Senate orders Shell to pay Niger-Delta host communities N6.9billion

Oil producing communities in the Niger Delta region Thursday lamented the refusal of Shell Petroleum Development Company (SPDC) to comply with the resolution of the Senate to pay them the sum of N6.9 billion.

Oil from a leaking pipeline burns in Goi-Bodo, a swamp area of the Niger Delta in Nigeria October 12, 2004. Oil company Royal Dutch Shell said the leak was caused by unknown saboteurs on Monday who used a hacksaw to cut open a major pipeline feeding oil to an export terminal at Bonny, southern Nigeria. The fire was still raging on Wednesday, but the company said the impact on oil output was minimal. Picture taken October 12, 2004. REUTERS/Austin Ekeinde Pictures of the Month October 2004 TA/RSS/WS – RTRDAI9

The Senate resolution was sequel to a petition on the non-payment of accumulated rentals and expired leases by the SPDC.

A petition by “Bekele Jones and Associates” to the Senate, lamented the non-payment of outstanding rentals for the Port Harcourt Oloibiri pipeline, the Oloibiri field, and the entire Utapate/Akwa Ibom fields.

A letter dated 4th March, 2019, the National Assembly in separate letters by the Clerk, Alhaji Mohammed Sani-Omolori, addressed separately to the Secretary to the Government of the Federation, Mustapha Boss and Managing Director, Shell Petroleum Development Company, the Senate resolved that, SPDC pay a uniform rate of N600, 000 per hectre of land as rent per annum for all loss of use of surface rights from 2014.

The upper chamber also directed the multinational oil company to “cancel all long term leases of 99 years already imposed on landowners and comply with the provisions of the Oil Pipeline Act which stipulate a term of 20 years only.”

It also resolved that SPDC should respect powers of attorney donated by landowners to their agents/consultants to negotiate for them and receive their rentals from the multinational company.

The Senate in its resolution mandated SPDC to pay N6, 936,899,900, which is the total outstanding amount for all unpaid rentals, expires leases and re-acquisition fees stated.

The host communities are insisting on full compliance by SPDC which they said has not be done by SPDC.




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