Oil firms get 72-hour ultimatum to shut down operations

News Express |27th Oct 2015 | 4,154
Oil firms get 72-hour ultimatum to shut down operations

A 72-hour ultimatum has been handed multinational oil giant, Shell Petroleum Development Company (SPDC), and some oil services firms including Saipem Contracting Nigeria Limited and E.A Temile Development Company, to shut down all operations at the Beniside Flow Station of the Niger Delta or risk grave consequences.

Speaking yesterday in Abuja, Youth President of Ojobo Community, which hosts the Beniside Oil Field in Burutu Local Government Area of Delta State, Mr Sergeant Cinema, and a spokesperson of the community, Mr Cletus Zuokumor, explained that the ultimatum had become necessary in view of the fact that the oil companies have refused to implement various agreements reached with the community despite several peaceful attempts at resolving the issues.

Said the youth president: “We have given the oil companies operating at the Beniside Oil Field 72 hours to close shop and vacate the area to avoid any confrontation or likely showdown with us. What they are doing is because of the heavy military presence in the Flow Station which they have been using to intimidate and harass members of the community.

“This time around, if they are not prepared to effect the FTOs (Freedom to Operate) or Global Memorandum of Understanding (GMOUs) which were established almost three years ago, they should shut down and pack out from our community before the expiration of this ultimatum.”

Zuokumor, on his part, listed some of the community’s grievances with the oil firms to include failure of SPDC to perform its corporate social responsibilities by refusing to provide stable electricity to the community while the Flow Station has 24hour power supply; refusal of SPDC to employ indigenes of the community, and failure of SPDC to execute any tangible project in the community as contained in the GMOU, due to its resort to divisive tactics.

He further noted that while Saipem Contracting Nigeria Limited, which is a sub-contractor to SPDC, not only refused to engage members of the community since it was mobilised to the site in April 2015, the company also flagrantly shut its doors against indigenous contractors nominated by the current community leadership for provision of services/supplies as stipulated in the FTO it entered with the community.

On the contrary, he alleged that the company engaged contractors not known to the community in order to collect kickbacks.

In the same vein, Mr Cinema, the youth leader, situated the community’s grouse with E.A Temile Development Company on its failure to pay its host entitlements for over two months as agreed in the FTO as well as not performing its corporate social responsibilities, as applicable to the other oil firms such as SPDC and Saipem.

He said: “The oil firms feel that they can ignore us; in fact, they have been boasting that as far as there is military presence at Beniside Flow Station, the community cannot do anything or dare the Flow Station.

“We want to make it abundantly clear that with or without the military, we will mobilise to the Flow Station to effect compliance with the quit order. Let the companies take note, because we will not allow history to repeat itself, when in 2004, a similar scenario occurred when the community went on a peaceful protest on non-compliance with the FTO entered with Parker Drilling, but the unprofessional and trigger-happy soldiers opened fire on the unarmed youths.”

•Adapted from a Nigerian Tribune report. Photo shows oil rig.

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