Reps, Ibori, others lament socio-economic impacts of SPDC relocation from Warri

Members of the House of Representatives and other stakeholders including James Ibori, former Governor of Delta State on Thursday
expressed concerns over the socio-economic impact of the relocation of Shell Petroleum Development Company (SPDC) from Delta state on the host communities.

Other stakeholders who spoke at the investigative hearing include: Festus Agas, Secretary to the Delta State Government; Edward Ekpoko,
Chairman Ijaw, Isoko and Itsekiri Leaders Forum harped on the need for the company to reconsider its position.

They argued that spate of militancy and pipeline vandalism have reduced to the barest minimum in the areas.

In his presentation, Ibori observed that SPDC which commenced operations in Delta State in 1957, acquired several oil mining licences (OMLs) that gave it legal rights to explore and produce hydrocarbon across several parts of the state.

According to him, SPDC’s presence in Warri attracted other servicing companies around the city and beyond, leading to huge economic and business activities.

“Job creation was at its peak within the period as the oil industry and other ancillary industries employed thousands of persons. Both
private and public investments in the state increased tremendously.

Multinational companies gladly located their bases to Warri and local entrepreneurs took advantage of this to gain critical skills and
capacity required to participate across the oil and gas value chains,” he noted.

He however stated that the “negative impact of oil and gas exploration and production includes pollution to land, water and air available to
the host communities. These environmental damages lead to decrease in the quality of life and deprivation of source of livelihood of the
people.”

While calling on the company’s authorities to reconsider the decision, the former Delta State Governor urged SPDC to replicate its decision
in Alaska, USA to share its offshore profits with the natives, where it was prospecting for oil.

“This is what is expected of good neighborliness and all the people of Warri, Delta State and the Niger Delta are asking for is for good
neighborliness from SPDC.

“By relocating its office base from Warri, SPDC committed a breach of Nigerian laws, especially the Catchment Area Regulation and the
national Content Development Act, SPDC coordination of its remaining investments in Delta state from Lagos and Port Harcourt not only
contravenes the laws, but also undermines the development of Warri and its environs as well as grounding indigenous contractors and
impoverishing the people.

“Furthermore, the Vice President, Professor Yemi Osinbajo’s directives that oil companies operating in the Niger delta should relocate their
headquarters to the region gives bold relief to this point,” Ibori stated.

Speaking earlier, Steve Okwuosah, who spoke on behalf of SPDC argued that the relocation of the company’s operational headquarters to
Warri, Delta State is practically impossible considering the subsisting insecurity in the area and other places in the Niger Delta region.

Okwuosah who presented a memorandum at a public hearing held at the instance of House Committee on Petroleum Resources (Downstream), argued that the unabated militancy, pipeline vandalism and other criminal activities in Warri and other parts of Niger Delta region, adversely impacted on smooth operation of company’s facilities in the area.

While noting that the company had lost billions of dollars in its operations in the region owing to insecurity, the S{PDC representative
called for the protection of its facilities by the relevant security agencies.

In his remarks, Victor Nwokolo, chairman, House Committee on Petroleum Resources (Upstream) argued that insecurity can no longer be adduced as reason for the non-relocation of the company to its operational headquarters.

He maintained that the Delta State is now the investment destination for oil companies operating in the Niger Delta region of the country.

Other lawmakers who spoke during the public haring including: Daniel Reyeneiju (PDP-Delta); Goodluck Opia (APC-Imo) and Toby Okechukwu (PDP-Enugu) blamed Federal and State governments for the prevalence insecurity in the Niger Delta region of Nigeria.