The sweeping decision to submit a bid of about N47BN to acquire SPDC’S 45 per cent equity in Oil Mining Lease 11 (Ogoni field) worth about 260,000 bpd by the Rivers State government in September 2019, is being seen as Gov Nyesom Wike’s style of fighting for resource control.
In a six-page article, Simeon Nwakaudu, the governor’s media aide, argued that different leaders and activists in the oil region have over the years launched different strategies to capture control of oil resources but with varying degrees of success or results. He said the overall objective of any strategy boils to the desire to draw down values and benefits to the communities that own the oil assets.
Summarizing the age-old case, Nwakaudu said; “The fight for OML 11 situated in Ejama Ebubu community in Eleme Local Government Area and the adjoining Ogoni and other communities of Rivers State was tortuous. It lasted for about three decades. The people traversed different courts before they won the matter. Many of those who started the case in court have since departed the world.”
He said 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.
Outlining the various steps taken by the community to get justice, the media aide said the judicial victory set the stage for any true resource control-minded administration to act to create a new direction in the oil region. He said SPDC so lost that they invited the community and offered them N7BN as against the judgment debt of N194BN, which the community rejected. At this point, the only action left was to auction SPDC’S stakes in OML 11, and this process was activated.
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Thus, bearing in mind the importance of Rivers State and its people to become key players in the oil sector for the empowerment of the people, Gov Wike took what he called the beneficial decision of acquiring the auctioned stakes of SPDC in OML 11.
He pointed at several reasons that justified the acquisition, arguing that the reasons centred on the development of the oil bearing communities, their peace and the overall economic development of the country.
He said: “That rather than standby and watch other persons or group purchaser SPDC 45 per cent interest in that 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.
He insisted that the action was taken with full sense of responsibility. “This action was taken by the administration to safeguard the interest of Rivers communities. It was taken with every sense of responsibility. It sent a clear message to international oil companies that the Rivers State Government is always on the side of the people, ever ready to stand with them.
“The action was necessary as it emphasised that Rivers people will always be the centrepiece of governmental engagements.” He quoted the governor to have said that without any doubt, this is a profound economic investment with profound and enduring positive implications on peace, security, development and prosperity for the oil-bearing communities of OML 11, the entire Rivers State and our country.
Nwakaudu argued that the resource control struggle pertaining OML 11 is not unilateral. “All the key stakeholder communities have been brought on board in Gov Wike’s commitment to right the wrongs of the past.
He said that Gov Wike assured the Ejamah Community and other host communities of OML 11 that the Rivers State Government would defend their right in any ensuing legal battle over the oil facility.
The Ejama community is said to have visited the governor in appreciation where Gov Wike was said to have commended the community for standing firm and fighting through established due process. “While I remain Governor, one thing I will never do is sell the interest of our people. The property of SPDC was auctioned and the Rivers State Government submitted a bid and acquired it. There will be legal battles. The Rivers State Government will stand for Rivers people”, he said.
He promised to extend some percentage to the host communities to give them a sense of belonging. He praised Ejamah community for engaging in the legal battle for 29 years and refusing to be swayed by financial proposals by SPDC.
He reminded the people that OML 11 is not only for Ogoni, it extends to Okrika, Andoni, Oyigbo and Ikwerre. “Any community linked to OML 11 should be eternally grateful to you.
I know some communities that only N300million will change them. You refusal to collect N7billion led to the auctioning of Shell Interest.
“If the FG wants to talk, it is the Rivers State Government it should talk with, because we have acquired Shell’s interest. I am with you. God knows I have no personal interest.”
Interacting with the Etche Ethnic Nationality, part owners of OML 11, Gov Wike said the efforts of the Rivers State Government were geared towards ensuring that the communities got the best from the acquisition of OML 11. On this, he observed that all host communities have shown support for the acquisition by the state government.
He said the governor was aware of what he called clandestine and negative propaganda against the action.
Nwakaudu mentioned one Ogoni son who he said fronted for an oil company during the settlement of the issues on the re-opening of OML 25 is the lead negative propaganda tool. “Since he is not a leader of any of the stakeholder communities, he comes under a propaganda trading organisation, which is well financed by the dislodged interest groups.
The media chief rather said the new approach adopted by Gov Wike to promote and defend the interest of Rivers State yields best results. “With the legal acquisition of the controlling stakes at OML 11, the development process can no longer be halted.”
Going forward, he deposed, the respect for the rule of law, constructive engagement and dialogue would displace recourse to violence in the resolution of conflicts relating to oilfields and other related matters. “This is an outstanding legacy that Gov Wike is cultivating in the Niger Delta”.
