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SPDC, Journalists Partner On Pipelines’ Protection

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Crude oil theft and
pipeline vandalism have remained two notorious factors militating against the desire for high productivity and target actualization in the Nigerian Oil and gas sector; with both accounting for billions of dollars loss to the Federal Government and the International Oil Companies (IOCs), annually.
However, last Tuesday  one of the oil multinationals, Shell Petroleum Development Company of Nigeria (SPDC)  drew the attention of media men to massive encroachment on its pipeline right of way at Oyigbo Local Government Area of Rivers State.
Infact, SPDC manager in charge of pipeline operations, Wenike Princewill lamented that over one hundred such structures were recorded in Oyigbo alone.
The Shell Manager emphasized that about 40 million barrels per day were lost when the company had to shut down operation of its Gas plant in the Oyigbo area due to the enchroachment.
He expressed worry that people live in the houses within the dangerous zone to the pipeline not knowing they were sitting on time bomb. “The pipe contains hydrocharbon which is inflammable as it could result in an explosion and fire”, he said.
A retired primary school teacher, Mrs Chidinma Nkwocha who lives in Oyigbo said some 15 years ago, land in the area was very cheap and people were rushing from different parts of the state and beyond to acquire and develop.
“The pillars were there quite well but they did not care because of the low rate of parcel of land there”, Nkwocha stated disclosing that some of her friends fell prey to dubious elements who were busing selling land they don’t know.
Oyigbo is a sub-urban city close to Port Harcourt, observers said high cost of land in Port Harcourt might have made people to be attracted to Oyigbo due to the closeness especially as land was very scarce in Port Harcourt City.
However, the hard reality owners of the structures would have to face is to loose such property since owning them is illegal.
Or would they choose to remain there and get consumed with their property and family members when devil’s appointed time comes?
One worrisome revelation is that some of the property were also owned by influential persons in the government who should have desuaded others. Presumably, their presence could have encouraged the ordinary members of the society to acquire such illegal spaces.
The Ministry of Ubrban Development and relevant agencies, definitely do not have to wait anymore but to commence steps that could correct the anomalies. The so much delay in taking action or rather, in action contributed to the compounded situation.
Such inactions by the appropriate government agencies have largely encouraged enchrochment in diverse ways. Take for instance, the public roads, it took courage in the part of the present government to demolish houses built in total disregard to law guiding right of way.
The various Committees in the National Assembly, also have responsibility and should be part of the campaign.
SPDC Manager, Government and Community Relations said the company remain committed to addressing social and developmental challenges affecting the communities in which they operate and solicited for the collaboration of the media in the campaign against encroachment into the company’s facilities.
It was resolved that authorities of the company should increase their sensitization programme on the issue and also localise it so that the ordinary people in the remote areas particularly the company’s host communities could get the awareness.
Regular gingles in the mass media on the campaign message would also help in educating the people on the danger of encroaching on such dangerous zone as pipeline.
Those who sold the land that does not belong to them may as well be called to question at least to defend their actions, they may as well face prosecution.
The impact of oil theft, vandalism of pipelines and the new challenge of encroachment of pipeline right of ways are scaring enough.
Though the company denied that its divestment onshore in preference to more investment offshore may obviously be linked to the increasing challenges be develling its operations in the country.
SPDC Manager, Government and Community Relations, Fufeyin Funkakpo reiterated the commitment of the company to issues of community development stressing that loss incurred by the company in shutting down its facilities due to sabotage invariably affects the economy of the action and its capacity to increase it commitment to community development.
The Chairman of Nigeria Union of Journalists (NUJ) in Rivers State, Mr. Opaka Dokubo commended SPDC for the senminar noting that it has increased their knowledge of the operations.
Dokubo who was represented by the Vice Chairman of the State NUJ, Mr. Omoni Ayo-Tamuno, particularly commended SPDC for the medical test, treatment and health lecture saying it would benefit the journalists greatly.

 

Chris Oluoh

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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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.
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NLC Faults FG’s 3trn Dept Payment To GenCos

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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.
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Oil & Energy

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

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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,”
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