SPDC Secures 98 Oil Wells In Ogoniland …Targets 14 More In 7 Days

In an effort to ensure that its 112 oil wells in Ogoni area, Rivers State, are less vulnerable to crude theft and third party interferences, Shell Petroleum Development Company of Nigeria Limited (SPDC), says it has secured 98 wells, and targets to complete work on another 14 in the next seven days.

This is part of a strategic programme to check crude theft, sabotage and other third party incursions on critical production facilities, which the Oil Producers’ Trade Section (OPTS) alleges, account for most of the oil spills in the Niger Delta region.

Industry sources told The Tide that since 1993, 96 per cent of all oil spills from SPDC facilities in Ogoni have been due to sabotage or outright attacks on facilities, crude theft or hot tapping, and the now thriving illegal refining activities.

Shell has also confirmed that in 2009 alone, some 98 per cent of all oil spilled from its operations across the Niger Delta was the result of theft, vandalism or other third party interferences.

The Tide recalls that there has been no production from oil fields in Ogoni since 1993 when SPDC withdrew its staff in the face of community unrest and violence, and ceased production.

The Tide gathered that at the time of withdrawal from the area, it was not safe for staff to fully secure functional wells, which, according to SPDC, is the company’s normal practice when it ceases production from wells and other facilities.

The Tide learnt that the programme, which commenced in Tai Local Government Area in 2005, covers about 112 oil wells in Ogoni.

Shell told The Tide that the programme has since spread to other three local government areas of Gokana, Khana, and Eleme.

Although, access difficulties and security concerns had delayed the programme, however, recent improvements in security and support from local government councils and traditional rulers have facilitated progress on the project. 

So far, all the 98 wells in the land area of Ogoni have been successfully secured, while the last of the 14 swamp wells are scheduled for completion before the end of this month.

In a statement on progress of the project, Shell Corporate Media Relations Manager, Tony Okonedo, quoted Managing Director of SPDC, Mutiu Sunmonu as saying that, “this is a major step forward in our campaign to reduce spills and fires caused by crude theft and sabotage of wellheads”.

According to Sunmonu, “progress on the remaining work can only be sustained as long as we have access, and security conditions are right”.

He expressed gratitude to the Rivers State Government and Eleme, Tai, Gokana and Khana local government councils, as well as traditional rulers, for their efforts in creating the enabling environment for SPDC to secure the wells.

Shareholders of the joint venture are the Nigerian National Petroleum Corporation (NNPC), representing the Federal Government with 55 per cent; SPDC has 30 per cent, while Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have 10 per cent and 5 per cent, respectively.

The Tide also gathered that contributions of shareholders to the joint venture operations reflect their individual stakes in the business, with the government bearing 55 per cent of the total operational costs, including social investments in community development projects while SPDC is the core operator of the business.

However, cash call obligations for technical operations, including exploration and production, as well as critical social investment needs, have often been delayed due to alleged financial flow difficulties, arising from government’s inability to recover fast from the daunting development challenges in other sectors, in order to keep pace with the heavy demands of the capital-intensive industry.

Nelson Chukwudi