By Hector Igbikiowubor & Clara Nwachukwu
INTERNATIONAL Oil Companies, IOCs, operating in Nigeria’s oil and gas sector say they will only be involved in vocational training and capacity building for youths in the Niger Delta for the industry and beyond in support of Federal Government’s Amnesty Programme.
The IOCs, under the auspices of the Oil Producers Trade Section, OPTS, of the Lagos Chamber of Commerce and Industry, also say their involvement will be carried out as a group as opposed to individual companies doing their own thing for proper alignment with the amnesty programme.
Clarifying on their level contribution to the programme, Mutiu Sunmonu, the Managing Director/Country Chair, Shell Companies in Nigeria, said in Lagos recently noted that the amnesty initiative is working out well so far, adding that the oil and gas industry operators is committed to supporting the continued success of the programme.
According to him, “The oil and gas industry decided to make contributions as a group because individual company’s contribution could create more confusion, such that militants will deal with companies on differential terms or cause us to embark on a programme that will not align with government’s programme.”
He added, “Our contribution will be in terms of sub-sect of the government’s programme and our focus is on capacity building and training even outside the oil and gas industry and we will not be involved in infrastructure.”
Mr Sumonu, who spoke while presenting the annual Briefing Notes of Shell operations in Nigeria between 2005 and 2009, noted that for the continued success of the amnesty initiative, the Federal Government has set up the Oil and Gas Forum on Amnesty, in which he serves as the deputy chairman with Dr. Emmanuel Egboga, the Presidential Adviser on Energy as the chair.
Speaking generally on the situation in the oil-rich Niger Delta, the Shell boss admitted that despite the fact that the bulk of Nigeria’s wealth comes from the region, “there is still a lot of unemployment and poverty in the Niger Delta, which generated the current unrest.
“We are hoping that all stakeholders – government, industry and civil society groups will put heads together to improve the situation in the area.”
He, however maintained that Shell alone cannot change the situation in the Niger Delta, noting that about 95% of the company’s revenues after cost go back to the development of the region.
“Yet it is still a drop in the ocean; as such we will continue to look for partnerships with governments and NGOs to change the situation. The situation requires elaborate effort among stakeholders to improve the living standard in the Niger Delta.”
Mr Sumonu further argued that the situation in the Niger Delta required more cooperation and greater collaboration among stakeholders, saying that it is time to stop the politics of trading blames for lasting solutions to the issues in the region.
Also speaking on the controversial Petroleum Industry Bill, PIB, still under legislative scrutiny at the National Assembly, the Shell boss stresses the need to have a bill that is investment friendly.
He insisted that the IOCs are not against the bill in itself but are not happy with some of the provisions of the bill in the areas of fiscal deep water; incorporated joint venture, IJVs; acreage licensing requirement and gas fiscal.
Acknowledging Mr President’s commitment to having a bill that is mutually beneficial to all stakeholders, Mr Sumonu insisted that the PIB is not yet out of the woods until Mr president ensured that his commitment is translated into modified provisions in the bill.
To this end, he said the president has promised to have further engagement with industry operators with a view to working out an acceptable provision that will mitigate the concerns of stakeholders.
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