The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, has said the Oil Mining Lease 25 flow shutdown by its host communities – Belema, Offoin Ama and Ngeje communities – in Akuku-Toru Local Government Area of Rivers State for over two years led to the loss of over $1.7bn.
Kyari stated this during the reopening of the flow station after an agreement was brokered by the Federal Government to settle the rift between Shell and the communities.
He said, “We had a shutdown of the Belema flow station for over two years, leading to the loss of over 35,000 barrels of oil per day. Over $1.7bn which could have been put to use for the benefit of the community and the rest of the federation.
“We have engaged the communities and Shell to make sure that this dispute between them is brought to an end. The communities have agreed to vacant the facility to allow petroleum operations to continue.”
Kyari added that Shell would soon resume operations after carrying out an inventory of damage done to the facility over the period it was shut down.
He said, “For Shell’s re-entry and for operations to commence, validation of the state of facility and damage done on the facility overtime would be done and I’m sure Shell will come up with their plans how it would be done.”
The Minister of State for Petroleum, Timipre Sylva, said the reopening of the facility was aimed at promoting peace and development in the communities.
The ex-Bayelsa State governor said, “We need peace, if we don’t begin to make our communities peaceful, development will not come, investors won’t come here. But we must make our communities conducive to them (investors). If investors do not come, there will be no jobs for our youths.”
The communities of OML 25 had alleged that Shell Production Development Company which had operated the oil mine for over 40 years had neglected them.
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