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FG loses $1.7b over 2yrs shutdown of OML25 – NNPC GMD

lessing Okorite, Port Harcourt

The Group Managing Director, Nigeria National Petroleum Cooperation (NNPC),  Mele Kyari said Nigeria lost $1.7 billion due to the shutdown of Oil Mining Lease, 25, for over two years by its host Belema, Kula communities over dispute between the communities and Shell Petroleum Development Company (SPDC). 

The NNPC boss who disclosed this to The Nigerian Xpress during the stakeholders joint visit to OML25 communities and facilities in Kula, Akuku-Toru Local Government Area of Rivers State, on Saturday, September 28, 2019 said the Federal Government was losing 35, 000 barrels of oil everyday on the closure of the flow station.

Kyari  stated that the peace brokered in the community was necessary to drive development and create employment for the youths.

He said: “First and foremost there is absolute breakdown of law and order in its entirety, as a result of such we have a shutdown of Belema Flow Station for over two years leading to lose of 35, 000barrels of oil per day and the peace of the community. And in monetary terms that was worth about 1.7billion dollars which could have been used for benefit of both the communities and the rest of the federation. What we have done is engage the communities and its leadership to make sure that the dispute between them and Shell are brought to a closure, as a result there will be more community engagement.

“Therefore, they have agreed to allow continue operation in this facility. Our immediate priority is the peace of the community, not oil production. But we know that ultimately when production will come back we can see the product about 35, 000barrels of oil per day”.

Meanwhile,  new Minister of State for Petroleum, Timipre  Sylva, and  President of Belemaoil Producing Limited,  Jack-Rich Tein Jr. have called on oil producing communities in the Niger Delta region to ensure that peace and unity reign in the area.

They also urged host communities of Oil Blocs to ensure a good relationship between the communities and the operating companies for onward employment, empowerment of indigenes and development of the region.

Speaking , Timipre Sylva advised the Ijaw Youths to make their communities peaceful and  hospitable to attract investors.

Sylva identified peace and unity as panacea for development, noting  that hostility towards investors will drive away development, he described the event as historic moment in the history of Nigeria.
He said:  “I must tell you that this is history. And not in any time in the history of Nigeria has such as high level delegation visited community related to the oil industry. Today here present, the GMD of NNPC, the Director DPR, myself as Hon. Minister of State for Petroleum, even the Managing Director of Shell was here. It has never happened that all these people the same time has visited a community together.

“We just came here to tell you that you are not alone, that the federal government is with you, the President is with you. We have heard from members of the community and from the Belemaoil Company and we know that we will support you every step of the way.

“I want to tell you that this is not going to be the last time of our visit here. This relationship with this community has come to stay. I have told members of this community that I have met, that we need unity in Ijaw land, we need unity in Niger Delta,  we have fought to this point and the federal government at least has started looking our ways. It is time for us to change strategy and ensue that we begin to bring the benefit of investment to our community. If we don’t make our community peaceful, investment cannot come.

“The investors are ready to come here and without the investors here there will be no job for our youths. The investors are ready to come here but unfortunately, in some cases there is no peace. It is our responsibility now to bring peace to our communities so that these investors can come and create the jobs”.

I’m his part, President of Belemaoil,  Jack-Rich Tein, urged the host communities of the OML 25 and other oil producing communities in the region to also seek their rights peaceful, noting that violence and destruction of oil facilities can only begot underdevelopment of the area.

He assured that after technical inspection and maintenance of the facilities,  there would be jobs and better opportunities for indigenes of the area and other neighbouring communities.

“Basically what I told the women, I just recognised that their cry for better living is been recognised by the Federal Republic of Nigeria, by the Honourable Minister of State for Petroleum, by the General Managing Director of NNPC, MD of Shell.

“Shell came here with the most powerful personnel with the Executive Director of Local Content, others. This is a super excellent visit to this great community. The community people are very happy knowing that they are going to get jobs. But if the community development fail they are going to hold Jack- Rich, they will know that their brother is responsible.

“The important thing to recognise is that Nigeria has a growing population, about 3 to 5 percent in the next 30 years is going to be experiencing a population growth of about 380million, 75percent of that population are  young once and if nothing is done there will be alot of social issues. If we fail to put a platform that enables business to fly in this part of the country, then we have a major challenge and that is the GMD of NNPC and the Minister took it as an important part of their business to come in here with all the federal government representatives to really demonstrate that they recognise what you have been looking for. We recognise your struggle, we understood what you really need and they came.

“I want to also say to our brothers and sister, our women, fathers and youths, to give peace a chance to honour these August visitors that we received in this manner that has never happened in any other Niger Delta community before. And I also told them to pray for the President health, because this is an important project. The President is very happy about the community and he has really helped us and has encouraged me to help the communities and we are also doing alot for other Niger Delta communities. I believe that this business that God has given to us, this business that is set to design What I call the ‘Pace Setting’ to helping others who are very much in need”.

Speaking on the resumption of activities on the facility,  Jack-Rich said “It requires technical practice, there is going to be a joint visit by the technical team, Shell and Belemaoil team will visit. We are going to carryout technical assessment, we are going to look at how the facility has responded to abandonment and is needed to put in place in terms of technical activities and we follow engage the local activities, give them jobs and give them other support contract.

“I am happy the Royal Highness, Chairman, Kula Supreme Council of Traditional Rulers,  King Krona Amabibi Eleni,  has advised the women and the youths that the entire struggle has come to an end with successful outcome.

“We will ensure employment are created for the youths and other empowerment programmes are created for development, federal government and NNPC will also start making money, Shell and Belemaoil will start making money because Belemaoil is also a unit partner of that asset, shutting down that asset is of no benefit to Belemaoil or any partner, not even the communities beause they will not have jobs”.

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