BREAKING: Wike announces Rivers’ acquisition of Shell stakes in Ogoni, gives reasons
http://www.hrlnews.com/2019/09/breaking-wike-announces-rivers.html
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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