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Tag: SPDC

  • Rivers community demands Renaissance inherits SPDC liabilities

    Rivers community demands Renaissance inherits SPDC liabilities

    Kula community in Akuku Toru Local Government Area, Rivers, says Renaissance Africa Energy Holdings should inherit all liabilities incurred by the Shell Petroleum Development Company (SPDC).

    The community disclosed its position at a press conference in Port Harcourt on Thursday following the recent takeover of SPDC of joint venture operations by Renaissance.

    Renaissance, a consortium of indigenous and international oil firms, acquired SPDC following recent divestment by Shell UK from onshore operations.

    Speaking on behalf of Kula people, Chief Anabs Sara-Igba, said that SPDC incurred liabilities while operating OML-25, an oil facility in the community.

    Sara-Igbe, further said that liabilities arising from decades of oil exploration by Shell halted resumption of operations on the facility.

    He said that OML-25, with a production capacity of 45,000, barrels of crude oil per day, had been shutdown for about 15 years.

    “This followed gross neglect and failure of the firm to employ, undertake social responsibility and environmental preservation projects for more than 67 years.

    “We insist that the new operator should inherit all liabilities of SPDC before they will be allowed to operate.

    ”We are requesting for a stakeholders’ engagement with them to enable us to understand the company’s obligations and models of implementation.

    “These moves will enable us to avoid the unfair treatment meted on the community by SPDC,” he said.

    Sara-Igbe urged the Federal Government to ensure prompt environmental remediation activities by the operators  to restore the ecosystem and livelihoods in the community.

    Also speaking, the President, National Youth Council of Nigeria, Mr Sukubo Sara-Igbe, expressed worries that the new company had already inherited SPDC staff.

    “Retaining SPDC staff who were complicit in the dispute with the host communities may undermine trust and sincere engagement,” he said.

  • Okunbor expresses optimism on Nigeria’s oil, gas future

    Okunbor expresses optimism on Nigeria’s oil, gas future

    Managing Director of Shell Petroleum Development Company Limited (SPDC) and Chairman of Shell Companies in Nigeria, Osagie Okunbor, shared an optimistic outlook on the future of Nigeria’s oil and gas industry during a panel session at the just concluded Nigeria Economic Summit in Abuja.

    Speaking on the theme “Fuelling Growth: The Future of Oil and Gas,” Okunbor addressed concerns surrounding the industry, stressing it is far from declining. “With the enactment of the Petroleum Industry Act and other supporting regulations, the industry is in a much better place,” he remarked. He also noted that recent presidential directives have introduced much-needed coherence to the sector.

    Okunbor highlighted Shell’s commitment to its operations in Nigeria, primarily through SPDC and Shell Nigeria Exploration and Production Company (SNEPCo). He said: “Through these companies, we collaborate with partners on knowledge sharing, resource pooling and risk mitigation, leading to more efficient and sustainable operations.”

    He emphasised the importance of Shell’s technical expertise and resources in supporting Nigerian operations, which contribute to technological advancement and improved efficiencies.

    In addition, Okunbor underscored Shell’s dedication to local content development, which has helped to boost economic growth and create job opportunities for Nigerians. “We actively engage with local communities to address their needs and build sustainable relationships, demonstrating our commitment to social responsibility,” he said.

    Okunbor added that Shell would continue to power progress in Nigeria through sustained collaboration for the socio-economic development of the country.

  • 12 professors, 15 others inducted into Shell sabbatical, research positions

    12 professors, 15 others inducted into Shell sabbatical, research positions

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture has significantly expanded its educational initiatives by inducting 27 Nigerian academics and research interns. This year’s programme, a 35% increase from the previous year, welcomed eight professors, four senior lecturers, and 15 other participants.

    Held at the company’s headquarters in Port Harcourt, the induction ceremony marked the beginning of a one-year programme focused on knowledge exchange and skill development. Drawn from 13 Nigerian universities, these participants will gain valuable industry experience in fields like biodiversity, petroleum engineering, and environmental impact assessment.

    “The research and internship programmes are central to our commitment to supporting higher education in Nigeria,” explained Shell Nigeria’s Head of Corporate Relations, and SPDC Director, Mr. Igo Weli. He described the programme as mutually beneficial nature by offering Shell access to specialised expertise from professors and lecturers, who in turn acquire practical industry knowledge and exposure to cutting-edge technologies.

    Despite operational challenges, Mr. Weli reaffirmed Shell’s position as the industry leader in fostering a positive learning environment and empowering people.

    Representing the NNPC Upstream Investment Management Services, Mrs. Bunmi Edith Lawson echoed Mr. Weli’s sentiments. She highlighted the programme’s significance in scientific exploration, environmental stewardship, and knowledge advancement. “This is an investment in the next generation of innovators,” she stated, “and a way for us to give back to our stakeholders.”

    The 2024 programme includes participants from a diverse range of universities across Nigeria, including the University of Benin, Rivers State University, University of Ibadan, Niger Delta University, and Ahmadu Bello University.

    Others are Bingham University Karu, Federal University Wukari, University of Medical Sciences, Ondo State, Covenant University, Alex Ekwueme Federal University Ndufu-Alike, Ajayi Crowther University, Oyo, University of Uyo, Ladoke Akintola University of Technology, and Michael Okpara University of Agriculture.

  • BREAKING: Multiple explosions rock gas plant feeding NLNG export terminal

    BREAKING: Multiple explosions rock gas plant feeding NLNG export terminal

    Multiple explosions were on Tuesday reported at the gas processing plant operated by the Shell Petroleum Development Company of Nigeria (SPDC) at Gbarain, Yenagoa Local Government Area of Bayelsa.

    TheNewsGuru.com (TNG) reports the gas plant feeds the Nigerian Liquified Natural Gas (NLNG) export terminal in Bonny Island, Rivers.

    Speaking about the incident on Tuesday evening, a community source said the explosion occurred on a pipeline feeding the gas plant.

    A resident, Jessie David, claimed the blast was traced to a pipeline attacked by suspected vandals, which led to explosions and eruption of thick smoke and gaseous emission.

    He explained that the operator of the plant was alerted, and the line was isolated, reducing the pressure.

    Confirming the incident, SPDC spokesman, Michael Adande, noted that the incident occurred near the facility and that the cause was yet to be ascertained.

    “We are actively monitoring reports of smoke detected near our Gbarain Central Processing Facility in Bayelsa State.

    “While the source appears to be external to our facility, we are in close communication with regulatory authorities to investigate the incident and ensure the safety of the surrounding communities,” Adande said.

  • Why Shell is opting out of onshore assets in Nigeria

    Why Shell is opting out of onshore assets in Nigeria

    Shell PLC, United Kingdom, has reached an agreement to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC).

    According to a statement on the energy firm’s website, SPDC will be sold to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.

    The oil firm restated that it remains committed to investments in Niɠerian oil and gas sector.

    According to the statement, completion of the transaction is subject to approvals by the Federal Government and other conditions.

    Shell stated that the transaction had been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership.

    “This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

    “SPDC’s staff will continue to be employed by the company as it transitions to new ownership.

    “Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.

    “This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta.

    “The transaction is simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said.

    Shell UK described the deal as a significant moment for SPDC, whose people have built it into a high-quality business over many years.

    “Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.

    “Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy,” the statement said.

    The SPDC JV is a joint venture comprising SPDC Ltd. (30%), the government owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd. (10%) and Nigeria Agip Oil Company Ltd (5%).

  • Crude oil theft: Shell discovers more illegal connections on export pipeline

    Crude oil theft: Shell discovers more illegal connections on export pipeline

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) says it has discovered illegal connections on the onshore section of the 48-inch Forcados export pipeline.

    TheNewsGuru.com (TNG) reports Shell made this known while saying it will resume crude oil exports at the Forcados oil terminal by October ending when ongoing repairs would have been completed.

    The Forcados Oil Terminal, operated by the SPDC, is where the Afremo A Platform, a platform where crude oil theft has been reported, is located.

    The Forcados export terminal typically exports around 250,000 barrels of crude oil per day. The SPDC declared a Force Majeure on oil exports from the terminal in August.

    Force Majeure is a legal clause inserted in contracts to absolve parties from liabilities in the event of circumstances beyond their control.

    SPDC’s Media Relations Manager, Abimbola Essien-Nelson on Wednesday disclosed that the illegal connections were discovered on the 48-inch Forcados export pipeline during surveillance.

    Essien-Nelson stated that in addition to the repairs, SPDC is working to remove and clamp theft points on the onshore pipelines. She stressed that active illegal connections to SPDC’s joint venture production lines and facilities in the western Niger Delta and inactive illegal connections would be removed.

    “This is to ensure full crude oil receipts at the terminal. This scheduled programme is continuous as new illegal connections are identified during surveillance of pipelines.

    “An example of such illegal connection is that on the onshore section of the 48-inch Forcados export pipeline which is currently not active and has no sign of leak at the interconnection point,’’ she stated.

    Essien-Nelson reiterated SPDC’s commitment to running its assets safely, reliably and in accordance with globally-accepted standards.

    “SPDC continues to work tirelessly, alongside government and other partners towards the eradication of crude theft from its infrastructure,” she stated.

  • Host community grounds Shell’s activities in Bayelsa as govt intervenes

    Host community grounds Shell’s activities in Bayelsa as govt intervenes

    Otuasega community in Ogbia Local Government Area of Bayelsa State shut activities at Shell Petroleum Development Company (SPDC) facilities on Dec. 21, 2021 to protest its failure to provide electricity by Dec. 14, 2021 as promised.

    Shell had earlier set Dec. 14, 2021 as target date to begin power supply from its Kolo Creek Oil and Gas Manifold to cluster communities in the area.

    However, the State Government on Monday quickly intervened, directing the Managing Director of the State Electricity Company, Mr Olice Kemenanabo to immediately connect Otuasega community to the national grid.

    The Deputy Governor, Lawrence Ewhrudjakpo gave the directive as the government waded into a crisis between SPDC and the host community.

    Media aide to the Deputy Governor, Mr Doubara Atasi said in a statement that Ewhrudjakpo gave the directive during an emergency meeting held with Otuasega community leaders and representatives of SPDC.

    The Deputy Governor decried the continued blackout in Otuasega community and in its environs.

    He blamed SPDC’s failure on the inability of the government, Shell, and the people of Otuasega to meet regularly and follow up on resolutions reached at the Sept. 24, 2021 tripartite meeting on power supply.

    He said the community would enjoy power supply from the national grid as a temporary measure, while efforts would be intensified to power the community from the SPDC’s manifold in the first quarter of 2022.

    Ewhrudjakpo assured that regular meetings would be held with Shell until the power supply issue was resolved.

    He appealed to the people of Otuasega to be patient and to remain law-abiding to enable the government and Shell to end blackout in the community.

    Earlier, the Otuasega Community Development Committee chairman, Mr Raniyar Marcus, expressed disappointment with Shell for reneging on its promise to deliver the job by Dec. 14, 2021.

    Marcus noted that the Dec. 21, 2021 non-violent protest that led to the shutting of the SPDC manifold was staged by community members to register their anger.

    He alleged also that Shell had always taken the Otuasega people for granted.

    In his presentation, Shell’s Community Relations Manager (East), Mr Evans Krukrubo, explained that the company was not happy that the power project was not delivered on schedule.

    Krukrubo, however, thanked the Otuasega community for their maturity, patience and understanding so far.

    He assured them that Shell was committed to working with the state government to deliver on the project by the end of February.

  • Shell appoints first female MD for exploration coy SNEPCO

    Shell appoints first female MD for exploration coy SNEPCO

    Global energy firm Shell has announced the appointment of Mrs Elohor Aiboni, as the Managing Director of its Nigeria deep-water business, Shell Nigeria Exploration and Production Company Limited (SNEPCO).

    Mr Bamidele Odugbesan, the Media Relations Manager, Shell Petroleum Development Company of Nigeria (SPDC), made this known in a statement on Sunday, in Yenagoa.

    The development is coming on the heels of the oil and gas firm’s recent announcement that it was divesting from its onshore and shallow waters operations to concentrate on deep offshore business.

    Odugbesan said that Elohor was the first female to lead the Shell exploration company, in the more than six decades of Shell’s operations in Nigeria.

    She succeeds Bayo Ojulari, who retired on July 31, after five years as SNEPCo’s MD, having served the Shell group for more than 30 years.

    Until her new appointment, Aiboni was the Bonga Asset Manager responsible for overseeing end-to-end production delivery for Nigeria’s pioneer deep-water Floating Production, Storage and Offloading (FPSO) vessel, Bonga, which had produced over 900 million barrels of oil since the beginning of its operations in 2005.

    “Elohor’s appointment is a product of diligence, competence and commitment to the Shell ideals and core values, amidst our strong focus on diversity and inclusion.

    “We take pride in our intention of being one of the most diverse and inclusive organisations in the world, and focus on further improving inclusion and representation in critical areas, including gender,” the statement quoted Marno de Jong, Shell’s Senior Vice President for Nigeria as saying.

    Odugbesan also said that Elohor now joins over 300 women in senior leadership positions in the Shell Group, representing more than 31 per cent of the company’s executive positions.

    “Her 19-year career in Shell has seen her move from a field engineer to several roles in production operations; project and asset management; operations readiness and assurance.

    “She was at a time the Business Adviser to the Executive Vice President for Shell Sub-Saharan Africa, and had also managed third-party interface across several Shell assets in Nigeria and Kazakhstan.

    “Prior to her role as Bonga Asset Manager, Elohor led production delivery for shallow offshore as Asset Manager for Sea Eagle FPSO in Nigeria’s Niger Delta.

    “Elohor holds a master’s degree in Integrated Environmental Management from the University of Bath, UK, and a bachelor’s degree in Chemical Engineering from the University of Benin, Nigeria.

    “She is passionate about developing talent and leads a diverse team that strives to simplify work processes and pursue continuous improvements.

    “Her leadership of the Bonga team had seen the asset receive numerous awards, including the CEO HSSE Awards, Upstream Impact Award, and the Asset of the Year Runner up in 2019, in the Shell Group,” Odugbesan said.

  • Gov Diri demands Shell headquarters should be in Bayelsa

    Gov Diri demands Shell headquarters should be in Bayelsa

    Bayelsa State Governor, Senator Douye Diri has re-echoed his call on Shell Petroleum Development Company (SPDC) to relocate its operational headquarters to the State.

    Governor Diri stressed that given the historical significance of the State to Shell, there was no better location to site its headquarters.

    He restated this when the Shell Country Chair and SPDC Managing Director, Mr. Osagie Okunbor led a management delegation on a courtesy visit to Government House, Yenagoa, on Tuesday.

    A statement by his Chief Press Secretary, Mr. Daniel Alabrah, quoted the Bayelsa helmsman as saying that the presence of Shell in Bayelsa was essential for the economic benefits of both parties.

    The governor emphasised that the long-standing relationship between the state and Shell, following the discovery of oil in commercial quantity at Otuabagi community in Ogbia LocalGovernment Area, was proof that they were both inseparable in oil and gas business.

    While assuring the company of a conducive working environment, Diri asserted that the stereotype of insecurity in the Niger Delta as a ploy to deprive the goose that lays the golden egg was no longer tenable.

    He said: “On behalf of this Prosperity Administration and the people of Bayelsa State, I have been directed to invite you to relocate your headquarters back to your state, the peaceful state of Bayelsa.

    “You are aware that I’m an apostle of the relocation of your headquarters. You would agree with me that Bayelsa is peaceful and stable.

    “I know it might not be very easy to relocate everything but let us feel a fundamental presence of Shell. In fact, there is no reason why the Shell headquarters should be in any place other than Bayelsa.

    “The history and story of Bayelsa cannot be complete without Shell. We have an intertwined and long-lasting relationship between the state of Bayelsa (then in the old Rivers State) and Shell.

    “As a people, I want to put on record that we have not been fairly treated as those who provide the resources for this country.”

    Speaking on the legal dispute over outstanding revenues owed the state by the company, Senator Diri said an amicable resolution was possible in the spirit of the renewed relationship between both parties.

    The governor also spoke about his administration’s decision to supervise the signing and be a part of Global Memorandum of Understanding (GMoU) between host communities and companies operating in the state.

    He said this was occasioned by cases of breaches of such agreements, which result in conflicts.

    The policy, according to the governor, would be supervised by the Ministry of Justice in order to protect the interest of such communities and, by extension, the companies.

    “We made that policy statement to say that all GMoUs to be signed between the communities and any company, including the oil companies, has to be supervised by the Ministry of Justice. This was because we want to at all times protect the interest of our communities and even the companies. Also, at all times, the state government would be aware of the issues.

    “We have seen situations where GMoU is signed but only very few people, who claim to be community leaders, are aware of it. And that becomes a veritable tools for community conflicts.”

    The governor reeled out key projects being undertaken by his administration and solicited the partnership of Shell on major infrastructure projects like the proposed Nembe-Brass road as well as the ongoing Yenagoa-Oporoma and Sagbama-Ekeremorroad projects.

    He thanked the company for its support on the Ogbia-Nembe road.

    Speaking earlier, the Shell Country Chair and SPDC Managing Director, Mr. Osagie Okunbor, noted the key steps taken by Senator Diri to promote peace in the state and commended the governor’s leadership quality.

    Describing Bayelsa as the company’s most important host state, Okunbor said they were impressed with the governor’s handling of affairs of the state and his support for their operations.

    He said that Bayelsa was host to some of the company’s most strategic assets that keeps it going.

    The Country Chair promised to sustain the relationship between the company and the state through investment in key development projects in the state.

  • Shell announces investment in Assa North Gas Project

    Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo, a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation.

    At peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network.

    Mr Bamidele Odugbesan, SPDC spokesman, quoted Mr Osagie Okunbor, managing director of SPDC and country chair, Shell Companies in Nigeria, as saying this on Sunday.

    Okunbor noted that the project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth.

    “This is good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints.”

    Okunbor said that the project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth.

    “It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC).

    “Their integrated focus, support and drive were instrumental to this investment decision.”

    Okunbor added that the SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.

    SPDC’s Director and General Manager Projects, Mr Toyin Olagunju, said the Assa North project would be a significant contribution to GDP growth in Imo State and across Nigeria as the gas produced will be utilised in-country across diverse industries, while providing economic opportunities for local communities.

    Just three weeks ago, the SPDC JV signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43million standard cubic feet of gas per day to support the 140MW Aba Integrated Power plant at Ossisioma in Abia State.

    By the agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers States to the power producer, GPAL, via a gas pipeline network which is already installed.

    SPDC is the operator of a Joint Venture involving the Nigerian National Petroleum Corporation (NNPC), which holds 55 per cent; Shell 30 per cent; Total Exploration and Production Nigeria Limited (TEPNG) 10 per cent; and Nigerian Agip Oil Company Limited (NAOC) five per cent.