OML 34: How We Resolved GMoU Crisis In Delta – Official

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Asset Management Team (AMT) of Oil Mining Lease (OML) 34, Nigeria Petroleum Development Company (NPDC), its business partner, Niger Delta (ND) Western, have explained how they resolved the protracted crisis over the Global Memorandum of Understanding (GMoU), with a robust arrangement to the benefit of all stakeholders in its operational areas.

Sheidu Aiguedo, the Manager, Government, Community Relations and Security, under the AMT, who represented the Chief Operating Officer of the NPDC/NDW OML34 AMT, Chief Edirin Abamwa, gave the clarification during an interactive session with selected journalists in Warri, Delta State on Monday.

BIGPEN Online reports that Aiguedo said that all issues concerning its operations including inherited liabilities from Shell and three years arrears of N1.3 billion to contractors have been cleared.

According to him, the GMoU inherited from Shell, which earmarked yearly payment of N106 million for 34 impacted communities, has since expired, adding that a new “steady state GMoU” was currently running with annual payment rate of N250 million for 27 communities.

He said that out of the 34 communities that made up OML 34 where their asset are,  27 communities are the core oil producing communities where drilling and exploration are taking place.

Chris Otobrise, Community Interface Co-ordinator, who further explained the working of the GMoU programme, said that the company runs a JV account with representatives of the host communities from where several projects are awarded and executed depending on the choice of communities.

According to him, Eruemukohwarien, among other host communities like Effurun-Otor, Erhiphihor, and Umolo-Olomu have been a hub of excellence for numerous projects sited in the area under the project GMoU arrangement.

In terms of human capital development and social investment, Otobrise said that the company had long overhauled inherited Shell scholarships programme which was based on competition to a more robust initiative in which every school in the host communities is a beneficiary.

He said that the least community gets four secondary school scholarship yearly, one university scholarship whilst the major host communities get 12 for secondary school and four tertiary yearly.

In total, he said that 285 tertiary institution students are on scholarships at the rate of N75, 000 per session while in the secondary category about 1,275 at the rate of N25, 000 per session are on scholarships.

Otobrise said that pipeline surveillance contract, and security of company asset were contracted to indigenous firms as part of its effort to implement local content law and encourage local firm that have built capacity.

Speaking on illegal oil bunkering activities in their area of operations, the officials dismissed claims of insider involvement on the part of the company, saying that the oil company spent over a billion naira on yearly basis to curtail oil theft.

They said that the company is currently looking at technology to enhance pipeline surveillance  including use of surveillance drones to curb the menace adding that there are three punitive measures that is being employed to curtain the menace which is prevention, protection and prosecution.

Photograph in this story: Asset Management Team (AMT) of Oil Mining Lease (OML) 34, Nigeria Petroleum Development Company (NPDC), its business partner, ND Western during an interactive session with journalists in Warri on Monday. Photo credit: BIGPEN

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