Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an oil exploration firm based in Anambra, has reported a significant drop in production due to escalating insecurity.
The company shared its concerns during a session with the Anambra State House of Assembly on Tuesday.
Austin Brown, SEEPCO’s general manager for Community Relations and Security, outlined how oil theft, illegal refining, and rising militancy have severely impacted operations, leading to the loss of personnel and equipment.
He revealed that 11 illegal refineries had been uncovered in Ogbaru, with over 25 pipeline breaches allowing oil thieves to siphon crude. Brown also recounted a June 11 attack, where gunmen killed three soldiers and kidnapped nine workers, who were later rescued in Ihiala.
In response to these security challenges, SEEPCO has conducted an Environmental Impact Assessment (EIA) and rolled out Corporate Social Responsibility (CSR) initiatives.
“This situation has drastically reduced our production,” Brown said. “We established a Host Community Development Trust, contributing 3 percent of our annual budget. We’ve also renovated a primary healthcare centre and are building roads.”
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However, SEEPCO faced criticism from Chidi Ibeneme, chair of the House Committee on Petroleum, for not fully adhering to the Local Content Act.
He pointed out that most local employees were casual workers and urged the company to invest more in the education and healthcare of the host communities.
Speaker of the Assembly, Somto Udeze, who hails from one of the affected communities, added that the company had been summoned following numerous complaints from residents.
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He requested that SEEPCO provide documentation of its Host Community Development Trust, EIA, and CSR activities in its next appearance. Udeze also noted the absence of other invited companies, including Sahara Energy Resources, Orient Petroleum, and CottonWood Gas.
The hearing was adjourned to November 17.
Over the years, residents of Ogwuanocha and Ogwuikpele in Ogbaru Local Government have voiced concerns over environmental degradation due to oil exploration.
They claim SEEPCO’s activities have caused severe erosion, displacement of homes, oil spills contaminating water sources, and destruction of farmlands and aquatic life.
