We’ve cleared all inherited liabilities from Shell — NPDC

Asset Management Team (AMT) of Oil Mining Lease (OML) 34, Nigeria Petroleum Development Company (NPDC) has disclosed that all issues concerning its operations, including inherited liabilities from Shell Petroleum Development Company (SPDC) and three years arrears of N1.3 billion to contractors have been cleared.

The Manager, Government, Community Relations and Security, Sheidu Aiguedo, under the AMT, who represented the Chief Operating Officer of the NPDC/NDW OML34 AMT, Chief Edirin Abamwa, made the disclosure during an interactive session with journalists in Warri, Delta State.

Our target is to free 100 million Nigerians from poverty trap ― FG

Aiguedo noted that the Global Memorandum of Understanding (GMoU) inherited from Shell, which earmarked yearly payment of N106 million for 34 impacted communities, has since expired.

He added that a new “steady state GMoU” was currently running with annual payment rate of N250 million for 27 communities.

According  to him, out of the 34 communities that make up OML 34 where assets are domiciled,  27 communities are the core oil producing communities where drilling and exploration take place.

Community Interface Coordinator, Chris Otobrise, expatiated on the workings of the GMoU programme.

He said that the company operated a joint venture  account with host communities which takes care of the projects awarded and executed, depending on communities’ preference.

According to him, Eruemukohwarien, Effurun-Otor, Erhiphihor, and Umolo-Olomu, among other host communities have been a hub of excellence due to the numerous projects sited in the area under the project GMoU arrangement.

In the area of human capital development and social investment, Otobrise said that the company had long overhauled inherited Shell scholarship programme which were based on competition to a more robust initiative in which every school in host communities is a beneficiary.

He said the least community gets four secondary school scholarships yearly and one university scholarships while the major host community gets 12 scholarship  for secondary school and four  for tertiary institution, yearly.

In total, he said that 285 tertiary institution students were on scholarship at the rate of N75, 000 per session while about 1,275 secondary school students were on scholarship at the rate of N25, 000 per session.

Otobrise said that pipeline surveillance contract and security of company assets were contracted to indigenous firms as part of its effort to implement the local content law as well as encourage local firms that have built capacity.

The official dismissed claims of insider involvement on the part of the company with regards to illegal oil bunkering activities, saying that the oil company spends over a billion naira yearly to curtail oil theft.

The company, they disclosed, was currently considering technology to enhance pipeline surveillance, including the use of surveillance drones.