Energy Updates

February 7, 2011

We have not violated GMoU signed with E.A. oil field host communities – SPDC

By Samuel Oyadongha
Yengoa – The Anglo-Dutch oil giant, Shell Petroleum Development Company (SPDC) yesterday defended its operations at the multi billion naira E.A oil field saying it had not violated the Global Memorandum of Understanding (GMoU) entered into with its host communities in Bayelsa State.

Reacting to the threat by the host communities under the aegis of Association of Basan West, Iduwini, Kou and Mein Cluster Development Boards and Foundations to shut down operations at the facilities over tits alleged refusal to comply with the provisions of the local content and community employment opportunities as contained in its GMoU with the former, the oil giant said between 2007 and 2010, it had spent some N3.4 billion on projects in the 12 EA host communities.

SPDC Spokesman, Mr. Precious Okolobo in an online statement made available to Vanguard in Yenagoa said contrary to the host communities claim that the company failed to comply with the provisions of the local content and community employment opportunities, it trained 12 scaffolders and painters currently working on the Sea Eagle (Floating, Production, Storage and Offloading vessels) in addition to the 12 community focal representatives engaged.

Mr. Okolobo said, “SPDC has continued to work with the 12 host communities of EA in implementation of development projects and award of contracts. In cases where skills are available locally, we employ the services of community contractors who are also required to engage workers from the locality.

“An indigenous contractor, Micharry & Company Ltd was awarded a contract and mobilised to the EA field in February 2009 to support work on EA platforms with a Self Elevating Workover Platform (SEWOP).

“In July last year, the contractor was temporarily demobilised to complete recertification work on the SEWOP, and is about to return to complete work on the platforms. Some 16 community workers are engaged in this contract.

“Among other interventions in EA, 12 scaffolders and painters have been trained and are working on the Sea Eagle (Floating, Production, Storage and Offloading vessel), in addition to the employment of 12 community focal representatives.

“We have always respected the terms of GMoU signed with EA communities and implemented various development projects. For example, between 2007 and 2010, SPDC spent some N3.4 billion on projects in the 12 EA host communities.”

The host communities to the E.A Oil field it would be recalled had after an emergency meeting held last week called for the suspension of all works and oil operations as well as the suspension of contracts awarded to Micharry & Company Ltd and the service companies at the E.A field pending the resolution of their grievances.

The petition was signed by Timi Seimienbo, chairman Basan West Cluster Development Board, Elimi Geregere, chairman Iduwini Cluster Development Foundation, Osteen Igbapike Esq chairman Kou Cluster Development Board and Robert Ati, chairman Mein Cluster Development Board among others.

The petitioners had alleged that they were compelled to bring to the notice of the state government the complaints and threats from their respective clusters to shutdown the E. A. Field operations over alleged shady deals and award of contracts to friends and cronies of certain persons within SPDC to the detriment of the clusters who are host to the E. A. Field and the GMoU document already signed with the said clusters.

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