The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has commenced production at Gbaran-Ubie Phase 2, a key project in the Niger Delta that will help to boost gas supply to the domestic market and maintain supply to the export market.
A statement by Shell, made available to The Tide in Port Harcourt, said Gbaran-Ubie Phase 2 follows the success of the first phase of the Gbaran-Ubie integrated oil and gas development, which was commissioned in June 2010.
It explained that peak production at Gbaran-Ubie Phase 2 is expected in 2019 with approximately 175,000 barrels of oil equivalent (kboe) per day.
A breakdown of this peak period production is approximately 864 million standard cubic feet of gas per day (MMscf/d) and 26,000 barrels of condensate per day.
SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said “The latest development at Gbaran-Ubie is a powerful statement on the continuing commitment of SPDC and our Joint Venture partners to harness Nigeria’s oil and gas resources for the benefit of the country and stakeholders”.
“The project was delivered safely through an integrated team with a significant engagement and empowerment of community service providers and Nigerian companies,” Okunbor added.
The Tide gathered that 18 wells have been drilled and a new pipeline constructed between Kolo Creek and Soku, which connects the existing Gbaran-Ubie Central Processing Facility (CPF) to the Soku Non-Associated Gas (NAG) plant.
First gas flowed from the wells in March, 2016, with the facilities coming on stream in July, 2017.
Vice President, Nigeria and Gabon, Peter Costello, said: “This is exciting news for Nigeria as it signals Shell’s continued strategy of deploying investment and expertise in our areas of strength.
“Our aim is to continue to explore areas of partnership in Nigeria where the right conditions exist and where we can add best value,” Costello added.
The Tide investigation show that Gbaran-Ubie Phase 2 will help to process the condensate from Kolo Creek, Gbaran, Koroama and Epu fields, thereby assisting in reducing the volume of flaring from SPDC operations.
The project has contributed to economic development in the Niger Delta and assisted the local community and Nigerian companies.
During construction, members of the community and local sub-contractors provided goods and services in line with the provisions of a Global Memorandum of Understanding (GMoU).
Training was also provided to the community in pipeline maintenance, scaffolding, welding and piping fabrication.
SPDC is the operator of a joint venture (the SPDC JV) involving the Nigerian National Petroleum Corporation (NNPC,) SPDC, Total E&P Nigeria Ltd and ENI subsidiary Nigerian Agip Oil Company Limited.
Meanwhile, the Shell Petroleum Development Company of Nigeria Limited said it has made an economic contribution of $29billion (approximately N10, 564,127,764,127.76) to Nigerian Government as well as empowering and positively impacting on lives, especially in its host communities in the Niger Delta region and the country at large in the last five years.
The company explained that on the average, it contributes N7billion monthly for the implementation of Global Memorandum of Understanding (GMoU) and Social Investment initiatives in the region.
This was disclosed during an integrated stakeholders’ forum organized by SPDC-JV for its host communities from Ahoada-West in Port Harcourt, last Tuesday.
Shell General Manager, External Relations, Mr Igo Weli stated that Shell Companies in Nigeria (SCiN) work in partnership with state governments, communities and civil society groups to implement policies on social investment that would better the lives of Nigerians, especially those in host communities.
“This is done through Social Investment activities, which focus on community and enterprise development, education, health, access to energy and road safety. This, however, excludes community-driven development programmes and initiatives delivered through GMoU which focuse on various themes as determined by benefitting communities,” Weli said.
Represented by the Shell Stakeholder Relations Manager, Dr Alice Ajeh emphasized that the GMoU cluster community for Ekpeye, which was frozen for many years ago, has now been reactivated, noting that all payments made in respect to GMoU implementation were available for perusal by affected communities.
He stressed that while forming the community clusters for the proper utilization of funds for the GMoU, SPDC strives to ensure that 30 per cent of members were women while 70 per cent men.
The general manager explained that the chairmen of the Cluster Development Boards make up the governing body for the GMoU, adding that the board provides for the immediate basic needs of their communities.
He noted that plans were underway to organize interactive forum with the community cluster development boards (CDBs) to provide accountability platform on how they have been utilising the monthly N7billion GMoU fund.
Speaking, the Cluster Board Chairman, Abua/Odual Local Government Area, Isaac Abraham stated that SPDC has positively impacted on the people of the area, adding that the company was not to blame for the many infrastructure deficit issues in communities.
Abraham commended SPDC for positively impacting on the lives of host communities, especially the youth, adding that if other stakeholders were fulfilling their obligations as much as Shell, the Niger Delta would have been transformed.
“I said I have positive commendation for SPDC because for several years, if you go to the grassroots, there is no presence of government, but what we experience as development here now is from SPDC through the proper utilisation of GMoU funds.

We are ready to give account of how we spent the GMoU fund,” he said.
In separate interviews with The Tide on the way forward to reduce the high rate of pipeline vandalism and sabotage of crude oil assets in the Niger Delta, some concerned youth of communities in Abua/Odual, Ekpeye and Engenni, expressed readiness to collaborate with Shell to safeguard critical oil and gas facilities in host communities.
The Uwema Aminigbo Community Palace Secretary, January Igoma, appealed to SPDC to make Aminigboko Emughan Community hospital built since 1995, functional, adding that the community wants the medical staff withdrawn from the facility reinstated.
He also listed other demands as rehabilitation of the two water projects, the Owerewere Link Road, Emughan junction linking Aminigboko Road, as well as the Emesu linking the Emesu Waterside Road.
Speaking, the Engenni people listed their demands to include scholarship to the youth, reconstruction of internal roads, skills acquisition programmes, pipe-borne water, employment and empowerment opportunities for the people, while urging for investment in agriculture development to make the people self-sufficient in food production.

Susan Serekara-Nwikhana