Odahiekwu Ogunde, Yenagoa
Bayelsa State communities hosting Shell Development Company Limited’s Estuaries Area (EA) oilfields have given the oil company a 21-days ultimatum to settle its indebtedness and other social obligations or risk a shutdown of its oil fields.
The host communities also asked the oil firm to review its annual development funding from $1m to $10m as well as other social obligations to them.
The communities which make up four Cluster Development Boards (CDBs) – Iduwini, Mein, Kou, and Bassan, funded by Shell, further demanded the payment of outstanding $14m for sea anchorage for vessels deployed by the company.
According to them, the amount which accrued from 2006 till date, must be offset within the next 21 days or they would be compelled to stage a peaceful protest at Shell’s EA oilfields in Bayelsa.
They lamented the plight of some 80 members of the host communities, who were engaged by Shell in the ongoing oil drilling campaign to acquire experience, but regretted that they have been rendered redundant in the past one year.
The communities in Ekeremor and Southern Ijaw local government areas of the state at a news conference in Yenagoa, the state capital, claimed the oil firm was marginalising the communities despite their hospitable nature.
Chairman of Community Development Chairman (CDC) in Ekeni, Mr Wuka Brisibe, on behalf of their 12 communities hosting the oilfields, regretted that development had eluded the coastal settlements, despite operating the Global Memorandum of Understanding with Shell.
Brisibie stated, “The sum of $1m irregularly paid to the four CDBs covering the 12 host communities of the EA fields as the GMOU funds is inadequate.
“Each of the host communities receives approximately $83,333 which upon conversion at the present rate of N450.00 per dollar amounts to N37.4m only per annum.
“Our people cannot bear the brunt of years of oil and gas exploration and exploitation and not benefit from contracts, supplies and services provided for the operations of the said facilities.
“We are utterly displeased with the disposition of the SPDC in awarding vessels, services and supplies contracts envisaged within the local community content to non-natives and their companies whom we know are members of staff of SPDC or their cronies.
“This is done in flagrant disregard for the capacity and capability of indigenes of host communities to provide the said services or execute such contracts.
“We totally condemn the ungentlemanly attitude of the SPDC in its non-compliance with the local community content policy and practice against its hosts at the E.A. oil fields in Bayelsa.”
The host communities called for a review of the GMOU to limit the interference by Shell officials in determining the pace of the GMOU, especially concerning remuneration of contractors upon completion of contracts or milestones.
But SPDC said its official contribution to the development of host communities in Bayelsa was over N23bn.
The oil firm said under their GMoU, the model places the choice of community projects on the people, while the company provides the funding and necessary mentoring.
SPDC General Manager, External Relations, Mr Igo Weli, said that the amount represented about half of the company’s GMoU spent in its host communities in the Niger Delta since the introduction of the community development model in 2006.
On the demand for the review of the $1m annual obligation, SPDC’s Media Relations Manager, Mr Bamidele Odugbesan, said he would look at the issues raised first before responding.