Thursday, 5 March 2015

OML 11: Reps summon Diezani, Shell petroleum over subversion of local content


Alison

The House of Representatives has resolved to investigate allegations of sharp practices by Shell Petroleum Development Company (SPDC) in the divestment of Oil Mining Lease OML11.

To this end, the House has summoned the Minister of Petroleum Resources, Mrs Diezani Allison-Madueke and the management of Shell Petroleum Development Company to appear before its committee and explain their roles.

The resolution was contained in motion moved by Rep Uzoma Nkem Abonta (PDP, Abia) who is seeking to find out circumstances surrounding Shell’s exit from the said oil block and host communities knowing how interested it was in the build-up to the acquisition process and the role it played in the crisis that engulfed the host communities.

Rep Abonta while leading the debate on the motion told lawmakers that: “Shell Petroleum Company is desirous of relinquishing its interest in some oil blocks especially OML11”.

"Aware of the discrepancies, lack of transparency and insider trading arrangements in the bidding process by Shell Petroleum Development Company", he said.

Speaking further on the import of the motion, Rep Abonta stressed that “the motion is asking the House to look at what Shell is trying to do with those oil blocks”.

“OML as far as I’m concerned is a leasing agreement which is not forever. It is given and elapses at a given period of time. But what is happening now is not in tandem with our laws.

“Based on crisis precipitated by Shell itself, it's trying to leave those oil blocks having set youths of host communities against themselves. They did not adhere to best international practices, now the place is hot for them and they want to abandon it and go else where.

“So the question is that are they competent to lease it out? Is that the rule? What Shell is trying to do is just like, I rent out my house to you; your rent expires and instead of vacating the property, you now want to rent it out to another tenant without my consent.

“And we are also saying that for peace to reign since we’ve not passed PIB, let the communities be carried along in the so-called biding process for the re-acquisition of the relinquished oil blocks so that they can participate and get some level of ownership if they are interested.

“We have local content law which spells out how things are done taking the interest on host communities and indigenous investors into consideration”, he said. 

The communities hosting the said oil blocks are: Gokana and Tai Ogoni communities in Rivers State, Oyigbo, Asa Ukwa oil field in Abia State as well as Adoni, Opobo and Bonny in Rivers State.


My dad use to say,  "this too shall pass"
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