. Felix Omatsola-Ogbe tasked the investment committee to carry out rigorous due diligence on every company seeking support and ensure that the objectives for which the Fund was established are fully achieved.
He said the Equity Fund must never be mistaken for a grant, stressing that beneficiaries are expected to deploy the capital judiciously and repay in accordance with the terms of the investment.
He urged the committee to ensure that only credible people with viable businesses benefit from the scheme.
“Our top priority should be identifying people who will use the Fund properly and, most importantly, return our funds back to us so that we can continue the programme for other deserving beneficiaries,” he said.
A statement from the Board’s Corporate Communications Division said the NCEF was inaugurated as a new financing solution to the Nigerian oil and gas service sector, and is also expected to accelerate local content growth.
According to the Boards Division of Corporate Communications, the underlying goal of the NCEF is to reduce per-unit cost of oil and gas products and services locally, create an additional source of income for the Board and play a catalytic role in attracting other investors and lenders to financially viable organizations.
“By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry.
 “The Fund size is $100million, while the obligor limit is $5million. The Fund is provided by the NCDMB, while the Bank of Industry serves as the Fund Manager.
“The target beneficiaries are oil field service companies, manufacturers connected to the oil and gas sector, fabrication yards, and connected sectors, with the primary goal being to promote economic growth, job creation, and wealth creation in Nigeria”, the NCDMB said.
The Board added that the impact of the Fund on oil and gas projects could potentially create an estimated 12,500 direct jobs and 7,000 indirect jobs, stating that the inauguration of the investment committee marks another milestone in the evolution of the Nicetizn Content Investment (NCI) Fund which is a flagship intervention established under section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to bridge financing gaps confronting indigenous oil industry firms.
A Statement from the NCDMB’S Division of Corporate Communications further said that while the five NCI Fund products managed by the BOI and two products managed by the Nigerian Export-Import Bank (NEXIM) have provided debt financing to qualified service companies over the past decade, with loans lasting five years and interest rates of 8%, the Equity Fund has carved a new niche.
Meanwhile, Managing Director of the Bank of Industry, Dr. Olasupo Olusi has described the inauguration as a major milestone in the consummation of the NCI Equity Fund, noting that the initiative represents the next phase in the long-standing collaboration between BOI and the NCDMB.
According to him, the partnership, which has lasted for nearly a decade, began with the administration of the US$350 million Nigeria Content Intervention Fund, through which hundreds of indigenous oil and gas companies have accessed financing to expand their operations.
He noted that the introduction of an equity financing window addresses an important gap in the industry’s financing architecture.
“The next step, which I am very impressed with and very thankful to the NCDMB for thinking through with BOI, is the need to fill the finance gap with equity,” he said.
According to him, equity financing offers an entirely different class of financial instrument capable of supporting businesses that may not yet qualify for conventional debt facilities, expressing confidence that the initiative would attract additional investment into Nigeria’s oil and gas sector while strengthening indigenous participation.
Giving further insight into the fund, the Group Head, Equity Investments at the Bank of Industry, Mr. Chike Chukwuelu, explained that the Equity Fund addresses what industry experts describe as the “missing middle.”
According to him, many indigenous businesses struggle to secure senior debt because they lack the level of collateral demanded by commercial lenders, despite possessing viable businesses with strong growth prospects.
Chukwuelu said the equity structure would also enable the fund managers to maintain closer oversight of beneficiary companies, helping them strengthen governance, improve operations and evolve into sustainable businesses.
In his remarks, Senior Technical Adviser to the Executive Secretary, Engr. Austin Uzoka, observed that the Equity Fund represents an opportunity to accomplish what previous financing interventions could not fully achieve.
“The striking thing is that the fund is about doing things the other funds have not been able to accomplish.” He said
 The Tide gathered that the committee’s responsibilities are to provide strategic oversight for the Equity Fund, ensure prudent investment decisions and build a portfolio of companies capable of growing into major industry players.
Ariwera Ibibo-Howells, Yenagoa
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Oil & Energy

Investment ln Young Engineers Key To Ogoni’s Future -President

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President of the Khana, Gokana, Tai and Eleme (KAGOTE) Organisation and Chief Executive Officer of Giolee Global Resources Limited, Chief Lesi Maol, has described investment in the training and development of young engineers as critical to the future and sustainable development of Ogoniland.
 Maol said this   during the opening of a four-week Wellhead and Christmas Tree Maintenance Training Programme for selected young engineers from Ogoniland at the corporate headquarters of Giolee Global Resources Limited in Port Harcourt, recently.
He said the initiative was conceived as a strategic intervention to bridge the gap between academic knowledge and the practical competencies required in today’s highly competitive oil and gas industry, while equipping participants with internationally recognised technical skills.
According to him, the future of Ogoniland is inseparable from the development of its human capital, stressing that the region’s greatest resource is not the wealth beneath the ground but the talent, resilience and potential of its young people.
Maol explained that the training programme was designed to produce technically competent, safety-conscious and industry-ready professionals capable of competing effectively in Nigeria’s oil and gas sector as well as the global energy market.
He emphasised that the initiative was not merely aimed at awarding certificates but at developing disciplined professionals who would uphold the highest standards of technical excellence, integrity, safety and service in the discharge of their responsibilities.
The KAGOTE President urged the participants to approach the training with dedication, professionalism and a willingness to learn, expressing optimism that the knowledge acquired would contribute to the economic advancement and sustainable development of Ogoniland.
The programme, organised in partnership with Rick International Services Limited and RickWell Tech UK, features classroom instruction, practical demonstrations using oilfield equipment, competency-based assessments, Health, Safety and Environment (HSE) training, leadership development and project management.
In his remarks, Lead Executive Trainer of Rick International Services Limited, Chief Engr. Ramos Ihekona, described the programme as a valuable opportunity for aspiring engineers to acquire practical industry experience from seasoned professionals.
Ihekona encouraged the trainees to participate actively in every aspect of the programme, collaborate with one another and maximise the opportunity to develop competencies that would enhance their confidence and employability in the energy sector.
The organizers said the training was introduced to address the persistent disconnect between theoretical engineering education and the practical skills demanded by employers, adding that the curriculum covers wellhead operations, Christmas tree systems, mechanical maintenance, pressure control, engineering documentation, equipment inspection, field troubleshooting, HSE and project management.
Some of the participants drawn from Khana, Gokana, Tai and Eleme Local Government Areas commended Chief Maol for sponsoring the programme and ensuring a transparent selection process.
He however , likened the initiative to a life-changing opportunity that would prepare them for rewarding careers in the oil and gas industry while contributing to the development of Ogoniland.
King Onunwor
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