Oil
Shell, Bayelsa community disagree over cause of oil spill
YENAGOA – The Ikarama Community in the Yenagoa Local Government Area of Bayelsa has disagreed with the Shell Petroleum Development Company, SPDC, over the cause of the reported oil spills from nearby oil wells.
The spill has contaminated the Taylor Creek in Yenagoa and residents of Biseni/JK4 Road told the News Agency of Nigeria, NAN, that they disagreed that the spills were caused by oil theft.
Officials of Shell’s Oil Spill Response Unit were seen recovering crude discharged into the environment near the company’s Well 2 in Biseni Area.
Mr Ambrose Osuolo, Assistant Secretary, Caretaker Committee of JK4 Edagberi/Betterland Community, told NAN that the people were convinced that that some of the spill points were traceable to equipment failure.
“We noticed the spills on April 30 and Shell came for a joint investigation visit (JIV) on May 3. I represented my community on the JIV, but the investigation was inconclusive due to different views held about the cause of the spill.
“While Shell attributed the cause to sabotage, saying that the pipeline was drilled in, I was not convinced and hence we did not sign the JIV report.
“Although Shell came purposely for this particular spill, we discovered two more spill points within this Well 2 environment on that same day.
“The affected pipeline conveys crude from Well 2 to the nearby Adibawa Flow-station. We reported to the Bayelsa Ministry of Environment so that the ministry could put pressure on Shell to mop up the spill in the environment,” Osuolo said.
An SPDC spokesman, Mr Precious Okolobo, in a statement on May 6 attributed the spill to sabotage of pipeline by oil thieves.
The statement said that the preliminary findings indicated that the spill, which was caused by the activities of oil thieves had contaminated the Taylor Creek.
“A joint investigation visit (JIV) was executed and the initial reports indicated that the pipeline was sabotaged by a 20 cm long hacksaw cut.
“SPDC is committed to cleaning up all spills from its facilities as fast as possible regardless of cause. Majority of the spills in the Niger Delta are the result of third party interference,’’ it said.
The statement said that the sabotage included theft of equipment or leaks caused by crude oil thieves who drill into pipelines to steal oil.
“On the average, third party interference accounts for around 73 per cent of all oil spill incidents,” SPDC stated.
NAN recalls that Agip was compelled to shut down its onshore crude production facilities in Bayelsa due to unsustainable levels of oil theft.
Agip on March 23, said oil theft from its facilities in the state accounted for a daily loss of 7,000 barrels out of its 40,000 barrels of crude production and declared “force majeure” on its oil output.
Force Majeure is a legal clause that frees an oil firm from crude buyers for failure to meet its supply obligations due to circumstances outside of its control.
The Nigerian National Petroleum Company Limited (NNPC) has unveiled a bold strategy to reduce methane emissions in the oil and gas sector by 60% by 2031, with an ultimate goal of achieving net-zero emissions by 2060.
This announcement reinforces Nigeria’s leadership role under the Global Methane Pledge initiative and its commitment to tackling climate change.
The Group Chief Executive Officer of NNPC, Mele Kyari, disclosed these plans during a meeting on Thursday with Robert Leahman, the U.S. State Department’s Global Methane Program Manager, and a delegation from Deloitte.
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The discussions, held at the NNPC Towers in Abuja, focused on collaborative efforts to reduce methane emissions through innovative and sustainable practices.
“Reducing methane emissions is not just an environmental necessity but also a strategic imperative for Nigeria’s energy transition. We are leveraging partnerships to adopt global best practices and innovative solutions,” Kyari stated.
Key among these efforts is a pilot project in the Niger Delta, aimed at establishing emissions baselines, mitigating methane leaks, and promoting sustainable operations across Nigeria’s energy sector.
The project, a partnership between NNPC, Deloitte, and the U.S. Bureau of Energy Resources, will utilize data-driven methodologies to pinpoint and address methane hotspots.
Robert Leahman commended Nigeria’s proactive stance, describing it as a benchmark for other nations on the continent.
“Nigeria’s leadership under the Global Methane Pledge sets a standard for the continent. These initiatives will not only help reduce emissions but also drive sustainable development in the energy sector,” he said.
Kyari highlighted the broader benefits of addressing methane emissions, noting its significance for both environmental protection and economic efficiency.
“This collaboration is a game-changer. By addressing methane leaks, we’re reducing waste, saving costs, and protecting the environment. It’s a win-win for our economy and the planet,” he added.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
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