Oil & Energy
Checking Indiscriminate Oil Exploitation In N’Delta
Before the discovery of oil in commercial quantity in Oloibiri community, Bayelsa State in the late 50s by the Royal Dutch Company, Shell, the people lived a life of contentment, depending on the treasures of their natural environment which earned them their daily means of livelihood.
Today, the community remain scarred with the brunts of oil exploration, bereft of basic amenities and perhaps remembered only for its pioneering role as the area where oil was first struck in commercial quantity in Nigeria. Oloibiri community, no doubt, portrays the dismal catastrophe of unguarded and incautious exploitation of natures energy reserve.
Oloibiri among several other affected communities in the Niger Delta has become case studies of oil pollution and environmental degradation among scholars.
A visit to some communities in Ogoni, Rivers State, such as Bodo, also reveals the sorry state of oil bearing communities. The adjoining creeks and mangrove habitation in the area are now extinct and the once thriving rural economy and communal living is displaced.
No thanks to reckless oil exploration activities which have brought colossal damage to the natural environment, depriving the people of their natural means of livelihood. The effects of these reckless conservation of natural energies are not farfetched.
Apart from the physical damage to the natural environment and pollution of the atmosphere, the people are forced out of their natural abode, to migrate into unaccustomed areas in search of livelihood that are mostly not found.
A former inhabitant of Kozo community, a coastal habitation in Bodo, Gokana Local Government Area of Rivers State, Mr Peter Ledisi, who now lives in Bodo town, told The Tide that he was born in Kozo community and grew up in the area until the sad experience of oil pollution displaced his family.
Ledisi, who is 35 years old, said his parents took care of him and his siblings through the proceeds of fishing, but today he noted life has become so difficult for the family as their means of livelihood is destroyed.
“That place you see (Kozo community) used to be our home for the past decades, we grew up there and pursued life with happiness, we were contented with what nature provided for us through fishing, every growing child enjoying living there because it provided fun for us and filled our desire and passion for game and we also made money from it. Today, we are displaced out of our home by oil pollution, life is now a misery for us,” he lamented.
Another displaced inhabitant of the community, Miss Tornubari Sakpugi, also narrated her ordeal following the devastation of their natural settlement by oil pollution.
Sakpugi, a fish dealer, said her business has collapsed, as her customers can no longer go on their fishing expeditions due to pollutions of the rivers.
“I used to buy fish in higher quantity from fishermen who sojourn to the deep sea for a catch. The business helped me a lot and I was able to provide for my needs, but today things are very hard for me. It is a terrible experience to move out of a place where you earn your daily living to a place where survival is not certain as there is no alternative means of livelihood.
“We want the polluted rivers to be cleaned, so that we can return home. They are talking about UNEP report, but no action is foreseen. We are suffering; the government should do something to help us”.
At Kozo community, she said there was no visibly sign of life, but desolation. The sprawling creeks where the fishermen launched their daily expeditions were laden with thick layers of crude oil. The mangrove reserves that harboured sea food was completely burnt off, one would hardly believe that the settlement once hosted over four thousand inhabitants. Fishermen at some major water-fronts in Port Harcourt also have similar stories to tell.
Iyalla, a fisherman who resides at Ibadan water front in Port Harcourt told The Tide during a visit to the area, that fishing business is no longer lucrative compared to the past. Asked the reason for the sharp decline in the business, he said the rivers have been contaminated with spilled crude oil from bunkering activities.
According to him, years back, fishermen did not have to go to the deep sea before they were rewarded with good catch. But today, he said they have to paddle and wander up the sea amidst wreckages of boats and badges and sometimes return home with little or no catch.
He explained that illegal refining of crude oil and vandalisation of oil pipeline smear the rivers with wasted crude and floating dead sea creatures.
Experts have also identified the reckless exploration of energy resources as the major threats to the natural environment, especially aquatic life.
A Chemical Engineer, Dr Ujile Owajiogak, who spoke with The Tide in an interview in Port Harcourt, said the burning of our natural reserves especially through the “cooking of crude oil” puts the life of the present generation and that of posterity at risk.
The Associate Professor of Chemical Engineering at the Rivers State University, disclosed that it takes over 50 years for a polluted site to regain its lost reserves. Using the experience of the civil war as example, the university teacher said, the bombing of oil facilities in the Niger Delta during the war left in its wake devastating effect on the creeks and coastal channels of the region.
He pointed out that after close to 50 years of the war, nothing has grown in the impacted sites and the flourishing mangrove forest is replaced with nypa palm that has no economic value.
“The indulgence of criminal elements in the cooking of crude oil is very destructive to our ecosystem and has health implication. Research has shown that illegal bunkering will increase cancer in the Niger Delta region. What is the sense in taking a few component of the products and wasting the rest on aquatic life? Our environment was preserved and bequeathed to us by our forebears, but today, we are destroying it. The oil, companies are not helping matters, as they flare gas and cause damage to the natural environment. There are serious health challenges in the region as the people are now endangered species, this is pathetic,” he declared.
In the view of an Environmental Sociologist, Dr Steve Wodu, human insensitivity to the protection of his natural environment has worsened problems of environmental degradation. To him, some of man’s action are tempered on crass ignorance or “deliberate obstinacy,” billed to ruin existence.
“Otherwise what would be the rationale behind indiscriminate burning of natural energy reserves or bad sanitation habits such as littering of wastes and lack of care of the natural surrounding,” he asked rhetorically.
Wodu posited that a new era of posterity can only blossom if we begin to treat our environment with some sanctity with which we treat our life.
Also commenting on the need to check indiscriminate exploitation of nature’s reserve, the Director Institute of Conflict and Gender Studies, University of Port Harcourt, Prof Fidelis Allen, said a blighted environment portrays the nakedness of our civilisation and turns man’s dream into despair.
Allen, who is also an environmental crusader called for a more holistic approach towards the restoration and preservation of the natural environment.
According to him, only through such holistic approach and sound environmental awareness campaign can the ethical violation of environmental rights be curtailed and sustainable environmental growth sustained.
He called on the oil companies operating in the Niger Delta region to always imbibe the tenets of international best practices in their operations and ensure that the natural environment is protected against gas flaring and oil spillages.
He described the Ogoni clean-up exercise as critical to the eventual remediation of other impacted sites in the Niger Delta communities and called on all affected stakeholders to expedite action to make the clean-up exercise a success.
Realising the importance of the natural environment, the American Novelist, Henry Beston warned: “Do not do dishonour to the earth lest you dishonour the spirit of man”. The implication of Beston’s warning is that by destroying his natural environment through unguarded conservation of its resources, man sets to consume himself in an inescapable catastrophe, the possibilities of which are too obvious to be ignored.
However, the production and consumption of energy is today a major indicator of modernisation process. Our modern civilisation is fuelled by the energy sector, particularly oil and gas and thus involves exploratory activities with attendant pollution problems and significant local and global implication. It is therefore suicidal to see that the very natural ingredients that nourish our lives are washed away in the name of technology or economic drive. It is left for us to heed to Beston’s warning or perish.
Oil & Energy
Bill Prohibiting Gas Flaring Passes 2nd Reading
The Bill for an act to prohibit gas flaring, encourage commodity utilisation, and provide for penalties and remedies for gas flaring violations has passed its second reading in the House of Representatives.
Sponsored by the Member representing Ikorodu Federal Constituency (APC, Lagos), Babajimi Adegoke Benson, the bill seeks to prohibit the flaring and venting of natural gas, except in strictly regulated circumstances, while encouraging the utilisation of gas resources to foster economic growth and energy generation.
The proposed legislation aims to mitigate the environmental, health, and economic impacts of gas flaring, aligning Nigeria’s oil and gas operations with international climate change commitments.
Offenders, who violate the provisions of the proposed law, would face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations.
Leading debate on the general principles of the bill, Benson said gas flaring has plagued Nigeria for decades, resulting to severe environmental degradation, public health crises, and economic losses while it environmentally, contributes to greenhouse gas emissions, global warming, and acid rain, exacerbating climate challenges.
The lawmaker said public health impacts of the practice are equally dire, as pollutants from gas flaring cause respiratory and cardiovascular diseases, particularly among residents of communities close to flaring sites.
According to him, economically, flaring results in the waste of a valuable resource that could otherwise be harnessed for energy generation or exported to generate revenue.
Benson insisted that the bill was designed to address those issues while bringing Nigeria in line with global standards such as the Paris Agreement on climate change.
“The bill provides for a comprehensive prohibition of gas flaring except in emergencies or when explicitly authorised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Operators are required to submit and implement Gas Utilisation Plans, detailing how gas that would otherwise be flared will be captured, processed, or commercialised.
“Offenders, who violate these provisions, face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations. Furthermore, the Bill ensures that communities affected by gas flaring are entitled to compensation and environmental restoration, creating a mechanism for redress.
“Transparency and accountability are integral to the enforcement framework of this Bill. Operators must submit regular reports on gas flaring incidents, which will be audited and made publicly available by the NUPRC. This approach ensures public oversight and stakeholder engagement, fostering trust and compliance.
“Nigeria’s adoption of this Bill positions the country to emulate such success, ensuring a balance between environmental stewardship and economic development.
“The implementation of this Bill will be overseen by the Nigerian Upstream Petroleum Regulatory Commission, which will monitor compliance through regular audits, enforce penalties, and facilitate gas utilisation projects in collaboration with operators and development partners.
“The Anti-Gas Flaring (Prohibition and Enforcement) Bill, 2024, is a timely and necessary response to one of Nigeria’s most pressing environmental challenges. Its provisions are both practical and forward-looking, addressing immediate concerns while laying the groundwork for a sustainable future.
“I urge all Honourable Members to support the Second Reading of this Bill as a demonstration of our collective commitment to environmental protection, public health and economic progress”, he added.
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Oil & Energy
‘Indigenous Companies To Gain From Shell’s Contract Awards’
Oil major, Shell, has restated its commitment to the development of Nigerian companies through contract awards and scaling up of expertise.
Managing Director, Shell Nigeria Exploration and Production Company ((SNEPCO) Limited, Ron Adams, made the remark while speaking at the Opening Ceremony of the 13th edition of the Practical Nigerian Content forum held in Yenagoa, Bayelsa State, with the theme “Deepening the Next Frontier for Nigerian Content Implementation”.
Represented by the Manager, Business Opportunity, SNEPCO’s Bonga South-West Aparo Project, Olaposi Fadahunsi, he said several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
Adams said, “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress”.
He emphasized that Shell companies in Nigeria also continued to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.
“As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies”.
He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act saying “Nigerian content will continue to be an important part of Shell operations”.
The four-day conference hosted by the Nigerian Content Development and Monitoring Board (NCDMB) and participating companies reviewed progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.
Shell companies in Nigeria are among the more than 700 oil and gas entities that participated in the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.
Oil & Energy
NNPC Begins Export From PH Refinery
The Nigerian National Petroleum Company Limited (NNPCL) has sold the first cargo of Port-Harcourt low sulfur straight run fuel oil (LSSR) to Dubai-based Gulf Transport & Trading Limited (GTT).
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.
The ship would load 15,000 metric tons of the product, which translates to about 13.6 million litres.
Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future, while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.
The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.
Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.