Editorial
OML11: RSG’s Bold Step
The history of Oil Mining Lease (OML11) in Ogoniland in Rivers State is a long and tortuous one. But the most important thing about this vast oil and gas producing oil field is that the Rivers State Government, under the watch of Governor Nyesom Wike, has purchased a stake in it.
Governor Wike, in a state broadcast on September 30, 2019, announced that the state government had acquired the 45 percent equity stake belonging to Shell Petroleum Development Company (SPDC) which had operated the facility since 1958.
According to him, the government acquired the SPDC’s equity interest in OML11, situated in Ejama-Ebubu Community in Eleme Local Government Area.
While espousing what the State stands to benefit from such a bold initiative, the Governor indicated that the interest of the State was paramount, as it acquired the SPDC’s 45 per cent equity interest to the tune of $150 million.
Governor Wike said “that rather than stand by and watch other persons or group purchase SPDC’s 45 per cent interest in that OML11 and further exacerbate the poverty of the people of the State, a responsible and responsive state government should weigh in and bid for the purchase of SPDC interest already set down for auction”.
He further indicated that it would be in the overall interest of the State, the other Federating States and the Federal Government to do so, stressing that he had further directed the relevant government agencies to take immediate steps to liaise with any financially capable companies to partner with the Rivers State Government to ensure that the said oil field comes on stream within 15 months.
He equally disclosed that the State government would graciously concede some portion of its 45 per cent equity interest to all oil-producing communities within OML11, to enhance mutual ownership, participation and sharing in the benefits of these resources.
While further advancing reasons for the State government’s action, the Governor said an oil spill caused by SPDC’s oil pipeline in Ejama-Ebubu Community since 1970, which had been an issue of litigation, has remained unattended to uptill this day, contending that Rivers State has suffered the worst impact of environmental degradation resulting from oil-related operations.
Most importantly, he noted that it has become unlikely that for peace and security, the people of Ogoni would welcome SPDC on their land forming part of OML11, coupled with the fact that a lot of revenue is lost to the Federation Account accruable to the 55 percent stake of the Federal Government in OML11 and the rest of the Federating States due to non-production by the facility.
According to him, Rivers State Government has continued to lose 13 percent of its derivation fund from the 55 percent stake of the Federal Government in that field for nearly 30 years now, which revenue would have transformed the state and its people for the better.
The Tide recalls that OML11 is one of the most important oil blocks in Nigeria, in terms of oil and gas production in the country, accounting for production of 28,000bpd of crude, and contains 33 oil and gas fields scattered in the four Ogoni-speaking local government areas of Rivers State.
Unfortunately, the operatorship of the oil facility has been dormant for 26 years now after the Ogonis sacked SPDC following the hanging of environmental activist and writer, Ken Saro-Wiwa and nine of his kinsmen, among other factors.
To say that Ogoniland, home to OML11, has a very chequered history when it comes to oil and gas exploration and engagement with international oil companies, is to state the obvious. We say so because from 1958, when SPDC began oil exploration in Ogoniland till date, the entire landscape has apparently been at the receiving end of the various environmental hazards that have accompanied oil and gas production. Curiously enough, the people of the area and by extension, the whole of Rivers State have continued to bear the brunt of oil politics over the years.
The Tide agrees no less with Governor Wike that the investment in OML11 would not only address the debilitating problem of poverty but also open vast socio-economic opportunities for Rivers people and all those resident in the state. We, therefore, commend the government for this bold initiative of going into investment in the oil and gas sector.
The decision by the government to concede some portion of its 45 percent equity interest to all the oil-producing communities in OML11 is a welcome development. This would no doubt offer all the stakeholders a sense of belonging.
We, however, implore the State government to give special consideration to local content in partnering with competent companies to drive the project. There is no denying the fact that several qualified Rivers citizens are out of job or not accommodated within the oil and gas sector due to extraneous and other primordial considerations. Expectedly, this bold step by the government would bridge this yawning gap and offer the people the much-needed succour and hope.
There is also the need for the government to carry along all stakeholders for this lofty venture to achieve the desired results.
Also, this is the time for all stakeholders to throw their weight behind the government, and eschew all forms of bickering and agitation that may thwart or truncate the good intention of the Wike administration in acquiring the oil facility.
It is a good thing that this is coming at a time when the dust raised by the varied conflicts surrounding the OML 25 in Kula Kingdom in Rivers State has settled. The Belemaoil Development Model can be replicated in Ogoniland for the overall wellbeing of the people. This is definitely not the time to play politics with this current Rivers State Government’s bold initiative.
Editorial
HYPREP And The Collapsed Water Tank
Editorial
Resurgence Of Illegal Structures In PH
Editorial
Certificate Forgery, Loss Of Public Trust
-
Featured4 days agoOil & Gas: Rivers Remains The Best Investment Destination – Fubara
-
Nation4 days ago
Hausa Community Lauds Council Boss Over Free Medical Outreach
-
Nation4 days agoOgoni Power Project: HYPREP Moves To Boost Capacity Of Personnel
-
Nation4 days ago
MOSIEND Calls For RSG, NDDC, Stakeholders’ Intervention In Obolo Nation
-
Nation4 days ago
Association Hails Rivers LG Chairmen, Urges Expansion Of Dev Projects
-
Nation4 days ago
Film Festival: Don, Others Urge Govt To Partner RIFF
-
News4 days agoNDLEA Arrests Two, Intercepts Illicit Drugs Packaged As Christmas Cookies
-
Rivers4 days ago
UNIPORT Moves To Tackle Insecurity … Inducts Security Experts
