$500m OML 25 twist: Host community harmony may play big role in fresh oil field bids

Determination of the Federal Government to maintain peace in Niger Delta oil fields may play a big role in fresh efforts to sell Oil Mining License (OML) 25, which was in the news late in 2014, when its sale to Crestar for $500 million was halted by the then minister of petroleum, Dezani Allison-Madueke.
Oil community leaders seem aware of the new premium placed on peace and harmony by the Federal Government and have started to demand for the oil field to be allocated to an indigenous oil company of their preference – Belemaoil.
Their appetite for oil fields seems to have been whetted two years ago when Belemaoil acquired OML 55 in nearby Kula community from Chevron, and kicked off with employment of over 500 youths, with Belema community getting 80 of those job slots. Now, they want more.
OML 25 is indicated to be located 50 kilometers southwest of Port Harcourt in the onshore eastern delta, and is intersected by the Santa Barbara and San Bartholomeo rivers, which are large deltaic tidal channels that enter the Gulf of Guinea.
The oil field was a subject of Federal Government intervention and a federal high court case late 2014, when the court in Lagos prohibited Shell, Total and Eni from transferring their combined 45 percent to a bid winner, Crestar Integrated Natural Resources Limited. This was as a result of a lawsuit brought by NNPC, which is a license partner with 55 percent equity to pre-empt the sale.
Crestar is said to be owned (55%) by Nigerian nationals and 45 percent by Toronto-based James Bay Resources Limited that won with a bid of $500 million earlier in the year. Crestar was said to have defeated other competitors, including Lekoil, a consortium made up of Greenacreas Energy, CCC, and Signet Petroleum, and another consortium consisting of Niger Delta Petroleum (NDPR) and South Atlantic Petroleum (SAPETRO), an online media source indicated.
Now, a major twist has occurred as the host community, Belema, has developed appetite for oil fields, especially the one in their backyard. This time, the Belema host community in Akuku-Toru local council area of Rivers State has stepped out to make a claim, demanding that the oil field be handed over to an indigenous oil company, Belemaoil, which two years ago acquired MOL 55 from Chevron.
The community leaders say the indigenous oil company has acquired huge technical and manpower assets to take over the local oil fields. Belemaoil Producing Limited (BPL) is said to be a world-class indigenous independent exploration and production (E&P) company with a host of strong partners across the globe.
They say they are a dynamic, entrepreneurial organisation with a portfolio of world-class assets located in Nigeria. “Our activities span the full-cycle E&P value chain of exploration, appraisal, and development through to production. Our success depends on our ability to deliver long-term value for all our stakeholders through a clear and consistent strategy, which recognises that our responsibilities go beyond our operations.”
The company has since surpassed the 12,000 barrels per day in its first oil bloc (OML 55) and is said to be ready for expansion.
OML 25 was acquired by Shell Petroleum Development Company (SPDC) in 1980 (37 years ago) and was put up for sale in 2014 during Shell’s rush of divestments along with OML 24 and 29.
The government had seen need to protect national assets as reason for stopping the sale to Crestar. Now, and the community people have begun protests that they said would get to as far as Abuja to the new minister and the Nigerian National Petroleum Company (NNPC).
On July 229, 2017, the community people led by a retired community health director (ministry of health), Tamunoemi Felix Owen-Jack, blocked the road to Belema town and stopped two SPDC workers who claimed to be there on environmental evaluation survey (EES). They were ordered out of the community to avert breakdown of order, suspected to be spies from Shell.
The youths led by Iselema Ekini marched round the town calling for the oil field to be allocated to Belemaoil or nothing. The community leader, Owen-Jack, said Belema town wanted to taste what Kula and Idama communities where Belemaoil started operations recently to happen to their own community, too: employment, infrastructure, and empowerment.
“Belemaoil, please, come and acquire us. No more divide-and-rule in Belema. We are now speaking with one voice. If you go to Kula you will see a different community full of development. We are through with Shell. Why there is peace in Belema area is because we love the present governor and the present federal government, else, this place would have shut down. We have understood the impact of oil disruption to the national economy, else, this place would be in ruins now.”
In his forceful voice, the youth leader (Ekini) said; “We have suffered for decades and it is not good. It is bad that we cannot build houses in our villages but outsiders make wealth here and go build mansions in their own villages. They do not give us surveillance jobs anymore, no boating jobs, no security jobs; even the houseboats that carry the Navy troupes are hired from other places while ours park at the jetty.
“Instead, we have conflicts everywhere as our own dividend of oil boom. We have seen how Belemaoil has employed over 500 youths into jobs, built markets, clinics, etc in the places they operate. This has proved that an indigenous oil company would look after its host communities better. We therefore urge Shell not to seek renewal of OML-25 license but allow Belemaoil to take over.”
Speaking later in his palace, Godwin Egbelekro, said, “We have nothing to show for 37 years of oil in our community; no infrastructure, no manpower development, nothing but squalor everywhere. Our own son has built up capacity, be it technical or manpower.
“They (Belemaoil) have reduced youth restiveness in the area. It is high time Shell left OML 25 since their license has expired for long, We have concluded plans to go to Abuja and submit protest letters to the Minister of Petroleum and other relevant authorities like the NNPC.”
Speaking later in his palace, the king of Belema, Bourdilon Oko (the 28th king) said: “Whatever you see in this community was done by us. Each time we asked Shell to help, they refused. Their license has since expired, so they now stay here illegally. We object to any attempt to renew the license. We want them to hand over to Belemaoil for us to see jobs and development plus empowerment of our youths like others.”
The king claimed that the multinational oil corporation has swarmed the area with offers. “They have stormed here with promises, even promising outstanding things, but our stand is, not anymore. We are ready to go to court against them as it happened nearby but we must first take whatever action that would stop them because court cases take eternity and they would be drilling oil.”
SPDC sources said it was not true that Belema community did not receive benefits in 37 years, saying the community got scholarships, community contracts, jobs, and other benefits, just like other host community. Feelers in SPDC showed they were aware of interests pushing different agenda points in the matter.