Host communities of Oil Mining Lease (OML) 25 in Rivers State have agreed to allow Shell Petroleum Development Company (SPDC) to resume operations in the area. However, this agreement is conditional on the company fulfilling a set of long-standing commitments aimed at improving local infrastructure and livelihoods.
Key Demands from Host Communities
Representatives from communities such as Kula, Ofoin-Ama, and Belema met with representatives of Shell, regulators, and the Rivers State government to outline their conditions. Speaking on behalf of the communities, Chief Anabs Sara-Igbe stated that Shell must honour an 8-point agreement previously established with Belemaoil, a local partner.
These conditions include:
- Infrastructure Development: Building roads, hospitals, and providing access to electricity and clean water.
- Job Creation: Offering employment opportunities and training for local residents.
- Community Involvement: Signing a Purchase Order (PO) with Belemaoil to ensure local participation in operations and maintenance contracts.
- Liability Management: Holding any new operators accountable for Shell’s existing liabilities if the company decides to divest from the asset.
“We are not troublemakers, but we will not allow Shell to operate without fulfilling its promises,” Sara-Igbe emphasised.
Impact of Delayed Operations
The OML25 facility, which has the capacity to produce 45,000 barrels of oil per day, has been dormant for seven years. This inactivity has resulted in significant losses for the federal, state, and local governments, as well as Shell and the communities themselves. Sara-Igbe estimates that the standoff has cost billions in potential revenue.
A Step Towards Resolution
The meeting was described as peaceful, with all parties expressing hope for a resolution that benefits both the company and the host communities. Shell has reportedly assured stakeholders that it will sign the necessary agreements soon, allowing operations to resume.
Broader Implications
This development highlights ongoing challenges in Nigeria’s oil-producing regions, where communities often bear the environmental and social costs of extraction without seeing corresponding benefits. If successfully implemented, the OML25 agreement could set a precedent for more equitable relationships between oil companies and host communities.
Stakeholders are optimistic that the agreement will ensure the wealth generated from OML25 contributes to the development and well-being of the local population. Further updates are anticipated as Shell moves to fulfil its commitments.
