A DETAILED FOLLOW-UP ON THE ALLEGED SHELL DECEPTION IN OGONI

Zik Gbemre

The above subject matter has in the past few days, generated quite a storm as more details regarding the issue raised have started flooding in from different concerned stakeholders who completely agreed with us that indeed, there is a deception in the whole game plan. As regards this issue, many have noted, it is a calculated conspiracy to deny Ogoni people their rights to participation in E&P activities and access to means to end the many years of economic deprivation. The truth of the matter is that there are some greedy political powers behind this, and it is the trademark of the corruption in the industry. It is doubtful if any true Ogoni person will just sit and allow a single company with no track record or corporate structure to take over oil fields without addressing pertinent issues that resulted from the many years of crises.

Every social group is free to express their views, and so the Ogoni Chiefs and youths have indicated what they want. But there are other social groups who show more concern for Ogoni problems and have better understanding of the complex issues. Their voices and views will also be heard.

To this end, below here is a (sourced) detailed breakdown of what the elites and educated class and opinion leaders expect to drive any agreements to herald resumption of oil and gas activities in Ogoni. Also below here is a list of promises by the said Belema Oil Ltd. And looking at it carefully, it does not take an Einstein to see that they are all UNACHIEVABLE; BUT JUST A WISH LIST AIMED AT DECEIVING POOR AND ILL-INFORMED MEMBERS OF THE HOST COMMUNITIES (LOCALS).

POSITION OF OGONI LEADERSHIP FORUM ON PROPOSED DIVESTMENT OF OIL FIELDS IN OGONI (OML 11) BY SHELL PETROLEUM DEVELOPMENT COMPANY

The Ogoni Leadership Forum is made of senior Ogoni indigenes, elites and opinion leaders with diverse experience spanning business, engineering, politics, law, academics and corporate leadership. The group has met severally on issues concerning the sociopolitical and economic development of Ogoni, and has shown interest in the proposed divestment of Shell (SPDC) from OML 11. Their primary goal is protection of Ogoni interest and ensuring that the best deal is structured for sustainable economic development of Ogoni people, and protection of the environment. The Forum has held meetings with Shell and prospective investor interested in purchasing the 45% JV divestible equity in OML 11, and is open to meet with others with similar interests that affect development of the hydrocarbon resources within Ogoni, so that they can guide the decision making process and advise Ogoni nation appropriately.

The following were presented as minimum expectations, or terms and conditions to be considered to secure the support of Ogoni:

1. Engagement of all the major community social groups and organizations (Chiefs, Youths, Women, Elites, MOSOP, KAGOTE, etc) is necessary to secure the Social License (LTO) to guarantee freedom to operate on completion of the Sales and Purchase Agreement (SPA).

2. Investor to make an unequivocal commitment to support and work with all stakeholders, to ensure full implementation of the UNEP report.

3. Accept the model of PARTNERSHIP for Ogoni in a Joint Venture arrangement, giving equity stake of at least 20% in the operating company. This partnership is to be formed through a Special Purpose Vehicle (SPV), a company with significant ownership by Ogoni people as investors. They will be listed on the CAC documents and hold the equity as Trustees on behalf of Ogoni.

4. The profit sharing model is not acceptable, as declaration of profits is subjective and is at the discretion of the operator who has the sole right. In such situations, operators will deduct operating expenses, taxes and royalties, interest on borrowed money, and declare what cannot be verified or audited. The communities end up with nothing.

5. Ogoni to be represented by their nominees on the board of the operating company or the company that takes over from Shell.

6. The top management of the company to have members from Ogoni in key positions of decision making.

7. In line with Nigerian Content Act of 2010, Ogoni people should be given first preference in contracts to be awarded. This is the sure way to spread the dividends and ensure spread of wealth across Ogoni.

8. Qualified youths and skilled persons from Ogoni to be fully employed. Those who desire work but lack the skills should be given the training to develop their skills and competences to improve their level of capabilities to function effectively in the oil industry. In addition to this, run a scholarship scheme targeted at development of management level and senior professional personnel from Ogoni.

9. Establish the main operational office with decision making authority within an Ogoni oil producing community, or preferably in Bori, the traditional headquarters of Ogoni.

10. Follow-up successful exploration and production with establishment of gas based and petrochemical industries for employment and wealth generation; and IPP for power generation to stimulate growth of SMEs. The Ogoni environment is precious and sacred, and must be protected. Consequently, only companies with sound Technical capability, financial strength and good operating track record should be supported and given the social license. Our goal is to end poverty and economic slavery in Ogoni. This is possible if we participate fully in the business of oil and gas exploration, development and production of Ogoni oil fields.

It is imperative for the Ogoni people to just remain calm and ask questions. No need for the Ogoni people to rush into agreements that will impoverish and enslave them for decades to come. Shell should be encouraged to pursue the divestment process in a ‘transparent manner’ as a respected professional corporate organization. Due process should be followed and Ogoni people carried along to avoid future problems, and not some ‘selected’ Ogoni leaders who might not have the entire mandate of the people to go into such an agreement.

More so, there are many other qualified companies out there who have shown interest and they should be welcome to discuss with Ogoni people openly. The best investor will sail through, and will be welcome by the entire Ogoni people. IF THIS IS NOT DONE, THE OIL BLOCK MAY BE SOLD, BUT IT WILL NOT BE OPERATED. No one should take Ogoni people for a ride. Ogoni people want their fair share of the bread directly (Partnership, Inclusiveness, Engagement), and not through SURROGATES. Ogoni people want to participate as Partners, they want full Inclusiveness in operations of the block and proper Engagements carried out across all social strata of the nation.

On the promises made by the Belema Oil Ltd, a concerned stakeholder asked: “Does Belema oil claim to have resources to achieve the list of promises in this document? What an excellent deception for the ignorant. These intentions are fake. People who parade themselves like this can only thrive in a lawless environment.” Below is the document.

THE BELEMAOIL PRODUCING MODEL

Belema oil shall create an industrial hub in Ogoniland through setting up of the following ventures as a strategic human capacity development and strong regional empowerment medium.

1. Setting up Belema oil Producing asset in such a manner that will create technical/non technical labour employment, high/low risk contracting and support services where Ogonis will participate through partnership with competent ventures.

2. Setting up of Belema Refinery that will refine various petroleum products and services to create employment and supply services to better the people.

3. Petrochemical Limited as major employment spinner to create over 500 employment window and empowerment as a result of the chain.

4. Build a cryogenic gas plant and processing of gas for flared gas reduction and environmental pollution.

5. Methanol plant set up and production of other associated gases for commercialization and wealth creation for both communities and company.

6. Building of automobile industry.

7. Building of personnel base and game village for recreation.

8. Building of Belema Training Centre.

9. Setting up of Belema Technology University.

10. Award of scholarship to all indigent sons and daughters of Ogoniland that wants to acquire western education at home and overseas.

11. Provide support to widows, the aged, orphans, less privileged and physically challenged in Ogoniland as key economic players and contributors.

12. Support light and light-medium scale businesses with training and financial aide to grow better and be able to compete and create more wealth.

13. Assist by encouraging Ogoni’s companies interested in specialized type of work to partner with competent organizations and jointly go into such specialities as to build capacity and immediate wealth creation.

14. Set up community business offices in safe and most conducive part in order to bring Belema to us and us to Belema.

15. Belema will be an agent of multi-motional wealth creation for us, the people of the land and shall be available to hold one-on-one strategy meeting to better improve all oil bearing communities, covering OML 11 communities, e.t.c.

From the above, we can see that even the Belema Oil Ltd did not follow the ‘Position’ of the Ogoni leaders as regards any company that wants to partake in the Shell Divestment of OML 11 in Ogoni land. Though, Belama Oil Ltd listed so many things, which we know they will never be able to put in place, it is worthy to note that “no time frame” or realistic projections were given by the company to assure the Ogoni people that all the ‘promises’ made will see the light of day. The said ‘promises’ are just good on paper without any time frame. For being the principal actor in all of this, Shell will be held responsible of any lapses or hiccups that might emanate from the whole thing with Belema Oil Ltd. Like we said before, this ‘Ogoni story’ and how it is being handled by Shell, has the propensity to ‘resurrect’ the Ogoni crises, and Shell will be blamed for everything.

From the look of things, it is obvious that Shell, Belema Oil Ltd and those relevant stakeholders were too much in hurry to divest the said oil bloc without first addressing the problems of the Ogoni host communities or even carry the locals of the communities along in the entire divestment process. It is as if the oil company, Belema Oil Ltd, is being forced down the throat of the Ogoni people. But whatever the case may be, we strongly believe that whichever oil company that wants to partake in the Shell Divestment in Ogoni OML 11, such company must follow and adhere to ALL the positions stated above by the Ogoni Leadership Forum. Anything short of this should be seen as fraud, and rejected.