The shutdown of Otumara Flow Station, operated by Shell Petroleum Development Company (SPDC), which would have cost Nigeria 20,000/bpd crude oil production, has been temporarily suspended following the timely intervention of officials of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Saturday.
Our correspondent gathered Saturday evening that following the occupation of the SPDC flow station on Friday after the expiration of 48 hours ultimatum, officials of NUPRC with SPDC were at Otumara Flow Station to prevail on the protesters to back down.
Recall that Ugborodo, Ugboegungun and Deghele communities in Warri South West had, all this while, called on SPDC to visit the host communities in line with the Petroleum Industry Act (PIA) 2021 provisions, which empowers communities to set up a host community development trust (HCDT).
The three communities had, in line with the provision, jointly established Otumara Host Community Trust to interface in the implementation of the PIA, but SPDC and NUPRC have refused to accept the initiative.
But to avert a disruption of production of 20,000bpd at the flow station, officials of NUPRC and SPDC were said to be at the facility to pacify the protesters, who started their showdown on Wednesday and have gained entry into the facility on Friday, as well as ask for more time to address the demand.
Confirming the intervention, one of the Ugborodo leaders, Mr Alex Eyengho, in a statement made available to our correspondent on Saturday evening, said the communities have temporarily suspended the second stage of the protests, which is a total shutdown, till a tripartite meeting among NUPRC, SPDC and leaders of the communities holds.
He, however, warned that if by the end of Monday, August 28, 2023, the NUPRC refuses to give a definite date for the proposed tripartite meeting in Abuja, the Otumara Flow Station will be shut down, indefinitely.
“The NUPRC team led by the Warri Regional Head (Rep the Executive Director) Mr Benjamin Ogunnubi, the Shell team led by Operations Manager of the Otumara facility, and reps of Ugborodo, Ugboegungun and Deghele Community, with the security agencies, were in attendance.
“Mr Ogunnubi read out the above press statement after addressing the protesters. The communities responded and told him their resolution as follows:
“The community would suspend the second stage of the protests temporarily, which is to shut down production in the facility completely.
“If by the end of Monday, August 28, 2023, the NUPRC refuse to give a definite date for the proposed tripartite meeting in Abuja between Shell, the three communities and NUPRC, production in the Otumara facility of Shell, shall be shut on Tuesday, August 29, 2023, until the Otumara Host Community Development Trust (Otumara-HCDT) is created by Shell for the three communities and incorporated in the Corporate Affairs Commission (CAC) accordingly.
“The peaceful protest inside the Shell facility in Otumara by the communities shall continue until number item number 2 above is addressed and achieved,” the statement read.
Meanwhile, in a statement signed by NUPRC’s Mr Ogunnubi late Saturday, the agency confirmed its request for a stand-down by Ugborodo, Deghele and Ugboegungun communities for calm and peace to reign with an assurance of the effective implementation of the HCDT provisions in the PIA, 2021.
“The attention of the NUPRC has been drawn to the ongoing complaints by the indigenes of Ugborodo, Deghele & Ugboegungun communities, Wam Southwest LGA Delta State regarding the name of HCDT and composition of the board of trustees of the HCDT.
“The Commission, in line with his statutory mandate on the implementation of the HCDT provisions in the PIA, 2021, to ensure peace and a conducive operating environment for upstream operations, has directed that all HCDT allegedly initiated on the above Communities be suspended pending a tripartite meeting to be held on an agreed date by authorized persons of the Communities, NUPRC and SPDC
“The NUPRC is using this opportunity to request Ugborodo, Deghele & Ugboegungun communities and all concemed parties to remain calm and allow peace to reign while assuring all parties of our regulatory support and continued efforts towards ensuring effective implementation of the HCDT provisions in the PIA, 2021,” Ogunnubi pleaded.
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