Emmanuel Aziken
26 November 2008
Oil companies have paid N15 billion in penalties for gas flaring since 2006 even as they yesterday differed with stakeholders from the oil producing communities on the December 2008 deadline for the stop in gas flaring.
Meanwhile the Nigerian National Petroleum Corporation (NNPC) in a break from its policy will today hold a meeting with the Host Communities of Nigeria in Abuja towards resolving issues otherwise articulated by militants in the oil rich region.
Officials of the Department of Petroleum Resources (DPR) who revealed the collection for gas flaring at the Senate public hearing on a bill on gas flaring also confirmed that oil companies were yet to commence paying the new $3.5 per million s.c.f. fine prescribed for gas flaring which took effect in April 2008.
However, an attempt by Nigeria Agip Oil Company to justify its claim to community development was seriously rebuffed by Senator Patrick Osakwe (Accord, Delta North) who claimed responsibility for securing the peace within Agip's production zone in Kwale, Delta State.
The Host Communities of Nigeria Producing Oil and Gas of the Niger Delta in its presentation made by its national chairman, Chief (Dr.) Alfred Bubor called on the Federal Government not to shift the deadline for stopping the flare of gas from December 2008.
The total collection for gas flaring paid through the Department of Petroleum Resources presented to the Senator Osita Izunaso led Committee at yesterday's hearing showed that a total of N15 billion was paid as penalty between 2006 and October 2008.
According to the presentation, $20,420 million (N2.2 billion) was collected in 2006; $81.9 (N10.26 billion) was collected in 2007 while $18.283 million (N2.123 billion) was collected between January and October this year.
In all a total of $120.67 million (N15.008 billion) was collected as fine for gas flaring the DPR posited yesterday.
Presentations were made by officials of Shell and Agip yesterday with officials of both companies restating their quests to minimize gas flaring. However, taken up by Senator Osakwe on its supply of electricity to its neighbouring communities in Kwale where it produces 480 MW of electricity, Mr. Akintunde Carim, Upstream Business Division manager, Nigerian Agip Oil Company Limited said that it was supplying its generated electricity to the national grid.
Asked on what proportion of its generation it was supplying to the community, Carim, however, could not give an answer.
Responding to the submission, Senator Osakwe said:
"I am more concerned about the host community, these people are suffering, they are the people who suffer the degradation, they are the people who suffer the great hazards and they should benefit. If you fire 480MW and you transfer it to Obosi."
Claiming responsibility for sustaining the peace in the community, Senator Osakwe said:
"Do you know why that peace is there? I am the one responsible for that peace if you don't know. I am telling you that I am the one that has been telling them to calm down, Senator Izunaso is also responsible for calming down for the ones in Oguta because it will not look well that we are in the Senate and our place will be burning."
The host communities in supporting its argument not to shift the deadline on gas flaring said:
"The excuses we are receiving from the operators of the oil and gas industry are inimical to the very existence of the Niger Delta people."
"We stand to uphold the December 31st, 2008 for the gas flare out. Enough of the gas flaring in the region. No matter the difficulties of the oil and gas industry in the country, the National Assembly should evolve a political will and if political will is not enough, she should evolve a legislative will by enacting a deliberate law to contain the situation," Chief Bubor submitted.
Notice of today's meeting between the NNPC and the Host Communities was disclosed by Mr. Chris Ogienmwonyi, an executive director of the corporation at the hearing.
He disclosed this following a complaint by Senator Osakwe that the NNPC was avoiding the host communities.
"You cannot discuss when you don't see eye to eye. I want to tell the oil companies you cannot know the militants more than the host communities because they are a product of the host communities, they are the fathers and mothers of the militants so you cannot try to reach the militants and sideline the host communities."
Welcoming the meeting, Senator Izunaso said:
"We believe that this is how we should be working. Since you cannot see the militants, but you can see the host communities, they are available, they are visible."
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