Shell pays N1.34bn compensation to Rivers community—Telegraph
…resumes oil operations on controversial OML 25
Royal Dutch Shell is to reopen its operations on the controversial Oil Mining Lease (OML 25) in Kula community of Rivers State after the oil firm signed a Memorandum of Understanding (M0U) to pay N1.34 billion to the community.
The community shut down the OML 25 two years ago, chased Shell out of the community and called on the Federal Government to re-allocate the oil bloc to a local interest.
The MoU, which was facilitated by Governor Nyesome Wike of Rivers State, was to restore peace in the community and ensure the resumption of oil production from the flow station by Shell.
Shell is expected to pay the amount agreed within the next two weeks in an installment of N260 million, N75 million and N1.01 bil lion from the effective date of the MoU.
A Shell spokesman said the firm welcomed the peaceful resolution and resumption of operations.
However, Shell was able to renew its leasehold on OML 25 this year and has since been making move to resolve its dispute with the community.
The MoU, which was signed yesterday, may lead to an increase in Nigeria’s crude production output.
OML 25 lies 50 kilometres southwest of Port Harcourt in the onshore eastern delta and is part of the NNPC/Shell Joint Venture (JV).
The block is located on the coastal mangrove swamp and extends slightly offshore. It is intersected by the Santa Barbara and San Bartholomeo rivers, which are large deltaic tidal channels that enter the Gulf of Guinea.
The riverine and swamp environment makes for difficult operating conditions.
The host communities in Belema, Offoin-Ama and Ingeje communities in Kula Kingdom of Akuku-Toru Local Government Area of Rivers State, it would be recalled, have earlier yesterday, denied that they have agreed to sign a Global Memorandum of Understanding (GMoU) for the reopening of the closed oil platform.
The Rivers State government had issued a statement last Thursday, claiming that the host communities and oil giant, Shell Petroleum Development Company Limited (SPDC) had agreed to sign a GMoU for the opening of the OML 25 Flow Station, which was shut down by the communities close to two years ago.
Addressing newsmen in Port Harcourt yesterday, spokesman of the host communities, Alabo Fiala Okoye-Davies, accused the Rivers State government of collecting the sum of $5 million as bribe from SPDC, with the promise to reopen the flow station.
Okoye-Davies, who is the Secretary of Belema Community Council of Chiefs, said it is obvious that the state government supports injustice, marginalization, enslavement and impoverishment of the host communities by the oil multinational company.
