IOCs, Host Communities Spar Over Underdevelopment

-By Fred Ojiegbe

The growing underdevelopment in Nigeria’s Niger Delta region, regarded as the goose that lays the golden eggs has continued to pitch the region against the international oil companies, IOCs, that have been producing oil from the region for many years.

While the host communities continue to allege negligence and ill-treatment, the IOCs believe they have done enough for them and therefore need cooperation and enabling environment instead of vandalism and destruction of their facilities, which have negatively affected their operations in the region.

According to Dr. Anthony Clark, of the Institute of Foundation Studies, Rivers State University of Science and Technology, international oil companies operating in the Niger Delta region should always respect the Memoranda of Understanding, MoUs entered with their host communities. He observed that most of the MoUs, after being drafted and signed, were hardly implemented by the oil companies, adding that it is necessary for the IOCs to pay attention to issues that could cause conflict within their host communities.
Clark, listed respect for MoUs as one of the factors that could put an end to youth restiveness in the Niger Delta region.

“Talking about respect for MoUs and GMoUs, most communities have entered into agreements with these companies, some of these MoUs, even when they have been drafted, are not implemented judiciously. Let every party have respect for the MoUs and GMoUs.

“The IOCs should pay specific attention to the factors identified by the youths and their host communities as being responsible for the occurrence of conflict in their communities,” he said.

The university don also urged government agencies to ensure the standardisation of the oil and gas industry with emphasis on local content to provide jobs for the people.

He said, “There should be a deliberate plan by government to employ youths and ensure an appropriate employment quota between foreign workers and qualified indigenous counterparts in line with equity and justice as well the Nigerian Content Act.”

He decried activities of some youths in the region such as kidnapping, pipeline vandalism, closure of flow stations and rigs and piracy, saying, “We must stop the consistent destruction of the ecosystem, pollution of air and surface water, through pipeline vandalism.”

Similarly, Mr. Mike Emuh, Chairman, Host Communities of Nigeria, Producing Oil and Gas, HOSCON, said that the IOCs owe a lot to the host communities. He said, “The IOCs and indigenous oil companies owe host communities today, about $12 billion. In our agitation so far, we are telling Nigerians and the whole world, that the IOCs and indigenous oil companies have not been helping matters. We want them to change, because the HOSCON is committed to creating an enabling environment for operators in the petroleum industry. “The National Assembly had not actually helped issues, based on the non-passage of the PIB, right from the time of the Yar’Adua administration till date. I want to call on the National Assembly to pass the remaining portion of the PIB before the next elections.”

He, however, appealed to people of the region, especially agitators, to exercise patience with the president, noting that HOSCON had secured the assurances of the president that a committee would be set up to look at ways to address the challenges bedeviling the Niger Delta. He further stated that the president was considering addressing the anomaly in the disbursement of the 13 per cent derivation fund and the gas flare penalty levy, as well as the issue of pipeline surveillance. He said, “The 13 per cent derivation is our right that we have been denied; that we have been robbed off.

The most under-developed part of the country is the South-south that produces the oil. It is saddening when you know that despite the presence of the Niger Delta Development Commission, NDDC, the Ministry of Niger Delta Affairs and the disbursements of the 13 per cent derivation over the years, there is no development in the Niger Delta. “The Constitution, as amended, made it mandatory that 13 per cent derivation should be given to the oil-producing communities. This was denied; and as a pressure group, we have mounted pressure on various governments, yet we are still on the issue. “Our pressure was mainly on the issue of the 13 per cent derivation and the denied gas flare penalty levy money. We had also taken our demands to the National Assembly, both to the Senate and the House of Representatives, yet we have not got favourable response,” He added.

Also, Governor Seriake Dickson of Bayelsa State has blamed IOCs for degrading the predominantly swampy Niger Delta environment through oil and gas exploration and production. According to the governor, the IOCs operated without adherence to international best practices. The governor, who reiterated his commitment to fighting environmental degradation, noted that the launch of `Rise For Bayelsa Campaign’ was to attract global attention to the effects of oil pollution in the state.

He said the commission was inaugurated to investigate the environmental, health, socio-economic, cultural and human damage caused by operations of both local and multi-national oil companies. Dickson sought the partnership of Rotary International and other local and international groups to support his administration’s efforts towards addressing the environmental challenges confronting the people of Niger Delta region.
However, the IOCs have complained to have lost significant oil as a result of increasing pipeline vandalism and oil theft in the Niger Delta. The latest report obtained from Shell Petroleum Development Company, SPDC, indicated that the company, apparently the highest producer with over 600,000 barrels per day, bpd, experienced 39 cases of vandalism and oil theft between January – April, 2019.

A breakdown showed that 12, 15, eight and four incidents were recorded in January, February, March and April 2019 respectively. IOCs In its latest Briefing Notes, Shell stated: “Security remains a high priority due to continued crude oil theft and criminality in parts of the Niger Delta. Illegal refining and third-party interference are the main sources of pollution in the Niger Delta today.

Third party interference caused close to 90 percent of the number of spills of more than 100 kilograms from The Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) pipelines in 2018. “Security in parts of the Niger Delta remains a major concern with persisting incidents of criminality, kidnapping and sabotage as well as onshore and offshore piracy. Although there has been no damage to key oil and gas infrastructure caused by militant activity since November 2016, the security situation remains volatile in this region of the country.

“Facilities operated by both indigenous and international oil and gas companies continue to be affected by attacks and other illegal activities such as crude oil theft. This led to disruptions to oil and gas production in 2018, particularly for indigenous producers and incidents of environmental contamination. Disruption to production also impacted revenue for the Federal Government of Nigeria and to gas supply to power electricity for industry, businesses and public-sector services.”