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OML 25: Shell And Stakeholder Communities Sign M.O.U. For Re-opening Of Flow Station


▪To meet at a letter date to discuss employment,  community contracts and other development processes 

Stakeholder Communities of Oil Mining  License (OML) 25 and Shell Petroleum Development Company (SPDC) have signed a Memorandum of Understanding (MOU) for the re-opening  of the closed flow station and the payment  of outstanding  funds owed Stakeholder Communities under the extant Global Memorandum of Understanding (GMOU).

The M.O.U. signed between Shell and the Stakeholder Communities  also mandated Shell to pay into a dedicated account , the sum of N1.36billion within two weeks for the  development of the communities. 



Representative of Rivers State Governor and Secretary to the State Government,  Dr Tammy Danagogo,  Solicitor-General of Rivers State,  Mrs Florence Fiberesima,  Permanent Secretary,  Chieftaincy Affairs, Mr Felix Odungweru superintended over the signing process on Monday at the Government House Port Harcourt. 

The Settlement Agreement was signed on behalf of the communities by Traditional Rulers,  Youth Presidents, Chairmen of Community Development Committees and Community Leaders.  Those who signed the agreement include : the  Stakeholder Communities of Kula,  Belema,  Offoin-Ama,  Ibie-Ama,  Boro and Opu-Kula .

Addressing  stakeholders at the meeting, Representative of Rivers State Governor and Secretary to the State Government,  Dr Tammy Danagogo said that fundamental reason for Monday's meeting was to sign the agreement,  without  prejudice  to who holds different positions  in the communities. 

He said: "We are here  to sign the settlement  agreement between  Shell and the Kula communities.  We are here to resolve  the issues between Shell and our people .

"After this agreement,  other meetings  would be convened to determine  the issues of employment,  community  development and community contracts.  For now, the aim is for Shell to pay the funds that have accrued and for the flow station to  be  opened  for further  development in the communities ".

He said that the State Government is aware of those being sponsored  to stop the process of settlement,  peace and progress.  He noted that the Rivers State Government is determined  to conclude  the re-opening process. 

The Rivers State Governments added that its actions  are based on the renewal of SPDC Operating License.  He said should the license be transferred to Belema Oil by NNPC, Rivers State Government will ensure implementation. 

"We want our people to own oil blocks, but we don't  want a situation where the operating license of others in our state are illegally  taken away. This is because other Rivers people are operating  in other states.  Let us approach  these issues in peace to achieve progress ".

The Representative of the Rivers State Governor and Secretary to the State Government emphasised that the Rivers State Government will not succumb to any plot to derail the progress made at settling the dispute at OML 25.

General Manager,  External Relations of Shell Petroleum Development Company,  Igo Weli said the signing of the settlement agreement is a welcome development which will improve the reputation of Rivers State as a centre for  investments. 

He said that peace and harmony between corporate entities and host communities is the way to go. 

He said: "This is a good model and  template.  This is best practice.  We came here to find solutions because  we want the best for our communities.  There are always  constructive  ways and peaceful ways of resolving conflicts ".

Amanyanabo of Kula, King Kroma Eleki called for peace across  Kula communities  to pave  way  for the peaceful operation of OML 25. He commended  the Rivers State Government  for ensuring  the peaceful resolution of issues in the area.

Amanyanabo of Belema,  King Ibinabo Kalaoriye who also signed the settlement agreement thanked the Rivers State Government  for the peaceful process that led to the agreement. 

He expressed happiness with the terms of agreement,  saying that those who have occupied  the flow station would leave.

The Amanyanabo of Belema said since the license of Shell Petroleum Development Company has been renewed,  there is  no need for any individual to shutdown the flow station. 

 Chairman of Akuku-Toru Local Government Area,  Rowland Sekibo said that the signing of the agreement is a genuine progress that will help the development of the area.

He said going forward,  Shell would have learnt her lessons and work in the interest of the host communities. 

Head of Ngeje Community,  Chief Ibinabo Kiliya thanked the Rivers State Government for involving the community  in the settlement agreement.  He signed the agreement on behalf of his people .

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