Sunday, October 20, 2019
Home > Oil > RIVERS STATE GOVERNMENT ACQUIRES 45% STAKE OF OML 11 FROM SHELL

RIVERS STATE GOVERNMENT ACQUIRES 45% STAKE OF OML 11 FROM SHELL

Governor Nyesom Wike

The Rivers State government has acquired Shell Petroleum Development Company (SPDC), 45% stake in Oil Mining Lease (OML 11) situated in Ejama Egbugbu community in Eleme Local Government area adjourning Ogoni and other communities in Rivers State.

Governor Nyesom Wike said he has directed the Rivers State Ministry of Finance, to make a bid of $150 million supported by a bank guarantee and cash payment to the Deputy Sheriff in a sum of N1billion. He added that it is an investment with profound and enduring positive implications on peace, security, development and prosperity for the oil producing communities of OML 11and the entire Rivers state including the country at large.

According to Governor Wike, “I am delighted to inform you that Rivers State government has fully acquired Shell Petroleum Development Company of Nigeria SPDC 45% interest in Oil Mining Lease (OML 11)”

The governor took time to explain the background that resulted to the latest development starting from the oil spill from Shell Petroleum Trans Niger High Pressure Crude Oil pipeline to Ejama community to a long run legal battle that was finally resolved at the Supreme Court. He said his administration gives due consideration to a number of factors before opting to buy Shell 45% interest in OML 11.

Wike was of the view that a lot of revenue is lost to the federation account accrueable to the 55% stake of the federal government OML 11 and by extension, the rest of the federating states of Nigeria due to the non-production of nearly 250000 barrels per day of the crude oil potentials. Equally about 6% of the country total output per day.

Rather than stand by and watched other persons or group to purchase Shell’s 45% stake of OML 11 to further worsened the plight of people in the state, Wike said his administration decided to weigh in and bided for the purchase of Shell’s interest already set down for action. “I directed Rivers State Ministry of Finance incorporated to make a bid of $150 million supported by bank guarantee and cash payment to the Deputy Sheriff in the sum of N1 billion to later payable to government creditors while the former purchase crude” the governor explained.

He said his administration will graciously transit some portion to its 45% equity to all the oil producing communities within the OML 11.

 

 

 

 

 

 

 

Energy Focus
Editor at Energy Focus Report.
https://www.energyfocusreport.com

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