Ogoni Cleanup: Oil Firms Pay $64.8bn Into Escrow Account

International Oil Companies (IoCs) have so far contributed about $180 million (about N64.8 billion) of the expected $200m into the London escrow account of the Standard Chartered Bank for the $1 billion Ogoni clean up.

The Programme Manager, Civil Society Legislative Advocacy Centre (CISLAC), Kolawole Banwo, who spoke in Lagos yesterday, said it was separate from the $10million released by Shell Petroleum Development Company (SPDC) to Hydrocarbon Pollution Restoration Project (HYPREP) for initial administrative expenses.

Speaking on the United Nation Environmental Report (UNEPR) on Ogoniland released in August 2011, Banwo said the multinational oil companies, Shell JV, which comprise of NNPC, Total, Agip Oil Company (NAOC) are expected to contribute 90 percent of the $1 billion clean-up fund in the first five years while Port-Harcourt is expected to contribute $300 million into the fund. The Clean -up exercise will take 25-30 years to accomplish, the report noted.

“Sequel to ground-breaking ceremony for the Integrated Contaminated Soil Management Centre in February 2017 performed in Bori by the Vice President, Yemi Osinbajo, the federal government had incorporation of the Ogoni Trust Fund and Escrow Account opened in Standard Chartered Bank of London for the board of trustee of HYPREP and credited with $180m in 2018. Mobilization of contractor and hand-over of sites to contractors handing over 16 polluted sites to companies that would clean them up in December 2018,” he noted.

Despite the contributions from the oil firms, according to Banwo there is nothing on ground adding that there is  absence of the integrated contaminated soil management centre which comprising an incinerator, thermal unit, soil washing unit and a contaminated water treatment unit

He called on HYPREP to immediately commence the implementation of the livelihood component of the United Nations Environmental Programme (UNEP) report.

However, reacting to the Ogoni Restoration Fund contributions update, spokesperson for the SPDC, Bamidele Odugbesan, said the SPDC JV actually contributed a total of $180million at the end of 2018.

He said: “SPDC actively supports the clean-up process as a member of the Governing Council and Board of Trustees to oversee HYPREP to implement the UNEP Report in Ogoniland.

“The SPDC JV provided $10 million in 2017 to help set up the HYPREP office. $170 million was deposited into an escrow account in 2018 and $180 million will be allocated by the JV to fund HYPREP’s activities each year from 2019 to 2022”, he stated.

According to the HYPREP Gazette, a copy of which was made available to our correspondent, the SPDC JV comprising SPDC, NNPC, Total and Agip, are to contribute 90 percent of the $1billion cleanup fund for the first five years of the exercise. Refineries and other local operators are to contribute 5 percent each.

SOURCE: dailytrust.com.ng

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