OML 49:  Makaraba Community Battles Chevron Over ’41 Yrs Unpaid Arrears Of Land Rent’ Of Over N1bn Naira

• We Are Not Indebted To Makaraba – Chevron
• No Outstanding Payment Obligation On OML 49 – Chevron

The people of Makaraba, a major oil producing community in Gbaramatu kingdom, Warri South-West Local Government Area of Delta State, are currently battling America Oil Giant, Chevron Worldwide and Chevron Nigeria Limited over alleged 41 years unpaid arrears of land rent on Makaraba oil field (OML 49) running into over N1 billion naira.

BIGPEN reports that OML 49, located in the northwestern Niger Delta, is part of Chevron’s Joint Venture (JV) with Nigeria National Petroleum Corporation (NNPC). OML 49 is the largest block in the JV and covers shallow water and swamp acreage.

The community, in a letter addressed to Mr. John Watson, Chairman/CEO of Chevron Worldwide and copied Mr. Jeff Ewing, Managing Director, Chevron Nigeria Limited and made available to BIGPEN, alleged that Chevron acquired the OML 49 land from its forebears vide a lease agreement dated 27th September, 1978.

According to the letter signed by their counsel, Jacob Udi (Esq), on behalf of Captain Wilson Makaraba Bubor (Chairman of the community), Engr. Henry Makaraba Bubor, (Secretary), and two other chiefs and executive committee members of Makaraba community, Gulf Oil Company Limited which later rebranded as Chevron, had in 1978 acquired the expense area of land (Makaraba Oil Field OML49) measuring approximately eight hectares from Late Pa. Makaraba Bubor, founder of Makaraba community.

They said that following the acquisition, Makaraba became the pioneer host community to Chevron Nigeria Limited.

“Upon the said acquisition of the community’s land in 1978, a formal lease agreement dated 27th day of September, 1978, containing various covenants for its sustenance was executed between Gulf Oil Nigeria, paid to late Pa. Makaraba Bubor, the sum of (10) ten pounce, being land fees with the covenant to pay annual rents amongst others”, the letter reads.

The letter, however, regretted that from records and archived passed to the present exco by their predecessors, Chevron Nigeria Limited for the past 42 years of its operation in Makaraba Oil Field, OMl 49, has maliciously and persistently neglected to pay the mandatory land annual rents of 10 pounce on the Makaraba land leased to Chevron, since the 27th September, 1978 till date.

The community, also alleged that within the period, Chevron Nigeria Limited did not embark on any viable beneficial project in the host community, an act which they said constituted fragrant breach of the various covenants contained in the lease agreement of 1978.

The letter, further read that the clause of the annual rent contained in the lease agreement has since  overdue as same is subject to upward review, every (10) ten years at interval of its subsistence.

“It is our client’s further instruction that, the attention of the exco was also drawn to the true emerging facts that, for the period under review, Chevron Nigeria Limited, also neglected to pay the Makaraba Elders/Community Chiefs customary money, peace bonus for Makaraba exco members and perpetually denied the community of every social amenities with total neglect to convert the indigenes of Makaraba community that went through Ogene (V.PP6) training program to Chevron direct staff, as agreed.

“It is our client’s further instruction that, Makaraba Oil Field OML 49 operated by Chevron  Nig. Ltd, formed the largest operational oil field accommodating over 68 operational oil wells producing over 40% Nigeria daily oil output with an overflowing subscribed oil wells waiting to be harness, yet, Chevron Nigeria Limited, has perpetually refused to pay the community her annual land rent, nor create the Makaraba sister’s community (Poutobor community) ss host community, after repeated demand, but has completely relegated Makaraba community and her people to a state of abysmal in human and capital development.

Accordingly, the community said that it has commissioned a real estate consultant to value with current global assessment of leased property and payment of annual rent, the arrears of annual rent due the community and her people, in respect to the Makaraba Oil Field lease agreement entered with its forebears.

Giving a graphics details of the arrears purportedly owed the community and her people, the letter demanded payment of arrears of annual rent of ten years period – 1979 to 1988 which amount to N80 million at the valued rent payable rate per hectares of N1million between 1979 to 1988 with valued rent payable for eight hectares at N8 million naira.

The community also demanded that subsequent ten years starting from 1989 to 1998, the valued rent payable per hectare was N2 million, N16 million for valued rent payable per eight hectares with accumulated ten years period of valued arrears of annual rent amounting to N160 million.

They also demanded N3million valued rent payable per hectares for the years 1999 to 2008, N24 million for valued rent payable for eight hectares and N240million for accumulated arears of annual rent for ten years period.

They further demanded N5 million, N40 million and N400 million respectively for subsequent ten years period – 2009 to 2018.

Moreso, the letter demanded N7 million, N14 million and N28 million as valued rent payable per hectares, valued rent for eight hectares and accumulated arrears of annual rent respectively for the period of 2019 to 2020.

In summary, the community are demanding immediate payment of her 41 years arrears of land rent totaling N908,0000,000.00 (Nine hundred and eight million naira) only as well as N100 million, being Makaraba Elders/Community Chiefs customary money and additional N100 million peace bonus for Makaraba exco members.

They are also demanding immediate recognition of neighbouring Poutobor community as host community to Chevron Nigeria Limited.

Besides, the community demanded the provision of basic amenities such as electricity, medical/health projects/facilities, pipe born water, provision of industrial labour and direct employment of the teeming youths in the community.

While saying that it was open to dialogue, the community gave Chevron Nigeria Limited 14 days ultimatum to furnish it with any evidence of the company’s payment of the said accumulated annual rent for the said period, if any, for consideration, reiterating that the none performance of the covenants contained in the lease agreement, and the total exclusion of the community and her people in the company’s employment and contract consideration constitute infraction of the Nigerian Local Content Law, the 1999 constitution, land law of forfeiture and other relevant laws.

Consequently, the letter threatened if the company default, fail and/or neglect to comply with its “modest demand” within 14 days of receipts of the letter, they would have no other option than to set legal machineries in motion and commence legal action against Chevron Nigeria Limited and claim damages at large without further notice.

Meanwhile, when contacted, Esimaje Brikinn, General Manager, Policy, Government and Public Affairs, Chevron Nigeria Limited, said that it was not true that the oil firm was indebted in any way to Makaraba community and her people.

According to him, Chevron Nigeria Limited, before it commenced its operations in Makaraba, followed due process during the acquisition of land for its operations in Makaraba field and duly paid compensation as required by law.

He said that there was no outstanding payment obligation on the land used for its operations in Makaraba and is not indebted to the community.

The terse message emailed in response to enquiries by BIGPEN reads; “Chevron Nigeria Limited (CNL) is aware of the claims by Makaraba community for alleged arrears of land rent and has engaged representatives of the community on the issue. CNL followed due process during the acquisition of land for its operations in Makaraba field and duly paid compensation as required by law. CNL has no outstanding payment obligation on the land used for its operations in Makaraba and is not indebted to the community.”