Oil & Energy
117 Rivers Communities Get N5bn GMoU Fund
No fewer than 125 communities in 12 cluster development areas in Rivers State have so far received a whopping N5billion for the development of their communities as part of the implementation of the innovative Global Memorandum of Understanding (GMoU).
This is part of the N7billion disbursed by Shell Petroleum Development Company of Nigeria (SPDC) for the sustainable development of host communities under the Global Memorandum of Understanding (GMoU) implementation in the Bayelsa, Delta and Rivers states.
These were disclosed last Friday in Port Harcourt at the first-ever GMoU Fair for Rivers State communities, organized to showcase the individual community achievements in the implementation of the innovative development concept.
Of the 12 cluster areas, only 10 are active with about 117 communities, and have got the lion share of the development fund, released directly into their bank accounts by SPDC for the execution of people-oriented projects and programmes, initiated and implemented by the communities.
The active cluster development areas that have benefited from the funding over the last four years are Akuku Toru with five communities; Andoni with 20; while three are in Degema 1; 30 in Degema 3; nine in Etche 1; 12 in Etche 2; nine in Greater Port Harcourt City; four in Shell Industrial Area; 12 in Ikwerre; and three in Shell Residential Area.
Available statistics indicate that the Akuku Toru Cluster has received N1,036,661,677.33 and spent N795,187,665.10 on 45 completed infrastructure projects, nine human capacity development programmes and 12 economic empowerment schemes as well as 19 ongoing infrastructure projects, two human capacity and another two economic empowerment schemes; while Andoni has got N139,750,000, and spent N63,383,570 on infrastructure projects and N33,356,963.05 on human capital development and economic empowerment schemes in four years.
Both cluster communities also have the sum of N158, 217,035.45 and N30, 917,506.97 unspent funds in their respective bank accounts.
Available statistics indicate that the three Degema 1communities have received N1, 215, 810, 893, and have expended N1, 006, 681, 319 on 36 completed and 17 ongoing infrastructure projects, human capital development and economic empowerment schemes, including 11 overseas scholarship programmes in the United States; while the 30 Degema 3 communities have so far got N2, 076, 666, 666.70 and pumped N1, 797, 652, 821.71 on 49 completed infrastructure projects and 52 human capital development programmes as well as 14 ongoing infrastructure projects and 39 economic empowerment schemes.
Both Degema 1 and 3 have N209, 129, 374, and N366, 242, 721.70 as balance in their separate bank accounts for the execution of more development projects in their communities.
In the Degema 3 soft programmes portfolio, 531 indigenes have received local tertiary and or secondary scholarships, paid bursary to 1,730 persons, equipped 368 unskilled indigenes with sustainable skills, empowered 663 with micro credit loans, sponsored one person on overseas scholarship and created transport scheme for 108 indigenes of the cluster.
The Tide investigations show that the nine communities in the Etche 1 cluster area received a total sum of N590, 306, 088, out which they spent N520, 888, 999.33 on 85 projects, out of which 69 have been completed while 16 are ongoing. In this project template are 24 human capital development programmes, 13 electricity and 18 water schemes, 14 infrastructure projects and 16 economic empowerment schemes.
Whereas the 12 communities in Etche 2 cluster area have so far received N435, 639, 610 and expended N343, 896, 077. 39 on 34 completed infrastructure projects and 12 ongoing ones, in addition to 21 human capital development programmes and two economic empowerment schemes; the nine communities in Greater Port Harcourt City have got N320, 032, 073, and spent N278, 712, 826 on no fewer than 35 projects. Both Etche 2 and GPHC clusters also have bank accounts balance amounting to N91, 743, 532.61 and N41, 319, 247, respectively, for more people-oriented development projects.
The Tide also found that the four IA Cluster communities have received N360, 584, 323.40, and spent N297, 324, 573.32 on 47 completed projects and one ongoing project, just as the 12 communities in Ikwerre Cluster area have confirmed receipt of N536, 506, 100, out of which N497, 192, 009 has been spent on 38 completed projects and 10 ongoing ones.
Similarly, the three RA Cluster communities have received N276, 950, 790, out of which they have spent N137, 206, 510.12 on 25 projects and programmes, split in 21 completed and 4 ongoing portfolios. Of these, they are eight human capital development programmes, five electricity projects, one water project, six infrastructure projects and five economic empowerment schemes.
Even as they have put these development landmarks on the ground, the IA, Ikwerre and RA cluster areas still have bank accounts balances running into N63, 259, 749; N39, 314, 091; and N139, 744, 279.88, respectively for further sustainable development purposes.
Besides, Akuku Toru Cluster communities still have outstanding accruing development funds amounting to N74, 047, 262. 00; while Degema 3 communities have N148, 333, 333, 30 yet to be paid by SPDC.
In their separate speeches, the chairmen of the 10 cluster development boards said that the GMoU initiative was the metamorphosis of the microcosm of resource control in the Niger Delta, and advised communities in the region to key into the concept to enable them benefit from the resources derivable from their areas.
Managing Director, SPDC, Mutiu Sunmonu, who said that these investments were a sure way to bring about sustainable development and positively impacting change to host communities, stressed that the transparency and accountability in the GMoU model provides a good platform for other local and international donor agencies to fund development projects directly through the community development boards.
Sunmonu, who spoke through SPDC’s Government and Community Relations Manager, Fufeyin Funkapo, noted that the range of projects and programmes executed under the GMoU template cover microcredit for men and women, scholarships, innovative healthcare, skills acquisition schemes, solar-powered electrification and water projects, among many others, and thanked Rivers State Government, Rivers State Sustainable Development Agency (RSSDA), Economic Support Initiative (ESI), the local government councils, host communities, implementing non-governmental organisations and joint venture partners for ensuring the success of the initiative thus far.
Wife of Rivers State Governor and Founder of ESI, Dame Judith Amaechi, eulogized the SPDC and GMoU concept, and acknowledged the sterling contributions of the initiative to the overall development of the state.
Represented at the event by Mrs Nina Ejims, the governor’s wife emphasized that ESI supports 70 schools and 210 teachers in the state, and has partnered with Ikwerre and Degema cluster boards under the GMoU scheme to implement human capital and infrastructure development projects with significant dividends to the rural population in the state.
Nelson Chukwudi
Traders have not been this bearish on oil in months or so bullish on United States natural gas in years.
The latest data on money managers’ positioning in the WTI and Brent crude and U.S. natural gas futures showed two contrasting trends—speculators are betting that oil prices would remain low or go even lower while increasing the bets that natural gas prices would continue marching higher.
So far this year, geopolitical and supply and demand factors have been increasingly bearish for the oil price outlook and increasingly bullish for natural gas prices.
In the oil market, hedge funds and other portfolio managers have been slashing their bullish bets since the end of January, when the U.S. sanctions on Russia’s oil trade were the primary bullish driver of managed money to bet on a tightening market.
With U.S. President, Donald Trump, now in office, the sentiment has quickly soured amid the president’s insistence on lower oil prices, his efforts to broker an end to the war in Ukraine, and – most of all – the enormous uncertainty about on-and-off tariffs and tariff threats and their potential impact on the American economy.
As a result, market participants are preparing for lower oil prices, even amid expectations of declining oil supply from Iran and Venezuela due to President Trump’s hawkish policy toward these OPEC producers.
Speaking of OPEC, the wider OPEC+ group has just said it would begin increasing supply as of April, adding further downward pressure on prices.
Faced with all these bearish drivers, money managers have been reducing their bullish bets on crude oil futures, with the U.S. WTI Crude hitting the lowest net long position – the difference between bullish and bearish bets – in 15 years at the end of February.
In the week to March 4, the latest reporting week with data released on March 7, speculators bought WTI amid a major selloff in all other commodities except for U.S. natural gas.
The net long in WTI rebounded from the 15-year low, but it wasn’t because the market suddenly started betting on higher prices going forward. The rise in WTI buying and the net long was the result of short covering in the U.S. crude futures contract.
In Brent, hedge funds cut their bullish-only bets in the week to March 4 for the biggest decline in longs since July 2024.
Unlike in crude oil, money managers have become increasingly bullish on U.S. natural gas after inventories dipped this winter to below the five-year average as demand surged in the coldest winter for six years.
The net long in natural gas further swelled in the week to March 4, as the number of new bullish bets was four times higher than the new short positions.
“Natural gas continues to benefit from rising demand, both domestically in the US and towards exports via LNG,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, commenting on the latest Commitment of Traders report.
At the start of the winter heating season in November, U.S. natural gas inventories were higher than average for the time of the year as America entered the season with stocks at their highest level since 2016.
These stocks, however, were quickly depleted during the coldest winter for six years, with demand for space heating and power generation soaring. A month before the end of the winter heating season, U.S. natural gas inventories have now slumped to below the five-year average and well below the levels from the same time in 2024, at the end of a mild winter.
The lower inventories and the higher demand – both for domestic consumption and LNG exports – have pushed prices higher, encouraging producers to boost gas output this year. Traders bet that prices will go even higher as demand from LNG plants is set to accelerate with the ramp-up of new U.S. export plants.
Paraskova writes for Oilprice.com.
By: Tsvetana Paraskova
Renaissance Africa Energy Holdings says it has successfully completed the acquisition of 100 percent equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).
Spokesperson of the company, Tony Okonedo, who disclosed this in a Press Release, Last Thursday, said Renaissance has completed all processes for the full transfer of ownership of SPDC to the consortium, adding that it will now operate as Renaissance Africa Energy Company Limited.
“Renaissance Africa Energy Holdings today announced that it has successfully completed the landmark transaction between itself and Shell for the acquisition of the entire (100%) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).
“This follows the signing of a sale and purchase agreement with Shell in January 2024 and obtaining all regulatory approvals required for the transaction. Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited.
“Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited’.
“Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc. FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook”, the statement reads.
Speaking on the acquisition, the Managing Director/CEO, Renaissance Africa Energy Holding,Tony Attah, said Renaissance Africa Energy Company Limited has a vision to be the leading oil and gas producer in Africa and to help the continent achieve energy security.
Attah expressed gratitude to the Federal Government for its support and pledged the company’s commitment to the Petroleum Industry Act.
“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialization in a sustainable manner’.
“We and our shareholder companies are therefore pleased that the Federal Government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act”, he said.
The CEO acknowledged the contributions of Nigeria’s Minister of Petroleum Resources, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL) in facilitating the deal.
He said, “we extend our appreciation to the Honourable Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the CEO of Nigeria National Petroleum Company Limited (NNPCL) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as strategic accelerator for the country’s industrial development”.
The Statement further revealed that Renaissance partner companies collectively have an asset base of more than $3 billion and currently safely produce approximately 100,000 barrels of oil per day (bpd) from 12 oil mining leases and operate two functioning modular refineries in Nigeria’s Niger Delta.
The Federal Government has cautioned oil-rich communities against infighting and disruption of oil production, saying it could hinder their access to the Host Community Development Fund.
Minister of State for Petroleum (Oil), Heineken Lokpobiri, made the appeal while speaking at the KEFFESO Stakeholders Forum, in Yenagoa, Bayelsa State.
Lokpobiri noted that the Petroleum Industry Act (PIA) was enacted to bring stability to the oil sector and address longstanding grievances about underdevelopment in host communities.
He lamented, however, that internal disputes among stakeholders have made it difficult for these communities to access and utilize the funds meant for their development.
Lokpobiri insisted that host communities must overcome internal conflicts that hinder their access to the funds.
“This KEFFESO Stakeholders Forum is to see how host communities can maximize the benefits from the Host Communities Trust Funds as prescribed by the PIA.
“If oil production is disrupted, everyone loses — the Federal Government, oil companies, and the host communities themselves. That is why host communities must collaborate with the government and oil companies to ensure smooth operations” Lokpobiri stated.
The Minister called on Host Community Development Trusts (HCDTs) in the Niger Delta to effectively utilize the 3% operational funds allocated to them under the PIA 2021 to drive sustainable development.
He further called that oil-producing communities should take ownership of the oil and gas facilities within their domains and work with relevant stakeholders to ensure sustainable benefits.
“As stakeholders who have their respective stakes in oil and gas operations in the country, we should work together to ensure that we maximize the benefits of oil and gas.”
The minister also emphasized the global push for cleaner energy, warning that the relevance of fossil fuels depends on their extraction and marketability.
“Don’t forget there is a global campaign against the continuation of production of fossil fuel.
“Fossil fuel will never go away. Fossil fuel will not have any value unless you bring it out of the ground or from the sea to the market, that is why we need this collaboration,” he said.
In his remarks, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Omotsola Ogbe, reaffirmed the board’s commitment to leveraging the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Represented by the Board’s Director of Legal Services, Naboth Onyesoh, Ogbe noted that the NCDMB’s Community Content Guidelines were designed to ensure sustained community engagement as local content is prioritized throughout the oil and gas value chain.
Ogbe praised the KEFFESO Host Community Development Trust for its efforts in ensuring that oil revenues benefit local communities.
Also speaking, the Managing Director and Chief Executive Officer, First E & P, Ademola Adeyemi-Bero, described the KEFFESO Stakeholders Forum as a crucial platform for discussing and strategizing solutions to the challenges facing marginalized communities in the Niger Delta.
He reiterated the company’s commitment to fostering meaningful and sustainable development in the region.
The forum, themed “Envisioning Sustainable Community Development in Niger Delta Host Communities: Identifying Challenges and Actualising The PIA Paradigm Shift,” brought together key stakeholders to discuss strategies for maximising the benefits of the Petroleum Industry Act(PIA).
