Rivers State Governor,\u00a0 Nyesom Ezenwo Wike has declared that the\u00a0 Rivers
\nState Government has fully acquired Shell Petroleum Development Company
\nof Nigeria (SPDC) 45% interest in Oil Mining Lease (OML) 11 situated in
\nEjama Ebubu community in Eleme Local Government Area and the adjoining
\nOgoni and other communities of the State.<\/p>\n
He said: “I am delighted to inform you that the Rivers State Government
\nhas fully acquired Shell Petroleum Development Company of Nigeria (SPDC)
\n45% interest in Oil Mining Lease (OML) 11 situated in Ejama Ebubu
\ncommunity in Eleme Local Government Area and the adjoining Ogoni and
\nother communities of Rivers State”.<\/p>\n
In a state Broadcast on Monday at the Government House, Port Harcourt,
\nGovernor Wike in his address titled: “WE WILL CONTINUE TO ADVANCE THE
\nSTATE’S INTEREST,SECURITY AND PROSPERITY OF ALL”, said his
\nadministration will always advance the best interest of Rivers State.<\/p>\n
Governor Wike explained the Background for the acquisition of OML 11,
\nwhich is premised on Court Judgments, which have been registered in the
\nUnited Kingdom and Nigeria for enforcement.<\/p>\n
He said: “This fresh case commenced in 2001 passed through four
\ndifferent justices of that Court arising from twists and turns
\nassociated with opposed litigations, until it was disposed of about 10
\nyears after in June 2010 by Buba J. (the fifth judge to preside over the
\nmatter).<\/p>\n
“SPDC and its parent companies appealed the judgment at the Court of
\nAppeal in 2010, which again suffered the twists and turns passing
\nthrough six different panels comprising three justices each between 2010
\nand 2017 before it was finally disposed of by the panel of that Court
\nled by Gumel JCA of the Port Harcourt Division. The appeal was
\ndismissed.<\/p>\n
“SPDC and its parent companies took out a further appeal to the Supreme
\nCourt of Nigeria in 2017, which appeal was considered and dismissed by
\nthat Court in a judgment read by Hon. Justice B. Akaahs, JSC delivering
\na lead judgment in a unanimous decision.\u00a0 \u00a0After losing at the High
\nCourt, SPDC gave the successful Ejama Ebubu Plaintiffs a Bond Guarantee
\nstipulating that First Bank of Nigerian Limited would pay them the value
\nof the Judgment debt and interests thereon in the event that SPDC’s
\nappeal to the Court of Appeal fails at that Court. The original Bank
\nGuarantee is still with the Community.,<\/p>\n
“When SPDC’s appeal failed at the Court of Appeal, Shell instructed the
\nBank to dishonour their guarantee, which did and gave rise to a series
\nof six different litigations in various Courts against First Bank and
\nthe Central Bank of Nigeria. SPDC’s excuse was that they had lodged an
\nappeal at the Supreme Court of Nigeria. The enforcement cases had been
\nto Owerri, Abuja, Lagos, etc. in six different lawsuits. On the 11th of
\nJanuary 2019, Shell’s appeal was dismissed at the Supreme Court of
\nNigeria.<\/p>\n
“The judgments of the High Court, the Court of Appeal and the Supreme
\nCourt were registered in the United Kingdom for enforcement over there
\nagainst SPDC parent companies domiciled outside Nigeria’s shores.”<\/p>\n
On the enforcement of the judgment in Nigeria,\u00a0 Governor Wike said:<\/p>\n
“The Ejama Ebubu community commenced enforcement by domiciling the
\njudgment in the State High Court and levying execution on SPDC
\nmoveable’s in their Industrial Area in Port Harcourt;<\/p>\n
(ii)\u00a0 \u00a0 Those chattels were attached on the ground but not removed;<\/p>\n
(iii)\u00a0 \u00a0SPDC invited the community and offered them N7 billion as
\nagainst the judgment debt of N194 billion, which the community refused
\nto accept;<\/p>\n
(iv)\u00a0 \u00a0The community approached the court for and order granting them
\nleave to sell SPDC’s immovable property comprised in OML 11 and their
\nkidney Island support base in Port Harcourt”.<\/p>\n
Governor Wike said upon the advertisement of the said immovable assets
\nfor auction, the Honourable Attorney General and Commissioner for
\nJustice of Rivers State alerted the Government of the State.<\/p>\n
He explained\u00a0 the reasons why the State Government resolved to purchase
\nOML 11.<\/p>\n
He said”\u00a0 \u00a0 \u00a0“That the impact is still there and un-remedied since 1970
\nas admitted by SPDC vide letters they wrote seeking to clean the spill
\nin 2006 while the case was at the trial Court;<\/p>\n
“That the Rivers State has suffered the worst impact of environmental
\ndegradation resulting from oil related operations;<\/p>\n
That the very difficult swamp and mischievous waterlogged terrain of the
\nRivers State has impeded development as a result of increased
\nconstruction costs on the near and non-existent infrastructures and
\nattendant rapid decay of the little we have been able to achieve as a
\nresult of oil related acid rain and black sooth enveloping the State;<\/p>\n
That these phenomenal degradation and impoverishment had continued with
\nthe decline of revenue and inflation, lack of employment of
\nwell-educated Rivers State youths, idleness and restiveness arising from
\nwant;<\/p>\n
That SPDC is said to have paid the sum of USD 2,000,000 (two million
\nUnited States Dollars) only for the renewal of their operatorship and
\ninterest in the said OML 11 to the Federal Ministry of Petroleum
\nResources;<\/p>\n
“That for the past 25 years, the rich oil potentials of OML 11 have
\nremained untapped following the hanging of the world-renown Ogoni poet
\nand environmental activist, Mr. Ken Saro Wiwa and the Ogoni 9 as well as
\nthe unfortunate mob lynching and death of four prominent Ogoni citizens,
\none of whom was the Secretary of Government of the Rivers State and
\nanother, a Commissioner under the tenure of Lt. Col. Dauda Musa Komo as
\nGovernor of Rivers State;<\/p>\n
“That it has become unlikely that for peace and security, the people of
\nOgoni in the Rivers Stat will welcome SPDC on their land forming part of
\nOML 11;<\/p>\n
That a lot of revenue is lost to the Federation Account accruable to the
\n55% stake of the Federal Government in OML 11 and by extension the rest
\nof the Federating States of Nigeria due to non-production of nearly
\n250,000 barrels per day of its crude oil potentials equaling one sixth
\nof the country’s total out-put per d<\/p>\n
That the Rivers State Government has continued to loose 13% derivation
\nfund from the said 55% stake of the Federal Government in that field for
\nnearly 30 years now, which revenue would have transformed the State and
\nits peoples for the better;<\/p>\n
“That rather than standby and watch other persons or group purchaser
\nSPDC 45% interest in that OML 11 and further exacerbate the poverty of
\nthe people of the State, a responsible and responsive State Government
\nshould weigh in and bid for the purchase of SPDC interest already set
\ndown for auction;<\/p>\n
“That the present Government of Rivers State entrusted in my care
\nthrough the Will of God and those of the peoples of the Rivers State
\nhave concluded that it will be in the overall interest of the State, the
\nother Federating States and the Federal Government that we as a
\nGovernment, should make a bid for the purchase of the said interest of
\nSPDC now placed on auction by extant Order of the Courts of Law.”<\/p>\n
Governor Wike explained the process: “Therefore, I directed the Rivers
\nState Ministry of Finance Incorporated to make a bid of USD
\n150,000,0900.00 supported by a Bank Guarantee and cash payment to the
\nDeputy Sheriff in the sum of N1 billion, the later payable to the
\nJudgment Creditors while the former is escrowed.<\/p>\n
“I have further directed the relevant Government agencies to take
\nimmediate steps to liaise with any financially capable companies to
\npartner with the Rivers State Government to ensure that the said oil
\nfield come on stream within 15 months from today.<\/p>\n
“In line with our commitment to accelerated development, industrial
\nharmony and security, the Rivers State Government will graciously
\nconcede some portion of its 45% per cent equity interest to all the oil
\nproducing communities within OML 11 to enhance mutual ownership,
\nparticipation and sharing in the benefits of these resources.<\/p>\n
“I have taken these steps with all sense of responsibility believing
\nthat addressing the pains and poverty of our peoples with the resultant
\nsecurity and welfare of its people is the main purpose of governance and
\nnothing less”.<\/p>\n
He added: ”\u00a0 I have attached a Certified True Copy of the Judicial
\nCertificate of Purchase of Land\/Immovable property dated 25 September
\n2019 issued by the High Court of Rivers State under Order VII Rule 9 of
\nHigh Court Rivers in reference to Suit No: PCH\/1696\/2019 Between
\nGovernment of Rivers State of Nigeria vs. Chief Isaac Osaro Agbara & 5
\nOrs. and Shell Petroleum Development Company of Nigeria Ltd. & 2 Ors”.<\/p>\n
The Rivers State Governor noted that his\u00a0 Administration is sensitive to
\nthe agitation of Rivers people for political and economic freedom. He
\nsaid the Administration shall continue to respond appropriately to the
\nchallenges of development either alone or in conjunction with the
\nstate’s partners to advance her abiding interest in building the
\nbrightest possible future for Rivers people.<\/p>\n
He outlined the circumstances that led to the dispute and the
\naccompanying judgments.<\/p>\n
He said: “Following a major oil spill from SPDC Trans Niger High
\nPressure Crude Oil Pipeline at Ejama Community, an approximate area of
\n255 hectares of arable agricultural land, fishing swamps and rivers were
\ndevasted.<\/p>\n
“SPDC admitted that the oil spill came from their pipeline and occurred
\nsometime in 1970. They paid some compensation to the community in the
\nsum of N300,000.00 sometime in 1986 and promised to come and de-pollute
\nthe area. SPDC failed to de-pollute the area which gave rise to a
\nlawsuit in 1991 commenced at the High Court of Rivers State, Nchia
\nDivision presided over by Hon Justice P.N.C. Agumagu(now retired). At
\nthe end of the trial, the Court found against SPDC and entered judgment
\nin the sum of N1 billion in addition to and order for SPDC to clean up
\nthe spill or pay N6 billion in lieu thereof.<\/p>\n
“SPDC appealed the judgement. During the pendency of the appeal, the
\njurisdiction of the State High Court was taken away and donated to the
\nFederal High Court by a subsequent judgment of the Supreme Court. The
\nEjama Ebubu Community conceded SPDC’s appeal without a formal hearing”.<\/p>\n
Rivers State Governor,\u00a0 Nyesom Ezenwo Wike has declared that the\u00a0 Rivers State Government has fully acquired Shell Petroleum Development Company of Nigeria (SPDC) 45% interest in Oil Mining Lease (OML)…<\/p>\n","protected":false},"author":1,"featured_media":69510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-69509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n