ON REPS DIRECTIVE TO SHELL (SPDC) TO RELOCATE ITS WESTERN HQ TO WARRI – THE NEED FOR THE LAWMAKERS TO EQUALLY DIRECT THE NNPC TO RELOCATE ITS RELEVANT NNPC REGULATORY SUBSIDIARIES HQs TO THE NIGER DELTA

With reports that the House of Representatives, recently directed Shell Petroleum Development Company (SPDC), to relocate its Western Operational Headquarters to Warri in Delta State with immediate effect, we cannot help but ask: what about the Nigerian National Petroleum Corporation (NNPC) and its relevant regulatory subsidiaries like NAPIMS and the DPR, that are still located in Lagos and Abuja? We strongly believe that the Lawmakers, including the Federal Government, cannot be talking about the International Oil Companies (IOCs) relocating their Head Offices/Headquarters to Delta State/Niger Delta region, when the NNPC, which is the National ‘Chief Operator’ with the lion share of the Joint Venture (JV) business of the nation’s oil and gas industry, is still located in Lagos and Abuja with their respective subsidiaries that are also regulating the oil and gas business.

According to the said reports, the two lawmakers, Lovette Idisi (Representing Ethiope West and Ethiope East of Delta State), and Daniel Reyenieju (Representing the Warri Federal Constituency), that raised and spoke on the motion respectively; had urged “the National Assembly to use its legislative power to compel Shell (SPDC) to relocate its Western Operational Headquarters and offices back to Warri which it (SPDC) left as a result of the Warri crises of 2003/2004. The lawmaker explained that the fundamental causal factor resulting from the aforementioned crises that engulfed Warri and environs which necessitated Shell (SPDC) to relocate its Western Operational Headquarters and Offices from Warri had long been peacefully resolved with the hitherto warring groups leaving peacefully among themselves; and were unanimous in appealing to the Federal government of Nigeria to prevail on Shell (SPDC) to without delay return back to Warri.”

While we would not want to go into the other ‘political factors’ that greatly contributed to Shell (SPDC) relocation from its Western Headquarters in Warri, the issue of concern here, to us, is the fact that the Lawmakers are only focusing on the IOCs relocation to the Niger Delta region whereas, the NNPC and its vital subsidiaries in the oil and gas industry are left to remain in Lagos and Abuja, which are not core oil producing States. This again brings to mind the back-and-forth bickering and complaints concerning the gross failure of Oil Multinational companies, operating in the Niger Delta to return their Head Headquarters to the region despite several directives from the Federal Government of Nigeria. In which we have noted and responded that, that the Federal Government and its NNPC are the ones ‘playing politics with this issue’. In other words, this is not about the IOCs flouting the Federal Government’s directive to relocate their Head Offices/headquarters to the Niger Delta region, but it is about the Federal Government/NNPC not doing what is expected of them to address this issue.

Let us recall that in 2013, a similar motion like the reported recent one above, was moved by Reyenieju calling on Shell (SPDC) to relocate to Warri, which was successfully passed by the Federal House of Representatives but has so far yielded no positive result. So, what makes the Lawmakers think now that their recent directive will make any difference or change anything?

Like we reiterated severally, we do not think the IOCs would readily flout a Federal Government directive, as well as that from the Lawmakers, on this issue, if the window and situation for them to flout and neglect such a directive, was not created or there in the first place. in our view, we think that if the Lawmakers/Federal Government/NNPC are truly sincere and honest in seeing their ‘various directives’ obeyed, then they should lead by example. In other words, if the Lawmakers/Federal Government should, first order the relocation of the NNPC Head Offices/Headquarters and its subsidiaries, particularly the Head Offices of National Petroleum Investment Management Services (NAPIMS), the Department of Petroleum Resources (DPR), and others to the Niger Delta, we are certain that the IOCs, as well as indigenous oil and gas companies and oil servicing/contracting companies will promptly relocate to the Niger Delta region, specifically to Warri and environs which is ‘centrally located’ in the region, and not to remain in Lagos and Abuja.

In our view, the problem here is not really with the IOCs (that are privately-owned), but with the Nigerian Lawmakers/Federal Government and the NNPC. The problem is with the present location of the Headquarters/Head Offices of NNPC, especially NAPIMS and DPR, which are the bodies that are respectively regulating the commercial aspect of IOCs and operational aspect of the oil business for IOCs and Indigenous companies – both of which are still based in Lagos and Abuja. Hence, we see all these big oil and gas services contracting firms having their Head Offices based in Lagos and Abuja as well, where “the corporate action in the industry is very active” – leaving the Niger Delta region States like Delta State with the oil city of Warri and environs, without any corporate action in the industry. Once the Federal Government/NNPC can address this anomaly, we believe the IOCs will not have any excuse not to relocate their Head Offices/Headquarters to places like the oil city of Warri and environs. As we write this, almost all the former Shell (SPDC) Housing Estate at Edjeba-Warri, including the former Shell (SPDC) Main Office opposite Federal Government College Warri, Shell (SPDC) Industrial Area (IA) and Residential Area (RA) in Ogunu-Warri, are all empty, dilapidating-away and have been taken over by rats, rodents and lizards. These Housing Estates, Office Blocks and Accommodation are more than enough to accommodate all the NNPC group and its Subsidiaries if the right thing is done as regards their relocation. 

All ‘major contracts’ in the industry are being awarded through NAPIMS, which is based in Lagos. And as such, every oil and gas company and servicing/contracting company wants their businesses to stay close to those who regulate and manage the industry on behalf of the Federal Government. Same with the DPR Headquarters that is also located in Lagos. So, if the Federal Government is really serious about this ‘relocation of oil firms’ directive’ to the Niger Delta area, they know exactly what to do.

Even the few NNPC subsidiaries operating in the Niger Delta like the Nigerian Petroleum Development Company (NPDC), the Nigerian Gas Company (NGC), all have their Managing Directors (MDs) Offices in the NNPC Headquarters Office in Abuja, and they work from there in most cases. That means, all major decisions concerning the industry and the operations of the NNPC subsidiaries are taken in the said NNPC Headquarters Office in Abuja. We believe if the Federal Government is sincere in addressing this issue, then the Head Offices of the Group Managing Director (GMD), Group Executive Directors (GEDs) and MDs of the NNPC Subsidiaries/group of companies, should be relocated to the Niger Delta region. The oil and gas are daily explored and produced in the region, and then exported through the Shell (SPDC) Forcados Integrated Terminal. Chevron also has a Tank Farm and export Terminal in Escrvos, all in Delta State. All the other oil and gas companies pass through the Shell (SPDC) Terminals to export their raw products. In other words, these are where all the ‘real actions’ in the extractive industry are taking place. So, what exactly are the NNPC Group and its subsidiaries doing in Lagos and Abuja?

If the Lawmakers and the Federal Government are serious and really want IOCs to relocate to the Niger Delta region, they know exactly what to do with the NNPC and all its subsidiaries, which includes NAPIMS and the DPR, as advised above – they should all have their Headquarters/Head Offices to be relocated to the Niger Delta region. The Federal Ministry of Petroleum Resources could be left to remain in Abuja. But the NNPC Group and all its subsidiaries should relocate to Warri, which is centrally located in the Niger Delta region. If the Niger Delta region is good and available to be explored to produce oil and gas for export to make money for the Nigerian Government and to fund the 36 States plus the Federal Capital Territory Abuja, then the Niger Delta region should also be good enough to have the Head Offices/Headquarters of the NNPC Group and its subsidiaries located in the region. President Buhari should right this wrong by directing NNPC and its subsidiaries to relocate their Headquarters/Head Offices to the Niger Delta region.

Zik Gbemre, JP.

National Coordinator

Niger Delta Peace Coalition (NDPC)