By Emma Amaize

Barrels of trouble

THERE is anger among the Ndokwa, Isoko, Ijaw, Urhobo and Itsekiri peoples in Delta State against Shell Petroleum Development Company, SDPC, over recent sales of onshore blocs – Oil Mining Leases, (OML) 30, 34, 40, 42 with reserves of two billion barrels, by the Anglo-Dutch oil conglomerate.

The people are livid that the oil mining leases were sold without their consent. In June, some land owners in OML 30 in Isokoland, stormed the oil facility and beat up SPDC officials, who they chased away from the flow station.

Okiroro Iki-Ebieroma, Coordinator, Niger-Delta Survival Synergy

The company invited the police who arrested the national president of the Isoko National Youths, Ogaga Egbuwoku and other Oleh youths. The arrest of the youth leaders, who had since been released, did not humidify the people, as they launched another attack on the company, destroying property, including its vehicles.

Though, the company denied the allegation of fraudulent sales leveled against it by the communities, it is evident that all is not well between it and its host communities. However, SPDC’s Corporate Media Relations Manager, Mr. Tony Okonedo,  said:  “SPDC’s divestment of its equity from some oil blocs in the Niger Delta is compliant with its contractual rights which guide the oil industry in Nigeria.

The company also rejects any suggestions that its divestment is illegal, non transparent or done to undermine the interest of any stakeholders”.

The Isoko people are not alone in the protest. In fact, the natives of  Omadino, an Itsekiri  community in Warri South Local Government Area, threatened to sue SPDC over the unlawful sales.

The community, which claimed to be Shell’s largest stakeholder and chief host to its northern swamp operations in Delta State, in a statement by its chairman, Mr. Austin Oniyesan, said: “It is a criminal breach of trust on the part of Shell to carry out the process of sales of its operational facilities and completed a sales purchase agreement of the oil mining lease OML 42 without the consent of the Omadino community that authorised lease of operation to the company.”

Coordinator of Niger Delta Survival Synergy, a non-governmental organisation, fighting for the rights and development of oil communities in the region, Okiroro Iki-Ebieroma told Sunday Vanguard, “Top officials of SPDC used some companies as fronts to disregard the interest of indigenous people in the sales of OML”.

In a letter, dated January 31, to President Goodluck Jonathan by Iki-Ebieroma and former president-general of Isoko Development Union, Elder Peter Erebi, to forestall the sales of OML 26, which includes Ogini, 65 kilometres from Warri to FHN 26 Limited, a subsidiary of First Hydrocarbon Nigeria Limited and other Isoko oil fields, he said, “Mr. President,  we make bold to state categorically that First Hydrocarbon Nigeria Limited is only a fronting instrument for SPDC top management personnel, who have no regard to the interest of the indigenous people”.

His words, “The purported sale, which was an internal reshuffling by SPDC top personnel should be rescinded if already given the necessary approval as we, the people of Isoko, are capable of buying and managing these oil fields.

“If FHN is so interested in these oil fields, they should come and discuss with Isoko people on mutual terms, using the instrumentality of IDU. Our demands are in line with the Nigerian Oil and Gas Industry Local Content Development, NOGICD Act, 2010, signed into law by your humble self, President Jonathan,” he said.

SPDC, playing on intelligence of host communities  

Iki-Ebieroma told Sunday Vanguard, “It has been hovering as a mere spread of rumour that the oil giant, Royal Dutch Shell is gearing to give up its interest in some of the mining leases it holds in the Niger Delta region.

This, to us, in the region is a welcomed development as it will afford us the opportunity to renegotiate our interest and mainstream ourselves as individuals and communities to the core upstream sector of the oil and gas industry,

but it turned out to be another ruse and a clandestine move by SPDC top Nigerian management personnel to coercively expropriate the people of the region through their proxy’s and fronts of their God-given resources.

“A clearer picture of this fraud began to unfold when Oil Voice, a magazine that deals on oil-related issues published some bits of these transactions relating to OML 26, a mining lease within Isoko nation.

The publication quoted SPDC’s Managing Director, Mr. Mutiu Sunmonu, SPDC, Total and Agip as having concluded an agreement to sell their interest in onshore OML 26, including the Ogini and Isoko fields, which is situated approximately 65km East of Warri, to FHN 26 Limited, a subsidiary of First Hydro-carbon Nigeria Limited.

“While the dust is yet to settle, defiantly SPDC proceeded to make another magic by making another debauchee sales of OML 30 and 42 to Conoil for a roughly deal of $1.3 billion.

This,   Isokos considered as a serious spite against their people against the background that the president-generals of all the oil-bearing communities and the Isoko Development Union,IDU, the umbrella body of the Isoko nation wrote to SPDC, informing it of the demands of their people,” he stated.

Iki-Ebieroma, a lawyer, gave Sunday Vanguard a copy of a Land Use Compensation receipt for Olomoro 13, made to the Odugbo and Ekodi families of Olomoro in Isoko South, being persons entitled to compensation under clauses 10 and 24 of OML lease No 30, granted under the Petroleum Act to SPDC,

where it was acknowledged that the company, in pursuant of the said OML, Petroleum Act and any other law authorising to, and with the consent of the owners/persons in lawful occupation of the land (land owners), “enter upon and use the said land from 01/09/1999 for the term of the said Oil Mining Lease and any renewal thereof.”

His poser, “Why should SPDC sell the OML without the consent of the land owners, whose sons and daughters have the capacity to buy it at the same terms and conditions that they have offered it to strangers and their cronies in contravention of the local content policy?”

We meant well for host communities – Shell

Corporate Median Relations Manager of SPDC, Mr. Okonedo, however, re-assured the stakeholders, including staff and communities that “appropriate consideration will continue to be given to their interests, within the scope of the joint operating agreements,JOAs, while all MoUs and other agreements would be respected.”

Vice-President for Safety, Environment, Sustainable Development and Communications, Shell Sub Saharan Africa, Tony Attah, in a statement made available to Sunday Vanguard by SPDC stated, “This (divestment) is in support of government policy of encouraging the growth of Nigerian companies in the oil and gas sector and will deliver many opportunities for them.”

Companies also question Shell’s transparency

However, not many believe that SPDC has really been transparent in the sales of OMLs, The Nigerian-based BusinessDay newspaper, in a report in March, wrote on the controversy that crept into Shell’s bid to sell a number of its key assets in the Niger Delta when several observers questioned the transparency of the process.

Said the newspaper, “The Anglo-Dutch giant triggered an intensive bidding process months ago when it put its stake in OMLs 30, 34, 40 and 42, which it operates with its partners – Agip, Total and NNPC, up for sale with an understanding that after the bid round, the “preferred bidders” would emerge.

“Controversy began shortly after a report in the Upstream newspaper of March 11, 2011 which claimed that the bids leaked, allowing a raft of companies to up their bids without Shell stepping in to maintain the credibility of the process.

“On February 9, 2011, Shell had contacted Kisito Okpere, Vertex chairman to notify him of the success of the company’s bid and consequently, a formal letter was sent, stating that Vertex had been chosen by Shell as the preferred bidder for OML 40.

“On February 11, Shell called Vertex Energy to a meeting and gave the agenda of that meeting to include the following: Crude handling agreement, sale and purchase agreement, line of sight to the funding for the acquisition and, finally, discussion around the leverage, which Vertex may have in dealing with the government of Nigeria. This meeting ended well and Vertex went on to deposit 10 per cent of the bid amount in an escrow account as was required.

“Vertex, which is backed by First Bank, African Capital Alliance, Lekoil, African Finance Corporation, Sealand Oil Field Services, Leadway Assurance and Brighthouse Capital, had put in the highest bid of $151 million while the second bidder, ELAND/EHRC/Starcrest Consortium, linked to Emeka Offor, put in a bid of $147 million.

“Vertex chiefs left the meeting with Shell very satisfied that they had provided all the information required. They were, however, shocked to learn on February 26, 2011 that ELAND had been allowed to raise its bid for OML 40 to $154 million in very controversial circumstances”, it stated.

“It is difficult to understand why an international company like Shell that has been preaching transparency to us is showing that its claim to transparency is only in the public sphere. It has not shown itself to be transparent,’’the report stated.

President Jonathan should intervene

Iki-Ebieroma told Sunday Vanguard that the only way to avert trouble in the region over the purported fraudulent sales of OMLs was for President Jonathan to call SPDC to order and to start negotiating with people of the host communities through their appropriate representatives, otherwise, the government would be inviting a fresh anarchy to the region, as the people were not likely to fold their hands and watch goats eat palm fronds on their heads.