FG, SPDC URGED TO WADE INTO WORK STOPPAGE AT UTOROGUN NAG-2 PROJECT
Frank Efe
Exactly 27 days after the stoppage of work and non-provision of services in the ongoing Utorogu NAG-2 project in Delta State, by community workers and community contractors/vendors respectively, the national coordinator of Niger Delta Peace Coalition (NDPC), Mr. Zik Gbemre has urged
Allison-Madueke-Minister of Petroleum Resources.
the Federal Government and Shell Petroleum Development Company (SPDC) to wade into the matter.
In a statement in Warri today, the human rights activist, said “The relevant authorities of the Nigerian Petroleum Development Company (NPDC), Shell Nigeria, MAKON Engineering & Technical Service Ltd, and the Federal Government of Nigeria, should be informed that as at today, Thursday May 16, 2013, will make it Day Twenty-seven, that the Community Workers of Utorogu NAG-2 Project in OML 34, Delta State, has stopped work down tools), owing to the non-payment of their salaries.”
According to him, “The Community Contractors/Vendors rendering services to the Contractor executing the Utorogu NAG-2 Project (MAKON Engineering & Technical Services Ltd), have equally stopped the provision of such services as well for eighteen days now, owing to the non-payment by MAKON, of services rendered as far back as August 2012 till date.”
“We believe MAKON’s reason for this situation is the poor funding of the Utorogu NAG-2 Project by the Nigerian Petroleum Development Company (NPDC). And for the past six months, we have been hammering on the need for those concerned; NPDC, Shell (SPDC) and the Federal Government, to address the issue of adequate funding of the Utorogu NAG-2 Project to its completion so as to avoid/prevent disruption of Project execution or its shut-down. The funding of the Utorogu NAG-2 Project became an issue immediately the NPDC completely took over the control of the oil and gas assets/facilities in OML 34. But our repeated advice and warning was ignored,” he stated.
In his words also, “On enquiry, though Shell (SPDC) has sold its oil and gas assets/facilities in OML 34 and others in Delta State, they were the ones that awarded the construction of the Utorogu NAG-2 Project contract to MAKON and not NPDC. The arrangement Shell (SPDC) has with NPDC was that Shell will continue to sponsor/supervise the Utorogu NAG-2 Project to completion, after which they will test-run the Project for two years before completely handing it over to NPDC.”
However, he said, there is a condition in the arrangement that NPDC will be paying Shell for every three months the said Project is ongoing till completion, adding that “But for the past six months plus, it was revealed that NPDC has not paid Shell (SPDC) for what it has spent on funding the said Project. To which Shell (SPDC) has stopped its funding of the Project owing to NPDC not fulfilling its own part of the arrangement.”
“The question now is; who is to pay/offset the accumulated salaries of community workers in the ongoing Utorogu NAG-2 Project? And who will equally pay/offset all the accumulated money for the months owed to community contractors/vendors offering services to MAKON-the Contractor executing the said Project? These Community Contractors/Vendors for instance, are already in debts and the banks are on their necks owing to their not being able to pay back loans used to finance the services rendered all these months. What then is the essence of the Community Content when such Projects like the Utorogu NAG-2, is being used to impoverish the host community locals?”
Mr. Gbemre held that “We do not understand why such a sensitive and strategic Project like the Utorogu NAG-2 could be so neglected to rot and not given the needed funding for its completion. Shell (SPDC) and the Federal Government NPDC are both partly to blame for this. Considering the importance of the Utorogu NAG-2 Project to the nation’s power supply improvement and domestic industrialization in the country, one would have expected the said Project to receive all the attention it needs to succeed. We believe Nigeria will not be developed with mere wishful thinking and making of empty promises. Nigeria will be great if only Nigerians at all levels of authorities are committed in doing what is expected.”
“We once again ask that all those concerned in Shell (SPDC) and the Federal Government – NPDC, should promptly take steps in addressing the funding problems of the said Utorogu NAG-2 Project. The sooner the salaries owed the Community Workers are paid, the sooner the stated Community Workers will go back to work; and the sooner the accumulated arrears of those rendering services to the Contractor executing the Project are paid off, the sooner they will resume their services. We ask that this issue should be given the needed attention and not allowed to drag on for long.” he added.
