Oil & Energy
SPDC, Journalists Partner On Pipelines’ Protection
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
Oil & Energy
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Oil & Energy
Power Supply Boost: FG Begins Payment Of N185bn Gas Debt
In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.
The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.
According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.
Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.
The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.
In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.
“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
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