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Niger Delta Residents Mobilise To Shut Down Shell Company Oil Stations Over Failure To Pay Surface Rents

SHELL
January 23, 2024

The mass mobilisation of the youths is from the Ojobo federated communities in Burutu Local Government Area of Delta State and Ogbotobo in Ekeremor Local Government Area of Bayelsa state and neighboiring communities, who have concluded plans to shut down Benisede, Ogbotobo, Opukusu and Tunu flow stations operated by Shell unless the federal government takes necessary measures towards compelling SPDC to pay surface rents to the affected communities.   

 

Thousands of residents from the Niger Delta region, South-South states, are currently being mobilised for a mass protest and shutting down of four oil flow stations over what they described as "Non-payment of surface rents" by multinational oil company, Shell Petroleum Development Company, (SPDC), SaharaReporters has reliably gathered.

 

The mass mobilisation of the youths is from the Ojobo federated communities in Burutu Local Government Area of Delta State and Ogbotobo in Ekeremor Local Government Area of Bayelsa state and neighboiring communities, who have concluded plans to shut down Benisede, Ogbotobo, Opukusu and Tunu flow stations operated by Shell unless the federal government takes necessary measures towards compelling SPDC to pay surface rents to the affected communities.   

 

Confirming the plan to SaharaReporters, some leaders of the communities disclosed that the aggrieved youths and the communities had in the past made several futile efforts to ensure that SPDC paid the statutory surface rents, citing correspondences to the oil company by their legal representative, Roland Akpe which yielded no positive result.

 

This was coupled with a letter written in October, 23, 2023, on behalf of the communities to the Managing Director of SPDC, requesting payment of surface rents for 50 years for each of the Beniseide and Osuopele oil field to the Ojobo federated communities for loss of use of the expanses of land by way of loss of fishing rights, farming rights, hunting rights and among others.

 

There has been a lingering stand-off between the multinational oil company, Shell Petroleum Development Company, SPDC, and some host communities in Delta and Bayelsa states over the payment of surface rents for its operations and if the action of the youths is carried out, Nigeria may lose over 200,000 barrels per day in crude oil production output and a closure of the facilities will significantly diminish the recent surge of about 7.7 per cent recorded in Nigeria’s crude oil production in December 2023 which rose to 1.4 million barrels per day, with attendant effect on the 2024 budget oil production output benchmark of 1.78 million barrels per day.
 

In a letter addressed to the Minister of Petroleum Resources (Oil) dated January, 15, 2024 on behalf of the communities by their counsel, Roland Ekpe stated that “SPDC’s stance is totally inimical to the attainment of President Bola Ahmed Tinubu’s objective of increasing oil production to 2.6million barrels per day. SPDC conduct is capable of provoking unwarranted disruptions of production in and around our client’s Federated Communities housing SPDC’s installations and properties. There is a limit to which our clients can rein in the youths, hence this passionate plea of our clients to the Hon. Minister of Petroleum Resources (Oil), if the youths should carry out their threats, our clients cannot be held responsible for their actions”.

 

However, in a statement jointly signed by Atimapre Tesufa, Youth President of Ojobo federated communities, Julius Pabor and Laye Kalu, both coordinators of the the youths said they were taking their destiny in their hands to avoid a repeat of the fate that befell Oloibiri, a community in Bayelsa state where oil was first discovered in Nigeria.
“SPDC’s stance is totally inimical to the attainment of President Bola Ahmed Tinubu’s objective of increasing oil production to 2.6million barrels per day. SPDC conduct is capable of provoking unwarranted disruptions of production in and around our client’s federated communities housing SPDC’s installations and properties.

 

“There is a limit to which we can rein in the youths, hence this passionate plea to the Hon. Minister of Petroleum Resources (Oil), if the youths should carry out their threats, body should be held responsible for whatever actions. We will close down the flow stations because Shell has taken us for granted for too long, since 1972.  We are challenging Shell to point to a single development or anything they had done for the people of Ojobo, Ogbotobo or neighboring communities in the 52 years of their operations in our land that has destroyed all our alternative sources of our livelihood.

 

"For all portions of Ojobo federated communities land measuring approximately 1, 500 hectares and 579.28 hectares at Beniseide and Oil Fields in which Shell operates her OML36 and OML oil wells among other facilities, Shell had only paid nine shillings, less than one dollar at the time it commenced operations and now claimed it is reasonable and adequate for the people. What Shell promised our fathers 52 years ago are the same things we are still pleading with Shell to provide for the communities until today. The laws of Nigeria concerning land rent must be respected. Otherwise, our flow stations henceforth won’t form part of Shell’s assets. Enough is enough. SPDC’s deployment of double standards and taking advantage of the locals must stop now."

 

Meanwhile in a letter dated November, 17, 2023 referenced, SPDC-2023-11-00000069, signed by Trevor Akpomughe, Corporate Lands Manager, Corporate Relations Nigeria,

 

SPDC and sighted by SaharaReporters, Shell said it had made a one-time all-inclusive compensation for the loss of use of surface and other rights for the various parcels of land in question. “Consequent to the said payment, the land ceased to attract any further compensation from SPDC. SPDC therefore, does not owe your client or any person any form of compensation or rent in respect of the said parcels of land and cannot accede to your demand,” the letter stated.
Shell Oil Company had last week announced its exit from Nigeria.

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