{"id":69700,"date":"2019-10-10T14:05:10","date_gmt":"2019-10-10T13:05:10","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=69700"},"modified":"2019-10-10T16:37:17","modified_gmt":"2019-10-10T15:37:17","slug":"oml-11-ogoni-wikes-takeover-of-shells-45-percent-stake-and-matters-arising","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/oml-11-ogoni-wikes-takeover-of-shells-45-percent-stake-and-matters-arising\/","title":{"rendered":"OML 11: OGONI, WIKE\u2019S TAKEOVER OF SHELL\u2019S \u201c45 PERCENT STAKE\u201d AND MATTERS ARISING"},"content":{"rendered":"<p>BY: IFEANYI IZEZE<\/p>\n<p>At the face value, the announcement by the Rivers State Governor, Nyesom<br \/>\nWike, that the state government has fully acquired Shell Petroleum<br \/>\nDevelopment Company of Nigeria\u2019s 45 percent interest in Oil Mining<br \/>\nLease (OML) 11 situated in Ejama Ebubu and the adjoining Ogoni and other<br \/>\ncommunities in Rivers state, would have elicited commendations and wild<br \/>\njubilations but for the glaring lots of no- nos in the purported<br \/>\ntakeover as announced.<\/p>\n<p>As the governor said in his live broadcast, the acquisition followed a<br \/>\nHigh Court order, declaring the state as the purchaser of \u201cthe right,<br \/>\ntitle and interest\u201d of Shell Petroleum Development Company of Nigeria<br \/>\nLand\/Immovable Property in the acreage.<\/p>\n<p>\u201cThis Order was subsequent upon a suit filed by one Mr. Agbara Isaac<br \/>\nOsaro and five others against SPDC, Shell International Petroleum<br \/>\nCompany Limited Shell International Exploration and Production BV and<br \/>\nGovernment of Rivers State.\u201d<\/p>\n<p>It is curious that the Rivers State Government could tow this option as<br \/>\nthe best available to resolve the issues around Shell\u2019s devastation of<br \/>\nEjama Ebubu and other areas in Ogoni. If Wike was expecting<br \/>\ncommendations from Ogoni people, he must have been disappointed as all<br \/>\nhe has thus far gotten from them have been the opposite.<\/p>\n<p>Of curious interest also is the fact that critical federal government<br \/>\ninstitutions in charge of the oil industry such as the Department of<br \/>\nPetroleum Resources (DPR), Ministry of Petroleum Resources, Nigeria<br \/>\nNational Petroleum Corporation (NNPC), NAPIMS and even Shell, seem not<br \/>\nto be aware of this purported acquisition by court ruling. Since when<br \/>\ndid the courts start awarding oil blocs or divested interests from such?<\/p>\n<p>By the way, where did the Rivers State Government get the 45 percent<br \/>\nstake it said it\u2019s taking over from Shell in the NNPC\/Shell\/Agip\/Total<br \/>\njoint venture?<\/p>\n<p>There is no such thing as Shell\u2019s 45 percent interest in OML 11. The<br \/>\nacreage OML 11 was a joint venture between the Nigerian National<br \/>\nPetroleum Corporation (NNPC) with 55 percent stake, SPDC with 30 percent<br \/>\nstake, Total with 10 percent stake and Nigerian Agip Oil Company (NAOC)<br \/>\nwith 5 percent stake. Therefore, it is unbelievable and impracticable<br \/>\nthat the Rivers State Government will purport to have acquired 45<br \/>\npercent of interest when all that Shell had before the Ogoni crisis was<br \/>\n30 percent.<\/p>\n<p>This acreage was awarded and even operated for over three decades before<br \/>\nthe recent NNPC downsizing of its stakes in some of the joint ventures<br \/>\nto 40 percent. So the new order cannot apply to the venture staking<br \/>\nparticularly in the controversial Ogoni oilfields and the entire OML 11.<\/p>\n<p>Recall that the problem of the OML 11 started when a major oil spill<br \/>\nfrom Shell\u2019s Trans Niger High Pressure Crude oil Pipeline occurred at<br \/>\nEjama and Ebubu communities, which devastated approximately 255 hectares<br \/>\nof arable agricultural land, fishing swamps and rivers in the area.<\/p>\n<p>Though Shell admitted the spill was from its pipeline, the Anglo-Dutch<br \/>\noil giant up till today has failed to de-pollute and remediate the area,<br \/>\ndespite several lawsuits and court rulings in favour of the people of<br \/>\nthe area.<\/p>\n<p>Without supporting the threats from different Ogoni groups on the<br \/>\nmatter, no doubt, there are so many gray areas or rather hidden issues<br \/>\nin the entire asset divestment and acquisition as announced by the<br \/>\ngovernor which if not properly addressed, would introduce serious<br \/>\ncomplications in the UNEP- mediated peace process and the proposed clean<br \/>\n-up and remediation programme in OML 11 areas and the entire Ogoniland.<\/p>\n<p>First, is the Rivers state government going to inherit only the assets<br \/>\nof Shell in OML 11 without the accompanying liabilities or will inherit<br \/>\nboth?<\/p>\n<p>How is the Rivers state government going to get Shell to pay its<br \/>\ncounterpart funding for the clean-up and remediation exercise as<br \/>\nproposed by the United Nations Environmental Programme for the Ogoni<br \/>\narea including parts of OML 11?<\/p>\n<p>It would have been better to allow the UNEP-proposed clean-up and<br \/>\nremediation exercise of the oil spill devastated area to be completed or<br \/>\neven kick-off in earnest before the talk of asset takeover and<br \/>\nresumption of oil exploration and production activities by any interest<br \/>\ngroup?<\/p>\n<p>It should have occurred to the Rivers state governor that the said<br \/>\nhandover at best could be a diversionary ploy and an attempt by Shell to<br \/>\nelude its liabilities in OML 11 communities and the entire Ogoniland by<br \/>\nhanding over its assets in the area to the State Government<\/p>\n<p>The divesting Shell has serious obligations assigned to it in the<br \/>\nexercise and if it\u2019s allowed to hands-off the acreage now, the entire<br \/>\neffort by both the federal government and UNEP at cleaning the massive<br \/>\noil spillage in Ejama Ebubu area and other parts of Ogoniland would<br \/>\ndefinitely run into a hitch except the Rivers state government is<br \/>\npromising to pay the expected counterpart funding assigned to Shell.<\/p>\n<p>Another serious issue borders on the choice of a new operator (s) as<br \/>\nproposed by the governor. Which of the oil companies would be acceptable<br \/>\nto both the state government and the Ogoni people and whose definition<br \/>\nof \u201cacceptable\u201d is going to be accepted across board without<br \/>\nsuspicion and unnecessary rancour?<\/p>\n<p>Already there are insinuations by some Ogoni groups that Wike may be<br \/>\nzealous in this asset acquisition thing because it serves his personal<br \/>\ninterest. Whether this is mere propaganda or outright blackmail against<br \/>\nthe governor, it is better to have everybody carried along in this<br \/>\nmatter.<\/p>\n<p>No matter how good the state government\u2019s intentions may look, if<br \/>\ntheir action is perceived wrongly, you cannot expect any form of<br \/>\ncooperation from the communities as we are already seeing from all kinds<br \/>\nof Ogoni groups. And the government also cannot ask them to go hell<br \/>\nbecause they may decide to embark on the journey just to see what will<br \/>\nhappen.<\/p>\n<p>Now, without mincing words, the Ogonis should be told in any language<br \/>\nthey understand clearly that it\u2019s time for a paradigm shift if they<br \/>\nactually want Nigeria and the world to continue to take them seriously.<br \/>\nTo me, the struggle has completely lost focus. Every Ogoni man and woman<br \/>\nis a \u2018human and environmental rights organisation\u2019 thus making a<br \/>\nmockery of the spirit and intent of the initial struggle against Shell<br \/>\nand the federal government. Now you don\u2019t even know what the legacy<br \/>\nissues are. This has to be addressed!<\/p>\n<p>For over ten years, I have been urging the Ogonis (MOSOP) to be more<br \/>\ncreative in their demands. If you don\u2019t want Shell or any other<br \/>\nexisting oil multinational operator to come work in Ogoniland, MOSOP and<br \/>\nsome other groups should have incorporated an oil company and source for<br \/>\ntechnical partners to do business with. But no, the self-acclaimed<br \/>\nactivists prefer to be on this path of everlasting struggle just because<br \/>\nthey eat from it at the expense of the generality of the Ogoni people.<\/p>\n<p>Nigeria and the entire world cannot shut down because Ogoni is resisting<br \/>\nShell. Every struggle is to achieve a means but the Ogoni\u2019s own is<br \/>\nbecoming an everlasting campaign that most times gets so blurred you<br \/>\ncannot even decipher what they are asking for. Not to worry, the Ogonis<br \/>\nwill hear from me more elaborately in the forthcoming piece. God bless<br \/>\nNigeria!!<\/p>\n<p>(IFEANYI IZEZE WRITES FROM ABUJA:\u00a0<a href=\"mailto:IIZEZE@YAHOO.COM\" target=\"_blank\" rel=\"noopener noreferrer\" data-mt-detrack-inspected=\"true\" data-mt-detrack-attachment-inspected=\"true\">IIZEZE@YAHOO.COM<\/a>; 234-8033043009)<\/p>\n<div class=\"yj6qo\"><\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>BY: IFEANYI IZEZE At the face value, the announcement by the Rivers State Governor, Nyesom Wike, that the state government has fully acquired Shell Petroleum Development Company of Nigeria\u2019s 45&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":45017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-69700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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