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AGIP Accused Of Reneging On Agreement, Communities Demand Government Intervention To Forestall Disruption In Oil Production

Earlier, the communities had shut five Agip-operated oil wells in Idu oil fields following a disagreement over the Agip’s failure to fulfill its community development obligations.

Various communities in Biseni, Bayelsa State, where the Nigerian Agip Oil Company (NAOC) produces crude oil, have accused the company of failing to meets its social obligations to them. The leaders of the communities therefore urged the Bayelsa State government to intervene and force Agip to meet its obligations or risk disruption of oil production.

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Numerous oil wells were shut down and put out of production by youths in the area. The company’s oil production was resumed only after a meeting between community representatives and Agip officials on August 5, 2014.

On Sunday, Solomon Ogiama, the secretary of Egbebiri II community, alleged that Agip officials had reneged on their pledge to promptly implement all agreements reached before the oil wells were reopened.

“We are appealing to the Bayelsa State government to wade into this and ensure that we do not have to resort to disrupting oil production which has a direct bearing on revenues accruable to the state,” he said.

The community leader added: “Agip officials pledged to immediately pay off all outstanding debts to surveillance contractors once the wells were reopened, but nothing has happened.

“From the time frames they gave us during the meeting at their Port Harcourt office, they ought to have done a lot as we were assured that, in just a few days, they would pay contractors who were owed for up to one year.”

According to Mr. Ogiama, “The community leadership conveyed the resolutions at the meeting to the entire community and now all eyes are on us and the pressure is mounting on us. We want the government to come in and further mediate.”

The secretary explained that the intervention of the Bayelsa State government was necessary to forestall revenue loss that would arise from shutting down the oil wells again. He added that the community had communicated its concerns to the state government.

Mr. Ogiama said the community was still open to negotiations and to providing a peaceful environment for the oil firm’s operations, adding that the community in turn expected Agip to honor its agreements.

When contacted for comments, Agip’s spokesman, Filipo Cotalini, said the Italian energy firm was investigating the development. Mr. Cotalini said the firm would issue a statement in due course.