Shell Shuts Production In Abia, Rivers

Barely 54 days after the United Nations Environment Programme (UNEP) submitted its post-crude oil production environmental impact assessment report to President Goodluck Jonathan in Abuja, detailing large-scale pollution and devastation of the Ogoni, Eleme and Okrika ecosystems, thousands of crude oil thieves have again overrun hundreds of hydrocarbons production facilities in the Imo River Field in Abia and Rivers States, causing yet another orgy of environmental degradation and concern for the future of long impoverished people in the Niger Delta.

Consequently, the Shell Petroleum Development Company of Nigeria (SPDC) has for over a month now shut down production in the areas.

Communities worst hit by this latest spate of crude oil theft and illegal refining activities are Igiriukwu, Isietitioha, Etitioha, Ipu, Umuorie, Umuahala, and Akwete areas, all in Ukwa West, Abia State and the Nkali cluster communities in Rivers State.

By this development, the International Oil Company (IOC) has deferred production activities indefinitely in a cluster of rich facilities, in Imo River, Abia State and Nkali in Rivers State as well as the gigantic Associated Gas Compressor Station at Imo River.

By this development, the SPDC stands to lose exactly 25,000 barrels per day, which translates to $2.7million (about N423.9million) in revenue at $108 per barrel.

Thus far, Shell has lost 750,000 barrels in production deferment while the Federal Government has lost $8.1billion  (N1.272trillion) in revenue in 30 days.

Crude oil, which is traded in dollar, now hovers between $83 and $97 per barrel for the Light Crude and $108 and $115 per barrel for the Brent Crude.

Calling on all stakeholders, especially the three tiers of government to act fast to eliminate the menace of crude oil theft, illegal bunkering and refining activities in the area, Shell told newsmen in Port Harcourt, last Thursday, that if urgent steps were not taken to clear the district of cells of crude oil thieves, the negative environmental impact would be worse than what UNEP has recorded in the Ogoni Field.

Shell Vice President, HSE and Corporate Affairs, Sub-Saharan Africa, Tony Attah, who presented a gory picture of illegal crude oil bunkering and refining activities in Imo River District, and also led the more than 20 senior editors and bureau chiefs on a guided overfly of the vast impacted cluster areas, alleged that the organised crime against the state was being masterminded by well-placed but unpatriotic elements in the society, given the huge outlay of funds required to run the chain of criminal command and lucrative business.

The vice president regretted that before Shell took the decision to shut down operations of the field, the company was losing more than 20 per cent of its nameplate production capacity, representing 5,000 barrels per day, to the criminal gangs, and indirectly boosting their revenue stocks by some $540,000 (about N84.780million) per day.

The Tide learnt that it takes well over N15million to construct a barge, and between N50,000 and N5million to construct a large locally-dog out canoe and a Cotonou boat, respectively.

However, a thorough investigation shows that the economic saboteurs have more than 250 barges with the capacity for storage of more than 40,000 barrels of crude each, 800 canoes with the capacity for about 1,250 litres of crude each, and 650 Cotonou boats with average capacity for 5,000 litres of crude each, in their arsenal.

Investigations further show that hundreds of the barges convey the stolen crude and discharge same into ocean-going vessels docking off Akwa Ibom and Rivers shores, at distances far removed from the scenes of illegal operations in Imo River while several 33,000-litre tankers transport illegally-refined products via the scattered but well-secure road network to willing filling stations across the country, who sell them at cheaper rates.

However, the development reveals yet another round of worrisome levels of pollution and devastation of precious streams, drinkable water sources, flora and fauna, biodiversity, and indeed, underground water sources, vast farmlands, forests and mangroves stretching well over 300 square kilometres, if urgent pragmatic steps are not taken to eliminate the menace and preserve the environment from unplanned abuse.

Nelson Chukwudi

From R-L: Rivers State Deputy Governor, Engr. Tele Ikuru, his wife, Dr Mina Ikuru, Deputy Speaker, Rivers State House of Assembly, Hon. Leyii Kwanee and the state Chief Judge, Justice Iche Ndu, during a thanksgiving Service to mark 51st Indepence Anniversary of Nigeria in Port Harcourt, yesterday.