New conditions have emerged how the OML-25 that has been dormant for 15 years may resume activities.
The asset has moved from the original owners, SPDC, to Renaissance Africa Energy with fresh demands for resumption of activities.
As Renaissance holds consultations to know how better to relate with host communities, having the provisions of the Petroleum Industry Act (PIA) in view, host communities around Kula have also tendered their demands.
The host communities of OML-25 in Kula area in Akuku-Toru Local Government Area of Rivers State are demanding what they call a binding agreement with the new operator of the oil facility, before oil production can resume in the area.
Shell had divested the oil asset to Renaissance Africa Energy Holdings in the wake of a protracted dispute with the host communities over issues of alleged neglect, impoverishment, and enslavement of the host communities since it began operation in the area 67 years ago. Sources in SPDC and in some parts of the community deny this claim.
The host communities comprising Kula, Belema, Offoin-Ama, and Ngeje made the demand while briefing newsmen in Port-Harcourt at the end of an enlarged ‘Stakeholders Engagement’ by the new operator of OML-25 with its host communities in the Eastern Zone of the Niger Delta.
They insist that the new operator must inherit the liabilities of Shell before they will be allowed to operate in the area. Sources in Renaissance agreed with this view, saying the company inherited both assets and liabilities.
The Kula stakeholders however requested for a separate engagement with the new operator to extract an obligatory and enforceable commitment from the company to avoid a repeat of their ugly experience of the past.
They said this would foster a robust company-host community relationship that prioritizes sustainable development, mutual benefit, transparency, and long-term community empowerment through initiatives like infrastructure development, education, healthcare, and economic opportunities, while also ensuring environmental stewardship.
Anabs Sara-Igbe, a chief and elder statesman and prominent stakeholder of Kula, listed some of the liabilities as non-implementation of the 2019 agreement between Shell, the host communities, the Federal Government, NNPC and Belemaoil which owns a stake in OML-25.
He lamented that the host communities suffered untold hardship, total neglect, deprivation, enslavement, and what he called the worst form of human backwardness for 67 years of the operation of Shell in the area.
Sara-Igbe said the new operator of OML-25 should also be ready to inherit the massive unemployment in the area as well as lack of basic amenities and pollution of the environment by Shell.
On his part, Sukubo Sara-Igbe Sukubo, the President of the National Youth Council of Nigeria, who is also a prominent stakeholder of Kula community, expressed deep concern over the decision of the new operator to retain the staff of Shell, saying it may perpetuate a circle of conflict and undermine the trust of the host communities. Sources however said it is not feasible to run oil operations with entirely new workers and discard workers and experts with huge training and skills over the years.
Read also: Execute MoU with Belemaoil before you resume, OML-25 hosts tell SPDC
The youth leaders however said the new operator must address the age-long menace of youth unemployment in the host communities by prioritizing employment and economic empowerment in its policies and programs to guarantee sustainable oil production in the area.
Another stakeholder, Christian Don Pedro, who also spoke to newsmen, said the new operator of OML-25, Renaissance Africa Energy Holdings, must begin by laying a foundation of harmonious relationship with the host communities to avoid making the mistake of Shell.
He emphasized that the new operator must adopt an all-inclusive approach and avoid the pitfalls of ‘divide and rule’ which he said was the hallmark of Shell.
OML-25, a major oil block in the Niger Delta which accounts for a minimum of 35,000 barrels of crude oil and 103,000 cubic feet of gas per day, is said to have been lying fallow for over 15 years due to a longstanding dispute between the former Operator, SPDC, and its Host Communities, according to a statement signed by Emeka Idika Kalu, Press Secretary to the Host Communities of OML-25.
Demands have always been made by host communities of OML-25 from time to time. In 2024, Shell Petroleum Development Company (SPDC) was urged to first execute the memorandum of understanding (eight-point agreement) it had reached with Belemaoil in before resuming operations at OML-25.
The people of Kula, Belema, Offoinama, Ekese, and other satellite communities hosting the OML-25 in Rivers State insisted that SPDC must also sign the Purchase Order (PO) and implement the deal entered with the communities before resumption of oil exploration in the area.
They said so far the people had nothing to show for the sixty years of SPDC operations in the OML 25 as at November 2024.
The leaders made their position known through their spokesperson, a monarch, Anabs Sara-Igbe, who addressed newsmen shortly after a meeting between the host communities, SPDC, and the Rivers State Government at the Hotel Presidential, Port Harcourt, as parts of preparation for the resumption of exploration in the OML25 in the communities.
Background:
The Fg has continued to seek way out in the OML 25 area. The troubled Kula oil field was re-flagged off at noon on Saturday, September 28, 2019, by the then minister of state for petroleum, Bayelsa-born Timipri Sylva, who led what was described as the highest industry delegation to any host community in recent history.
OML 25 which produces between 35,000 and 40,000bpd had recorded $1.7Bn loss over the shut-down, according to government officials at the event. Industry sources said by the event, joint inspection visit would take place, confirmation of exit of SPDC would be done, inventory would be taken and facility testing would begin, before a decision would be taken to resume pumping of oil and gas.
The resolution of the explosive crisis took place in Abuja two weeks earlier and what was termed win-win resolution took place whereby Shell’s rights as license holder and JV operator was reaffirmed, Belemaoil was accepted as maintenance rights holder while rights of the host communities were agreed upon with both Shell (now, Renaissance) and Belemaoil as joint development partners for the communities. Belemaoil’s founder is said to be one of the indigenous sons developed by SPDC to help those communities.
The minister cut the tape at Belema town where the flow station is located. By the action, he said he expected operations to resume in the 35,000bpd oil field which also has gas and is the nerve for all the oil and gas gathered in Bayelsa and eastern Rivers State heading to Bonny export terminal and other gas centres.
The flag-off was witnessed by the then Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Mele Kolo Kyari; the then managing director of Shell, Osagie Okunbor; the founder/president of Belemaoil, Jack-Rich Tein Jnr; top political leaders including the deputy senate president (who was represented), top army officers from Army, Navy to Air Force, and other top industry players.
The then minister, a former governor in Bayelsa State, later addressed the communities at the Kula centre (Anglican Church field) where he assured that the federal government would not let Kula down or allow them to walk alone.
Saluting them as Ijaw heroes, he said it was historic that the topmost industry policy makers have paid a visit to a host community in the Niger Delta at the same time. “This is history. We have listened to the community in Belema town.”
He went on: “I have told the monarchs and chiefs that we need peace, we need development. This is a time to develop, not to fight. We need to change strategy. If there is no peace, investors will not come. Investors are waiting to move into the Niger Delta but peace is what they are waiting for.”
Adding his voice at the square, the NNPC boss said; “Peace is our objective at the moment. There has been two years of fighting, and there is need for peace. Mr President salutes you but wants you to know that there is need to restore peace to allow other things to follow”.
The Belemaoil founder, Tein Jnr, who addressed the Belema women (who held the flow station hostage for over two years) said the agitation was over and that assessment of the facilities would begin.
He told the women that their outcry had reached the highest authorities and that then President Muhammadu Buhari had made it possible for Belemaoil to bring development to the Niger Delta communities and other regions.
He made a striking remark, saying the Kula situation had proved that when host communities are angry, oil industry suffers setback; but when they are happy, oil industry grows. “This visit is the first of its kind in any oil community. You can see that the kings, kings, youths, women, everybody is happy. See jubilation, because they see hope. They see jobs coming.”
Kroma Amabibi Eleki, king of Kula kingdom, conferred a traditional title of Amabelemabo (lover of Kula people) on the then minister, Sylva, saying the people appreciated his quick action that helped to resolve the lingering crisis.
Some persons have asked that both parties should build on these feats to move forward by finetuning any areas of friction.
