Rivers State Governor, Nyesom
Wike, has announced that the Rivers State Government has fully acquired Shell
Petroleum Development Company of Nigeria (SPDC) 45% interest in Oil Mining
Lease (OML) 11 situated in Ejama Ebubu community in Eleme Local Government Area
and the adjoining Ogoni and other communities of the State.
He said: “I am delighted to
inform you that the Rivers State Government has fully acquired Shell Petroleum
Development Company of Nigeria (SPDC) 45% interest in Oil Mining Lease (OML) 11
situated in EjamaEbubucommunity in Eleme Local Government Area and the
adjoining Ogoni and other communities of Rivers State”.
In a statewide broadcast on
Monday at the Government House, Port Harcourt, Governor Wike in his address
entitled: “WE WILL CONTINUE TO ADVANCE THE STATE’S INTEREST,SECURITY AND
PROSPERITY OF ALL”, said his administration will always advance the best
interest of Rivers State.
Governor Wike futher explained
the Background for the acquisition of OML 11, which is premised on Court
Judgements, which have been registered in the United Kingdom and Nigeria for
enforcement.
He said: “This fresh case
commenced in 2001 passed through four different justices of that Court arising
from twists and turns associated with opposed litigations, until it was
disposed of about 10 years after in June 2010 by Buba J. (the fifth judge to preside
over the matter).
“SPDC and its parent companies
appealed the judgment at the Court of Appeal in 2010, which again suffered the
twists and turns passing through six different panels comprising three justices
each between 2010 and 2017 before it was finally disposed of by a panel of that
Court led by Gumel JCA of the Port Harcourt Division. The appeal was dismissed.
“SPDC and its parent companies
took out a further appeal to the Supreme Court of Nigeria in 2017, which appeal
was considered and dismissed by that Court in a judgment read by Hon. Justice
B. Akaahs, JSC delivering a lead judgment in a unanimous decision. After losing
at the High Court, SPDC gave the successful EjamaEbubu Plaintiffs a Bond
Guarantee stipulating that First Bank of Nigerian Limited would pay them the
value of the Judgment debt and interests thereon in the event that SPDC’s
appeal to the Court of Appeal fails at that Court. The original Bank Guarantee
is still with the Community.,
“When SPDC’s appeal failed at the
Court of Appeal, Shell instructed the Bank to dishonour their guarantee, which
did and gave rise to a series of six different litigations in various Courts
against First Bank and the Central Bank of Nigeria. SPDC’s excuse was that they
had lodged an appeal at the Supreme Court of Nigeria. The enforcement cases had
been to Owerri, Abuja, Lagos, etc. in six different lawsuits. On the 11th of
January 2019, Shell’s appeal was dismissed at the Supreme Court of Nigeria.
“The judgments of the High Court,
the Court of Appeal and the Supreme Court were registered in the United Kingdom
for enforcement over there against SPDC parent companies domiciled outside
Nigeria’s shores.”
Explaining the reasons the State
Government resolved to purchase OML 11, he said: “That the impact is still
there and un-remedied since 1970 as admitted by SPDC vide letters they wrote
seeking to clean the spill in 2006 while the case was at the trial Court;
“That the Rivers State has
suffered the worst impact of environmental degradation resulting from oil
related operations;
That the very difficult swamp and
mischievous waterlogged terrain of the Rivers State has impeded development as
a result of increased construction costs on the near and non-existent
infrastructures and attendant rapid decay of the little we have been able to
achieve as a result of oil related acid rain and black sooth enveloping the
State;
That these phenomenal degradation
and impoverishment had continued with the decline of revenue and inflation,
lack of employment of well-educated Rivers State youths, idleness and
restiveness arising from want;
That SPDC is said to have paid
the sum of USD 2,000,000 (two million United States Dollars) only for the
renewal of their operatorship and interest in the said OML 11 to the Federal
Ministry of Petroleum Resources;
“That for the past 25 years, the
rich oil potentials of OML 11 have remained untapped following the hanging of
the world-renown Ogoni poet and environmental activist, Mr. Ken SaroWiwa and
the Ogoni 9 as well as the unfortunate mob lynching and death of four prominent
Ogoni citizens, one of whom was theSecretary of Government of the Rivers State
and another, a Commissioner under the tenureof Lt. Col. Dauda Musa Komo as
Governor of Rivers State;
“That it has become unlikely that
for peace and security, the people of Ogoni in the Rivers Stat will welcome
SPDC on their land forming part of OML 11;
That a lot of revenue is lost to
the Federation Account accruable to the 55% stake of the Federal Government in
OML 11 and by extension the rest of the Federating States of Nigeria due to
non-production of nearly 250,000 barrels per day of its crude oil potentials
equaling one sixth of the country’s total out-put.
That the Rivers State Government
has continued to lose 13% derivation fund from the said 55% stake of the
Federal Government in that field for nearly 30 years now, which revenue would
have transformed the State and its peoples for the better;
“That rather than standby and
watch other people or group purchaser SPDC 45% interest in OML 11 and further
exacerbate the poverty of the people of the State, a responsible and responsive
State Government should weigh in and bid for the purchase of SPDC interest
already set down for auction;
“That the present Government of
Rivers State entrusted in my care through the Will of God and those of the
peoples of the Rivers State have concluded that it will be in the overall
interest of the State, the other Federating States and the Federal Government
that we as a Government, should make a bid for the purchase of the said
interest of SPDC now placed on auction by extant Order of the Courts of Law.”
Governor Wike explained the
process: “Therefore, I directed the Rivers State Ministry of Finance
Incorporated to make a bid of USD 150,000,0900.00 supported by a Bank Guarantee
and cash payment to the Deputy Sheriff in the sum of N1 billion, the later
payable to the Judgement Creditors while the former is escrowed.
“I have further directed the
relevant Government agencies to take immediate steps to liaise with any
financially capable companies to partner with the Rivers State Government to
ensure that the said oil fields come on stream within 15 months from today.
“In line with our commitment to
accelerated development, industrial harmony and security, the Rivers State
Government will graciously concede some portion of its 45% per cent equity
interest to all the oil producing communities within OML 11 to enhance mutual
ownership, participation and sharing in the benefits of these resources.
“I have taken these steps with
all sense of responsibility believing that addressing the pains and poverty of
our peoples with the resultant security and welfare of its people is the main
purpose of governance and nothing less”.
He added: “I have attached a
Certified True Copy of the Judicial Certificate of Purchase of Land/Immovable
property dated 25 September 2019 issued by the High Court of Rivers State under
Order VII Rule 9 of High Court Rivers in reference to Suit No: PCH/1696/2019
Between Government of Rivers State of Nigeria vs. Chief Isaac OsaroAgbara&
5 Ors. and Shell Petroleum Development Company of Nigeria Ltd. & 2 Ors”.
The Rivers State Governor noted
that his Administration is sensitive to the agitation of Rivers people for
political and economic freedom. He said the Administration shall continue to
respond appropriately to the challenges of development either alone or in
conjunction with the state’s partners to advance her abiding interest in
building the brightest possible future for Rivers people.
He outlined the circumstances
that led to the dispute and the accompanying judgments.
He said: “Following a major oil
spill from SPDC Trans Niger High Pressure Crude Oil Pipeline at Ejama
Community, an approximate area of 255 hectares of arable agricultural land,
fishing swamps and rivers were devastated.
“SPDC admitted that the oil spill
came from their pipeline and occurred sometime in 1970. They paid some
compensation to the community in the sum of N300,000.00 sometime in 1986 and
promised to come and de-pollute the area. SPDC failed to de-pollute the area
which gave rise to a lawsuit in 1991 commenced at the High Court of Rivers
State, Nchia Division presided over by Hon Justice P.N.C. Agumagu(now retired).
At the end of the trial, the Court found against SPDC and entered judgment in
the sum of N1 billion in addition to and order for SPDC to clean up the spill
or pay N6 billion in lieu thereof.
“SPDC appealed the judgement.
During the pendency of the appeal, the jurisdiction of the State High Court was
taken away and donated to the Federal High Court by a subsequent judgment of
the Supreme Court. The EjamaEbubu Community conceded SPDC’s appeal without a
formal hearing.”
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