Connect with us

Oil & Energy

Akwa Ibom Fishermen And Oil Spillage

Published

on

Fishermen in Akwa Ibom in February 2011, held a prayer session to seek God’s intervention to stop oil spillage in the area.

Their prayer appeared answered as there was no case of spillage in the Qua Iboe oil fields for 10 months.

However, the December 20 Bonga oil spillage in the same year, in which 40,000 barrels of crude oil were discharged into the Atlantic Ocean, took industry watchers by surprise.

The spillage which emanated from the Bonga deep-sea oil facility operated by Shell Nigeria Production and Exploration Company (SNEPCO), ExxonMobil, Eni and Total as joint venture partners with NNPC, is located about 120 kilometres from the coastline and accounts for 200,000 barrels of crude oil per day.

The oil fields are named after a local fish species, Bonga. The fish is notable for its resilience and unique taste and suitable for most dishes along the West African coastline.

The Director-General, National Oil Spill Detection and Response Agency (NOSDRA), Dr Peter Idabor, says the spill covers approximately 950 squre-kilometres in the ocean surface.

Seven months after the spill, the agency imposed a $5 billion administrative fine on Shell.

Idabor says the fine is for impact of the spill on the sea and aquatic lives.

“Looking into the sea, the 40,000 barrels oil spill impacted about 950 squre-kilometres. beneath the sea bed. So as we speak, there is still a lot of oil at the bottom of the ocean which has not been cleaned up,” Idabo says.

“Let me note here that this administrative fine is different from compensation, because investigations are ongoing, and Shell may also pay compensation if we determine more damage.”

The NOSDRA boss notes that as a result of the spill, the livelihood of the people in the communities along 120 kilometres to Bonga has been affected.

“Due to contamination of the open water, there are job losses as the people are mainly fishermen, and this has also led to high incidence of migration of the people from these communities in search of fresh water.”

The people of the area were not so lucky in 2012, as three spill incidents have occurred within the year, on August 13, August 24 and November 9 at the Qua Iboe oil fields.

Chairman, Esit Eket Local Government Council, Chief Ibanga Etang, says the November  9 spill impacted negatively on fishing communities in southern Akwa Ibom.

“The spill contaminated the water, causing fish drought and distorting the marine food chain.

“Whenever a spill occurs, fishermen are thrown out of business because when the waters become toxic, fishes migrate from the reach of fishermen.

“The recurring spills put to question the claims by Mobil management that it has replaced aged pipeline network,’’ Etang notes..

Mrs Udual Eyo-Sunday, a fish seller, says that they were adversely affected by the oil spill.

“Whenever there is oil spill, the fishermen do not bring fish back from the waters and when we cannot buy fresh fish, we have nothing to dry and sell.

“We find it difficult to feed our children and the situation will continue for a long time.

“That is why we need relief materials and compensation for the damage to our source of livelihood,’’ Eyo-Sunday says.

A community leader in Ibeno Local Government, Chief John Etim, describes the latest spill as the worst in recent times.

He says that frequent spills have impoverished the fishing population on the coastline.

“Oil spills have been a major obstacle to our fishermen and it is worsened by the insensitivity of Mobil in the past. But we have seen signs that they are turning a new leaf.

“The way Mobil Producing Nigeria (MPN) has communicated with the communities gives us hope amidst disappointment. We, however, urge them to be reasonable and compensate every one that was impacted,’’ Etim says.

The fishermen, who operate under the aegis of Artisan Fishermen Association of Nigeria (ARFAN), say a safe operational environment at the oil fields will support fishing activities and ensure food security in the country.

Chairman of ARFAN in the state, Rev. Samuel Ayadi, says that the fishermen have suffered untold hardship since 2010 due to frequent oil spills.

“Many fishermen were forced out of business for the greater part of the year due to pollution of the Atlantic by oil and gas companies operating within our territorial waters, he says.

Ayadi explains that although 2011 was spill-free from January till December, fishermen in the state were yet to receive any compensation for the previous incidents.

The association’s chairman also notes that due to the rigorous oil spill compensation process, fishermen are always at the losing side whenever a spill occurred.

“Our existing laws on oil spill compensation favour the international oil companies to the detriment of fishermen who lack the resources to pursue their claims.

“We have oil spill compensation claims that have been pending for more than 10 years and even the cases we won in court, the companies refuse to comply with such judgment.’’

Ayadi stresses the need for a harmonious relationship between the host communities and oil companies.

“The Atlantic Ocean where the oil companies operate is our ‘farm’. We are there day and night and whenever there is an oil spill or any interference with oil installations, we are the first to know and report to the security agencies.

“The companies should see us as their neighbours,” Ayadi adds.

To ensure a cordial relationship between Mobil and host communities, Akwa Ibom Government in October, 2011 set up a committee to produce a Memorandum of Understanding (MoU).

The stakeholders at the meeting regretted the deteriorating relationship and promised to work together for the common good of all.

They also pledged to hold regular dialogue and consultations to build a cordial relationship that would ensure peaceful operations at the Qua Iboe oil fields.

Stakeholders have therefore, suggested that oil companies should hold regular consultations with oil producing communities, to reduce frictions.

They also stress the need for the companies to maintain their facilities to check avoidable oil spillage.

Nwakamma writes for News Agency of Nigeria (NAN)

 

Nathan Nwakamma

Continue Reading

Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

Published

on

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.
Continue Reading

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

on

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.
Continue Reading

Oil & Energy

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

Published

on

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,”
Continue Reading

Trending