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Royalties: Kalabari King Gives Shell Ultimatum

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The chiefs and people of Kalabari kingdom in Rivers State, have vowed to resist plans by oil giant, Shell Petroleum Development Company (SPDC) to reduce royalties accruing to the area due to rising incidents of crude oil theft in the Niger Delta.

The kingdom, which comprises, Asari-Toru, Akuku-Toru and Degema local government areas, said any slash in their royalties  will amount to a breach of the agreement signed with the people.

Managing Director of SPDC, Mr Mutiu Sunmonu, had in a news briefing in Port Harcourt, on March 1, 2013, said the firm may be compelled to shut down its Nembe-Creek Trunkline (NCTL), following the upsurge in crude oil theft and illegal refining activities, particularly in Cawthorne Channel and Kakrama, in Kalabariland and Awoba in Ogba/Egbema/Ndoni Local Government Area.

Sunmonu, disclosed that 60,000 barrels of crude oil were being stolen everyday, out of the company’s 150,000 barrels daily oil supply to the trunk line, while bemoaning the huge loss of revenue to the government and the devastation such illicit activities were causing to the environment.

The company, in keeping to that threat, had five days later shut down the pipeline and declared force majeure on crude supply to Bonny Export Terminal.

SPDC’s spokesman, Mr Precious Okolobo, also said recently that the company may look in the way of slashing the funds to the communities within the NCTL, if nothing was done to stop the ugly trend.

But the Amayanabo of Kalabari kingdom, Professor Theophilus J.T. Princewill, last weekend faulted the move by Shell, reminding the firm of its promise to increase the mandate annually by 10 per cent, saying the planned reduction will be collectively resisted by the people.

The monarch, who was answering questions from newsmen shortly after a special service at the African Church, Buguma City in Asari-Toru Local Government Area of the State, to mark his 11th Anniversary on the throne as Amayanabo of Kalabari Kingdom, noted that the funds were part of extant agreement between Shell and the kingdom to assist the development of the area.

King Princewill explains: “Shell keeps mentioning that they were going to shut down their trunkline. For the last six years or so, they gave us some money which we used in providing projects.

Now that they are coming to the second phase of that agreement, on the Global Memorandum of Understanding (GMoU, instead of increasing the lot (they call it mandate) that is due to us (the Kalabari people), they want to reduce it by more than half, whereas in the last five years, there was a promise to have 10 per cent increase annually.

“Instead of finding it necessary to review it upwards now that they are going to enter into a new agreement, they want to slash it down by more than a half. Of course, the Kalabaris will not agree.

”Although they said because of crude oil theft, their production in the Kalabari area dropped, but we did not believe that, that has happened. But if we go by that, there are other areas where there is no production whatsoever, but they have increased their funds allocation to them.

”So, if they want to insist on reducing what mandate they gave us, we will say no, we will not accept it. You either increase it or you don’t operate in our area,” he posited.

He further said that the Kalabari Council of Chiefs had met severally with Shell where the latter was told that whatever is in the territory belongs to the people and that the firm was only allowed to go and exploit the crude.

”If what they are doing is to make us suffer for it, we ask them (Shell) to pack up their things (facilities) and go, because we will not beg them to come and do it. If they don’t do it, there are other companies that will come in to do it. For many years now in Ogoni area, Shell is not operating, yet Ogonis have not died.

“If we stop Shell from operating in our territory, we will not die and Nigeria will not collapse and that is our position. They say they are going to close down their operation, we say not only closing down, pack your things and go. That is what we have said to them (Shell),” he said.

Prof. Princewill, however, said that if youths in the area were found culpable over allegations of crude theft, the Kalabari Council of Chiefs would intervene, but noted that crude oil and the control of the resource was essentially the business of the government.

”I and the Kalabari chiefs do not have any control over crude oil production or exploitation. The only thing we can do if our children are doing it is to talk to them, but the full control of such issue is in the hands of government,” he added

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Bonny-Bodo Road: FG Offers Additional N20bn, Targets December Deadline

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The Federal Government has agreed to offer additional N20.5 billion for the completion of the Bonny-Bodo road project in December.
The government, however, said if the construction company, Julius Berger, was not ready to accept the offer, the contract will be terminated.
Minister of Works, David Umahi, said this during a meeting with the Managing Director of Julius Berger, Lars Ritcher and members of Bodo-Bonny Road Peace Committee, on Wednesday in Abuja.
The reports that Julius Berger had requested asking for a N28 billion variation on the 82 per cent completed project.
The company hinged its request on the rise in exchange rate, construction materials, and diesel among others.
Umahi, however, said the government was willing to provide N20 billion out of the N28 billion that Julius Berger requested for.
According to him, the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed.
The Tide’s source recalls that in 2017, an agreement between the Federal Government, Nigeria Liquefied Natural Gas (NLNG) and Julus Berger on modalities for funding the project cost of N199.923 billion, without any further increase.
“If you do not accept the Federal Government’s offer by Friday and resume work on the site, the previously expired 14-day ultimatum for termination of project will be enforced.
“I want to let you know that we are the client. No contractor will dictate for this ministry, and there is no job that is compulsory that a particular contractor must do.
“We give you an offer. If you do not like the offer, you walk away. You don’t force us or we don’t force you.
“Agreement of contractual relationship is a mutual understanding,’’ the minister said.
Umahi said that had Julius Berger adhered to the project timetable, the project would have been completed on schedule before the impact of foreign exchange.
“Our position is very simple, we reject the conditions of Julius Berger totally and we ask Berger to please go back to the site to complete the project based on our offer.
“Our offer is unconditional and we say, accept or reject, so you cannot subject our offer to your conditions ,’’ he added
Umahi said the company should be humble in its dealings and exhibit solidarity during challenges.
Earlier, Richter had explained that the company suspended work on the site to seek some clarifications from the ministry.
According to him, the company asked for the augmemtation of N28 bilion because as at the time the contract was awarded the exchange rate was N305 to a dollar and diesel was N350 eor litre.
“We will still require some outstanding materials; that means that the initial agreement can’t fly because the variation of project is not sufficient and the exchange rate is also not in our favour to compensate the additional costs.
“That is why we decided to go back to our original proposal of the augmentation. Augmentation is a very normal process for all contracts,” the managing director said.
Chief Abel Attoni, Palace Secretary, Bonny Kingdom, expressed gratitude to President Bola Ahmed Tinubu over the decision to complete the Bodo-Bonny road project.
Attonu urged the parties to be patriotic and make the necessary sacrifice for the actualisation of the project.

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Court Vacates Arrest Warrant Against Ehie, Five Others

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The Federal High Court, sitting in Abuja, yesterday, set aside the warrant of arrest against Rt. Hon. Edison Ehie, the Chief of Staff, Government House, Rivers State, and five others.
Justice Emeka Nwite stated this while delivering his ruling in an application seeking to vacate the warrant of arrest which he issued on January 31, 2024.
The Judge said he was misled by the police in ordering the arrest of Ehie in connection with the burning of the Rivers State House of Assembly on October 30, 2023.
The Police, had told the court that Ehie and five others masterminded the bombing of the Rivers State House of Assembly amid a plot to impeach Rivers State Governor, Siminalayi Fubara.
The five others are Jinjiri Bala, Happy Benedict, Progress Joseph, Adokiye Oyagiri, and Chibuike Peter, alias Rambo.
Justice Emeka Nwite while setting aside the warrant said it has now become a mere academic exercise.
The judge further granted same to the 2nd to 5th Defendant/Applicant in same suit.
Femi Falana, SAN, and Oluwole Aladedoye, SAN, who appeared for the defendants in separate suits, held that the court lacked the jurisdiction to have granted the order.
While Falana filed a motion seeking an order to set aside the January 31 order by Justice Nwite, Aladedoye applied for a stay of execution of the arrest order.
In a motion marked: FHC/ABJ/CS/112/2024 dated February 2 and filed on February 7 by Falana, Ehie sought two orders, including “an order setting aside the order made on January 31 for want of jurisdiction.
“An order of this honourable court staying the execution of the order made on the 31st January 2024, pending the hearing and determination of this application.”
Giving six grounds of argument, Falana argued that the complainant had not filed any criminal charge or motion before the court.
The senior lawyer argued that the court lacked the territorial jurisdiction to entertain the ex-parte application as the alleged offences of conspiracy, attempted murder, murder and arson took place in Port Harcourt, the state capital.
“He submitted that the court lacked the vires to grant an application to arrest and declare his clients wanted in respect of the alleged offences.
“The complainant/respondent (IG) did not adduce evidence of terrorism in the affidavit in support of the application.
“The complainant/respondent did not cite any section of the Terrorism Prevention Act, 2013 (as amended) alleged to have been contravened by the applicants,” he argued.
Aladedoye in a motion on notice dated and filed February 9, on behalf of the five defendants, sought two orders, including
“an order staying execution or further execution of the order(s) of this honourable court made on the 31st of January, 2024, pending the hearing and determination of the appeal filed by the applicants.
“An order of injunction restraining the complainant from carrying out or further carrying out the orders of this honourable court made on the 31st January 2024, pending the hearing and determination of the appeal filed by the applicant in this case.”
Giving a three-ground argument, Aladedoye said that a notice of appeal had already been filed against Justice Nwite’s orders.
According to the senior lawyer, the notice of appeal contains grounds that challenge the jurisdiction of the honourable court.
The Inspector-General had, in a charge marked: FHC/ABJ/CR/25/2024, arraigned the defendants on a seven-count criminal charge bordering on terrorism and murder.

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13 Students Bag First Class, 182 PhD As IAUOE Graduates 5,550, Today

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The authorities of Ignatius Ajuru University of Education (IAUOE), Rumuolumeni, in Rivers State, have stated that 13 students will be graduating with first class while 182 graduands will bag Ph.D during the 42nd convocation ceremony of the university billed to hold today and tomorrow.
The Acting Vice Chancellor of the University, Prof. Okechuku Onuchuku, disclosed this during pre-convocation press briefing held in his office, yesterday, to unveil the programme for the convocation ceremony.
Onuchuku said that the 13 students were among the 4,653 graduands expected to graduate for the 2022/2023 academic session with first degree, while 897 students will be graduating with postgraduate degrees.
The Acting Vice Chancellor while giving the breakdown stated that 13 students made first class, 890 students bagged second class upper while 2,739 students had second class lower for first degree.
He further stated that 182 graduands bagged PhD, 667 got master’s degree and 48 got postgraduate diploma, adding that the convocation ceremony will hold today and tomorrow for first degree graduands and postgraduate graduands respectively.
He said that a total of 47 programmes out of the 54 programmes being undertaken at the first degree levels had been given full accreditation by the National University Commission (NUC) as well as all the programmes at the postgraduate school.
“We have ensured that our programmes both at the first degree and post graduates are in line with the NUC stipulated guidelines and speculations. We have also ensured that we are in line with both our academic and administrative policies,” he said.
Prof. Okechukwu urged the graduating students of the institution to always remember to use thier positions to help their alma mater as well as project the institution in a good image in the larger society.
“Try to ensure you finish any project you want to do, evaluate it first and avoid unfinished or abandoned projects. We will be graduating first degree graduands on Friday while Saturday will be for postgraduates, “he added.
Prof. Onuchukwu also said his administration had achieved a lot since he assumed office as Acting Vice Chancellor, stressing that his administration had improved on the welfare of the staff and the students.
“There are a lot of projects completed in the school; we have also given scholarship to some students and also encouraged departments to do same. We also impacted positively on our host communities”, he said.

Akujobi Amadi

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