…N-Deltans set new standard for prosecuting resource control
By Egufe Yafugborhi
Mele Kyari, Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC), lead stakeholder in the OML 25 Joint Venture (JV) with Shell Petroleum Development Company as Operator, lamented that the shutdown resulted in consequential “loss of 25, 000 to 35, 000 barrels of oil per day (bpd); in monetary terms, that is about $1.7billion.”
The fulcrum of the assets occupation by Belema, Offoin-Ama and Ngeje host communities was that, for four decades, such humongous accrued income as Kyari declared lost to the JV partners in two-year of shutdown failed to provide schools, hospitals, potable water, capacity building or meaningful employment for the host communities.
Mrs. Ogbumate Opumabo, among the womenfolk who occupied the flow station, narrated: “Since good things don’t come easy, as living conditions in our community got more pathetic, we subjected ourselves to suffering, even set up church where we fasted and prayed to God everyday at the occupied facility. Some of us gave birth to babies here where we also had our pots, plates, mats, everything needed to aid our occupation. Our experience there is unexplainable, but God answered us in the end”
October 10, as the teeming community protesters eventually pulled out of OML 25 for its formal reopening, following, the win-win resolution of the conflict among stakeholders, the original demand to evict Shell was not met as set, but the protesters won even a bigger prize, an awakening of a new narrative for prosecuting the struggle for gainful resource control in the Niger Delta.
According to the communities, their hardship was rather aggravated by avoidable oil pollutions that degraded their land and aquatic environment, jeopardising their livelihood which depends on fishing on the rivers and cropping on the soils. Their clear demand was, “Shell must go”, relinquish OML 25 to preferred competitor, Belemaoil Producing Limited (BPL), to farm the assets.
Publicity Secretary, Pan-Niger Delta Forum (PANDEF), Anabs Sara-Igbe, who hails from the OML 25 host communities, said, “We have been agitating for long. The flow station was shut down as far back as 2004. Government intervened and we let them re-open it. 2008, it was again shut, a Memorandum of Understanding (MoU) was signed, and we let them resume. In 2014, same thing happened, so in 2017, the communities said we have had enough.
“There was no time Shell provided us water. Infrastructure in our communities were poor. Government under military regime gave us water, but it was laden of iron, not healthy for consumption. Fetch it today, the following day the whole water will be coloured. So, we have not been using the water. In recent times, state government has not done anything for us.”
At the latest reopening of the assets, Sen Ita Enang, Presidential Adviser, Niger Delta, representing President Muhammadu Buhari, attested to the health dangers at ‘Opusuya”, the age-long pond water that sustains Belema people in the absence of functional modern taps from government and Shell, which was laden with crude oil when Enang scooped it with bare hands.
At the co-host communities of Offoin-Ama and Ngeye, the story of squalor, deprivations and neglect was pretty much same. At Offoin-Ama, the only educational institution present, a piteous makeshift basic school, made of wooden structure was said to be from communal effort. The European Union and Rivers State Government had erected in the village square, a water project five years back, but Amayanabo of Offoin-Ama, HRH King Sibia Sukubo Aaron, Kilima Diaba Offo XIII said, “It was never completed.”
King Sibia, in unison with his Belema counterpart, King Boudilion Ekine, Oko XXVIII, Amayanabo of Kula, alleged that SPDC had always reneged on its agreements with the community.
However, the reality of pervasive emptiness and squalor in the community supported the perception of his Highness, Ibinabo Daniel Kiliya, Regent of Ngeje Community when he said, “Shell in 40 years never thought of tangible projects in the community.”
Belemaoil, Jack-Rick Jr as game changers
Before now, oil communities in the Niger Delta, even in the days of the late Ken Saro-Wiwa, have hardly been taken serious by government and industry regulators in agitations for control of their oil and gas endowment chiefly because they prosecuted such struggles in the absence of adequate home capacity (technical or financial) to farm those oil fields on their own. The common approach was to call for eviction of one operating IOC whenever relationship are strained in the hope of patronizing another to take over.
The coming, into the oil and gas space, of Belemaoil changed that narrative. Founded by Jack-Rick Tein Jr, a son of the soil, who has felt the hardship among his Belema folks, Belemaoil wasted no time in building confidence among the host communities the moment it acquired 40% participating interest in neighboring OML-55 from Chevron Nigeria Limited in the Joint Venture (JV) with the NNPC.
Within a year of taking over OML 55 five years ago, the host communities in Kula claimed Belemaoil surpassed 40 years of both International Oil Companies (IOCs) Chevron and Shell interventions in their respective assets host communities through infrastructural transformation and human capital development among the people.
In its core business, Belemaoil also grew production from 7000bpd under Chevron to as much as 12000bpd, and added to more than 70 MMscfd recoverable volume of gas, generating more revenue and sacrificing more funds to develop and carry the communities along in the process. The company through gainful engagement of community youths in facility surveillance has also eliminated rampant oil theft and vandalism on OML 55.
Today the company is reputed as the first upstream major to have began construction of its head office in its operating field while also constructing its own oil terminal, hitherto the exclusive preserve of the IOCs. So, beyond fraternal attachments, these attributes informed OML 25 host communities insistence on “Shell must go” for Belemaoil replicate the achievement in OML 55 in their communities.
A leader among the protesting youths, Iselema Ekini, said,
“We see how Belemaoil employed youths, built markets, clinics, in the places they operate, proving that an indigenous oil company would look after its host communities better. We therefore urged Shell not to seek renewal of OML-25 license, but allow Belemaoil to take over. All the IOCs have been doing is how to repatriate as much revenue to their home offices abroad while we suffer.
Win-win resolution of conflict
In the win win resolution of the OML 25 crisis, Shell, having renewed its ownership of the lease, wasn’t displaced, but Belemaoil with 7.7% stakes on that lease got the privilege of maintaining operations and earning the communities confidence to be the oil firm with right of first refusal to acquire Shell stakes at any point SPDC decides to divest her stakes.
Already Belemaoil has hit the ground running with the sustained commitment to make the difference, facilitating the groundbreaking for 1.5million liters potable water and 12Km treated water reticulation project for Oko-Ama and Belema by the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kyari. Kyari, represented by Group General Manager, National Petroleum Investments Management Services (NAPIMS), Musa Lawan who also hoisted the Nigerian Flag and those of key stakeholders at the OML 25 platform to signal its reopening.
HRM King Boudilion Ekiye Okor, Amayanabo of Belema, said in the occasion, “Today, I am the happiest man. Belemail, owned by our son is now in charge of maintaining operations. Now we know who to hold if we are disappointed. If he (Jack-Rich) fails us, we go to his mother and father’s house to complain, but he has given us so much confidence that we know he can’t fail.
Chief E K Clark, Leader of PANDEF which prominently provided motivation for shutdown of the OML25 thanked key stakeholders for the peaceful resolution. Clark represented by PANDEF’s Vice Chairman, Godknows Igali, particularly recognised the role of federal government, host communities, BelemaOil, NNPC and the Petroleum Ministry under Timipre Sylva.
“When the GMD NNPC, Kyari came 28 of last month, he promised to grant all your wishes. I am happy you are already attesting to some being meant already. PANDEF is grateful we are all winners. We have, by this struggle of the past two years, redefined the struggle for resource control”, Clark told the communities.
I am sorry, Buhari empathises with host communities
President Mohammadu Buhari, represented by Sen Ita Enang, Special Adviser to the President on Niger Delta, tendered apology on behalf of the nation to the host communities over their long suffering in the midst of plenty all these years.
Buhari said at the formal reopening of OML 25 that, “We’ve been to the communities. I felt touched that they are asking for for a school, hospitals in 2019 after 40 years of oil and gas being taken from their soils. I scooped the water from pond which you people drink. It is smeared with oil.
“On behalf of the nation, I apologise to you. We will change for the better for you, for us all as a nation. We will not only build schools, hospitals for you, we will provide complete communities for you. Working with state government, Niger Delta Development Commission, Amnesty, Ministry of Niger Delta Affair, we will ask to know what they are doing.
“We are coming here at a very good time. Just two days ago, the President presented the draft 2020 budget to National Assembly (NASS). Now that I have seen what you go through, we are going to take this message to the NASS, to redirect the budget to know what they are providing for you.”
At the OML25 Platform and Flow station where hundreds of community protesters, mainly women formally vacated the flow station and other key assets they have occupied and shutdown since August 2017, Sen Enang expressed Buhari’s gratitude for their peaceful disposition while it lasted.
He also cautioned, “The whole struggle has come to conclusion. We thank you for your peaceful disposition through the struggle. We can now vacate peacefully and allow work to continue, as the issues are being addressed. You are aware that some immediate demands have already been met.”
Lifting up the hand of Jackrich Jr, Enang also told the host communities, “Every community who has sons as Jackrick who care this much for his people should take care of him and pray for him to remain safe, healthy and blessed to continue to move your communities forwards.”
Founder of Belemaoil, Mr Jack-Rich Tein Jr, hardly involved in comments and speeches over the unfolded drama has maintained that, “If you engage the community and make the people an important element of your business, the communities and you will have mutual values and mutual gains.
“If the communities are happy, your business can thrive, but if the communities are not happy, you have lots of operational bottlenecks, sabotage and all that. The most important thing for us today is to see that the resolution, reconciliation has taken place.”
Already, stakeholders in Ogoni, Rivers are canvassing the Belemaoil CSR model to agitate for who takeovers OML 11 that had abandoned for years over the conflict conflict which claimed the lives and Ken Saro-Wiwa and co agitators under Movement For Survival of Ogoni People. Governor Wike, though, had already announced Rivers Government acquisition of Shell’s stakes on that lease.