By Emma Amaize, Regional Editor, South-South, Soni Daniel,
Clara Nwachukwu, Emman Ovuakporie, Michael Eboh, Johnbosco Agbakwuru, Egufe
Yafugborhi, Brisibe Perez & Akpokona Omafuaire WARRI — THE nation’s crude oil
fortunes took another downward plunge, yesterday, following attacks by Niger
Delta Avengers, NDA, on pipelines close to Escravos Tank Farm at Ciera
creek, near Abiteye community, Warri
South-West Local Government Area of Delta State, operated by Chevron Nigeria
Limited.
The attacks, on two separate gas and crude oil pipelines belonging to
Chevron, Wednesday night, caught security agents and the oil company unawares.
It was learned that both lines were blown up during Wednesday’s downpour which
prevented residents and workers from
hearing the explosions. An underground Chevron crude oil trunk line along the
Ceria creek, near Abiteye, and a major electricity gas line were severely
affected in the attacks. Sources said both incidents happened a short distance
from the company’s multi-billion dollar tank farm in Escravos.
It was gathered
that the incident was noticed by workers in the production department when they
observed a drop in production pressure early yesterday. Militants attack
Yesterday, a top Chevron management staff and a security source confirmed the incident to our correspondent.
The source said a technical team of experienced engineers had been dispatched
to the scene of the spill to ascertain the true cause. A local source in the
area said: “At the moment, the entire creeks are awash with crude oil.” Another
Chevron source, while confirming the incident, said: “The explosions occurred
while it was raining. There are two Chevron gas lines, which are the onshore
and offshore. It was the offshore pipeline that was affected, while the other
one is a crude oil line.
The affected pipelines are located between the Chevron
Tank Farm and Ceria near Abiteye community.” Efforts made to reach Isa Ado,
spokesman of JTF, to speak on the development did not yield result as he did
not respond to calls and SMS sent to his telephone. Deji Haastrup, Chevron’s
spokesman, did not take calls put to his lines, while mail sent to him was also not replied at press time. Gbaramatu
calm Meanwhile, Gbaramatu Kingdom was peaceful and calm after the attack.
Speaking on the constraints facing residents of the area, Public Relations
Officer, PRO, Oporoza Youths, Paul Kirifede, said: “We did not record any form of attacks on oil
installations in Gbaramatu. Our only challenge is that military operatives, who
patrol the river every minute, are constantly molesting us.
We cannot fish, neither can we embark on our
daily business activities.” FG meets stakeholders on bombings Meanwhile, the Federal
Government has moved to end the destruction of oil facilities by aggrieved
Niger Delta militants, with a strategic meeting with some militant leaders in
Abuja, as a first step. The meeting was attended by high level government
functionaries such as the governor of Edo State, Mr Adams Oshiomhole; National Security Adviser,
NSA, Maj.-General Mohammed Monguno (retd); Minister for Niger Delta, Usani
Uguru Usani; Minister of State for Agriculture, Senator Heineken Lokpobiri;
Coordinator Amnesty Programme, Brigadier-General Paul Boroh (retd); and
stakeholders from Edo, Bayelsa, Rivers, Akwa Ibom, Cross River, Delta and Ondo states. Following the meeting, the
Amnesty Coordinator and SA to the President on Niger Delta, Gen. Paul Boroh
(retd), opted to move into the creeks to meet with the aggrieved groups and
individuals in order to end the renewed cycle of attacks on oil facilities. Boroh is to hold series of
discussions with the militants to sheathe their swords and embrace peace.
He
said: “The whole aim of my relocation to
the Niger Delta creeks is to enable me identify the aggrieved individuals,
groups and hold extensive discussions with them on the need to keep the peace
since the government is working hard to put things right in the Niger Delta and
other parts of Nigeria. “From available records, the Federal Government has not
reneged on its amnesty package to the region and is working hard to improve the
infrastructure needs of the Niger Delta, one of them being the Calabar-Lagos
coastal railway, which is already captured in this year’s budget.” Oil price
rises to $50 per barrel Also, oil price
rose, yesterday, to $50 a barrel, for
the first time in nearly seven months, as a global supply glut that plagued the
market for nearly two years showed signs of easing. The oil markets have suddenly
been hit with a multitude of unexpected supply disruptions, the largest of
which comes from the more than four million barrels per day that had been
knocked offline because of wildfires in Canada as well as crisis in Libya and
easing of United States supplies have contributed in buoying prices. US pledges
help United States of America, USA, Consular General to Nigeria, Mr John Bray,
yesterday, expressed his country’s preparedness to assist Nigeria restore peace and end the ongoing violence in
the Niger Delta by Niger Delta Avengers and other militant groups. The
consular-general, made the disclosure when he visited former national chairman
of Association of Traditional Rulers of Oil Mineral Producing Communities of
Nigeria, ATROMPCON, and Pere of Seimbiri Kingdom, Delta State, HRM Charles
Ayemi-Botu, at his Edjeba Palace Annexe, Warri. Bray, who was visiting Warri
for the first time, said: “We are
looking at whatever we can do to assist the Nigerian government to establish a
peaceful, prosperous region in the South-South of Nigeria.” Oil firms owing FG
$2bn — House c’ttee Meanwhile, the House of Representatives ad-hoc committee
probing all oil prospecting licences, OPLs, and Oil Mining Leases, OMLs,
granted by the Federal Government, yesterday, said oil companies had
deliberately avoided to pay compulsory fees to the tune of about $2 billion.
Chairman of the ad-hoc committee, Gideon Gwani (PDP, Kaduna), who briefed
newsmen, said the oil companies, which ought to help the country in view of its
present predicament by prompt payment, were owing the government hundreds of
millions of dollars, thus compounding the nation’s woes. He described the
situation as alarming and worrisome, noting that it was a dangerous trend that
cannot be allowed to continue. He said:
“It is estimated that the oil companies, by their actions, have either
evaded or avoided the payment of these compulsory fees which is presumed to
have denied the Federal Government about $2 billion. “At a time the government
is talking of obtaining loans for infrastructure development, such as roads,
railways, power plants, petroleum refineries, among others, and where oil blocs
have been allocated to some companies to use the proceeds accruing from
loyalties, signature bonuses, etc, to fund these important projects, yet
several years after, these facilities are still comatose, with little or no new
projects to show as approved.” He expressed unhappiness that the Minister of
State for Petroleum Resources, Dr Ibe Kachikwu, and Central Bank of Nigeria, CBN,
Governor, Mr Godwin Emefiele, have not responded to requests of the committees.
Economic impact of attacks Nigeria,
which is hoping to fund its 2016 national budget in excess of N6 trillion
benchmarked at $38/barrel, from mostly borrowings, will be hard put repaying
the loans, as the production cutbacks will significantly affect building both
the foreign exchange and production reserves. Painting a gloomy picture of the
situation, a former Director of industry regulatory agency, Department of
Petroleum Resources, DPR, Mr. Osten Olorunsola, noted that the situation was so
serious that it required both urgent military and political interventions.
Olorunsola told Vanguard on phone: “If
the situation is not resolved quickly, it portends grave consequences for
petroleum industry and the economy in general, so it requires both political
and military solutions. “Attacks on oil facilities are a major setback because
each time this happened, apart from the production disruptions, it takes time,
about two to three years, for people to remobilise. As a result, oil and gas
production nose-dives, there will be no development in the region during the
period of the downturn, and if there are no production activities, there will
be no building of oil reserves.” Uduaghan urges FG to engage militants Also,
former governor of Delta State, Dr. Emmanuel Uduaghan, urged the Federal
Government to initiate a “serious engagement process” with the militant group
to end the bombings in the region. Uduaghan told Vanguard:
“I am disturbed by the damage, which the explosions are causing to the
environment. We live here, it is affecting us and I also appeal to the Niger
Delta Avengers to stop the attacks.” He said the Federal Government should
review all the past decisions and templates for the development of the region
and take a holistic decision to tackle development of the region to stem
continuous resort to violence by militants.
