Shell strikes deal with OML25 host communities on oil production

Shell strikes deal with OML25 host communities on oil production 

 

Shell Petroleum Development Commission (SPDC) is set to resume oil production at the Oil Mining Lease (OML)25 in Rivers State.

This is after a crucial meeting on Friday with representatives of the regulators, Rivers State government, host community leaders and other stakeholders in Port Harcourt.

Host communities of Oil Mining Lease (OML) 25 confirmed the development.

Spokesperson for the OML25 communities, Chief Anabs Sara-Igbe, spoke with journalists immediately after the meeting.

He said the delay in reopening Shell’s OML25 facility was not the fault of the communities, rather a result of the company’s failure to meet agreements made over the years.

Sara-Igbe said the host communities were ready for Shell to move in for operations immediately, provided they carry out all the agreed terms, adding, “We will not accept anything less than the community development we have been promised.”

The meeting, which witnessed the presence of representatives from Kula, Ofoin-Ama, Belema and other surrounding communities, focused on the eight-point agreement made with Belemaoil, a local partner, which outlines key development goals, including employment, infrastructure, and healthcare.

Sara-Igbe stressed that despite decades of oil production of over 200,000 barrels per day for more than 60 years, local communities have seen no tangible benefits, including roads, hospitals, electricity, or water.

“The people of Kula and surrounding communities have suffered long enough. Shell has failed to deliver on its promises, and now we are demanding that they sign a Purchase Order (PO) with Belemaoil to ensure our people get the jobs, training, and community services we deserve,” he said.

The communities also called for a firm commitment to an operation and maintenance contract between Shell and Belemaoil, with provisions for local participation in security and community development.

“We are not troublemakers, but we will not allow Shell to continue operating without fulfilling its promises,” Sara-Igbe added.

While the communities have agreed to provide security for the facility, this is contingent on Shell’s compliance with the development agreements. The spokesperson further warned that if these terms are not met, Shell should not return to OML25.

The local stakeholders also made it clear that any new operators entering the region should take responsibility for Shell’s existing liabilities, with Belemaoil given the first right of refusal if Shell decides to divest from the asset.

Sara-Igbe concluded by expressing hope that the ongoing dialogue would lead to the long-awaited development of the region, ensuring that the oil wealth of OML25 benefits the local people and not just the corporate interests involved.

He also said, “The state government has met with Shell and Belema and the community said Shell should sign an agreement with Belema to implement most of those things highlighted. Shell has been dribbling us and today they have assured us that within a short time they would sign Purchase Order (PO) and as soon as they sign that PO, they are free to go and operate.

“We are not happy that 45,000 barrels of crude oil is being tied down for seven years per day. 25,000 barrels per day for seven years amounts to huge resources that the Federal Government is losing, state government is losing, local government is losing and even Shell, NNPCL and the community we are all losing.”