SPDC: Rivers acquires 45% interest in OML 11

Rivers State Governor, Nyesom Ezenwo Wike has declared 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.

In a statement made after the acquisition, 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 Ejama Ebubu community in Eleme Local Government Area and the adjoining Ogoni and other communities of Rivers State”.

Governor wike said his administration will always advance the best interest of Rivers State and then he further explained how the acquisition process passed through various court proceedings.

“SPDC appealed the judgment at the Court of Appeal in 2010 it passed through various court proceedings between 2010 and 2017 before it was finally disposed of by the panel of that Court led by Gumel JCA of the Port Harcourt Division”.

The governor, on explaining reasons why the State Government resolved to purchase OML 11.

The Rivers State has suffered the worst impact of environmental degradation resulting from oil related operations and that the impact is still there and un-remedied as admitted by SPDC vide letters they wrote seeking to clean the spill in 2006 while the case was at the trial Court.

Despite all the damage done, 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.

He also stated that, despite the rich oil potentials of OML 11 it has become unlikely that for peace and security thrive among the people of Ogoni in the Rivers.

In response to the case, SPDC admitted that the oil spill came from their pipeline and occurred sometime in 1970 of which 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.

However 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.