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SPDC’s Gbaran-Ubie Phase 2 Comes On Stream …As Firm Spends N10.5trn On Host Communities
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
News
Nigeria Exceeds OPEC Quota As Production Hits 11-month High
Nigeria’s crude oil production has surged to an 11-month high in May, 2026, with the country exceeding its Organisation of the Petroleum Exporting Countries (OPEC) production quota.
The average crude oil production recorded during the month of May represents 102 per cent of Nigeria’s 1.5mbpd of production quota allocated by the OPEC.
The production report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), yesterday, disclosed that Nigeria’s oil production averages 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day (bpd).
According to the report, this brings the total combined production to 1, 700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer.
The report said the production performance during the review period remained robust, with combined crude oil and condensate output ranging between a low of 1.51 million bpd and a peak of 1.86 million bpd.
It said the May 2026 production figures represented the highest recorded by Nigeria since July 2025, when output surged to 1,712,282.
“In strict crude oil terms (excluding condensates), the 1.53 million barrels recorded in May 2026 represents the highest Nigeria has witnessed since January 2025 when crude oil production hit 1.538mbpd.
“The latest crude oil production statistics thus represents a 15-month high on a month on month basis, production rose by 2.77 per cent in May 2026 as against 1.48mbpd in April,” it said.
The report said the broader production trend over the last five months had also remained positive.
It said combined crude oil and condensate output increased from 1.48 million bpd in February to 1.54 million bpd in March, 1.66 million bpd in April, and then 1.7 million bpd in May, underscoring sustained growth in Nigeria’s hydrocarbon production levels.
According to the report, among production streams, Bonny Terminal led the pack with a total blend of 293,870 bpd, closely followed by Forcados Terminal at 289,900 bpd, Qua Iboe ranked third with 173,360 bpd, while Escravos Oil Terminal contributed 135,470 bpd.
It said the Odudu (Amenam Blend) completed the top five production streams, accounting for 63,250 bpd during the month under review.
The NUPRC attributes the rise in production to a sustained positive momentum as operations remained stable throughout the reporting period with no significant pipeline or facility outages recorded.
Additionally, all previously scheduled turnaround maintenance activities had been successfully completed, contributing to improved operational reliability and production efficiency.
News
Reps Pass State Police Bill
The House of Representatives, yesterday passed a landmark constitutional amendment bill to establish state police nationwide, marking a significant milestone in Nigeria’s decades-long debate over decentralising policing and strengthening internal security.
The bill, titled “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 to Provide for the Establishment of State Police and for Related Matters (Sixth Alteration) Bill, 2026,” was approved during consideration at the Committee of the Whole, presided over by Speaker of the House, Rt. Hon. Tajudeen Abbas.
Voting commenced after the Deputy Speaker and Chairman of the House Committee on Constitution Review, Hon. Benjamin Kalu, presented the report on the proposal and canvassed support from lawmakers, stressing the need for a more decentralised policing framework to effectively address the country’s growing security challenges.
The exercise was conducted manually, with members raising their hands to indicate their positions. At the end of the voting, 289 lawmakers voted in support of the bill, one member abstained, while none voted against it, reflecting overwhelming bipartisan backing for the far-reaching reform.
The proposed amendment seeks to fundamentally restructure Nigeria’s policing architecture by creating both Federal and State Police formations.
One of the bill’s key provisions amends Section 214 of the 1999 Constitution to formally establish the Federal Police and the State Police. Under the proposal, the National Assembly would be empowered to prescribe the structure, organisation, administration and powers of the Federal Police, while also providing the legal framework and minimum standards for the establishment and operation of state police services.
The bill stipulates that no state police formation shall commence operations unless it is established by a law enacted by the relevant State House of Assembly and certified as complying with national minimum standards prescribed by an Act of the National Assembly.
It further provides that until a state police force becomes operational, the Federal Police shall continue to exercise policing powers and responsibilities within such states.
In a bid to preserve the autonomy of state police formations and prevent undue federal interference, the bill limits federal intervention in states’ internal security affairs. Under the proposal, the Federal Police may intervene only where there is a complete breakdown of law and order, upon the request of a governor or where a state police force becomes unable to function due to administrative, financial or other operational challenges.
The amendment also proposes significant changes to the police’s appointment and command structure.
Under the amended Section 215 of the Constitution, the Inspector-General of Police would be appointed by the President on the advice of the Nigeria Police Council from among serving members of the Federal Police, subject to confirmation by the National Assembly.
Similarly, a State Commissioner of Police would be appointed by a governor on the advice of the Nigeria Police Council from among serving officers of the State Police, subject to confirmation by the respective State House of Assembly.
The bill empowers governors to issue lawful directives to State Commissioners of Police on matters relating to public safety and the maintenance of law and order. However, where a commissioner considers such directives unlawful or inconsistent with accepted policing standards, the matter may be referred to the Nigeria Police Council, whose decision shall be final.
The proposal also amends Section 84 of the Constitution by replacing references to the “National Police Council and the Federal Police Service Commission” with the “Nigeria Police Council and the Police Service Commission.”
The passage of the bill by the House represents one of the most far-reaching security reforms contemplated since the return to democratic rule in 1999 and is expected to rekindle nationwide debate on issues relating to funding, accountability, operational control and safeguards against abuse.
With the House’s approval, the constitutional amendment bill will now proceed to the Senate for concurrence. Thereafter, it must secure the endorsement of at least two-thirds of the State Houses of Assembly and receive presidential assent before becoming part of the Constitution of the Federal Republic of Nigeria.
If eventually enacted, the legislation would usher in a new era of multi-layered policing in Nigeria and could redefine the country’s approach to tackling banditry, terrorism, kidnapping and other forms of violent crimes through a more localised security architecture.
News
FG Declares Today Public Holiday To Mark Democracy Day
The Federal Government has declared today, public holiday to commemorate Nigeria’s 27 years of unbroken democratic rule.
This is contained in a statement in Abuja, by the Permanent Secretary, Ministry of Interior, Magdalene Ajani.
Ajani said that the Minister of Interior, Dr Olubunmi Tunji-Ojo, made the declaration on behalf of the federal government.
Tunji-Ojo reaffirmed the federal government’s commitment to the preservation of democratic ideals, rule of law, transparency, accountability and inclusive governance.
He assured that the ministry in collaboration with relevant security agencies woulsd continue to take appropriate measures in maintaining and strengthening Nigeria’s internal security.
The minister noted that a secured and stable environment was essential to democracy and national development.
He urged Nigerians to see the holiday as an opportunity for civic reflection.
“As we mark this historic day, every Nigerian is encouraged to remain law-abiding, uphold the institutions that sustain our democracy, and remember that the strength of any democracy lies ultimately in the character of its citizens,” he said.
He also said that June 12 every year remained a significant day in Nigeria’s history in honour of the courage, resilience and sacrifices of Nigerians whose efforts made democratic governance possible.
“Their legacies continue to inform the values and responsibilities of the Nigerian state,”Tunji-Ojo added.
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