Niger Delta
Shell Blames NDDC, Insecurity For Road Project Delay
Shell Petroleum Development Company (SPDC) says it is not responsible for the delay in execution and completion of Nembe/Otuassega Road rather insecurity and Niger Delta Development Commission (NDDC ) should be held responsible.
SPDC claimed that the initial cost of the project was N9 billion with its commitment amounting to 75 per cent, while it partners NDDC,to provide the remaining 25 per cent; and also to supervise the project.
But while fulfilled its obligations to the contractors,NDDC was unable to fulfilled its own bargain of the deal, while kidnapping and other security challenges also compound the work.
Mr Funkapo Fufyin who represented the Shell’s General Manager, Government and Community Affairs, Mr Evans Krukrubo who disclosed this while answering question during one day seminar organised by practicing journalists in Bayelsa State, said the contract value as rising to N24 billion.
“We are. Going to have a meeting with NDDC and the contractor to see how we can revisit the issue as to water down the price and address the security challenge”.
In his presentation, Mr Pat Agbo,who is incharge Oil Spillage and Response. has said that Nigeria loses $6.1bn (N965bn) annually to oil theft, contending that company’s worry is the amount being lost nor the efforts in repairing damaged oil pipes but the damage to the environment.
According to him, activities of oil thieves had forced the SPDC to close oil production in its Nembe Creek Trunk Line in the state pointing out that the shutdown of the facility had led to the loss of 150,000 barrels of oil per day, adding that the development had reduced the revenue accruing to the derivation account.
Prior to the shutdown, he said the SPDC discovered over 90 different punctured points on the 90km pipeline, adding that the company had commenced repairs of the trunk line.
“Our biggest worries are crude oil theft and illegal refineries. They are bringing down the economy. Nigeria loses 150,000 barrels per day amounting to $6.1bn annually to oil theft.
“Illegal refineries are destroying our environment. We are pushing and talking to the government and other stakeholders to do something about it. These crude theft and illegal refineries have to stop,” he said.
He identified the company’s facilities in Bodo West, Imo River, Nembe Creek Trunk Line, coastlines offshore Niger Delta as the hot spots for illegal bunkering.
Also speaking, Mr NGO Weli, who is in charge of Local Content Development, said a lot measures has been put in place to ensure the participation of host communities in the oil and gas industry.
Towards, this end, he said the runs human capacity building programmes which is paying up handsomely while infrastructures are also development as a welfare packages.
He, however, lamented that. the country’s Local Content Development was not operating in its full capacity advising that only effective operation of the content development would solve the problems of unemployment in the country.
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