News
FG Loses $560m As Shell Shuts Pipeline
There are indications that the Federal Government may lose well over $560million following Shell Petroleum Development Company’s suspension of production of 800million barrels of crude oil through its Trans Ramos Pipeline (TRP), which remains shut.
The Tide learnt that SPDC produces about 600, 000 barrels per day in the Niger Delta.
The TRP that has capacity to deliver about 100 barrels per day, bpd to Trans Forcados Pipeline was shut in May, 2018, because of leakage at different points.
Investigations show that the pipeline has not been re-opened after over three months of shutdown.
At the current price of $70 per barrel in the international market, the suspended output amounts to $560million.
Meanwhile, the company has embarked on clean up targeted at recovering the spilled oil from the environment.
A statement at the weekend said, “The Shell Petroleum Development Company of Nigeria Limited (SPDC), has recovered over 95 per cent of spilled oil from the recent spill incidents on sections of the Trans Ramos Pipeline (TRP) in Aghoro community, Bayelsa State, and in Odimodi community in Delta State.
“The pipeline, which has remained shut-in since the incidents, supplies crude to the SPDC Joint Venture-owned Forcados Oil Terminal in western Niger Delta for export.”
It stated: “A spokesperson for SPDC acknowledged the spills as very regrettable, adding that in line with the standard operating procedures of SPDC, the TRP was shut down immediately the incidents were reported and the Oil Spill Response and the Emergency Response teams were activated to manage the incidents and prevent further spillage.
“As soon as clean-up and site assessment are completed, we are committed to starting the immediate remediation of the impacted areas in Aghoro and Odimodi.”
It added: “Details of the cause and impact of the spills will be captured in the Joint Investigation Visits (JIV) reports, which will be released after sign-off by all parties.
“The JIV is a multi-party exercise involving the regulators, the community, representatives of the state government, security agencies, and representatives of SPDC. The outcome is then signed off by the stakeholders to authenticate the findings.”
The company also stated in its latest report that: “The Shell Petroleum Development Company of Nigeria Limited (SPDC), as operator of SPDC Joint Venture (SPDC-JV) facilities is committed to operating SPDC-JV facilities in a responsible manner with due regard for the environment. When spills occur from SPDC-JV facilities in the Niger Delta we respond as quickly as possible, no matter what their cause.
“Oil spills due to crude oil theft and sabotage of facilities, as well as illegal refining cause the most environmental damage from oil and gas operations in the Niger Delta. Irrespective of cause, the SPDC JV cleans up and remediates areas affected by spills originating from its facilities.
“A key priority for Shell is to achieve the goal of no spills from its operations. No spill is acceptable and we work hard to prevent them. Regrettably, in addition to spills caused by criminal activity there were nine operational spills of more than 100kg in volume from Shell companies in Nigeria facilities during 2017. This number is one more than the eight spills in 2016.
“SPDC has publicly reported oil spill statistics annually since 1995 in the Shell sustainability report and this website further enhances transparency on spills in Nigeria from SPDC-JV facilities. It tracks the progress of our spill response from when we learn about the leak to when clean-up is completed and certified by regulators.”
It added: “When a leak is identified, production is suspended and efforts made to contain any spilled oil. We regularly test our emergency spill response procedures and capability to ensure staff and contractors can respond rapidly to an incident. In line with government regulations, a JIV team visits the spill site to establish the cause and volume of oil spilled. The team comprises representatives of SPDC, regulators, government security agencies, state governments and communities sometimes with local NGOs as observers.
“The SPDC-JV cleans and remediates the area impacted by spills from its facilities, irrespective of cause. In the case of operational spills, it also pays compensation to people and communities impacted by the spill. Once clean-up and remediation are completed, the work is inspected, and if satisfactory, approved and certified by Federal Government of Nigeria regulator National Oil Spill Detection and Response Agency (NOSDRA).”
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.